The Holidays, Packaging, And Sales

The Holidays, Packaging, And Sales

The holidays are just around the corner and that means that annual consumer spending is about to dramatically spike.

Although consumers spend more at this time of the year than at any other point, for businesses that sell packaged items, the task of getting consumers to actually purchase a packaged good still remains. There are a variety reasons for this, amongst those being the graphic design of the package itself, and the allure of the product.

Consumers make impulse purchasing decisions in about 1/3 of a second, meaning that customers make their impulse purchasing decisions purely based on how attractive the package for that product looks. What this means is that businesses can excel in selling their products — if the packaging is done right, conversely, they might struggle to sell their product(s) if the packaging doesn’t connect with the consumer.

Package design and the holidays

The holidays are a busy time for most Americans, and most people are looking for products that can make their holiday and purchasing experience easier. A study by the Flexible Packaging Association found that 14% of consumers would pay more money for products that they can reseal. Being able to reclose a product helps to preserve its freshness, and it helps most people when gift wrapping comes along.

Consumers desire products that are reusable/refillable; for example, candy dishes. Until very recently, the only way that consumers could keep certain items fresh was through press-to-close zippers. Now, through new innovations (such as small-sized sliders), keeping food items fresh isn’t as much of a task it was once.

As the holidays rapidly approach, consider this, every item, product, or good that you purchase at the store comes in a package that was meticulously worked on, approved of, and market-researched.

Build Rehabilitation, which is located in Los Angeles, offers specialized packaging services to a variety of different businesses in the industry. With 200 disabled workers and 50,000 square feet available, we have space and the manpower required to service all of our clients and their custom packaging needs.

Automated Packaging Systems Is Offering A New Line Of Wide Bag Packaging Systems

Automated Packaging Systems Is Offering A New Line Of Wide Bag Packaging Systems

The world of packaging, manufacturing, and warehousing is rapidly evolving and changing. As globalization continues to become more and more prominent and as technology continues to impact the economy, the world of warehousing and packaging are keeping pace with the changes that are going on in order to remain at the forefront of a growing and diversifying economy.

Build Rehabilitation Industries has built up a reputation for embracing and utilizing technological innovations in the warehousing world.

Automated Packaging Systems has recently announced a new line of wide bag packaging systems.

According to a press release published by PRNewsWire.com

“Automated Packaging Systems, the world leader in high-reliability bagging systems, has introduced two new Autobag® bag packaging systems with advanced engineering technology for flexibility and efficiency in large bag applications. The new Autobag® 600™ and Autobag® 650™ Wide Bagging Systems will accommodate a range of Autobag® bags-on-a-roll and bags-in-a-box material up to 16 inches wide by 27 inches long.

Autobag 600 and Autobag 650 Wide Bag Packaging Systems

The Autobag 600 is a semi-automatic filling and sealing machine designed for packaging large products at speeds up to 65 bags per minute. An innovative engineering design has eliminated the need for light curtains or double-palm switches, while the adjustable six-inch pass-through enables faster, more efficient cycle times.

The Autobag 650 is the same wide bagging system with a fully-integrated next-bag-out printer that eliminates the need for a separate labeling operation, increasing speed and accuracy in mail order ecommerce, prescription-by-mail, catalog order fulfillment, and frequent changeover, variable data applications. The Autobag 650 prints and packs at speeds up to 40 bags per minute.

These baggers include an AutoTouch™ Control Screen that provides quick and easy access to job storage and recall, onboard diagnostics and productivity monitoring. The Autobag 600 and Autobag 650 can also be networked for full pack station integration and central monitoring. Both baggers feature an open design with fewer moving parts for longer life and ease of maintenance. Plus, the Autobag 600 and Autobag 650 easily integrate with Autobag and third-party equipment for fully automatic bag packaging operations.

About Automated Packaging Systems
Automated Packaging Systems has been designing and manufacturing original Autobag®, AirPouch®, and SidePouch® systems and products for over 50 years. With more than 30,000 packaging systems in operation and a worldwide service organization, Automated Packaging Systems has the experience and support to deliver the ultimate in customer satisfaction. Automated Packaging Systems offers a complete line of baggers, void-fill and protective packaging systems, stretch sleeve labels, thermal transfer imprinters, counters, scales, and specialty packaging materials. Complete information is available at the company’s website.
www.autobag.com.”

