Packaging Automation Benchmark Study, Part 2: Machine builders influence, interpret packagers' needs

Packaging is big business—and it's growing. Control Engineering and Packaging Digest set to investigate this dynamic market through the Packaging Automation Benchmark Study, a three-part, year-long research project conducted by Reed Research Group. This comprehensive view of the state of packaging automation reveals the technology, market drivers and business issues affecting packagers...

08/22/2008


Sidebars:
Research Methodology
Key Findings
Other articles in this study

Packaging is big business—and it's growing. Control Engineering and Packaging Digest set to investigate this dynamic market through the Packaging Automation Benchmark Study, a three-part, year-long research project conducted by Reed Research Group. This comprehensive view of the state of packaging automation reveals the technology, market drivers and business issues affecting packagers, machine builders, and system integrators.

This is Volume 2 of the Packaging Automation Benchmark Study, focusing on packaging machine builders and the state of the market from their point of view. These machine builders have a unique role in the market, both influencing and interpreting the needs of packagers and the offerings of automation component and software vendors. In Volume 1, published in April 2008, research results came from the packagers themselves. In Volume 3, research will focus on the system integrator community, providing insight into how their interaction with both packagers and machine builders is driving innovation. A key focal point for that study is a view of technology adoption and strategic use of data acquisition. Survey outreach will begin in late fall 2008, with results published in December 2008.

Complete research results, as well as Webcasts, podcasts and other resources based on the research can be found online. Access all at www.controleng.com/automationresearch or www.packagingdigest.com/automationresearch .

Top 5 markets represented
• Food51%
• Beverages47%
• Pharmaceuticals38%
• Personal care/cosmetics36%
• Household chemicals/products36%
• Machinery, electronic equipment31%
Number of people employed by company
• Under 2012%
• 20– 9926%
• 100– 24924%
• 250– 49911%
• 500– 99910%
• 1,000 or more17%
2007 sales volume
• Under $10 million25%
• $10 million - $24.9 million24%
• $25 million to $49.9 million12%
• $50 million to $249.9 million15%
• $250 million to $999.9 million13%
• Over $1 billion12%
Location of corporate headquarters
• United States78%
• Europe13%
• Canada3%
• Asia3%
• Central or South America2%
• Other (please specify)2%
• Mexico1%
Locations where OEMs have production
• >United States90%
• Europe31%
• Asia25%
• Mexico13%
• Canada12%
• Central or South America9%



Typical type of packaging performed by your machines
• Flexible packaging54%
• Cartons45%
• Labeling/labels36%
• Shrink wrap30%
• Cases28%
• Folding carton28%
• Rigid plastic26%
• Bottles (plastic)24%
• Bottles (glass)21%
• Cans19%
• Stretch wrap19%
• Blister Pack15%
• Tube15%
• Clamshell13%
• Other9%
Ethernet protocols supported
• EtherNet/IP95%
• Modbus TCP29%
• ProfiNet24%
• SERCOS III23%
• EtherCAT15%
• PowerLink10%
• Foundation Fieldbus8%
• Other4%
With whom do you collaborate on new packaging machine designs
• Customers' packaging engineers/designers73%
• Automation suppliers54%
• Internal packaging engineers/designers51%
In-house system integrators40%
• Materials suppliers37%
• Other OEMs31%
• Contract system integrators26%
• No one, do not collaborate7%
Typical build time for new equipment (from contract signing to acceptance test signoff)
1– 3 months30%
4– 6 months40%
6 months to 1 year24%
More than 1 year5%


Standard Optional Total
Instrumentation and control components
• Components and connectors74%13%87%
• Safety76%10%86%
• Process sensors62%16%78%
• Instrumentation and analysis49%26%75%
• Vision systems21%54%75%
Application and programming software
• Programming applications (such as HMI)54%21%75%
• Data historian/data analytics25%36%61%
• Enterprise integration and analysis16%36%52%
• ERP15%24%39%
• MES15%23%38%
Motors, drives and motion control
• Motors80%8%88%
• AC drives73%12%85%
• Servos70%13%83%
• DC drives56%23%79%
• Steppers60%19%79%
Machine and embedded controllers
• PLCs69%17%86%
• Safety73%10%83%
• Discrete sensors and readers56%26%82%
• PACs (controller integrating motion and logic)41%28%69%
• Embedded/board-level controllers43%24%67%
• Multi-axis motion controllers39%28%67%
• Robotics27%37%64%
Networks, communications hardware, software
• I/O products and cabling69%15%84%
• Safety66%10%76%
• Network software and diagnostics40%32%72%
• Switches, routers and gateways43%27%70%
• Wireless solutions15%43%58%
Process and advanced control
• Electronic work instructions34%31%65%
• Barcode22%41%63%
• Advanced control (e.g., simulation)23%29%52%
• Process and batch control32%28%60%
• RFID11%36%47%
HMI and industrial PCs
• HMI hardware57%20%77%
• HMI software52%22%74%
• Industrial PCs40%34%74%



OEMs Agree Users Agree
Our customers require increased flexibility in packaging systems53%23%
Automated packaging lines are critical to maximizing our customers' capacity56%43%
In the next five years, sustainability will become a major driver for automation of packaging lines.38%37%
Global availability and international standardization of packaging lines are essential to packaging end users.20%26%
Customers see packaging machine flexibility and integrated automation as a key competitive advantage.44%51%
Our customers place a high value on packaging operations as a strategic competitive advantage36%51%
Our customers should take greater advantage of flexibility in packaging systems to improve time to market38%40%


