2025 PACKAGING M&A OUTLOOK Nobody knows exactly what 2025 holds. However, we dusted off our crystal ball to give it our best shot: Economic Factors: As in many other industries, the new administration’s policies could significantly impact the packaging industry in 2025. Look for a less-regulated business environment to boost small and large businesses. Conflicting state and federal environmental regulations and policies regarding packaging and sustainability will come to a head. Labor will continue to be in short supply. There will be a heightened focus on retaining top-tier talent, addressing the talent gap and brain drain as baby boomers inch towards retirement, taking their 30+ years of industry knowledge out the door with them. The Fed will continue to cut interest rates, but not as aggressively as initially expected. This decline will help accelerate the deployment of capital for investments and acquisitions. Tariffs may raise costs and limit the availability of imported materials, driving price volatility and higher packaging costs that will be passed onto the consumer. Operational Trends: Automation: Investment in robotics systems on the manufacturing floor and in the warehouse will increase. To stay ahead, small- and medium-sized packaging companies will have to invest in new technologies to scale and manage labor, be it through digital printing or laser perforating and cutting to stay competitive. AI and Machine Learning: Like all other sectors, as the packaging industry moves to Industry 4.0, AI will find ways into the operations and the production flow. Data is Power: Small and middle market companies will continue to adopt more robust ERP solutions to manage their business on and off the production floor. We expect legacy systems to be retired or significantly upgraded to adapt to Industry 4.0. ”In 2024 we invested in equipment with the latest digital printing technology to stay ahead of competitors and scale faster. In 2025, we plan to invest in systems to better analyze our workflow from the warehouse to the plant floor to optimize output. While AI and machine learning are goals for the not-too-distant future, we want to explore asset tracking, output tracking, predictive maintenance, and other avenues to streamline production and cut costs.”
– Founder/President, Food & Beverage Packaging Converter
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