Feb 20, 2023 - 5 minutes
Address Top Flexible Packaging Challenges
Every year, remaining competitive in the flexible packaging industry becomes more challenging. External forces are continually changing the way you do business and your ability to meet brand owner expectations. However, you’re not alone. As recognized in the Flexible Packaging Association (FPA)’s 2022 State of the Flexible Packaging Industry Report, the entire industry is dealing with some, if not all, of the following issues:
1. workforce availability difficulties
2. raw material shortages
3. addressing sustainability initiatives
The flexible packaging market within the industry is not immune either. That’s why three of our experts want to share with you how these issues are impacting the Americas market and what we’re doing to help us—and you—lessen their effect on your business operations.
INDUSTRY ISSUE #1: WORKFORCE AVAILABILITY
A shortage of experienced workers is affecting markets across the board, including flexible packaging. Manufacturing processes, logistics and shipping have been hit particularly hard. This has caused delays in receiving materials, processing and then sending them onward to the next stop in the supply chain. Each has the potential to leave workers idle or delay deliveries, both of which affect the bottom line.
HOW BOSTIK ENSURES YOUR NEEDS ARE COVERED
According to Catherine Heckman, National Sales Director at Bostik, our team’s solutions can be summed up in three ways: redundancy, efficiencies and ease of access.
“Our acquisition of Ashland’s Performance Adhesives business unit has increased our resources,” says Heckman. “We now have more manufacturing and lab locations. The redundancy these facilities provide, alongside the additional experts we now have within our team, make us even more stable and responsive to converter needs.”
Additionally, Bostik has been investing in production improvements at our plants to manufacture our products even more efficiently than in the past. This further improves our speed-to-market to customers who require quick turnaround. The combination of improvements to capacity and the ability to ship globally between plants is a win-win for our customers.
Further, we have ensured that our distributed warehousing options are where you need them to reduce transportation and shipping lead times. With labs located globally, this increases ease of access for our customers worldwide.
“Our acquisition of Ashland’s Performance Adhesives business unit has increased our resources,” says Heckman. “We now have more manufacturing and lab locations. The redundancy these facilities provide, alongside the additional experts we now have within our team, make us even more stable and responsive to converter needs.”
Additionally, Bostik has been investing in production improvements at our plants to manufacture our products even more efficiently than in the past. This further improves our speed-to-market to customers who require quick turnaround. The combination of improvements to capacity and the ability to ship globally between plants is a win-win for our customers.
Further, we have ensured that our distributed warehousing options are where you need them to reduce transportation and shipping lead times. With labs located globally, this increases ease of access for our customers worldwide.
INDUSTRY ISSUE #2: RAW MATERIAL SHORTAGES
Simply put, it’s difficult to make products without raw materials. Over the past few years, prices and availability have been erratic, causing significant disruptions in the supply chain. What’s not so obvious are the reasons behind those swings and shortages as they relate to flexible packaging adhesives and coatings. For example, some expect that the prices of crude oil and polyethylene resin are the cause behind changes in adhesive cost and supply. However, according to Alexei Main, Strategic Sourcing Manager at Bostik, the truth is far more complex.
“Some of it is due to workforce availability which can lead to reduced output,” he explains. “However, a far greater share traces back to what is happening outside of the industry’s control. These so-called force majeure events can include storms, wars and even COVID.”
Main details how the global pandemic dramatically impacted supply as specialty industries shut down and demand skyrocketed in certain areas as lifestyles shifted. “More online ordering drove up the need for labels and boxes,” he states. “For restaurants, demand for takeout packaging spiked. With so many people suddenly stuck at home, repairs and other do-it-yourself projects rose in priority. This, too, required packaging and sealants. Adhesives and coatings were in high demand.”
Then in early 2021 winter storm Uri hit Texas. Production was shut down in many places, but the demand for products remained. According to Main, the industry would typically bring in materials from other regions not impacted, but transit and fuel costs remained at a premium. Domestically, this resulted in large part from an existing driver shortage, made worse by COVID and exacerbated by fuel costs. International shipping was similarly affected by dock worker shortages, logistical challenges and, again, fuel prices. Then, in 2022, energy prices were further impacted by the Russian war on Ukraine and a rise in travel by a population no longer in lockdown.
Another source of uncertain prices is the fluctuations in supply and demand, he notes. “During COVID, companies were worried about deliveries and over-ordered to remedy that,” relates Main. “Manufacturers, including Bostik, pushed to meet requests. However, once converters had what they needed, they pulled back on orders. Suddenly, supply exceeded demand.”
“Some of it is due to workforce availability which can lead to reduced output,” he explains. “However, a far greater share traces back to what is happening outside of the industry’s control. These so-called force majeure events can include storms, wars and even COVID.”
Main details how the global pandemic dramatically impacted supply as specialty industries shut down and demand skyrocketed in certain areas as lifestyles shifted. “More online ordering drove up the need for labels and boxes,” he states. “For restaurants, demand for takeout packaging spiked. With so many people suddenly stuck at home, repairs and other do-it-yourself projects rose in priority. This, too, required packaging and sealants. Adhesives and coatings were in high demand.”