Build Rehabilitation, which is located in Los Angeles, offers specialized packaging services to a variety of different businesses in the industry. With 200 disabled workers and 50,000 square feet available, we have space and the manpower required to service all of our clients and their custom packaging needs.

Packaging Experts Praise Amazon’s New Incentive Program

Packaging Experts Praise Amazon’s New Incentive Program

Amazon has recently announced a new, innovative program called the “Amazon Incentive Program”. Basically, this program is geared towards certified Frustration-Free Packaging (FFP) on certain products sold by Amazon.

This news has been met with positive responses by packaging pundits and analysts.

Here are some quotes by experts in the field regarding the Amazon Incentive Program:

Brian Wagner, co-founder and principal, PTIS LLC: “We have worked with clients to develop holistic ecommerce and omni-channel packaging strategies. This fast-growing channel is driving and will drive packaging, automation and supply chain innovation, to cut waste and improve margins for all across the entire value chain. We also provide consulting advice, design and opportunities for Amazon FFP and SIOC [Ships in Own Container].

Some thoughts on the new incentive program:

  • Consumers will love it and should help to centralize waste for collection, so that is good.
  • Amazon’s timing seems a bit aggressive, so we assume it will be phased in.
  • Directives like the Walmart Scorecard and item level RFID [radio frequency identification] set a bad precedence, and didn’t work. However, mandating concentrated liquid laundry detergent made a truly positive impact. Amazon’s directive is consumer and cost driven.
  • This will likely be the ‘kickstart’ that many companies needed to truly design packaging for the ecommerce channel. Many have been using the exact same package format they use in retail and simply let Amazon rebox the product.
  • This could really have a dramatic change on package design—elimination of windows and cut outs, for example. Do you put the nice graphics on the inside of the box instead to delight the consumer upon opening?
  • This could have a dramatic effect on Amazon’s shipping costs—no longer shipping a box in another box.
  • There will be lots of pressure to get certified FFP based on the timing—labs will be busy!
  • Timing could be tough—many packages have been designed for retail, but not the rigors of single-unit direct-to-consumer shipping. Impacts could be pretty large based on which categories are selected by Amazon.
  • This is just the start. I can see this (Amazon’s ecommerce pack) becoming a standard package format in every company’s product portfolio as Amazon expands this to other categories. If you’re not impacted today, I’d take the time to start thinking about how you would achieve FFP certification and protect your product for direct-to-consumer shipping (which is likely for products and SKUs [stock-keeping units] over a certain size).
  • Packages that are easier for consumers will generate positive reviews, and will ultimately lead to more package recycling.
  • Be sure to use How2Recycle labeling to communicate to the consumer!”

Matt Dingee, co-founder and COO OnPoint2020: “The Amazon news is a big step and I think will be a pivotal moment for brands and packaging in ecommerce. Although it has flashbacks to Walmart, I think it will have a more powerful outcome for two reasons.

First, the mindset will change for brands to truly meet FFP compliance. Brands that take this to heart will necessarily engage experts and packaging ideas from all over to meet the Amazon guidelines. During this process, brands will discover that there are many sustainability and business benefits beyond compliance. As a result, brand mindset toward packaging design for ecommerce (Amazon) will be elevated.

Second, FFP is primarily of direct benefit to the consumer. So the outcome is not actually serving Amazon or some subjective metric, but the consumer directly. The brand now has an opportunity to improve packaging and product design for a customer ecommerce experience!”

David Luttenberger, global packaging director, Mintel: “You drew a parallel between WalMart’s Scorecard and Amazon’s FFP certification program. I believe what Amazon is doing is very different and is being received by vendors in a totally positive light. Amazon is incentivizing CPG [consumer packaged goods] vendors and training them to create more environmentally responsible packaging, which in and of itself will save them money and create supply chain efficiencies. At the same time, it’s enabling them to retain proprietary branding while creating a more cost- and logistics-efficient system in which to sell and profitably compete.

