The impact of the pandemic has affected everything from consumers' shopping habits to global supply chains. The corrugated packaging industry has been in turmoil for the past two years. For some businesses, business is booming as never before, while for others, especially those focused on in-store packaging and display, the drop in retail traffic has been devastating. Now, as the world economy slowly recovers and hopefully enters a post-pandemic phase, manufacturers need to pause and take a hard look at recent history.
Despite the resolve and new commitments generated over the past few years, manufacturers continue to focus on the industry and what the future may hold. For its Manufacturing Outlook 2022, research firm Deloitte surveyed more than 500 U.S. executives and senior leaders on the current and future state of manufacturing. "Labour shortages and supply chain instability are reducing operational efficiency and profits," respondents noted. "Job vacancies -- at more than double pre-pandemic employment levels -- hover near historic highs. ... Procurement bottlenecks and global logistics gridlock are likely to remain challenges...... As well as cost pressures and inflation risks. . Adding to the mix are risks from COVID-19 variants, cyber attacks, environmental challenges and higher corporate tax rates. The industry can expect increased uncertainty around the globe from a range of potential disrupters."
As if these concerns were not enough, a Deloitte survey of Cfos in the third quarter of 2022 showed that 46% of respondents expected the global economy to fall into recession in the New Year, while 39% predicted a period of stagflation. Yet despite the relative negativity, most business leaders surveyed still focus more on opportunities than obstacles. "Eighty-six percent of the manufacturing executives we surveyed said they were somewhat or very positive about business," according to Manufacturing Outlook.
It's a similar story with the carton manufacturers we spoke to - they are generally positive as they look ahead to 2023, even as they actively prepare for the challenges that are sure to come. "I'm excited about the future," Potoznak said, "but at the same time, I have to say, we have to make our own chances. I can focus more on big picture growth and innovation because my people are committed to staying current at the shop floor level. I was very lucky in that respect, because that's how I built the company from the beginning. My advice to other carton manufacturers is to bring in the best people you can, let them do the best job they can and then try to achieve your vision for the company, which may not always match what the industry is saying or even what your consultants are saying."
"We've seen tremendous growth in an atmosphere of constant change, with an emphasis on innovation, process management and having the most skilled employee owners," Tucker said. His 2023 advice to carton makers is simple: "Stay solid and let us continue to be the industry we deserve to be proud of."