Business success has no single formula, but contract manufacturers and packagers thrive by focusing on cost reduction, efficiency, innovation, and speed-to-market while adapting to unique industry challenges.
- No one-size-fits-all approach: Each company finds success through different strategies tailored to their specific industry challenges and circumstances
- Key success drivers: Contract packaging and manufacturing leaders emphasize lowering costs, improving efficiency, driving innovation, and accelerating time-to-market
- Industry growth remains strong: The contract packaging industry shows tremendous growth potential with no signs of ceiling in coming years, though 10% of manufacturers struggle financially
- Major headwinds: SKU proliferation, inflation tied to COVID-19, and recessionary consumer behavior negatively impact some contract service providers
- Data-driven insights: CPA's State of the Industry 2022 report surveyed 160 contract packagers and manufacturers plus customers to identify success patterns and challenges
Hello dear readers,
Such a big topic! And the road to success is bumpy, swerve-y, and never the same for each person or company.
The last six months I’ve spoken with many companies that have all seen great success by different means. There is no recipe, no one-size-fits-all solution as each contract manufacturer and contract packager faces their own challenges in the respective industries they serve.
My hope and plan is to find the success stories in each of the industries our members pertain to so that they can shared and become inspirational, thought-provoking insights to help you gain or further your own success.
From case studies to charities to ESG roadmaps and more, this issue contains stories from your fellow members that are worth a look.
Another resource that can inform your decision-making, idea generation, and plans is the CPA’s State of the Industry 2022 report, soon to be released. The content is based on interviews with 160 contract packagers and manufacturers as well as some of their customers. At PACK EXPO Las Vegas, Carl Melville of the Melville Group shared the following sneak peaks and more:
- Inside will be a 22-page report on mergers and acquisitions by an investment banker based out of Chicago who specializes in the industry.
- It discusses the key categories that have moved the industry forward and what role they played, which include secondary packaging and contract manufacturing. Some reasons that these services have been so successful are lowering costs, efficiency, innovation, and speed-to-market.
- The contract packaging industry has tremendous growth opportunities and though it is fast growing, it does not yet show signs of hitting a ceiling in coming years. However, not all contract manufacturers are thriving, 10% are struggling to keep themselves out of the red. The report sums up the reasons that some contract services are being so negatively affected.
- The continued effect of SKU proliferation on contract manufacturers and contract packagers.
- The effect of inflation in connection to the COVID-19 pandemic.
- The effect of recessionary behaviors in consumers.
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