Mintel is now qualified as an APASS certified consultant, having gone through the training at Amazon’s Seattle headquarters. It’s eye-opening to see the ISTA6 testing protocols Amazon has developed and to witness real testing in person. Amazon tests packages and products to the worst-case scenario, the outcome of which is two-fold. First, it ensures that a consumer will receive products and packages that are undamaged and which reflect the equity of the brand. That is critical to a successful ecommerce experience for the consumer. Second, it will significantly reduce costs to Amazon for damaged and returned goods, which in turn will help it keep its overall costs of fulfillment and distribution as low as possible.

Finally, it’s interesting—and totally believable once you experience it first-hand—but Amazon considers itself to be a sustainability company, not an ecommerce retailer or logistics/distribution company. Everything it does reflects that mindset, and its package testing protocol is just one facet of a multi-faceted plan to prove that day by day, package by package.”

Build Rehabilitation, which is located in Los Angeles, offers specialized packaging services to a variety of different businesses in the industry. With 200 disabled workers and 50,000 square feet available, we have space and the manpower required to service all of our clients and their custom packaging needs.

Packaging Market Forecasts from 2018 To 2023

Packaging Market Forecasts from 2018 To 2023

The economy is rapidly evolving and changing at such a pace that it’s somewhat difficult to predict where we’re headed in the long-term. With that being said, the next five years are easier to examine. The global industrial packaging market has been valued at $65.072 billion as of 2017 and is projected to grow at a rate of 3.95% (or $82.079 billion) by 2023. The diversity and complexity of products, advancements in modern technologies, and research and development investments are the major drivers in the market.

Research and Markets has recently published a forecast/press release with numbers and figures that relate to the 2018-2023 economy.

By Type

“On the basis of type, sacks account for a significant market share expected to grow at the highest rate over the forecasted period. Plastic and synthetic sacks are preferred over the traditional jute sacks due to their tough properties. On the basis of packaging materials, plastic is expected to show a significant growth over the forecasted period due to its high utilization in Food & Beverages and Chemical industries. Region wise, Asia Pacific, Europe, and North America hold a significant market share in the global industrial packaging market.

By Material

The plastic material segment is expected to show the highest growth rate over the forecast period followed by the paperboard material segment. Plastic can be molded into a wide range of packaging solutions which are fit for packaging of all types of products with their utility being the highest in Food & Beverages industry and Chemical industry. The utility of paperboard packaging solutions is limited to the food industry.

By Industry

Industrial packaging has been a vital part of every industry globally. The application of packaging solutions in an industry increases with the growth of that industry. The demand for improved packaging solutions is increasing in every industry. The companies try to use the best of all the solutions available in the market which can provide them with benefits such as protected storage, handling and convenient transporting of their products from manufacturing units to the distributors. Increasing production by the companies to fulfill the growing demands of their customers will lead to an increase in the demand for packaging solutions.

By Geography

Asia-Pacific accounts for the largest share in the global industrial packaging market followed by Europe and North America. Asia-Pacific is expected to show the highest growth rate over the forecast period due to increasing exports by the emerging economies like India, Japan, and China. Increasing industrialization in this region will increase the demand for industrial packaging solutions. Strict rules by the governing bodies in this region have made it mandatory for the companies to follow standard packaging guidelines for their products to prevent any kind of contamination and emission which can otherwise cause environmental and health hazards. Europe and North America have a large number of companies which produce large volumes of products every year. An increase in production by these companies will lead to an increase in demand for efficient packaging solutions.

Research Methodology

This research study examines the current market trends related to the demand, supply, and sales, in addition to the recent developments. Major drivers, restraints, and opportunities have been covered to provide an exhaustive picture of the market. The analysis presents in-depth information regarding the development, trends, and industry policies and regulations implemented in each of the geographical regions. Further, the overall regulatory framework of the market has been exhaustively covered to offer stakeholders a better understanding of the key factors affecting the overall market environment.

Market intelligence is presented in the form of analysis, charts, and graphics to help the clients in gaining faster and efficient understanding of the global industrial packaging market.

