Support your local

27 May 2005

Speaking at the final meeting before last month's General Election of the All-Party Parliamentary Group for the Packaging Manufacturing Industry (see p9), leading UK packaging figure John Durston largely blamed high labour costs for the growing exodus of UK converters overseas.

While he has a point, another key factor is the big European brand owners' growing tendency to relocate major production facilities previously sited in the UK for many years to countries like France, Germany, Spain and, increasingly, Eastern Europe.

Given the highly competitive nature of every area of 21st century branded goods manufacture and retailing, such companies' determination to cut costs and centralise manufacture in the 'heart' of Europe is understandable. However, surely there remain significant logistical, cost and, dare we say it, language advantages for those FMCG companies that still retain a significant UK manufacturing presence to purchase their packaging locally. Even given today's sophisticated distribution channels, will it not, nine times out of 10, still be quicker and easier to source packs from a local supplier without the risk of travel delays, customs-hold ups or consignments going missing en route?

While local packaging sourcing may mean a premium price, might this not occasionally be worth paying for the added convenience, not to mention the reassurance that one is supporting one of the few UK manufacturing industries which retains the potential to thrive?

Throughout history Britain has been famous for innovation – witness Brunel, Rutherford, Stevenson, Issigonis, Newton and the like. As the IOP's ceo Gordon Stewart argues (see p13), one way UK converters can continue to compete and add value is through inventive, ingenious design. However, while exhibitions like interpack show there is no lack of ideas, it is harder to develop and commercialise ground-breaking concepts on the one hand while simultaneously fighting falling margins, spiralling energy costs, a contracting customer base and cheap overseas competition on the other. The need for big retailer and brand owner customers to support the UK packaging industry has never been greater.

Jonathan Baillie




Privacy Policy
We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.