1. Plant efficiency is critical to long-term survival.
Economic stagnation—coupled with increased costs of raw materials, utilities and labour—are putting pressure on manufacturers’ margins, especially in the developed world. To combat rising costs in the coming years and meet the fast-evolving needs of the market, three strategies are key:
Rationalisation and focus on scale efficiencies,
with smaller plants closing in favour of new,
large plants, and a reduction in the number of SKUs to cut the long tail and optimise plant
utilisation.
Environmental actions help minimise energy,
water consumption, and food waste, with the added
benefit of helping manufacturers meet environmental requirements and the expectations of
consumer and institutional stakeholders.
New technologies enhance product utility and attractiveness in addition to optimising labour and
plant efficiency. Examples include direct injection-moulded closures/tops, caps made from green
plastics, innovative package shapes, and IT solutions that enhance production output and quality.