The consumer packaged goods segment in Australia has slowed down in relation to Australian businesses manufacturing and packing locally.
Many of the contract packing customers working with Packserv Australia Equipment spoke about losing contracts to offshore competitors with many of their Brand & Product Owner customers also commenting on slowing sales locally and internationally.
Offshore competition in the contract packing space is a particularly troublesome issue from Packserv’s perspective. Many Australian Brand & Product Owners, who create, manufacture and pack their own products, have enjoyed significant growth and success in a short timeframe both here and abroad.
There was a lot of discussion during 2009-2011 with respect to offshore packing and even reworking due to poor quality workmanship, and cultural and language barriers. The 2012 year witnessed many great stories of Australian brands working hard to keep up with the high demand for product; as a result Australian equipment manufacturers, distributors and associated services also felt the flow-on effects of this demand.
It came as quite a surprise to many to discover early on in 2013 that markets had slowed suddenly. Packserv saw many long-established businesses fall into administration. What was even more surprising was the fact that the looming election really had none or little impact on recovery after all.
Prior to 2012, Australia was somewhat insulated by the global financial crisis because of its strong mining industry. Moving into 2014 most commentators predict that businesses can expect a similar economic climate to that of this year, with 2.9% expected GDP.
Australia is known to be one of the best producers of boutique products in the world. Packserv can relate to this sentiment as it sees their customers manufacture and pack beautifully crafted consumer packaged products everyday. Makers of candles and home scents, beauty products and especially gourmet food and beverage brands are amongst some of Packserv’s most successful customers this year. The one thing that these customers all have in common apart from the high quality of their products is that the branding and packaging are well thought out with a definite point of view.
Packserv is looking forward to releasing some exciting innovations in the New Year in order to offer the best equipment and services in their packaging segment to their customers.
Packserv will also be preparing a series of surveys to be sent to their customers over the coming months, with a view to proactively seek meaningful ways to introduce more benefits to customers throughout 2014 and beyond.