Integrators play central role in packaging automation

Packaging is a specialty that manufacturers in virtually every industry must address. To some, it means skids, shrinkwrap and labels. To others, it includes complex "recipes" of materials, sizes, cartons and containers. Control Engineering and Packaging Digest set out to investigate this dynamic market through the Automation in Packaging Benchmark Study, a three-part, year-long research projec...

By Control Engineering Staff December 1, 2008

Sidebars: Research Methodology Key Findings Packagers Speak Out on System Integrators

Packaging is a specialty that manufacturers in virtually every industry must address. To some, it means skids, shrinkwrap and labels. To others, it includes complex “recipes” of materials, sizes, cartons and containers. Control Engineering and Packaging Digest set out to investigate this dynamic market through the Automation in Packaging Benchmark Study, a three-part, year-long research project conducted by Reed Research Group. This 360° overview of the state of packaging automation reveals the technology, market drivers and business issues affecting packagers, equipment builders and system integrators.

In Vol. 1, published in April 2008, research results came from the packagers and brand owners themselves. Vol. 2, published in August, focused on packaging equipment builders.

This is Vol. 3, and it focuses on system integrators. This small, but influential group provides hands-on help for system design, manufacture and installation. They also offer multi-industry insights to help packagers obtain the optimal solution for automating their production.

Complete results from all three volumes of the Automation in Packaging Benchmark Study, as well as other resources based on the research, can be found online at www.controleng.com/automationresearch or www.packagingdigest.com/automationresearch . Watch for release of the Webcast summarizing and contrasting all three studies in mid-December. Types of automation

Package handling
69%

Palletizing/unitizing
69%

Conveying
65%

Cartoning
63%

Labeling
59%

Marking/coding
55%

Product inspection
53%

Fill form/fill/seal
51%

Casing
47%

Robotics
45%

Overwrapping
33%

Other
2%

Multiple choices allowed

Areas where integrators claim automation experience

Multiple choices allowed

HMIs and industrial PCs
80%

Motors drives and motion control
78%

Application and programming software
71%

Instrumentation and control components
65%

Networks and communications hardware and software
55%

Process and advanced control
53%

Machine and embedded controllers
43%

Steps in a packaging automation project

1. Opportunity identification

2. Conceptual design

3. Detailed design

4. Installation/implementation

5. Troubleshooting

Most important automation and control product attributes

Multiple choices allowed

Reliability (e.g. performance)
55%

Price-to-performance value
45%

Quality/durability (e.g. long lasting)
39%

Easy to use, install and maintain
31%

Compatibility with existing systems
27%

Product specifications
24%

Long term cost of ownership
18%

Price
18%

Scalability
10%

Enhances speed of changeover (line)
10%

Products performed well during in-house testing
4%

Offers development tools
2%

Lot tracking/tracing capabilities
2%

Other
2%

Which brand-related characteristics are most important when evaluating automation vendors?

Multiple choices allowed

Technical support
53%

Previous experience with vendor
51%

Vendor reputation/known brand name/longevity
49%

On-time delivery
37%

Product availability
37%

Breadth of product line
20%

24×7 service and support
18%

Vendor’s partnerships
16%

Offers remote, diagnostic support
16%

Global support
10%

Specialized product line
8%

R&D/innovation
8%

Other
2%

Ethernet protocols supported

Multiple choices allowed

EtherNet/IP
90%

Modbus TCP
43%

ProfiNet
43%

Foundation Fieldbus
20%

SERCOS III
15%

PowerLink
10%

EtherCAT
8%

Other
8%

Research Methodology

Data for Vol. 3 of the Packaging Digest and Control Engineering 2008 Automation in Packaging Benchmark Study were gathered over a two-week period in early November 2008. Respondents came from the subscriber base of the following magazines and E-newsletters: Packaging Digest, Control Engineering, Plant Engineering and Converting.

Subscribers were invited by Email to complete a Web-based questionnaire. Respondents were qualified based on their company’s role in packaging.

Of the estimated 400 North American system integrators working in packaging, nearly 13 percent responded to the survey. Another 896 respondents qualified as brand owner/packager, converter, equipment supplier or contract packager. They answered questions about the performance of system integrators. All results are posted in aggregate, and individual results are kept strictly confidential.

Pages 14 and 15 of this report compare answers to questions that were asked of respondents in all three surveys.

Key Findings

Business demographics

57% of system integrators have fewer than 50 employees; 42% have over 100 employees.

Depending on the firm’s size, system integrators on average work on three packaging projects simultaneously.

71% say packaging accounts for less than a quarter of their total sales, but 44% expect packaging to grow over the next five years.

Integrators’ business is concentrated in the Middle Atlantic and East North Central states, while 23% also report international sales.

On average, respondents performed 7.24 packaging projects in the last five years.

Automation technology selection

Packaging handling, palletizing, conveying and cartoning are the most typical projects.

Over 70% of responding integrators expect robotics and marking/coding to be the fastest-growing packaging automation segments.

47% of integrators say they select components for an automation project, while 69% of packagers/end users choose the type of equipment.

Vol. 1 indicated end users utilize less than 50% of their automation functionality. Over 70% of integrators say this is due either to an under-educated workforce or automation that exceeds client needs.

80% of integrators say controlling labor costs is the primary reason their packaging clients are automating their processes.

Packagers discuss system integrators

Top criteria to choose an integrator include cost, previous success, packaging expertise.

79% of packagers say they will likely hire the same integrator on their next project.

64% of users say technical support is extremely important; 74% are satisfied with integrators’ technical support.

Next highest factors are knowing clients’ needs and implementing recommendations.

Packagers Speak Out on System Integrators

Top criteria for selecting system integrators

Multiple choices allowed

Cost
64%

Success of previous project with us
51%

Expertise in packaging
51%

Technical resources
26%

Technical skills
26%

Referrals/word of mouth
15%

Geographic proximity
14%

Availability
14%

Affiliations with preferred vendors
8%

Financial stability
7%

Business skills
3%

Professional certifications/awards
1%

Other
4%

Are you satisfied with system integrators in the followingareas? Percent answering ‘somewhat’ or ‘extremely’

Multiple choices allowed

Understands your automation needs
75%

Able to implement recommendations
75%

Quality of technical support provided
74%

Has offerings compatible with existing systems
72%

Can collaborate in system design
71%

Types of automation options available
69%

Availability of system integration services
69%

Familiarity with various vendors
67%

Training/education support
66%

Identification of opportunities
62%

Uses consultative sales techniques
54%