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FLEXO Magazine : March 2010
www.flexography.org MARCH 2010 FLEXO 13 FLEXIBLE PACKAGING SEGMENTS The largest market for flexible packaging is food (retail and insti- tutional) at 54 percent of shipments. Other markets for flexible packaging: • Consumer products, 10 percent • Retail, non-food, 9 percent • Industrial applications, 9 percent • Medical and pharmaceutical, 8 percent • Retail poly bags, 7 percent • Institutional non-food, 3 percent Source: Flexible Packaging Association, 2009 This report is not predicting economic change; however, some of the compa- nies in this report represent the largest manufacturers in the food, pharmaceuti- cal/healthcare and consumer products industries. Increased production is the major influencer driving packaging change with 15 companies installing new lines in the near future. More than 33 new production lines are going in with the majority of these in the food industry. ECONOMIC IMPACT World news in the past year has re- ported economic declines, decreasing profits, rising unemployment, devalua- tion of U.S. currency; which only repre- sents a few of the factors affecting how consumers and business professionals make purchase decisions. There are reports of economic recovery build- ing momentum. On Nov. 1, an article from The Associated Press posted on MSNBC.com, announced, "Companies are starting to spend on equipment." Although a growth rate of 1.1 percent in the third quarter is not huge, it's the first rise in nearly two years. The article points out that typically consumer spending drives economic recovery, but job losses, flat wages, tight credit and high debt point to how cru- cial business spending is for a recovery. Current economic conditions make it difficult for consumers to distinguish be- tween convenience and value and there is growing concern that consumers are shifting to private label or store brands due to a lower cost. The packaging industry professionals continue to juggle numerous variables to package their products in more sustainable, innovative and profitable containers. Manufacturers' number-one priority is to bring consumer products to market at an ever decreasing cost using methods of reducing the thickness of material, testing new plastics and pro- ducing smaller container sizes that save on transportation costs---all toward achieving greater sustainability. CHARACTERISTICS Participating companies cite the top three factors they are looking for in flexible packaging related to the pack- aging characteristics and manufactur- ing performance. Packaging Characteristics • Cost savings per package • Better shelf presence • Improved barrier performance Manufacturing Performance • Lower operating costs • Higher output • More flexible changeover There are niche markets in the food industry where companies are experienc- ing increasing sales while others are fol- lowing the market indicators of business decline or at best remaining steady. PMMI's "Flexible Packaging Outlook Report" summarizes comments and opinions from 43 packaging professionals regarding their current usage and growth, and their outlook for it. The data presents the decisions companies are facing as packaging options offer cost reduction, new materials to test and where best to source materials and machines. The study was designed for PMMI members to illustrate the trends and opportunities for all supply chain partners. Non-members can purchase the report for $3,500, at PMMI.org. For more information, contact Paula Feldman, director of surveys & research: pfeld- email@example.com or 703-243-8555. PMMI is a trade association with more than 530 member companies that manufacture packaging, processing and related converting machinery, commercially-available packaging machinery components, containers and materials in the United States and Canada. PMMI's vision is to be the leading global resource for packaging, and its mission is to improve and promote mem- bers' abilities to meet the needs of their customers. To learn more, call 704.588.3371 or Toll Free 800.438.3111 When you purchase your anilox rolls from Harper, you not only receive the most advanced anilox roll on the market, you gain access to the leading innovators and technical experts in the field of flexographic printing and converting. Technical support is a commitment we take so seriously, we devote an entire division to helping our customers achieve unprecedented levels of quality, consistency and profitability. Call 800-438-3111 and learn to work smarter. GRAPHICSOLUTIONS DIVISION HARPERIMAGE.COM Americas • Europe • Asia ©2010 We’re talking smart.
Sustainable Winter 2010