The casings business is a tale of contradictions. Its dynamics don’t always gel in the same manner as those in other parts of the industry. Common variables like capacity, price, and innovation rarely seem to be on the same wavelength. Add to that the U.S. market – the largest consumer of casings - is served primarily by a handful of domestic subsidiaries from their Europe-based production facilities. But business is good.
In general, the market is growing faster than casings manufacturers’ abilities to satisfy demand, according to an industry source. “The challenge is scheduling and capacity. Lead times are very long. They’ve stretched out from 12 weeks to 16 weeks, and in some cases 20 weeks.” Suddenly, the more service-oriented suppliers are compelled to inventory more sizes, colors, and shapes of casings here at home, so their customers have less incentive to look elsewhere for options.