Page 12 - Packaging News magazine Jan-Feb 2022

12 INDUSTRY INSIGHT |
www.packagingnews.com.au | January-February 2022
Tom Smith, managing director of Advanced Dynamics, a UK specialist in the supply of fully integrated packaging machinery and equipment, predicts what is next for the sector, covering off investment, businesses taking back more control, and tech developments.
Four predictions
for the packaging Tindustry in 2022
HE start of a new year, in business terms, for the foreseeable future. This, mainly, is is the ideal time to reflect on the chal- because we still have Covid-19 legislation in lenges that have been overcome and the place in and a range of restrictions that vary success that has been achieved. It’s also from region to region.
the prime opportunity to begin thinking We’re operating under a ‘Sword of about what’s next. Damocles’, where the blade could drop while The difficulty with 2022, however, we’re at the dinner party. At any point, the is that we’re still in uncharted waters. government can turn around and say we’re
BIG PLAYERS TAKE BACK MORE CONTROL
Many of the conversations we’re having with our customers are around how they take more control of their end-to-end production. Even if they’re not looking at that, they are trying to identify how they can source their supplies locally, rather than from overseas, to try and reduce the lead times and astronomi- cal shipping costs that have been endured by multiple industries over the last 12 months. Sticking specifically with shipping, it is starting to make more sense to look at sup- pliers. Freight costs now outweigh the initial cost-benefit. As a result, businesses are investing their money in acquiring more sites and space. Businesses are keen to look closer to home in order to reduce their costs and take back more control.
TECH DEVELOPMENTS
Businesses in our industry are starting to think outside the box of how to tackle inter- nal modern-day problems. One of the biggest challenges we face, as an agent, is how we offer customer support beyond the sale of a machine, mainly because that has been a very physical experience and beyond the implementation of a machine, our engineers are only involved again if they’re called out for a maintenance issue.
However, products like SCADA (Supervisory Control and Data Acquisition) are going to give businesses of all shapes and
There’s no seasonality like there used to be. Forecasting is challenging. The trends and historical data about when peaks in sales will happen is off. Couple that with the ever-changing demand, you’re left scratch- ing your head as to, actually, what is next?
I’m going to give it a damn good go, though. These are my four predictions for what is on the horizon for the packaging industry.
CAUTION IN INVESTMENT
People, from a societal point of view, are still unsure of what is in store for them, certainly
shutting down, should Covid get out of hand. Personally, I believe there’s a very slim chance that will happen. However, there will be certain businesses – those that were badly burned by the initial impact of the pandemic – that will be continuing to look over their
shoulder during the interim.
That’s bound to change the way busi-
ness owners think and act. I expect those in that boat will be less proactive about their future plans and will be far more cautious, particularly when it comes to investing money.