In This Corner. . .
In the fight for market share, flexible packaging brings many advantages into the ring.
April 2008 by Tom Polischuk
|
The flexible packaging industry is, and will continue to be, a relatively healthy segment in the realm of package printing. This doesn’t mean that everything is rosy—not by a long shot. The U.S. economy is being stressed to a significant degree by a credit crunch driven by the sub-prime fiasco, and inflationary pressures fueled by the cost of crude oil, which recently surpassed $110 per barrel.
Flexible packaging advantages
A slowdown in the economic environment not withstanding, flexible packaging has many factors in its favor. It continues to move into established packaging segments with distinctive product offerings, many times in the form of pouches. Although it’s losing some of its uniqueness, the pouch category continues to make inroads against other packaging segments.
In many cases, the recent focus on sustainability and the run-up in prices favor flexible packaging. From a sustainability standpoint, the amount of packaging material for a particular product can be significantly less, which also impacts the cost equation. Ehud Safrai, president of flexible packaging supplier CLP Packaging Solutions, notes that a pouch can provide the same volume capacity as a rigid plastic container, while requiring as little as 40 percent of the plastic material required to create the rigid container.
This can translate to a significant positive impact on both costs and sustainability when it comes to transportation. One truckload of empty one-quart pouches can replace nine truckloads of one-quart bottles, says Safrai, reducing transportation costs and overall carbon footprint. “It’s transportation that really challenges rigid packaging,” he says.
Then and now
The year that just passed could go down as a transition year from an economic standpoint. Many of the factors that are currently stressing our economy had their roots in or accelerated noticeably during 2007. These would include the housing industry slowdown, the sub-prime problem, oil price increases, and recessionary factors.
The price increases had a particularly challenging effect on companies throughout the entire supply chain. “We had big increases in our materials and transportation costs, but customers were putting pressure [on us] in an effort to keep our prices down,” states Safrai. “Now, I think the reality of the new market, the reality of $100-a-barrel oil, is setting in and customers are accepting prices that reflect the changes in our costs.”
Safrai still has an optimistic view of the flexible packaging industry. This could be influenced by CLP’s strong niche in pouch production, a continuing growth segment in packaging. “We are enjoying great growth in the flexible packaging industry and we expect it will continue for years,” says Safrai.
Flexible packaging advantages
A slowdown in the economic environment not withstanding, flexible packaging has many factors in its favor. It continues to move into established packaging segments with distinctive product offerings, many times in the form of pouches. Although it’s losing some of its uniqueness, the pouch category continues to make inroads against other packaging segments.
In many cases, the recent focus on sustainability and the run-up in prices favor flexible packaging. From a sustainability standpoint, the amount of packaging material for a particular product can be significantly less, which also impacts the cost equation. Ehud Safrai, president of flexible packaging supplier CLP Packaging Solutions, notes that a pouch can provide the same volume capacity as a rigid plastic container, while requiring as little as 40 percent of the plastic material required to create the rigid container.
This can translate to a significant positive impact on both costs and sustainability when it comes to transportation. One truckload of empty one-quart pouches can replace nine truckloads of one-quart bottles, says Safrai, reducing transportation costs and overall carbon footprint. “It’s transportation that really challenges rigid packaging,” he says.
Then and now
The year that just passed could go down as a transition year from an economic standpoint. Many of the factors that are currently stressing our economy had their roots in or accelerated noticeably during 2007. These would include the housing industry slowdown, the sub-prime problem, oil price increases, and recessionary factors.
The price increases had a particularly challenging effect on companies throughout the entire supply chain. “We had big increases in our materials and transportation costs, but customers were putting pressure [on us] in an effort to keep our prices down,” states Safrai. “Now, I think the reality of the new market, the reality of $100-a-barrel oil, is setting in and customers are accepting prices that reflect the changes in our costs.”
Safrai still has an optimistic view of the flexible packaging industry. This could be influenced by CLP’s strong niche in pouch production, a continuing growth segment in packaging. “We are enjoying great growth in the flexible packaging industry and we expect it will continue for years,” says Safrai.
Companies Mentioned:
 |
|
|
