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FLEXO Magazine : November 2012
Industry Indicators Economical, Functional, Impactful carton converting: Burgeoning Business, Poised for Growth By robert Moran With some 40,000 employees and approximately 500 plants providing better than 5.2 million tons of paperboard packaging in 2011, leading market watchers see folding carton converting as a burgeoning business enterprise in the United States. Proponents of that description include Flexographic Technical Association, the U.S. Census Bureau, Paperboard Packaging Council, as well as major packaging market research analysts The Freedonia Group and RISI. Growth rates for the coming two years (2013-2014) predict annual sales boosts of 4.7 percent and tonnage or production output improvements of just under 1 percent. Value per ton of output is also on the rise. RISI pinpoints it at 4.1 percent. Stable earnings are expected to accompany the steady growth. While PPC places current sales at $8.8 billion, Freedo- nia forecasts that increases in demand will result in sales hitting $9.8 billion by 2016. INSIDE FTA In FTA circles, printers are reporting increases in busi- ness. Latest survey results indicate that 73 percent of member converters report revenues were up for the last 12 months and they say the trend looks to be continuing. When it comes to folding carton converters, some 45 say sales trends are inch- ing upward. In total, between 7 and 10 percent of active FTA printer members engage in the trade. That’s slightly more 22 FLEXO noveMBer 2012 www.flexography.org FOLDING CARTON WATCH $8.8 Billion Current Sales Volume $9.8 Billion 2016 Sales Projection 50% Food & Beverage Packaging’s Market Share 5.2 Million Tonnage Produced Annually 40,000 Approximate Number of Employees 500 # Plants in U.S. 1839 Year First Folding Cartons Printed & Converted