Well over half of folding carton industry suppliers have a positive view of the industry (57.8 percent call it “healthy” or “thriving.”) That a full 10-point advantage over the percent of their converter customers who say so, according to data from Paperboard Packaging’s 2010 Exclusive Census Report.

 

Still, good news for suppliers comes from the fact that the folding carton industry is working to improve efficiencies, as evidenced in the equipment-purchasing report. As one supplier in California says, “The folding carton industry is looking at ways to streamline product and this includes new equipment for growth and cost savings.”

 

The Census research also shows that folding carton suppliers are investing in the industry by upping their research and development (R&D) budgets. Forty-two percent of suppliers will spend more on R&D this year compared to last. Half will keep R&D budgets the same, and 8 percent will spend less in this area.
 
Top Concerns
While carton converting suppliers generally have fewer worries than they did last year, energy prices hasn’t dropped from the list of things they’re “very concerned” about (68 percent). While plants’ inability to pay, government regulations, overcapacity, and competition round out the top five, no other concern has more than half of suppliers worried.
 
Are Converters Satisfied?
The Census research reveal the discrepancies between what suppliers consider to be “very important” services they offer and how satisfied their customers are with those services.

 

Technical support is the most vital service folding carton industry say they offer – with four out of five suppliers rating it as “very important.”

 

More than half, 56 percent, of carton converters are “very satisfied” with this service.

 

Folding carton suppliers have three service areas where plants’ needs are not being met: training employees, parts availability, and consulting services.

 

Suppliers rate the training of converters’ employees as “very important” 56 percent of the time, but carton makers are “very satisfied” with the training they receive only 23 percent of the time.

 

Parts offerings are “very important” for 57 percent of suppliers, but only 37 percent of customers are “very satisfied.” The discrepancy in consulting is 45 percent of suppliers deeming it “very important” compared with 27 percent of converters who are “very satisfied.”
 
Catherine Penn of Penn & Associates, Cleveland, contributed to this report.