Major industry players profiled as part of the report are Ball Corporation, Crown Holdings, Inc., International Paper, WestRock Company, and Mondi Limited among others.”

This press release was originally published by ResearchandMarkets.com.

Build Rehabilitation, which is located in Los Angeles, offers specialized packaging services to a variety of different businesses in the industry. With 200 disabled workers and 50,000 square feet available, we have space and the manpower required to service all of our clients and their custom packaging needs.

Expert States That The Packing Industry Is Embracing Demands For Sustainability

Expert States That The Packing Industry Is Embracing Demands For Sustainability

The following is an excerpt written by Philip Chadwick. It relates to recent trends in the packaging and warehousing industries, and their renewed efforts to produce products and items that are sustainable.

“Feedback from our experts on judging day for the UK Packaging Awards 2018 wasn’t too surprising. Entries for the quality awards seemed to pick up on the sustainability trend and while judges remarked that some efforts “weren’t quite there yet” it seems only a matter of time that the packs required to meet the challenges set out in the UK Plastics Pact will account for the majority.

This year’s judging day felt different. It’s as if the debate over plastics has energized the sector. Whether it’s finding plastic replacements or reducing the material’s use, the challenge has been picked up by technologists and designers. This approach has focused minds in the food sector. The dilemma that’s still facing the market is food waste and packaging’s role in reducing it.

As the Packaging Federation’s Dick Searle notes, ‘if global food waste was a country, it would be the third largest carbon emitter in the world’. And it just happens that plastic is a material that technologists love – it’s durable and has properties that can extend shelf life.

Of course, no one wants to solve one environmental problem only to create a bigger one. The balancing act for retailers and brands is a tricky one. It will be interesting to see how next year’s entries fare; are the plastic replacements for food ready and are they meeting the requirements to extend shelf life?

Developments in the disposable coffee cup saga are also moving, albeit slowly. Our Analysis examines DS Smith’s cup recycling plant in Kemsley. It’s currently waiting patiently for cups to recycle and hopes that the recycling and collection market will soon be fully established. For DS Smith, perhaps it’s a case of ‘if they build it, they will come.’”

As the 21st century progresses, the technologies involved in packaging and warehousing goods will only continue to advance, and within 100 years, who knows what typical warehouses will even look like. One thing is for certain, Build Rehabilitation is at the forefront of warehousing and packaging technologies.

Build Rehabilitation, which is located in Los Angeles, offers specialized packaging services to a variety of different businesses in industry. With 200 disabled workers and 50,000 square feet available, we have space and the manpower required to service all of our clients and their custom packaging needs.

Robots In Manufacturing

Robots In Manufacturing

Although there will not be a time in the near future when robots will make human labor obsolete, the number of robots in the workplace is only going to increase. At the time of this blog’s posting, there are 74 robots per 10,000 employees working today. The United States has roughly 189 robots per 10,000 employees working. As it currently stands, the United States ranks seventh overall on the planet for the most automation/country with the most amount of robots in the workplace.

According to the World Robot Statistics, “the number of industrial robots deployed worldwide will increase to around 2.6 million units by 2019. That’s about one million units more than in the record-breaking year of 2015. Broken down according to sectors, around 70 percent of industrial robots are currently at work in the automotive, electrical/electronics and metal and machinery industry segments. In 2015, the strongest growth in the number of operational units recorded here was registered in the electronics industry, which boasted a rise of 18 percent. The metal industry posted an increase of 16 percent, with the automotive sector growing by 10 percent.”

Additionally, they found that “The USA is currently the fourth largest single market for industrial robots in the world. Within the NAFTA area (the USA, Canada, and Mexico), the total number of newly installed industrial robots rose by 17 percent to a new record of some 36,000 units (2015). The leader of the pack was the USA, accounting for three-quarters of all units sold. 5 percent growth was recorded. With a comparatively much smaller amount of units, the demand in Canada increased by 49 percent (5,466 units), while that in Mexico grew by 119 percent (3,474 units). With a stable economic situation, it may be expected that North America will see an average annual growth of 5 to 10 percent in sales of robots from 2016 to 2019.”

