PACK EXPO INTERNATIONAL

Pack Expo International packs in the know-how

Over four days in October, visitors at the US show immersed themselves in technology and business innovations, heard about the latest trends and shared knowledge

The world’s packaging and processing industries recently converged on Chicago’s richly storied McCormick Place – a venue familiar to many Australian providers in packaging and related industries – for Pack Expo International. Over four days in October, visitors immersed themselves in technology and business innovations, saw machinery in action, heard about the latest trends from experts, and shared knowledge with colleagues.

From October 23 to 26, attendees revelled in the post-pandemic freedom to communicate face-to-face at a ‘what-you see-is-what-you get’ expo. It was one of the only events this year to showcase entire production-line solutions, offer more than 100 free educational sessions, and provide the know-how to compete in a changing marketplace. In fact, there were more than 2,000 exhibitors, representing some 40 vertical markets.

For the first time, Pack Expo International offered new features and focal points. Pack To The Future was an interactive exhibit celebrating the role of packaging and processing throughout history and the impact it is poised to have on our future.

The curated exhibit included historical equipment, materials and photographs spanning 250 years, journeying through the evolution of packaging and processing, and highlighting how the industry developed alongside civilisation.

Over four days, visitors of Pack Expo International immersed themselves in innovation

Looking ahead, the Pack To The Future exhibit provided sessions on industry innovations and features, presentations by industry experts on advances in pharmaceutical packaging, wireless factory automation, sustainable alternatives, smart packaging, artificial intelligence, and more.

The Processing Zone housed a broad variety of food and beverage processing equipment. Pack Match was a one-on-one consultation process offering attendees personalised guidance to locate targeted solutions in 30-minute pre-show virtual consultations which aligned visitors with their optimal suppliers at the show, based on their markets.

Pack Challenge, sponsored by PepsiCo, was a first-of-its-kind packaging competition that brought six high-school teams together for a fun competition in machine building. There were new pavilions at this year’s event, including the Healthcare Packaging Pavilion, a showwithin-a-show offering the latest advances in packaging and the life sciences. With the boom in ecommerce, the Logistics Pavilion offered targeted solutions related to the supply chain, including warehousing, fulfillment, distribution logistics services, and transportation providers.

Regular Pack Expo International favourites returned for the 2022 show, including the PACKage Printing Pavilion, featuring digital printing and converting, labelling, coding, and marking technologies, while the Containers and Materials Pavilion was a prime destination for companies looking for new materials solutions to address sustainability, refresh a brand, launch new products and broaden appeal. The Reusable Packaging Pavilion explored reusable transport packaging products and services and innovative re-use solutions from over 30 exhibitors.

The Packaging & Processing Women’s Leadership Network held a breakfast event to discuss advances in women’s careers in packaging and processing. A record-breaking attendance at the breakfast brought together nearly 1,000 professionals to hear Dawn Hudson, former chief marketing officer at the US National Football League and former president and CEO of Pepsi Cola North America, talk about her experiences in the workforce.

Meanwhile, young professionals in the packaging industry held their own event, and the show hosted the Technology Excellence Awards, which recognised the most innovative technologies not yet shown at a previous Pack Expo (See breakout box)

Pack Challenge brought six high-school teams together for a competition in machine building

The Pack Expo Green Program embodied the commitment of the expo, and all its partners, vendors, and exhibitors, to working together to create a more sustainable world. Pack Expo’s Sustainability Solutions Finder was a tool that proved popular among visitors.

As the show opened its doors, Jim Pittas, president and CEO of the show’s organisers, the US-based Packaging Machinery Manufacturers Institute (PMMI) (aka the Association for Packaging and Processing Technologies), stated, “As the industry’s largest gathering place, Pack Expo International is back and better than ever. No other event this year will showcase entire production-line solutions and offer everything needed to compete in today’s changing marketplace.” And over the next four event-packed days, the show was as good as its promise.

