Get the F factor
So how can you afford to invest in the current economic climate? And what are the key areas of innovation in packaging machinery?
According to packaging machinery suppliers, the packaging machinery sector has remained vibrant during the recession.
But Neil Fowell, md of industrial weighing equipment supplier Yamato explains that customers' approach has changed: "The economic climate is certainly tough and customers are certainly critically examining purchases in greater depth, looking at how long it will take to recoup investment and the lifetime cost of machinery."
Investment cycles are being stretched too, he adds. A company that used to invest every two years might leave it for two and a half now.
Investments are also more specific, he says. "People won't invest speculatively in equipment in the hope of finding extra production contracts down the line."
Torsten Giese, marketing manager at Ishida Europe thinks the worst is over. "A year or two ago people were buying machinery to package cheaper foods we had to sell more machines for pasta, potatoes and soup. Now we are selling more equipment for more expensive lines such as ready meals, fruit and poultry. Demand may not be quite as strong as before, but people are thinking that in a year's time it will have picked up and they should get the equipment in place."
However, he has noted that customers are more likely to take machines on loan. "Customers ask to loan machines, say for six months for the fruit season or just to see how it helps their operation. It's a winwin as we charge a premium and we try to put an agreement to buy after the loan period in place."
Packaging engineer Dean Smith of packaging machinery specialist Food Project UK, which deals with small to medium companies, says that, even at this end of the market, sales are still coming in: "People are prepared to invest to save money in the long run, particularly if they are doing anything by hand, despite the economy. If they don't have the money to pay for a new machine, it is difficult to get a loan out of the banks, but finance companies will usually offer a deal with a particular piece of machinery. Even if it costs a bit more it is worth it for the savings offered by more efficient machinery."
Indeed, the economic argument for investing is strong as, according to suppliers, it can pay for itself in as little as six months.
Torsten Giese of Ishida comments: "You can make huge cost savings by investing in packaging machinery. With an old weighing system, you might need a 10% margin for weight giveaway that's 100g on a kilo of meat. New equipment can reduce that right down to 5g, so we say, on that alone, our weighers pay for themselves in six months to a year."
New equipment also helps reduce waste, such as the numbers of out-of-spec trays that have to be thrown away. Investing in new film sealing equipment can save £1,000s in film costs a year.
"Then you have the benefits in automating on headcount," Giese says. "You might be able to reduce the number of staff on a line from 10 to four, which often means that you do not need to use as many agency staff."
Calculating payback
Ishida will calculate the payback period for the potential customer and usually predicts a full new line will pay for itself in one and a half to two years, after which it is saving money.
Giese says: "It is almost crazy not to invest when all these benefits are on offer plus, of course, energy saving and speed increases."
Furthermore, Fowell says that updates in packaging machinery can reduce overheads in areas such as power consumption levels, other environmental issues, speed and accuracy. Innovation is then also driven by the retailer-led trends of convenience, health and indulgence.
He comments: "In the food industry lifestyle changes drive our business, such as the rise in convenience foods. Now we have new ready meal formats such as meals you can eat from the tray, healthy eating with nuts and seeds and advanced fruit and veg packaging."
The UK's retail climate is also feeding demand for more efficient packaging machinery, he says. "We are increasingly seeing retailers buying up their suppliers, which means they are then focusing on efficient process to boost margin."
Giese meanwhile identifies a growing push from retailers for packaging that can increase shelf-life.
"Consumer safety is another big issue, particularly with online social networks where complaints can be communicated widely," he adds. "So you have equipment such as cameras to check sell-by dates, labels and barcodes."
Tempting customers to make impulse purchases is also a focus of the retailers, he says. "We are seeing more packaging being developed to merchandise impulse buys, such as strips to hang off shelves in the aisles."
With all those factors playing out, packaging machinery suppliers could almost be described as being engaged in an innovation space race.
Recent on-trend packaging machinery launches on the market include supplier Hi-Cone's new high-speed orientation machine model 9352 which packages up to 2,400 drinks cans a minute, forward facing.
The cans are secured with multi-pack carriers, which use a fraction of the material shrink wrap systems use, are photo-degradable and 100% recyclable, according to the company.
Hi-Cone's business development director, Europe, Ton Hoppenbrouwers, says: "Consumers and retailers are voicing their preference for minimal packaging, and our machine enables brand owners to meet that concern while delivering their vital messages and images."
And Yamato has just launched a high-speed multi-head weigher, the Dataweigh Omega. The firm says the machine increases yield weights by up to 1.6%, reducing product waste and offers a reduction in power consumption of 60%.
Meanwhile, Ishida's new Fresh Food Weigher and X-ray system has solved an industry-wide problem of dealing with thinly sliced fresh meats, working with part of Switzerland's Migros Group, Micarna.
The new packing line has eliminated the manual intervention that was previously required on the delicate slices. Sliced meat is fed onto two conveyors, which are mounted on pivoting arms, each of which can feed any one of six belts supplying the pool hoppers. Optical sensors identify which hoppers need filling.
The new line has made savings for Micarna, with product give-away cut by up to 7%, while the automated operation has allowed staff to be re-assigned to other tasks. With hygiene a major issue in meat packing, eliminating manual handling has additional benefits.
Meanwhile printing equipment supplier Domino has launched a new range of A-series printers, which it says are the first in the industry to completely eliminate routine servicing.
Instead of an annual engineer service, just one component is replaced, which can be done by any operator in under 10 minutes.
The printer uses 90% less system ink and 50% less solvent ink than its predecessor. The A320i also incorporates energy-saving software to shut down the printer automatically when idle.
Newly launched in the UK market is the Lapeg system from Spanish manufacturer Pujolas via the Interfood Group.
The Lapeg system has been developed for automatic packing of single or multiple primals into a casing prior to cooking, a process which has previously been very labour intensive. The system can pack products of up to 200mm in diameter in plastic, fibrous, collagen and net and has increased consistency, throughput and yield.
Meanwhile, Sealpac recently launched ThermoSkin vacuum packs, which guarantee highest product awareness at retail, it says.
Product is loaded into the thermoformed pack and hermetically sealed with a transparent skin film using vacuum technology.
This makes ThermoSkin packs suitable for vertical product presentation at retail. As the skin film lies directly on top of the product, contamination is prevented. The packaging is also suitable for products that require further maturation during storage.
With a stream of innovations coming through on all fronts, packaging machinery suppliers could be likened to technology companies such as Apple with its iPads and iPods. Does that mean that food manufacturers should bide their time before investing in new packaging kit to get the most benefits?
Yamato's Fowell says this concern has already been factored in: "We make big new launches every three to four years and always advise the market place well in advance so that customers know what is coming. In the meantime we tweak existing machinery every 12 to 18 months, which can be retro-fitted."