Although the American workplace has seen an uptake in robots/more automation in the workforce, over 70% of Americans polled expressed wariness about this. The McKinsey Global Institute found that 73 million American jobs could be stake (or lost to automation) by the year 2030 – if these numbers keep pace. So these fears are well warranted.

Build Rehabilitation, which is located in Los Angeles, offers specialized packaging services to a variety of different businesses in the cosmetics industry. With 200 disabled workers and 50,000 square feet available, we have space and the manpower required to service all of our clients and their custom packaging needs. Build does not have any robots but it does have 200 disabled humans anxiously waiting to help you with all your packaging needs.

Product Development And Digital Manufacturing

Product Development And Digital Manufacturing

The digital world is real, it’s growing, and it impacts businesses right now. Digital manufacturers help business owners of all backgrounds and sizes maintain efficiency and flexibility.

250 years ago, the world experienced a massive change when the Industrial Revolution began. The world, at that point, could be described as a place where artisans exchanged their handcrafted, unique products to a small number of customers. When the Industrial Revolution happened, that paradigm was flipped on its head, and the era of mass production of the same item, in shape and dimension, began to become the norm. The Industrial Revolution changed and molded the current world we live in, and the digital world is doing the same thing.

Less than 20 years into this new millennium, that paradigm might be changing again — towards something of a hybrid between the old way (before the Industrial Revolution, i.e., more customization), and the current model of mass production. Essentially, this new school of thought wants to use the current mass production capabilities that we have, but it also likes greater personalization that artisanship can offer. One flaw that the mass-produced model has is that it can create a system of blandness, in that, every product that’s produced can look and feel exactly the same, and for some people, that’s not a good thing. Historically, novel products that served a niche market have had higher prices because they were believed to not be marketable enough to the general population, but that is all changing now.

Build Rehabilitation is looking to expand its relationships with digital manufacturers, and in the coming years, we plan on offering more customizable products for smaller clients.  We are in the process of growing our digital manufacturing base, and we are currently working with clients who offer niche product customization.

When it comes to physical goods, there will always be a need for physical warehousing and manufacturing, and the key going forward will be to integrate both physical and digital manufacturing into a synergetic, successful relationship.

Build Rehabilitation, which is located in Los Angeles, offers specialized packaging services to a variety of different businesses in the cosmetics industry. With 200 disabled workers and 50,000 square feet available, we have space and the manpower required to service all of our clients and their custom packaging needs.

United States Industrial Space Tightest In Two Decades

United States Industrial Space Tightest In Two Decades

The warehouse availability rate (including properties that are vacant) has fallen for the 32nd consecutive quarter. The availability for industrial space, which includes space that is either vacant or will become vacant in the near future, is now at its lowest level since this data first starting being tracked in 1988.

As consumers continue to do more and more of their shopping online, storage space to house those goods and fulfill those orders are declining. For American retailers, exporters, and manufactures, warehouse space is at its lowest availability since the year 2000.

Economists with CBRE Group have recently released a report stating that new warehouse space is being taken up almost as immediately as its put on the market. In the second quarter of this year, industrial space demand went above the 49 million square feet that were put on the market from that exact same time. Additionally, industrial real estate availability fell to 7.2% — the lowest measure since 2000, CBRE economists have stated.

According to the senior managing economist for CBRE, Tim Savage, the market is “remarkably balance,” and he has stated that industrial real estate developers are able to keep up with this demand by creating very simplistic industrial space.

What this tangibly means is that a number of new warehouse businesses are springing up across the nation. The problem though is that most of these newer businesses don’t know what they’re doing, and most of them will disappear not long after they’ve been established, leaving their clients in a very unfortunate situation.

Build Rehabilitation, which is located in Los Angeles, offers specialized packaging services to a variety of different businesses in the cosmetics industry. With 200 disabled workers and 50,000 square feet available, we have space and the manpower required to service all of our clients and their custom packaging needs.

The UPS Strike And Amazon

The UPS Strike And Amazon

You might not realize this, but the UPS (Union Parcel Service) is Amazon’s lifeblood/subsidence for survival (they deliver the vast majority of Amazon’s products to its customers), and there’s a brewing clash rising between the 260,000 Teamsters who deliver Amazon’s goods and Amazon itself — over the agreement they have which is set to expire on July 31st, 2018.

