FPA Releases 2010 State of the Flexible Packaging Industry Report

The Flexible Packaging Association’s annual State of the Flexible Packaging Industry Report is a key source of information for industry converters, suppliers, investors, and analysts. Data available in the report is gathered through the FPA members’ State of the Industry Survey and the non-member Industry-Wide Converter Survey. These surveys examine and assess sales and utilization levels, current profit trends, capital spending plans, merger & acquisitions activity, U.S. imports and exports, projected growth areas, and end-use applications. Survey participants represent $14 billion, or approximately 53%, of the total flexible packaging industry revenue.

The Report also includes data from the U.S. Census Bureau’s 2007 Full Economic Survey and 2008 Annual Survey of Manufacturers, the Bureau of Economic Analysis, investment banking reports, and additional authoritative sources. Following are highlights of the 2010 SOI Report.

Flexible Packaging

The flexible packaging industry is the second largest packaging segment, representing approximately 18% of the $143 billion U.S. packaging industry. Today, the U.S. flexible packaging industry is estimated to have $26.4 billon in annual sales (2009) - a 2% decline from 2008 annual sales of $26.9 billion. The “value-added” segment of the industry, which adds significant value to flexible materials usually by performing multiple processes (including extrusion, laminating and printing), is estimated to have $20.3 billion in sales revenue (2009).

Growth & Development

The flexible packaging industry has experienced steady growth, which has been aided by the development of innovative products, advancements in technology, the introduction of flexible packaging into new and existing markets, and the ability to meet the ever changing needs of customers and consumers. According to the report, from 1999 – 2009, the flexible packaging industry has grown at a compound annual rate of 3.1% per year.

By combining the best qualities of paper, plastic, film and aluminum foil, flexible packaging delivers a broad range of protective properties, yet employs a minimum of material. Flexible packaging’s versatility, efficiency and cost-effectiveness contribute to its continued growth. The 2010 Report notes that the ten leading flexible packaging companies, account for 54% of flexible packaging industry revenue, with an average size of $1.3 to 1.4 billion. 

Looking Ahead

According to the 2010 Report, sales revenue for 2010 is expected to increase by 3.4%, to approximately $27.3 billion. Looking ahead three to five years, flexible packaging converters expect revenue to rise by 4% per year.

The Report is a benefit of FPA membership and is available for download within the Members Only section of the FPA Web site, www.flexpack.org. Copies of the report are also available to FPA non-members for $3500.

For more information about the FPA 2010 State of the Flexible Packaging Industry Report and the FPA Business & Economic Research Program, contact FPA at (410) 694-0800 or fpa@flexpack.org.

FPA and U.S. EPA

Recently, the Flexible Packaging Association attended a public hearing on the Environmental Protection Agency’s proposed rules to reduce emissions of toxic air pollutants from existing and new industrial, commercial, and institutional boilers, process heaters and solid waste incinerators. FPA is monitoring the progression of the proposed rules, specifically, the definition development of nonhazardous secondary materials, which would be identified as nonwaste under the Resource, Conservation and Recovery Act (RCRA).

Several industry associations, NonGovernmental Organizations (NGOs), and private citizens testified at the hearing. The industry position was that emissions threshold levels are too low, cannot be met with currently available pollution control equipment, and that the compliance costs are excessively high and would result in loss of jobs. The NGOs support EPA’s action and call it necessary to reduce adverse health effects of emissions in adults and children. The Agency is under court order to finalize the rules by December 16, 2010. 

For more information, contact Ram Singhal, Vice President, Technology & Environmental Strategy at (410) 694-0823 or rsinghal@flexpack.org.

2010 FPA Fall Executive Conference: Register Today!

Join FPA members and guests for the 2010 FPA Fall Executive Conference (FEC), 9:00 a.m. – 5:00 p.m. on Thursday, September 30, 2010 at the InterContinental Hotel in Chicago, Ill.

FPA thanks Berry Plastics Corporation, Coim USA Inc./Novacote Flexpack, Comexi North America, Inc., The Dow Chemical Company, DuPont Company, Ecologic, LLC, Flint Group, Harper Corporation of America, Hosokawa Alpine American and NEX Performance Films for their generous sponsorship of the 2010 FEC Networking Events.

This full day Conference will feature speakers Brian Wesbury, a top economic forecaster and Wall Street Journal contributor; and Mike Duffy, assistant managing editor and chief political correspondent for TIME magazine. The Conference agenda also includes the review of FPA research results on:

• Corporate Sustainability Metrics for Flexible Packaging Manufacturers: A Guidance on Preparing Corporate Sustainability Reports, which examines existing external sustainability metrics and expectations of stakeholders.