Pack Expo International convened over 44,000 attendees, surpassing the 2018 event. With 2,200 exhibitors showcasing cutting-edge packaging and processing innovations over 1.2 million net square feet of expo-centre real estate, the show managed to bring the entire industry together this year.

The expo welcomed an industry ready to do business after years of consistent growth. In 2019, the market for packaging machinery was $US10.8 billion; this year the industry broke the $15 billion mark, a growth of 40 per cent, according to PMMI.

Dawn Hudson, former chief marketing officer at the US National Football League and former CEO of Pepsi Cola North America

“The success of Pack Expo is a testament to our industry’s continued growth as well as PMMI’s commitment to bringing the industry together to share cutting-edge innovations,” Pittas said.

“No other event this year showcased so many end-to-end solutions, offering attendees everything they need to compete in a changing marketplace.” And industry growth translated into buyers coming in significant numbers, ready to see the latest packaging materials, as well as technology in action.”

During the show, PMMI released its report, The Future of Automation in Packaging and Processing, focusing on worldwide labour shortages, which have driven consumer packaged goods (CPG) companies to adopt automated solutions.

The report highlights how CPGs are looking to enhance and optimise their production, storage, and distribution processes using automated solutions, including automated guided vehicles, industrial robots, collaborative robots (cobots), and mobile robots, with some of these technologies supported by artificial intelligence (AI) and advanced vision tools.

According to the report, ecommerce is fuelling the automation trend, moving companies towards more responsive modes of distribution such as Direct-toCustomer, disrupting traditionally highly manual warehousing formats, and in some cases eliminating the need for warehousing.

The busy showfloor of Pack Expo International

Additionally, supply-chain problems are impacting the availability and cost of raw materials and parts for packaging machinery. Over 90 per cent of CPGs say these problems are either extremely impactful or somewhat impactful and while most companies expect them to be resolved over the short term (within three years), at least 25 per cent of companies anticipate them persisting over a longer time span.

With this boom in ecommerce, coupled with the challenges arising from widespread supply-chain issues, the Logistics Pavilion at Pack Expo drew much interest, with attendees finding targeted solutions related to the supply chain, including warehousing, fulfillment, distribution logistics services and transportation providers.

The show opened against a background of encouraging figures in shipments of packaging and converting machinery in the US. According to this year’s PMMI report, the value of domestic shipments for packaging machinery rose 11.2 per cent to $US10.5 billion in 2021 and is forecast to grow at a CAGR of 5.4 per cent to $12.9 billion in 2027.

Similarly, the value of domestic shipments for converting machinery also increased by 9.5 per cent to $1.1 billion in 2021, despite order backlogs in both categories increasing by double digits in 2021, compared to the end of 2020.

The demand for packaging machinery is largely driven by the increase in consumer goods demand, the rise in adoption of automated packaging machines, and development of energyefficient machines, states the PMMI report.

Advancements in electronics, computing technologies, and rising awareness of the inherent benefits of automation have encouraged numerous industries to embrace integrated packaging machinery solutions. As such, robotic packaging automation is poised to emerge as the future of packaging in the coming years in both primary and secondary packaging applications.

Visitors check out some of the technologies on display

The topic of cybersecurity has emerged as a leading consideration due to new points of vulnerability, as new technologies such as fully integrated enterprise resource planning (ERP) systems, remote access, and cloud computing and connected machine sensor networks continue to emerge and evolve.

The industry is also experiencing a large push for ecommerce solutions, accelerated by the COVID-19 pandemic. The shift in online purchasing habits will continue to drive demand for packaging machinery –as ecommerce differs from traditional retail outlets due to increased touchpoints to reach the customer, increased packaging, and supply-chain challenges. Sustainability presents an opportunity for businesses facing increasing economic pressures to gain value and competitive advantage as they respond to environmental concerns and the pressures of resource scarcity, population growth, and higher and more varied consumer expectations. Various eco-friendly material innovations also are emerging, requiring specialised machinery to run such materials.

The PMMI report found tremendous opportunity in these segments for more growth and innovation as equipment manufacturers leverage growing trends like ecommerce, sustainability, and the rise in automation, and build machinery to address these trends.