Then in early 2021 winter storm Uri hit Texas. Production was shut down in many places, but the demand for products remained. According to Main, the industry would typically bring in materials from other regions not impacted, but transit and fuel costs remained at a premium. Domestically, this resulted in large part from an existing driver shortage, made worse by COVID and exacerbated by fuel costs. International shipping was similarly affected by dock worker shortages, logistical challenges and, again, fuel prices. Then, in 2022, energy prices were further impacted by the Russian war on Ukraine and a rise in travel by a population no longer in lockdown.
Another source of uncertain prices is the fluctuations in supply and demand, he notes. “During COVID, companies were worried about deliveries and over-ordered to remedy that,” relates Main. “Manufacturers, including Bostik, pushed to meet requests. However, once converters had what they needed, they pulled back on orders. Suddenly, supply exceeded demand.”
HOW BOSTIK GETS YOU THE ADHESIVES AND COATINGS YOU NEED, WHEN AND WHERE YOU NEED THEM
Fortunately, the strategic sourcing team at Bostik has been modifying processes to mitigate the effects of these market fluctuations. According to Main, our purchasing is done on a global scale to keep you well supplied. For example:
- Expert teams track market availability. We better understand where our suppliers are producing and where and when to select them in terms of risk mitigation.
- We have built-in redundancies to be able to shift to suppliers in different regions of the world as needed.
- We have improved our reaction time in order to respond to emerging events and pivot as needed.
- R&D second sources critical raw materials so as to mitigate any single-sourced raw constraints
- We limit the exposure risk by remaining well-stocked, so transient shortages in the market do not affect our production.
- Through Arkema, our parent company, we are also part of a large, global network, which gives us leverage and access to options beyond what smaller players can offer.
INDUSTRY ISSUE #3: SUSTAINABILITY INITIATIVES
Given the 2030 governmental, sustainable packaging goals, brand owners are looking to change standard practices, so they partner with converters to make it happen. Converters are then tasked to find the right materials that meet these goals without sacrificing performance or impacting production. In recent years, adhesives and coatings were largely ignored in meeting qualifications, but this is no longer the case. You now need adhesives and coatings that satisfy sustainable certifying body requirements —and those of your brands as well.
According to Courtney McLachlan, North America Flexible Packaging Market Manager at Bostik, one complication in fulfilling these initiatives lies in the fact that there are three primary end-of-life paths for sustainable packaging:
(For a more in-depth look at each of the three end-of-life paths and how Bostik is making it easier for converters like you to address brand sustainability goals, watch for our forthcoming blog post.)
According to Courtney McLachlan, North America Flexible Packaging Market Manager at Bostik, one complication in fulfilling these initiatives lies in the fact that there are three primary end-of-life paths for sustainable packaging:
- Flexible PE Recycling
- Flexible Paper Recycling
- Industrial Compostable packaging
(For a more in-depth look at each of the three end-of-life paths and how Bostik is making it easier for converters like you to address brand sustainability goals, watch for our forthcoming blog post.)
HOW BOSTIK SUPPORTS YOU IN ADDRESSING SUSTAINABILITY INITIATIVES
McLachlan shares several insights into Bostik’s strategies to meet converters’ sustainable packaging needs. “First and foremost, we are participating in the Association of Plastics Recyclers (APR), the Sustainable Packaging Coalition (SPC) and the Biodegradable Products Institute (BPI),” she states. “We are also part of the Flexible Packaging Association (FPA) sustainability committee, as well as selected subcommittees throughout the organizations. This involvement helps us to stay informed—often before it hits the news—so we can keep you prepared to meet evolving sustainability requirements. Additionally, our participation enables us to have a positive impact on the industry’s development of viable solutions.”
As to Bostik’s specific, sustainable flexible packaging adhesive initiatives, McLachlan outlined several:
As to Bostik’s specific, sustainable flexible packaging adhesive initiatives, McLachlan outlined several:
- Bostik is having our cold seals retested to meet the new APR bylaws. Once received, this official confirmation will give converters peace of mind regarding use in their sustainable packaging moving forward.
- Reseal and anti-fog adhesives reduce food waste. Reseal also helps eliminate the need for secondary packaging. Bostik has championed these technologies, helping converters create new designs with a reduced environmental impact. Another sustainable benefit of our anti-fog adhesive is its ability to increase efficiencies and reduce inventory for converters. This arises from its two-in-one nature, offering the seal performance of a heat seal in addition to its anti-fog capacity.
- We have adhesives designed specifically for paper, which have clearance for food packaging and can go through the sterilization process for medical applications. This enables you to offer recyclable paper packaging to the brands who prefer it.
- Bostik was the first in the market to develop a compostable hot-melt adhesive for corrugated packaging applications. We are using that knowledge to leverage other compostable projects for flexible packaging.
BEAT THE FPA’S TOP THREE ISSUES BY TEAMING WITH BOSTIK
Do you share any of the FPA’s top three industry concerns? You don’t have to face them alone. Contact a Bostik representative to find out how we can help you meet the challenges for a smoother 2023.
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All information contained herein is believed to be accurate as of the date of publication, is provided “as-is” and is subject to change without notice. To review our full U.S. Legal Disclaimer, visit: https://bostik.com/us/en_US/privacy-policy/legal-disclaimer
All information contained herein is believed to be accurate as of the date of publication, is provided “as-is” and is subject to change without notice. To review our full U.S. Legal Disclaimer, visit: https://bostik.com/us/en_US/privacy-policy/legal-disclaimer