As we head into 2019, consolidation will continue to be an impactful trend in the industrial, transit and protective packaging sector, as the industry prepares for Industrial Pack 2019, which takes place at the Cobb Galleria Centre, Atlanta on 27-28 March. It is the only event focused on industrial, transit, and protective packaging.
Consolidation is one of the many important topics that will be discussed throughout the numerous conference sessions and networking opportunities at Industrial Pack 2019.
M&A activity is showing no signs of slowing down. The pros and cons of the impact that consolidation is having on the industrial packaging sector is up for debate and it clearly depends on who you talk to. One thing is certain, small and large companies are facing a wide variety of challenges and benefits from consolidation.
To large companies, consolidation can provide economies of scale, increasing their reach through mergers and strategic partnerships. This can give a company the opportunity to compete in areas where distance formerly made business cost prohibitive. They can also offer competitive pricing and better levels of service.
Bill Colaiaco of Purple Diamond Testing Services and former procurement manager for BASF says that consolidation is one of the biggest differences of the last 10 years in the industry and it’s grown from a necessity of competition. Colaiaco explains, “From the M&A activities of the big chemical companies through to the industrial packaging suppliers merging, the industrial packaging options and providers had to become stronger just to compete. This industry is a regulated, performance based, and a price driven business for the most part.”
In the reusable packaging segment, RIPA’s Paul Rankin explains, “Consolidation is perhaps the most obvious issue facing reconditioners in many parts of the world. Until fairly recently, most reconditioners were family-owned enterprises with one or two locations. Today, several companies are actively buying or creating partnerships with reconditioning businesses all over the world. It is difficult to predict how consolidation will impact the business of reconditioning over the long-term, but I expect this activity will continue apace for the foreseeable future.”