Domestic corrugated carton packaging (on)

The corrugated box printing business occupies the largest part of the packaging printing ink market. It is a $23 billion industry that accounts for 1/3 of the total ink used in the packaging market. About 75% of them are flexo inks and are mainly aqueous products.
Perhaps the biggest change in the next few years will be in the corrugated box printing sector. The nature of the industry has changed due to the migration of production bases overseas and the development of digital technologies.
In recent years, unemployment in the United States and Mexico has been shocking due to the migration of manufacturing jobs to China and other overseas countries. As a result, those who relocate and consider shipping costs naturally chose the packaging part near the production site, which has had an impact on ink production in the United States. In addition, the price of cartons shipped from China is very low, which allows manufacturers in the United States to maintain a larger inventory, thereby reducing overall transportation costs.
Steve Young, chairman of the Independent Corrugated Cardboard Processors Association (AICC), pointed out that “the customer base impact caused by the migration of manufacturing jobs overseas is the top challenge for all industries.” He believes that the corrugated box industry must take some measures to cope with this pressure. It must be understood that the on-the-job workforce must become a better supplier. The better the printing provided, the better the packaging.
Ink manufacturers have sensed the impact of manufacturing migration overseas to packers. David Callif, president of BCM Inks USA, pointed out that “the corrugated paper box industry has experienced a difficult year. According to my observation, the corrugated paper box industry has changed its mind and realized that it must be repositioned in the market to facilitate long-term development. Labor has already flowed to overseas markets. , especially in the Chinese market, and packaging processors in Mexico have also been affected, so everyone began to explore ways to provide better services - timely services. We must realize that this is a global economy and we must understand What happens in every place, whether in China, India, Africa or any other place.”
Kelly said, “There is no growth in the corrugated box industry. A large number of non-U.S.-origin commodities are imported from China after being pre-packaged. The trade deficit affects the domestic corrugated box industry almost as much as the overall slow economy. An example is low cost and high The sales of quality Australian wines to the United States have grown substantially. This was where American wines seized market share originally occupied by European varieties, and where the demand for high-resolution printing of corrugated cartons for wine transportation and display has increased correspondingly.”
George Sickinger, Chairman, President and CEO of Color Resolutions International, stated, “The development of corrugated boxes was the slowest time I’ve ever seen. I’ve heard that many companies on the West Coast lost overseas business last year. All people are complaining too With low prices and too slow transaction speeds, when the economy has shown signs of recovery since the first quarter of last year, it must still firmly grasp the opportunities of the paper and printing industries."
The problem encountered in the corrugated box market in the United States does not seem to disappear in the near future. Impastato thinks it is like other printing markets and has been affected by the recession of the past few years. However, when other markets may recover completely when the economy improves, the corrugated box market may still suffer. As the manufacturing industry migrates overseas, the production of transport packaging corrugated boxes is also being relocated. However, he pointed out that corrugated carton packaging is making impressive progress in the production of fresh products. For several years, corrugated boxes have been replaced by reusable plastic containers (RPC). This trend now begins to have a certain degree of reversal: In the next few years, RPC will occupy a smaller share of the production transport container market, while corrugated cartons will gain more shares.
Pioneers in the industry pointed out that inkjet technology will one day affect the corrugated box market.
Young believes that digital technology will occupy a place and will have a revolutionary impact on short-run printing. There is no doubt that they will increase the speed of printing. Callif pointed out that "digital technology is slowly advancing, but it is indeed progressing. More and more companies are involved in this area, and if they succeed, ink-jet technology will be noticeable growth, because digital technology is very short-term printing. It's profitable. Ultraviolet digital inks may have the greatest impact because they have the advantage of eliminating the need to pre-treat substrate substrates compared to waterborne products.” (To be continued)

Posted on