Beyond borders - Koen Pack navigates U.S. tariff challenges

Managing a company across two countries is no small feat, managing two that are at a crossroads is a real challenge. Marco shares: "Life teaches that you should always expect the unexpected, but if you would have asked me just a few years ago where I saw myself, I wouldn't have predicted that I'd be steering Koen Pack's North American operations in both the USA and Canada through a significant and unexpected change in market conditions."

Marco continues: "As we say in Dutch "het gaat me niet in de koude kleren zitten" (meaning "it doesn't leave me unaffected") After shaking off the initial shock and disappointment of these recent developments, we've taken the view of not seeing these challenges as obstacles, but as an opportunity to strengthen our North American operations, ensuring we continue delivering high-quality packaging to our customers. At a time when economic policies often pit the U.S. and Canada against each other, we believe that cooperation is the key to long-term success. By investing in manufacturing in both countries, we can create jobs, build resilience, and offer better service to our customers, proving that unity in business benefits everyone involved."

© Koen Pack

According to him, impending U.S. tariffs on imported materials could have significant consequences for the floral packaging industry. "Rising costs on raw materials like paper, plastics, and biodegradable alternatives could force price increases, ultimately affecting florists, grocery stores, and consumers. Additionally, supply chain delays from overseas suppliers may make it more difficult for businesses to receive their packaging on time."

Rather than allowing these challenges to dictate the future, Koen Pack is taking action. By strengthening production capabilities in North America, they are not only shielding themselves from tariff-related risks but also positioning their company for long-term success.

"A company like ours has the unique opportunity to unite both economies for the benefit of employees, customers, and industry as a whole. By strengthening production on both sides of the border, we are creating a stronger, more interconnected supply chain, one that serves customers efficiently while supporting workers in both nations." Marco shares.

By having production in both countries, Koen Pack has experienced several benefits. Faster, more reliable supply chains have been achieved by manufacturing in North America, significantly reducing shipping times and eliminating the unpredictability of international logistics. This results in quicker deliveries and fewer delays for customers, which is crucial in an industry where timing is everything. Additionally, cost stability and competitive pricing are maintained. While domestic production has its own costs, it provides stability by eliminating tariff uncertainties and currency fluctuations. Producing locally allows Koen Pack to maintain competitive pricing without unexpected cost surges.

Sustainability and a reduced carbon footprint are also key benefits. Koen Pack has always been committed to sustainability, and by reducing long-distance shipping, they lower emissions while maintaining high environmental standards in their production processes.© Koen Pack Furthermore, job creation and economic growth are supported by investing in production in both the US and Canada, benefiting workers and communities on both sides of the border. Rather than letting economic policies divide, Koen Pack demonstrates that collaboration leads to shared prosperity. Finally, customization and market responsiveness are enhanced by producing in North America, allowing for quick adaptation to market trends and customer demands. This flexibility enables Koen Pack to offer more personalized solutions for florists, retailers, and wholesalers, without relying on lengthy overseas production cycles.

Marco shares his hope for the future: "As we face the evolving landscape of global trade, Koen Pack is committed to not only weathering the storm but emerging stronger from it. Our North American strategy is a bold step towards long-term stability and innovation. I believe that is what we all need right now: stability and peace. At Koen Pack we have been having meetings and are continually checking in with each other. This is affecting everyday families and communities, and that thought drives me to find solutions. He continues: "Our vision transcends borders. We are here to rise above political unrest and show that unity and cooperation between the U.S. and Canada paves the way for shared success. With every challenge we overcome, we build a stronger, more resilient foundation for tomorrow."