The 2011 CPA State of the Contract Packaging Industry Report is now available. It indicates strong revenue growth for 2011, and projects continued growth for 2012.
This report is an integral part of the association’s ongoing program of providing a research-based perspective on this complex and evolving industry. It is the result of an extensive survey of contract packaging companies, both CPA members and non-member companies, covering the state of their individual businesses and their view of the state of the industry.
The new report includes input from a larger number of companies than took part in previous surveys. As the value of the survey has become better recognized within the industry, more companies have wanted to take part, and the data base on which the report rests has increased significantly.
In general, the respondents to the current survey indicated that they experienced slower business growth in the years 2009 and 2010, but have seen a significant increase in business activity for this year. Growth among higher-end contract packagers––those ranging in annual income from $20 to $300 million––has been especially strong in 2011, with the average revenue in this group growing from $38 million in 2009 to $75 million this year.
Moderate-sized co-packers are also seeing growth, while many of the smaller contract packaging companies still seem to be struggling to recover from effects of the economic downturn that began in 2008 and continues to affect business today.
As many of those companies that are growing look to open new streams of revenue, the high rate of mergers and acquisitions the industry saw last year continues. Among the companies responding to the survey, for instance, 18 are specifically pursuing acquisitions while 21 reported that they are being courted for acquisition.
The report also indicates a growing recognition on the part of Consumer Packaged Goods companies of the value that a contracting packager brings to their production strategy. It tended to be difficult in the past for those companies to identify the right potential co-packing partner, largely because of the fragmented nature of the industry. Current resources such as the CPA web site “Find a Contract Packager” function have made that task much easier.
As the CPA State of the Industry survey has become better recognized among industry members, and more companies have participated, the data that forms the basis of the report has become more complete and reliable. Our industry, by its nature, is still diverse, but that diversity is better represented in the 2011 report, and the analysis of the current state of the industry and where its future growth lies is more reliable.
The primary value of this report is the insight it offers into future growth opportunities. Segmented by region, market segment, company size and revenue, the data it contains enables the user company to chart a path forward in what is still an uncertain economic climate.
Orders for the full CPA State of the Contract Packaging Industry Report can be placed at the CPA web site (www.contractpackaging.org). Cost of the report for CPA members who did not participate in the report is $1,500, for Associate Members is $1,000 and for non-members is $2,500.
The 2012 CPA Annual Meeting
The Contract Packaging Association 2012 Annual Meeting will take place at the Gran Melia Hotel and Resort in Rio Grande, Puerto Rico from February 23 through 26, 2012. The theme of this year’s meeting will be “Sail Beyond All Limits.”
The keynote speaker for the meeting will be Mike Mullane, former NASA space shuttle commander, who will set the tone of the event by describing his experience going beyond the normal limits of travel. He will also sign copies of his book, Riding Rockets. Other speakers will include Michelle Tiech of LRQA Business Assurance, a subsidiary of Lloyd’s Register that helps companies manage risk to improve performance, who will lead a question and answer session on Beyond Limits, and John Henry, the Changeover Wizard, who will give a presentation on Plant Excellence.
The customer question and answer panel on Friday, February 24 will address Going Beyond Limits and will include representatives from Coca Cola and Frito-Lay, among others.
The full agenda will be posted on the CPA web site (www.contractpackaging.org) as it is finalized.
SAY HELLO TO OUR NEW MEMBERS
The following members and associate members have joined the CPA since the last issue of Contract Packaging: ARI Packaging; Blendco, Inc.; FasPac; Packaging, LP; IdaCold Packaging Inc.; Kenco Logistic Services; Kleen Test Products Corp.; LHB Industries; Matt Pak Inc.; NewStream Enterprises, LLC; NP Food Service Sales, LLC; Pharmachem; Research Products; Superior Pack Group and World Grocer.
New associate members are: HayssenSandiacre and ITW Thermal Films.