• End-of-Life Options: Waste as Feedstock, which identifies the most promising technologies for increasing the beneficial use of flexible packaging “waste” generated after its intended use. Conference attendees will also hear from:

• John Baumann, president and CEO of Ampac Packaging, LLC and chairman of the FPA Board of Directors who will provide the 2010 FEC Opening Remarks

• Nick Vafiadis, business director, Polyolefins & PVC for CMAI, who will provide an Update on Flexible Packaging Materials

• Andy Williams of M33 Integrated Solutions, who will discuss Flexible Packaging Logistical Efficiencies

• Ben Miyares of Packaging Management Institute, who will share his insight on Retail Ready Packaging

For more information or to register for the 2010 FPA Fall Executive Conference, visit the FPA Web site at www.flexpack.org or contact FPA at (410) 694-0800. The hotel reservation deadline is August 28, 2010. Reservations can be made by contacting the InterContinental Chicago directly at 1-800-235-4670. 

2010-2011 FPA Flexible Packaging Buyers Guide

The 2010-2011 FPA Flexible Packaging Buyers Guide provides detailed information regarding the manufacturing and supply capabilities of FPA members. A user-friendly version of the Guide is available online through the FPA Web site, www.flexpack.org. Visitors may browse through the directory of product and material services by keyword, manufacturer and supplier. An electronic version (PDF) of the 2010-2011 Buyers Guide is also available for download free of charge from the FPA Web site. 

Information included in the 2010-2011 Buyers Guide will assist users in finding the best flexible packaging solution for their packaging needs. Manufacturing information includes product lines/end-uses for retail packaging, institutional, medical and pharmaceutical, and industrial applications. Manufacturing capabilities also highlighted in the Guide include final packaging, materials, printing, value-added services, and converting processes.  

Supplier information detailed includes machinery, adhesives, inks, coatings, resins, substrates, equipment and other supplies by FPA members to flexible packaging manufacturers. The Guide also contains FPA members’ contact information and brief company descriptions.

For more information about the 2010-2011 Flexible Packaging Buyers Guide and FPA members, contact the association at (410) 694-0800 or visit FPA at www.flexpack.org. 

FPA Members Sponsor Industry Interns

This summer, several FPA converter members including American Packaging Corp., Berry Plastics Corp., CL&D Graphics, Inc., and Constantia Hueck Foils LLC are participating in FPA’s 5th annual Flexible Packaging Academic Scholarship & Summer Internship Program. 

As a part of the FPA Student Leadership Initiative, the FPA Flexible Packaging Academic Scholarship & Summer Internship Program provides career development opportunities for packaging and printing (or other areas of concentration utilized in the converting industry) school students and encourages them to pursue careers within the flexible packaging industry. FPA, in conjunction with the sponsoring member companies, will award academic scholarship, valued at $3,000 each to the students.

Students participating in the 2010 FPA Flexible Packaging Academic Scholarship & Summer Internship Program were chosen from a competitive pool of applicants. This summer, American Packaging Corp. welcomes University of Wisconsin-Stout student Scott Evers as an intern; Berry Plastics Corp. is sponsoring Clemson University student Dan Blackburn as an intern; CL&D Graphics, Inc., is sponsoring Rachel Wisth who also attends the University of Wisconsin-Stout; and Constantia Hueck Foils LLC welcomes Western Michigan University student Kelly Peters.

During their internships, these interns will learn about different aspects of the flexible packaging industry including daily facility operations, package design and product production, and process logistics.

For more information about the FPA Student Leadership Initiative and the 2010 Flexible Packaging Academic Scholarship & Summer Internship Program, contact FPA at (410) 694-0800 or visit www.flexpack.org.

FPA Welcomes New Members

The Flexible Packaging Association is pleased to announce that FILMCO, a division of LINPAC Packaging, and Danafilms, Inc. have joined FPA.

FILMCO joins the FPA as a converter member and is a leading manufacturer of food-grade overwrap film for supermarket automatic, hand wrap and packer processor applications. Since 1963, FILMCO’s success has been underscored by continuous innovation that blends traditional quality with modern technology to deliver the best performance for today’s rigorous fresh meat, chicken, fish, fruit and vegetable case presentation. Lou Petersen, human resources manager is the company’s FPA official representative, and Karen Gail, marketing and sales manager is the FPA alternate representative.

FPA associate member Danafilms, Inc. is a custom blown film extruder with locations in Westborough, Mass., and Franklin, Ky. The company produces both monolayer and coextruded films utilizing a variety of resins among which are low-density polyethylene, linear LDPE, nylon and EVOH. Danafilm’s FPA official representative is Steve Crimmin, sales manager, and the company’s FPA alternate representative is Alan Simoncini, general manager.

For more information about FPA membership, or to view the full list of FPA members visit the FPA Web site, www.flexpack.org.