Recently, the Flexible Packaging Association held its 59th Annual Meeting: Navigating in Times of Change. The meeting provided FPA members and guests with education sessions specific to the flexible packaging industry and great networking opportunities. Electronic copies of the Annual Meeting presentations can be downloaded from the Members Only section of the FPA website at www.flexpack.org.

FPA Benefits the Industry

George Thibeault, Jr., immediate past chairperson and president of Constantia Hueck Foils LLC, thanked the FPA board of directors and members for their hard work, time and support. He noted that FPA remains a strong association and will continue to excel under the leadership of James Love, III, FPA chairperson and vice president of International Business for Printpack Inc.

George provided an overview of the association’s achievements and accomplishments for 2008. He emphasized that FPA activities and programs-such as proactive government relations, valuable information and data, rewarding networking and educational events, industry promotion-not only benefit FPA members, but the entire flexible packaging industry.

George discussed the completion of the first phase of FPA’s sustainability initiative and detailed the FPA’s next steps in the sustainability discussion. He also reviewed the many benefits of FPA membership including the Student Initiatives Program, the FPA website, the Flexible Packaging Achievement Awards Program, Regulatory and Government Affairs, Industry Information and Benchmarking Reports.

Preview of the 2009 FPA State of the Industry Report

James Love, III, FPA chairperson and vice president of International Business for Printpack Inc., shared with meeting attendees preliminary results of the 2009 State of the Industry Report.

In his address, James reported that the flexible packaging industry is the second largest segment, representing 18% of the U.S. packaging industry,

surpassing rigid and miscellaneous plastic for the first time. FPA’s State of the Industry Report focuses on the “value-added” flexible packaging segment, which is valued at $20 billion and accounts for 77% of the total flexible packaging industry.

During his overview of the industry, James commented that general growth of the industry is doing well, with a compounded annual growth rate of 3.4% over the last decade. Sixty-seven percent of preliminary survey respondents, representing about 30% of the industry,

experienced higher revenue in 2008 versus 2007. James also discussed flexible packaging expenses (2002 versus 2008), printing preferences for converters, flexible packaging end-uses, major industry challenges and opportunities, flexible packaging imports and exports, mergers and acquisitions (M&A) activity, future industry performance and FPA’s initiatives for 2009.

Update on the European Flexible Packaging Market

Stephan Glimm, executive director of Flexible Packaging Europe, provided an update on the European flexible packaging market. During his presentation, he reviewed key European flexible packaging market trends for 2007, including sales, converted material demand and market production. Stephan also discussed key food-contact legislation that is impacting the European market, as well as FPE’s sustainability initiatives, including key messages, life cycle analysis, food waste and spoilage, information dissemination and capacity building.

The Employee Free Choice Act

Thomas Smith, a partner in the Boston and Miami offices of Jackson Lewis LLP, discussed with Annual Meeting attendees the Employee Free Choice Act (EFCA) and provided an overview of what flexible packaging companies need to know about this potentially new labor law. Thomas shared how FPA members can prepare their companies for the EFCA and issues they should consider. He also advised meeting attendees of the “practical effects” the EFCA may have on employers, collective bargaining, organizing tactics, card signing and freedom of speech.

Achieving a Competitive Advantage Through Branding

Alan Isacson, president and founder of ABI Marketing Public Relations, shared his insight for growing sales in tough times through strategic branding. He discussed how flexible packaging companies can help give their

customers a competitive advantage and detailed his 10 step process for obtaining an edge within consumer markets.

Update on Flexible Packaging Materials

Nick Vafiadis, business director of the polyolefin division of Chemical Market Associates Inc. (CMAI) provided FPA Annual Meeting attendees with an update on flexible packaging materials. Nick’s presentation was a follow up to his 2008 FPA Fall Executive Conference presentation on flexible packaging materials cost and availability. During the 2009 FPA Annual Meeting, Nick discussed the impact of current economic conditions on the flexible packaging industry. He also provided an overview of ethylene, polyethylene and polypropylene, detailed key drivers and trends affecting flexible packaging materials, and shared future expectations.

Competing in a Chaotic Economy

Todd Buchholz, global economist and market expert, discussed how the flexible packaging industry can find prosperity in a chaotic economy. Todd provided meeting attendees with a “macro view of the economy” and examined what he called the “era of hyper-competition.” He also discussed the current status of the housing market, solutions for economic challenges and leading indicators to watch.