Packaging industry not spared by tough economy

February 2009

multipage

The economy has not been exactly easy on American industry as of late. And, businesses in the package-printing industry are no exception to those dealing with the difficult times. With consumers and business partners cutting back on spending, it has been a rough few months. Some companies are still doing well, others are struggling, and some are closing their doors. packagePRINTING rounded up headlines reporting the impact that the economy is having on the package-printing industry—what companies and industry segments are being hit hard, which ones are still thriving, and where some opportunities may lie.

Some strong results

• 3 Sigma Corp. has reported strong sales and profit growth in 2008. President Larry Slaven, commented: “During the year, the company made a number of process improvements and introduced new products which customers found very attractive. We grew in 2008 both by expanding business at existing customers and by developing new client relationships, all in a generally flat market.”

• In December, Aquaflex reported that 2008 sales revenue increased 73 percent compared to 2007. The number of presses sold internationally in 2008 increased four-fold. 

• GMG increased its sales by more than 4 percent compared to 2007. The greatest increases were recorded in Benelux, Eastern Europe, Southeast Asia, and The Middle East. 

• Flexotecnica has completed a number of installations in the U.S. in 2008 and has a backlog of orders for the beginning of 2009. As a result, its North American service infrastructure is being reinforced in 2009 to further support this growth. 

• Cascades Inc. made its first investment of $5 million at its Norampac plant in Kingsey Falls, to streamline this linerboard facility. In Quebec, Cascades invested more than $50 million last year and about $175 million was allocated for fixed capital costs for its entire organization worldwide. In 2009, depending on the economy and the company’s financial performance, Cascades plans to invest about $100 million in capital costs.

• RockTenn saw net sales of $703.1 million for the first quarter of fiscal 2009, which increased $106.8 million (18 percent) over the first quarter of 2008 due to increased sales in corrugated packaging related to the Southern Container acquisition.

Making tough choices

• Color-Box will eliminate 74 jobs at its cardboard-packaging plant, based on filings with the Indiana Department of Workforce Development, according to the Indianapolis Star.

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