Pharmaceuticals are a specific growth sector. The US pharmaceutical industry registered $US800 million in sales in 2020 and is forecast to grow at a 7.6 per cent compound annual growth rate through 2026, according to Pharmaceutical Manufacturing Trends Shaping the Future, a PMMI white paper published in March this year.

The industry must keep pace with changing product formats and production preferences. The shift towards higher value injectables and customised runs is driving the expanded use of contractors, while also pushing manufacturers towards more automated production lines.

The Packaging & Processing Women’s Leadership Network discussed advances in women’s careers

Meanwhile, the pace of digitisation is accelerating to meet the requirements of the US Drug Supply Chain Security Act, address cybersecurity concerns, achieve operational visibility, and support blockchain product tracking, according to the PMMI.

The PMMI also noted that manufacturers must adjust to steady growth in direct-toconsumer ecommerce channels and consumer preferences for sustainable practices. To meet sustainability objectives, 67 per cent of pharmaceutical manufacturers are light weighting packaging, 53 per cent are increasing postconsumer recycled content, 47 per cent are seeking more energy-efficient equipment, and 40 per cent are changing packaging formats.

Supply-chain challenges have created shortages and delivery delays in packaging materials, raw materials, equipment, and parts. These delays and shortages have postponed both product launches and operational improvements.

As a result, pharmaceutical manufacturers are seeking closer collaboration and cooperation with OEMs and suppliers of packaging and raw materials. To achieve this goal, pharmaceutical manufacturers want OEMs and suppliers to offer aftermarket service/support, integrate new machines, enhance equipment accuracy and reliability, simplify changeover, maximise machine flexibility, deliver parts quickly, and provide support for concept models to visualise equipment, as well as for installation qualification and operational qualification.

Parallel to all this is the growth of automation. CPG companies have embraced robotics. Expanded intelligence, mobility, and sensing capabilities are opening new applications for robots and cobots in processing, primary packaging, secondary packaging, and transport packaging. As a result, usage is growing along the entire line from initial inputs to end-of-line, according to Robots & Cobots, An Automated Future, a white paper produced by PMMI.

Most CPG companies (84 per cent) operate robotics somewhere on the line, and this number will rise to 93 per cent in the next five years, as shown in a forecast presented in Robots & Cobots, An Automated Future, an infographic produced by PMMI.

The Pack Challenge event this year was sponsored by PepsiCo

Deployment of cobots will also see strong growth, with usage more than doubling from 27 per cent in 2022 to 57 per cent in 2027. Improvements in functionality such as vision, self-learning, and AI will spur adoption.

For CPG companies, installation of robotics can achieve multiple goals, says the report. They can reduce labour and repetitive tasks, increase speed and productivity, achieve repeatable quality and consistent product handling, improve operator safety, and minimise waste and human error.

Today’s robots are more intelligent, significantly faster, capable of lifting heavier loads, and easier to operate. Cobots now have sensors for feedback, use hand movement-based guides for self-learning, and are more mobile. Robots and cobots also are easier to program and require a smaller capital investment.

Nevertheless, one of the main challenges to adoption is ROI justification. Other hurdles include internal shortfalls (time, skills, budget); total cost of ownership; OEM support for integration, training, and service; technology and functionality; and identifying appropriate applications.

Of course, the warp-speed embrace of automation technologies also increases the potential for and impact of cybercrime, notes PMMI.

The use of new and evolving technologies such as fully integrated enterprise resource planning (ERP) systems, cloud computing and connected machine sensor networks, remote access, and Industrial Internet of Things (IIoT) connectivity has increased exponentially over the last two years, but while these technologies make manufacturing more efficient, they also create new exploitable points of vulnerability, according to PMMI’s white paper, Cybersecurity: Assess Your Risk.

With that in mind, Pack Expo International showcased the latest solutions to keep businesses safe. Cybersecurity was a key topic of focus at The Forum, a presentation and ideas program held during this year’s show. The Forum comprised 45-minute interactive sessions, beginning with short presentations by top experts, then moving on to roundtable discussions.

