Co-Packing in 2024: 4 Resolutions from Ska Fab for Your Most Profitable Year Yet!

The New Year is often thought of as a list of resolutions – ways in which we can improve ourselves, enhance our connections, and refine the ways in which we engage with the world around us. Resolutions can vary in nature, ranging from comprehensive, long-term plans  resembling marathons, to quick fixes and fine-tunes.  Some involve making programmatic changes, while others focus on simple modifications to aspects that are already functioning effectively.  Upon closer examination of the word “resolution,” its Latin roots reveal a meaning associated with reducing into simpler forms.  This aligns with the aspirations that many of us share – finding ways to work smarter, not harder, as we move forward. It’s not about sacrificing quality, but rather a process of polishing our practices to make them shine even brighter. In 2023, the beverage and Consumer Packaged Goods (CPG) industries witnessed a surge in innovations, new products, emerging companies, and significant changes. As reported by Brainworks in 2023, the global CPG industry experienced a notable estimated Compound Annual Growth Rate (CAGR) of 4.5%. The diversity within the CPG market is evident, spanning household products, personal care, food, and beyond, with new brands and products continually entering these dynamic markets. The beverage sector, in particular, stood out during the year, featuring innovators who introduced creative and intriguing product offerings with unique ingredient combinations. For many beverage and CPG brands, a co-packer serves as the conduit for delivering their products to consumers while ensuring efficiency, flexibility, and cost-effectiveness in the packaging process.  Ska Fabricating collaborates with many dynamic co-packing companies, and as we venture into 2024 we wanted to offer some resolutions for these creative teams as they consider their own set of practices to help as they strive to become more nimble, more productive, and more profitable in 2024.

Co-Packing Resolution #1: Consider Your Flexibility

According to a report by McKinsey titled, “How manufacturers can accelerate value capture from Industry 4.0” (2018), 90% of manufacturers recognize that the capability to customize products and swiftly adapt to evolving customer needs is crucial for future business success.

Co-packers of any kind know that implementing modular and adaptable manufacturing processes to accommodate various product formulations, packaging formats, and client specifications is key to maintaining their competitive edge with their clientele.  A significant aspect of this adaptability is the choice to invest in flexible equipment capable of easy reconfiguration in order to meet evolving production requirements.  Agility, in this context, goes beyond merely responding to client needs; it also entails the ability to offer customized options in production volumes and product variations.

Flexibility is key in the design of our depalletizing and palletizing equipment, and the controls play a critical role in that. Each can or container has its own recipe programmed into the HMI, and these recipes provide a simple and effective way to change the speed of the conveyors, adjust the height cylinder, control multiple timers and safety features with the push of a single button.

Co-Packing Resolution #2: Analyze Your Cost Efficiency

According to a study by the National Institute of Standards and Technology (NIST) titled “Baldrige in Small Business/Manufacturing” (2019), small and medium-sized manufacturers adopting cost-efficient practices reported an average reduction of 20% in production costs.

To enhance cost-effectiveness without compromising product quality, companies should integrate regular cost analyses into their routine operations.  This involves identifying areas for optimization in production processes.  Aspects of this might include exploring opportunities for bulk purchasing of raw materials, as well as implementing lean manufacturing principles to minimize waste, reduce production time, and enhance overall operational efficiency.  Additionally, companies can consider automation as a strategic means to control costs. By automating certain processes, businesses can allocate skilled employees to more valuable tasks, contributing to overall operational efficiency. Furthermore, automation can play a pivotal role in scaling production output.

If you are not sure what equipment is right for you, we would encourage you to schedule a consultation with our sales engineers. Whether your solution is manual or automated equipment, we want you to be assured that the equipment we provide is the right one for your job and budget. 

Co-Packing Resolution #3: Think About How You Can Scale

According to research by PwC, outlined in “Creating an agile and scalable business” (2020), 94% of senior executives consider agility and scalability pivotal for gaining a competitive advantage in today’s business environment.

 

Investing in scalable technology and equipment that can seamlessly manage increased production volumes without compromising efficiency is a frequently expressed goal among our customers here at Ska Fabricating.  Production volumes and overall output goals are vastly different from customer to customer, so it is imperative that co-packing facilities are partnered with someone who sees and shares their vision for growth. 

 

Additionally, the importance of agility and scalability goes beyond the immediate production concerns. It extends into the broader business strategy, allowing companies to adapt swiftly to market changes and seize emerging opportunities. Recognizing this, co-packing facilities need a partner like Ska Fabricating that not only understands the unique production requirements but also appreciates the overarching vision for business growth. This collaborative approach ensures that the technology and equipment investments align not just with current production needs but also with the dynamic landscape of the industry.

Co-Packing Resolution #4: Consider Your Communication Goals

Effective communication is crucial in any relationship, recognizing that individuals may have diverse communication styles and priorities. According to a survey by Harvard Business Review Analytic Services, 92% of business leaders agree that communication is a key driver of results, emphasizing its critical role in achieving business success (“The New Conversation: Taking Social Collaboration to the Next Level,” 2015). Aligning on communication goals in 2024 can significantly enhance your impact in the markets you serve.  

At Ska Fabricating, customer support is foundational to our operations.  It is vital for our customers to know that they can reach out to us for any equipment-related issue. We emphasize that our relationship extends beyond a one-time conversation during the initial equipment consideration phase—it’s an ongoing partnership that evolves as the customer grows and scales. Partnering with an equipment company that shares your commitment to customer support and service further serves to strengthen your own brand identity.

2024 - Look Forward to the Year Ahead!

At Ska Fabricating, we are already full steam ahead with projects large and small, and we would love to hear more about the endeavors you are involved in.  As you map out your plans for the year, we trust that our goals and resolutions can complement and enhance the valuable efforts you’re already undertaking. Please think of us as you strategize for your future – we’d love to be a part of it!

Click HERE to reach out to our team today.

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