mercredi 23 mai 2012

Global Packaging Industry CEO Business Outlook Survey 2012-2013

"Global Packaging Industry CEO Business Outlook Survey 2012–2013" is a new report by Canadean that analyzes how global packaging industry companies' procurement expenditure, business strategies, and practices are set to change in 2012–2013.

What is the current market landscape and what is changing?

C-level respondents from the global packaging industry expect increased levels of consolidation, with 61% of respondents anticipating that there will be either a 'significant increase' or an 'increase' in merger and acquisition (M&A) activities over the next 12 months.

What are the key drivers behind recent market changes?

Large packaging companies are seeking small and specialized companies to strengthen their core competencies, reduce costs, and resist competition with their enriched product mix. The higher expected levels of consolidation in the global packaging industry is also due to new cost or demand pressures, repayment of debts, the potential need to meet new compliance procedures, or gain quick access to new markets, business expansion, and attempts to increase market share.

Key Market Issues

Global packaging industry C-level respondents identify China to be the most important region for growth among emerging markets, along with India and the Middle East. Strong growth of semiconductor wafer fabrication and domestic electronics markets is further aiding growth expectations in China. There has been significant growth in the aseptic packaging sector in the country, driven by a rise in technological sophistication.

According to the survey, 56% of C-level respondents rate 'raw material prices' as the most important business concern in 2012, while 54% and 46% highlight 'responding to pricing pressure' and 'cost containment' respectively.

The average size of the global annual procurement budget among packaging industry C-level respondents is forecast at US$85 million for 2012. In addition, the Canadean industry survey reveals that C-level respondents' procurement expenditure is projected to rise by 11.5% over the next 12 months.

'Quality', 'level of service', and 'price' are considered very important factors for C-level respondents while selecting a supplier, whereas 'supplier's environmental record', 'supplier's CSR reputation', and 'proximity of supplier operations' are considered the least important factors.

The main reasons for an expected increase in the level of consolidation in the global packaging industry have changed to new equipment acquisition, increase operational efficiency, and to acquire growth opportunities.

Key Highlights

An analysis of responses by packaging C-level respondents reveals that 'new product development', 'IT infrastructure development', and 'machinery and equipment purchase' will record a significant increase in capital expenditure over the next 12 months.

As global packaging demand is projected to increase in the next 12 months, packaging C-level respondents plan to significantly increase their capital expenditure on 'new product development'.

According to the survey, 67% of C-level respondents project an increase in investment toward 'IT infrastructure development'. For example, in November 2011, Omni Systems, a private label converter based in the US, announced that it will invest in new MIS and ERP software. A senior executive from the company states, "We have selected the Radius ERP solution because of its specific focus on the labeling industry, its robustness, and the ability to cover the complete workflow, from quoting to printing to shipping."

Global packaging industry C-level respondents plan to increase capital expenditure on 'machinery and equipment purchase' over the next 12 months. For example, in March 2012, Beatson Clark, a glass packaging manufacturer based in the UK, decided to invest US$15.6 million in furnace improvements and new equipment at its Rotherham plant, and plans a complete reconstruction of its white flint furnace in July 2012. A senior executive from Beatson Clark states: "Our company sees growth in the food, beverage, and pharmaceutical sectors in the UK over the next 12 to 18 months. Therefore, we expect to invest in new design technology by updating its computer-aided design system to the 3D visualization software."

'Email and newsletters', 'social media and networking sites', and 'public relations' are expected to register the highest investment, as identified by 47%, 44%, and 36% of respective C-level respondents. Conversely, 'television and video', 'outdoor', 'radio', and 'newspaper' advertisement are expected to attract the least investment.

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