Leaders.com
  • Login
  • Subscribe
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
  • Login
  • Subscribe
Markets

Cardboard boxes can tell you a great deal about the state of the economy (Gado/Getty Images)

By Tyler Hummel Leaders Staff

Tyler Hummel

Tyler Hummel

Tyler Hummel is a news writer for Leaders Media. He was the Fall 2021 College Fix Fellow and Health Care...

Full bio


Learn about our editorial policy

Apr 26, 2023

Cardboard Box Sales As Economic Indicator

The movement in sales of corrugated cardboard boxes reflects the broader state of the economy. 

Key Details

  • Corrugated box sales have declined in the past two years, Axios reports. 
  • Packing Corporation of America reports a 7% decline in share prices, while United Parcel Service dropped 10% due to sales drops. 
  • The Federal Reserve raised interest rates to 4.75% to 5% on March 22, which has continued to tighten money and create concerns of an imminent recession. 
  • Industry leaders remain unconvinced that this reflects a decline in the overall economy.

Why It’s Important 

Boxes are a banal but crucial aspect of the modern economy. The vast majority of products are shipped in cardboard boxes at some stage in their production or transportation. If a company anticipates lower sales volume, it orders fewer cardboard boxes. If the sales of boxes are decreasing, it could be a sign that all sales are decreasing because the economy is slowing down. 

Industry leaders in the box industry argue that the shift is caused by a change in the economy, with UPS CEO Carol Tomé noting that consumer spending is shifting from goods to services at the moment, reflecting greater strength in that area of the economy—potentially good news given that it reflects 70% of GDP, Axios notes. 

Notable Quote 

“The shift of consumer buying preferences, more toward service-oriented spending, persistent inflation, and higher interest rates continued to negatively impact consumers’ purchases of both durable and nondurable goods,” says Packing Corporation of America EVP Thomas Hassfurther. 

Backing Up A Bit 

However, a decline like this is only sometimes a good economic indicator. The “Cardboard Box Index” is an established investor tool that is used to gauge the future production of consumer goods. As we previously reported, retail sales have declined in the past two months, reflecting a market dealing with high inflation and high interest rates. Yearly inflation is currently 5%. 

Alternatively, CEOs are feeling relatively confident about the prospects of avoiding a recession. Despite tightening retail sales and labor markets, consumer confidence and spending remain very high, benefitting from the continued afterglow of the COVID-19 pandemic and energetic consumers eager to attend live events and take vacations. A soft landing for the economy is not out of the question. 

Home / News / Cardboard Box Sales As Economic Indicator
Share
FacebookTweetEmailLinkedIn

Related Stories

Amazon’s A-To-Z Adage Does Include Ads

by Hannah Bryan Leaders Staff
Business

28 minutes ago

amazon ads

Amazon Web Services (AWS) is one of Amazon’s main sources of profit, but its ad business is growing even faster.

Key Details

  • As Amazon’s ad business accelerates past AWS, it signals more changes in an already-tumultuous economic environment.
  • Amazon’s ad product revenue increased by 21% in the first quarter compared to last year, reaching $9.5 billion.
  • By comparison, AWS’ revenue increased 16% in the same time period. Amazon’s online sales grew 3%.
  • AWS and online sales still outpace ad revenue. AWS brought in $21.4 billion and online sales $51.1 billion, but the ad business is growing faster.

Go deeper

FacebookTweetEmailLinkedIn

Forging the Future Of Value-Based Healthcare 

by Tyler Hummel Leaders Staff
Markets

4 hours ago

Two of the largest non-profit healthcare organizations in the U.S. are attempting to expand into a national organization—pending federal approval. 

Key Details

  • Kaiser Permanente is an Oakland, California, healthcare company that provides insurance and owns multiple regional hospitals and medical networks. 
  • Geisinger Health is a Pennsylvania-based research institute, teaching school, and care facility with 10 hospital campuses, working with the Geisinger College of Health Sciences
  • In a Wednesday press release, Kaiser announced that it would be acquiring Geisinger and transforming it into Washington, D.C.-based Risant Health.
  • This new entity will acquire additional hospital systems and form a non-profit value-based organization and spread Kaiser’s model into new communities and markets. 
  • The acquisition is awaiting regulatory approval before it may move forward but could happen as soon as early 2024. 

Go deeper

FacebookTweetEmailLinkedIn

Next Marketing Steps For Bud Light 

by Tyler Hummel Leaders Staff
Marketing and Sales

Apr 30, 2023

Anheuser-Busch’s corporate apology and leadership shakeup reflects a brand backtracking on a mistake—but it needs a bold new direction to move forward. 

Key Details

  • Bud Light VP Alissa Heinerscheid took extended leave late last week following an April 14 backtracking due to a public backlash against its new company spokesman—transgender activist Dylan Mulvaney. 
  • Anheuser-Busch executives have informed its distributors that the company is going to invest more heavily in marketing for upcoming sports events like the NFL draft to make up for declining sales, The New York Post reports.  
  • The company is making significant changes to its senior marking team, streamlining its brands, and bringing in two Washington, D.C.-based conservative consultants to assist the direction of the brand, Fox Business reports. 
  • Marketing experts differ on a new direction for the brand—trying to reclaim the previous customers and eschew the need for a spokesman or go in an entirely new direction with a bold new spokesman.

Go deeper

FacebookTweetEmailLinkedIn
everything is a rental
Business

Apr 29, 2023

World Travel Without the Hassle Of Luggage

by Hannah Bryan Leaders Staff
Markets

Apr 29, 2023

The Effects Of a Digital Cashless Society 

by Tyler Hummel Leaders Staff
inspiring the workforce
Leadership

Apr 29, 2023

One Leader’s 5 Tips For Inspiring a Workforce

by Hannah Bryan Leaders Staff

Recent Articles

Personal Growth

3 hours ago

How Adaptability Can Make or Break Your Career in the Coming Years

The business world is always changing, making adaptability a necessary skill.

Wealth

Apr 27, 2023

How to Make an Extra $1000 a Month Starting With Only $100 

You can make an extra $1000 per month with a small upfront investment or a part-time job.

Leadership

Apr 26, 2023

Narcissists in the Workplace: Signs Your Coworker or Boss Might Be One of Them

Narcissistic bosses do whatever it takes to gain success and power.

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2023 Leaders.com - All rights reserved.

Search Leaders.com

x