Last week, the UPS Freight Teamsters voted to authorize a work stoppage (tallying over 93% of those who voted) to form picket lines, and to stop delivering Amazon goods (and eBay).

This matters for a number of reasons, but here are just some ways that this might affect your own personal product purchased on Amazon (according to FoxBoston):

“-Amazon will likely step up shipments via the U.S. Postal Service and its nearly totally non-union shipping partner FedEx. That means consumers would likely see more packages delivered by the mail carrier. And instead of those familiar chocolate-colored trucks pulling up to your home, you’ll see a lot more of the purple variety.

-Look for Amazon’s ‘Shipping With Amazon,’ (SWA) program to expand rapidly. The SWA program quietly launched in Los Angeles, California, this past winter and takes on UPS and FedEx directly by hiring people to pick up packages from businesses and ship them to consumers. While Amazon hasn’t updated the public on SWA in months now, it’s reasonable to expect that it could be rolled out to more cities soon.

-Local courier companies would likely benefit from a UPS strike. Although it’s relatively rare, Amazon typically uses local couriers if the ordered product is close enough to one of its myriad Amazon warehouses. Smaller companies like Lasership and OnTrac could see increased Amazon deliveries.”

Although Amazon and other e-commerce stores are perceived to only affect the internet ecosystem, the truth of the matter is that they are as impactful for the rest of the economy as Walmart is. Amazon partners with a number of other warehouses and businesses across the country to connect services/products with customers all over the world. A strike by UPS workers will have a number of trickle-down effects on Americans as a whole.

Build Rehabilitation, which is located in Los Angeles, offers specialized packaging services to a variety of different businesses for 50 years. With 200 disabled workers and 50,000 square feet available, we have space and the manpower required to service all of our clients and their custom packaging needs including FBA Box Forwarding for Amazon.

Target Is Making Leaps In The Delivery War

Target Is Making Leaps In The Delivery War

Target is making major strides in the delivery wars (versus Amazon and Walmart), and the primary way they’re doing this is through Shipt, their same-day delivery service. Target is already more than halfway through rolling out this initiative — with Chicago being the first city that will test it out.

There are a number of reasons why this initiative by Target matters, one of which is that it’s only a matter of time before more local businesses begin to enter into partnerships with big corporations to deliver products to consumers’ houses/places of business. We’ve already seen this with the partnership between Amazon and local warehouses.

Shipt was purchased by Target in 2018 for $550 million, and it uses shoppers that will stay in communication with the customer as they’re picking up their item(s) for them. It’s something of a fusion of Uber and a delivery service.

In addition to Shipt, Target is also engaging with new brands called “last mile” which include Shipt, Drive Up, Target Restock and the fulfillment of online orders from within local stores.

According to a release by Target:

“’With Drive Up, we’re seeing it as popular among parents of small children for ‘fill-in trips’ to pick up items like diapers,’ a company spokesman told CNBC. He also said those shoppers opting to have their online orders fulfilled at and shipped from a local Target store are increasing their basket sizes by six times, on average.

By the end of this month, Target said it will offer same-day delivery via Shipt in more than 135 markets. By next year, all ‘major product categories at Target will come with the option to be shipped on the same day a purchase is made (some items are currently unavailable on the platform).

As of this week, more than 600 Target stores in 20 states offer Drive Up, while nearly 1,000 locations are set to offer the service by holiday season, according to the company.

‘The expectation is for the benefits [from the shipping and pickup options] to accelerate into next year as each of the programs mature and are rolled out more broadly.’

‘Target has accelerated its efforts over the past 12 months to leverage its vast store base [1,800+ locations] while providing customers with an array of convenient options to shop,’ Grom wrote. ‘In fact, management believes that by year-end, Target’s array of shopping options will put them on par, if not make them more convenient than Amazon.’”

Build Rehabilitation, which is located in Los Angeles, offers specialized packaging services to a variety of different businesses in the cosmetics industry. Build is a supplier of part and full time worker to Target who believes that people with disabilities deserve a chance.

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