The major changes resulting from economic globalization are increasing competitive pressure our North American markets and increasing ease and accessibility to world markets, such as India and China. These changes increase the incentive to “internationalize” manufacturing and marketing operations.
One of the greatest challenges for our industry is sourcing and delivering high-quality, low-cost products. Much of this challenge results from the reality that competition can now appear from anywhere in the world, and often from producers with a comparative or real economic advantage. As S&P recently reported:
"For many packaging companies, 2007 will remain a challenging year and various factors, including the movement in natural gas and oil prices, resin price trends, and the pace of consumer spending will determine the degree of severity."
In order to bring the best value in flexible packaging to customers in North America and beyond, Exopack has been working on establishing relationships with suppliers and packaging manufacturer overseas, as well as embarking on a major global expansion project.
Exopack is utilizing global sourcing to flatten the volatility in the energy markets. Companies must do more than improve their internal production efficiency and effectiveness; they must also understand how to take greater advantage of available worldwide resources, such as PE production out of the Middle East, PP/PET production out of Southeast Asia and South America. Exopack’s ability to implement a successful global sourcing/manufacturing strategy depends on our ability to qualify, coordinate and control production with focused suppliers and producers of resin, film, paper, and converted products. In conjunction, our strategic partnerships in Europe, the Middle East, and South America with film suppliers and converters, allow Exopack to coordinate global operations. These global initiatives are vital to Exopack’s continued value focus and on maintaining their customers’ competitive strategy.
Exopack has also established manufacturing operations in China for the production of shipping sacks based on woven polypropylene materials. These shipping sacks are being shipped to customers in North America, specifically in the feed, pet food, and building materials markets. Further investments in China will broaden the portfolio of products and put Exopack into the Asian market.
Whether it’s serving the needs of multi-national corporations or developing markets overseas, Exopack is positioned to provide its renowned service and quality to major markets around the globe.