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Gearing Up for 2009
December 1, 2008 By: Esther Durkalski Hertzfeld Paperboard PackagingIn 2009, board converting professionals must be smart about where and how they invest in their companies — now more than ever.
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Board converters continue to say now is the time to focus on core business strategies. Yes, it's true that 2009 won't be a record-high, profitable year for our industry, but it'll still be a time of opportunity.
According to a report by the International Corrugated Case Association (ICCA), over the period 2001 to 2006, global corrugated production grew by an average 4.2 percent per annum. During the period 2004 to 2006, growth has been somewhat better, averaging 4.9 percent per annum. Over the next five years, corrugated growth will be marginally lower and is forecast to grow at an average rate of 4.4 percent per annum, reflecting lower growth in worldwide manufacturing activity.
But, the industry has advantages that it needs to market. Advances in industry growth can be bolstered by the increasing importance of higher-value boxes offering improved printing and graphics capabilities as producers seek ways to boost the aesthetic appeal of packaging in the face of competition, reports Reportlinker.com in a Wood and Paper market research report.
While boxes with more sophisticated graphics are typically more prevalent in the folding carton market, the popularity of warehouse club stores has prompted corrugated box converters to develop boxes that serve as attractive billboards.
Growth also can stem from the good environmental profile of corrugated boxes, which will become increasingly advantageous as interest in sustainable packaging continues to rise. This is still our industry's strongest selling point and we need to continue to do a better job at marketing the advantages of corrugated and folding carton packaging.
In addition, value gains will be supported by rising demand for boxes using more expensive white top linerboard grades that can accommodate high-quality printing, the report says.
A recent PMMI report on Secondary Packaging Market Research, predicted a move away from corrugated secondary packaging towards shrink wrapping but it was enlightening to read that not all end users and related companies feel that way.
The increased use of flexible packaging, such as pouches, is increasing the use of corrugated cases rather than trays in the supply chain, according to Cama Group Managing Director Daniele Bellante. The Cama Group, which is based in Italy, makes a range of secondary packaging machines, including cartoning, sleeving, case packing, and case erecting machines.
Bottles and tins should be and will be shipped in corrugated trays, Bellante says. Bellante added that many in the industry were looking at ways to reduce the practice of placing items into both a retail-ready case and then a transit shipper. One option is to strengthen the retail-ready case so that an additional shipper is not required.
While 2009 might not be the most prosperous year for all of you readers out there, I know some of you will make the year a huge success. I have already heard some of your success plans and I'm looking forward to hearing more in the months to come.
Thank you for your continued support of
Paperboard Packaging and best wishes for a successful 2009.
Contact Esther at
419-873-9886 or
ehertzfeld@questex.com