“As our industry increases its reliance on digital technology, it is critical for manufacturers to improve cybersecurity preparedness and stay abreast of the latest tools and technologies to protect their operations,” Pittas said.

“With top industry experts and leading suppliers all under one roof, Pack Expo International is the best place to gain the knowledge and understanding needed to reduce the risk of a cyberattack on operations.”

More than 2,000 exhibitors, representing some 40 vertical markets were at the show

According to PMMI’s white paper, in the first quarter of 2020, attacks targeting the manufacturing sector accounted for 11 per cent of all cyberattacks that occurred across all industries. By the second quarter of 2020, cyberattacks targeting manufacturers accounted for 33 per cent of all incidents across all industries.

This increase in attacks is especially alarming, considering there are real, growing costs to manufacturers that experience a cyberattack. In 2020, the average cost of a cyberattack stood at around $US3.86 million, and that is before factoring in ancillary impacts such as lost opportunity and damaged customer loyalty.

A major component of this year’s show was the Emerging Brands Summit, a first for Pack Expo International. Produced by PMMI Media Group, the one-day event featured educational content and tabletop exhibits aimed at assisting start-up manufacturing companies grow their operations. The new program is for founders and leaders of start-up manufacturing companies looking to scale their brand to larger production through inhouse facilities, build-out, or outsourced relationships with contract manufacturers and packagers.

Exhibitors included suppliers of packaging machinery, packaging materials, processing equipment, and contract manufacturing and packaging services. The event was especially designed for companies evaluating inhouse and outsourced manufacturing and packaging solutions, founders of high-growth emerging brands looking to scale operations, and leaders of product development, operations, or finance.

Kim Overstreet, director of PMMI’s Emerging Brands Community, reflected, “With so much change in the industry over the last few years and the increase in ecommerce and consumer demand in every industry vertical, we felt that it was important to launch a program that can serve as a roadmap to help companies take their operations to the next level. Now more than ever, brands need support and adequate resources to keep up with the rapidly growing demands they are facing.”

The show provided a lot of fun too – and a Pack Gives Back event allowed students and the next generation of professionals to tour the show floor, before rocking out to legendary band STYX. The band draws from over four decades of barn-burning chart hits, joyous singalongs, and harddriving deep cuts such as, Renegade, Come Sail Away, Lady, Blue Collar Man, Too Much Time On My Hands, Mr Roboto, Fooling Yourself, The Grand Illusion and more. It was all part of the package.

For Australians committed to travelling to see some of the best packaging technology the world has to offer, there are two events in the Pack Expo portfolio coming up next year – Expo Pack Guadalajara in Mexico (June 13 to 15, 2023) followed by Pack Expo Las Vegas (September 11 to 13, 2023).

Technology Excellence Awards

An interesting indicator of what’s hot in packaging is the innovative line-up of products on offer from manufacturers who won PMMI’s Technology Excellence Awards, announced ahead of this year’s Pack Expo International.

A tethered closure providing a solution to enhance its recyclability, while still offering consumers a convenient and comfortable drinking experience, earned Berry Global the award in the food and beverage section.

Meeting the requirements of hygiene, accessibility and efficiency, the IMA Ilapak Vegatronic 6400 continuousmotion vertical bagging machine delivered a Technology Excellence Award in the General Packaging and Processing section to IMA North America.

CueSee Mix, a dual-chambered device for the storage of liquids, powdered and lyophilised components, is designed to keep these components totally separate, preventing reactions between components. It won developer Eurotrol the Technology Excellence Award in the Personal Care/Pharmaceuticals section.

The ClipCombo machinery solution, new from Graphic Packaging, delivers the ability to run two different paperbased multipack styles on the same machine, offering high speeds and rapid changeovers. The judges awarded the Technology Excellence Award in the Sustainability section to ClipCombo’s manufacturer Graphic Packaging International.