Coding for the future

2 January 2013



Martin Bailey, UK operations manager at marking and coding equipment supplier Markem-Imaje, says finance and sustainability are key issues for the packaging industry in the next five years


More than half (56%) of those surveyed at this year’s PPMA show in Birmingham indicated that they felt the continuing difficult financial climate was the issue likely to have the greatest impact on packaging development in the immediate future. It was no surprise to note that almost as many (45%) felt that the sustainability agenda was only going to become more important and would have a similarly weighty impact on the industry.

Faced with such challenges, it is easy to understand why there are those who feel threatened by the uncertainty ahead – yet the packaging industry is nothing if not innovative. By thinking outside of the box, manufacturers will find solutions that do not have to impact negatively on either the production line, or the bottom line.

Financial constraints in conjunction with the drive to achieve more sustainable packaging operations will continue to underpin innovation throughout the industry in future – in the long term, these challenges will force the industry to secure greater efficiency in more cost-effective ways. For manufacturers like Markem-Imaje, the key is to provide a practical, cost-effective and sustainable product that represents value for money.

For most, procurement has become more challenging than ever before. Capital expenditure is under such close scrutiny that investment in new equipment is no longer viable for many: a Catch 22 situation in which buyers cannot secure the equipment that meets the challenges being driven by the market, such as increased production line availability and, in some cases, speeds.

Yet manufacturers still need to replace old equipment or secure new, more advanced coding and marking technology for instance, in order to compete on a level playing field in the highly demanding, modern production environment.

Predicting what equipment will be needed in the future can also be complex, however, and accurate forecasting of costs is consequently a real challenge.

While it is considered the norm in other sectors, the packaging industry has been slow to follow the trend in offering asset finance packages. Launched in 2012, the ‘Smile’ programme from Markem-Imaje means that instead of purchasing equipment outright, customers can buy a package of equipment that is guaranteed to work as promised, along with consumables and servicing that will optimise product performance and minimise downtime.

A sustainable future

As the demand for sustainability increases, so the issue rises on everyone’s agenda, which means that the requirement to demonstrate a clear environmental commitment is being pushed ever further up the supply chain.

The move to operate more sustainably is a significant opportunity for many businesses. Little more than a decade ago, the biggest bill for many would have been salaries: now it is energy costs. For those who consider it important to their business, more efficient packaging processes and reliable coding equipment will not only reduce this cost, but help businesses to demonstrate their corporate, social and environmental responsibility.

Creating new technologies and new products that will help businesses meet the sustainability agenda is something that must become an integral part of a supplier’s offer, complementing reliability and lower cost of ownership.

Simply put, sustainability makes good business sense. Reducing waste means cutting the cost of landfill tax – an increasingly expensive and unsustainable solution – but it also cuts expenditure. Less waste means the use of consumables such as ribbon and ink, and other extraneous printing materials used in the coding and marking process is reduced, while more reliable equipment allows these costs to be budgeted for more effectively.

While seeking ever greater cost efficiencies can drive the implementation of more effective processes, it can also stifle innovation. Ultimately, there will always be a cost to achieving real innovation in the packaging world. For Markem-Imaje that has meant investment in the technology to develop more environmentally friendly inks used in the marking and coding process.

There is no additional cost to the customer for these inks – this investment is essential for Markem-Imaje to supply products that meet the customer’s expectations, driven by consumer demand for environmentally friendly products.

The question of investment is relevant to all – retailers for instance also need to invest in the brands they sell if they are to secure the margin they are seeking. Then we must consider the way in which packaging is seen by consumers – it is a resource, a good thing, something that plays a pivotal role in our lives today.

Ultimately, manufacturers must shoulder their share of the burden. We need a long-term strategy that promotes investment throughout the supply chain, so we can all operate more efficiently, and improve our environmental performance.

Views expressed on this page are those of the author and may not be shared by this publication.


Martin Bailey Martin Bailey

Martin Bailey Martin Bailey


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