Top three reasons to automate packaging processes
OEMs say
• Control labor costs77%
• Gain production efficiencies52%
• Gain competitive edge28%
Users say
• Control labor costs81%
• Gain production efficiencies74%
• Gain competitive edge48%
Main benefits expected when deciding which processes to automate
OEMs say
• Removing production bottlenecks49%
• Access machine diagnostic data40%
• Ability to access production data39%
• Recipe-driven/tool-less changeover38%
Users say
• Ability to access production data48%
• Recipe-driven/tool-less changeover44%
• Ability to access diagnostic data42%


Percentage of customers who specify brands of controls
Less than 10%37%
10% - 49%36%
50% - 74%11%
75% - 89%11%
90% or more6%
Percentage of customers accepting alternative recommendations
Always8%
Frequently37%
Sometimes52%
Never4%
OEMs perception of the value customers place on being involved in selection of components
Great value23%
Moderate value53%
Little value19%
No value5%



OEMs can use the criteria shown to determine the Key Buying Factors packagers consider in a purchase decision. Multivariant analysis like this allows a business to consider both importance and satisfaction on a number of factors, giving an OEM a much better idea of where they can direct their marketing efforts.




ONLINE extraOther articles in Packaging Automation Benchmark Study, Part 2

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Research Methodology

Data for the Packaging Digest and Control Engineering 2008 Packaging Automation Benchmark Study was gathered over a two-week period in the beginning of June 2008. Respondents came from the subscriber base of the following publications' print magazines and E-newsletters:

  • Packaging Digest

  • Control Engineering

  • Plant Engineering

  • Converting

E-mail invitations were sent to the subscribers inviting them to complete a Web-based questionnaire. Over 3,900 industry members responded to the invitation for the second phase of the study. Respondents were qualified as to their company's role in packaging, with 198 respondents who meet the qualifications as an Equipment Supplier/OEM. Another 1,046 respondents met our qualifications as purchasers of packaging equipment and participated in a supplemental study. All results are posted in aggregate, and individual results are kept strictly confidential.

Key Findings

Business Demographics

  • 19% said their company's revenue is totally derived from the packaging industry.

  • Almost 60% of OEMs derive less than half their business from the packaging industry.

  • An overwhelming majority of OEMs believe packaging will stay the same or grow in terms of its overall share of their company's business in the next five years.

  • Those companies currently deriving 25% to 75% of their business from the packaging industry are expecting the highest growth.

  • The United States, followed by Europe and Canada, are currently the top markets for packaging among respondents.

  • In the future, respondents expect the most growth to occur in Asia, followed by the United States and Europe.

Machine design and functionality

  • The most typical types of packaging performed on the machines built are flexible packaging, cartons, and labeling/labels.

  • The most common type of packaging equipment made by OEMs is package handling, conveying, and cartoning.

  • Packaging equipment types expected to grow most over the next 5 years include product inspection, robotics, and form/fill/seal.

  • OEMs are incorporating the following types of automation most in their machines:
    - Instrumentation and controls
    - Motors, drives, motion control
    - Machine and embedded controllers
    - HMIs and industrial PCs.

  • Designing new packaging machines is a highly collaborative process, with 73% of machine builders collaborating with customers' packaging engineers, 54% collaborating with automation suppliers, and 51% collaborating with other departments internally.

  • OEMs say there are two main reasons end-users are not currently using all the automation features their machines offer: knowledge level of the workforce (77%), and automation features exceed customer needs (57%).

  • The majority of equipment manufacturers mention they are addressing this problem by offering onsite training, and creating easy to read manuals.

OEMs and end users disagree most in these areas

  • Currently, most OEMs customers are not too involved in specifying brands of automation controls. In addition, OEMs state their customers are willing to accept some level of alternative recommendation.

  • OEMs believe that automated packaging lines are more likely to be critical to maximizing customer capacity, while end users are less likely to agree with this.

  • OEMs think customers place less emphasis on the competitive advantage that integrated automation can offer, while the end user survey says they value the competitive advantage.

  • OEMs believe their customers don't place much value on packaging operations as a key strategic advantage, while end users have indicated that they do.

  • Most OEMs customers do not specify brands of automation controls. Among packagers who do specify brands, it is less likely they will accept an alternative recommendation. They also put greater value on being involved in the selection of components.

Research Methodology

Data for the Packaging Digest and Control Engineering 2008 Packaging Automation Benchmark Study was gathered over a two-week period in the beginning of June 2008. Respondents came from the subscriber base of the following publications' print magazines and E-newsletters:

  • Packaging Digest

  • Control Engineering

  • Plant Engineering

  • Converting

E-mail invitations were sent to the subscribers inviting them to complete a Web-based questionnaire. Over 3,900 industry members responded to the invitation for the second phase of the study. Respondents were qualified as to their company's role in packaging, with 198 respondents who meet the qualifications as an Equipment Supplier/OEM. Another 1,046 respondents met our qualifications as purchasers of packaging equipment and participated in a supplemental study. All results are posted in aggregate, and individual results are kept strictly confidential.

Research Methodology

Data for the Packaging Digest and Control Engineering 2008 Packaging Automation Benchmark Study was gathered over a two-week period in the beginning of June 2008. Respondents came from the subscriber base of the following publications' print magazines and E-newsletters:

  • Packaging Digest

  • Control Engineering

  • Plant Engineering

  • Converting

E-mail invitations were sent to the subscribers inviting them to complete a Web-based questionnaire. Over 3,900 industry members responded to the invitation for the second phase of the study. Respondents were qualified as to their company's role in packaging, with 198 respondents who meet the qualifications as an Equipment Supplier/OEM. Another 1,046 respondents met our qualifications as purchasers of packaging equipment and participated in a supplemental study. All results are posted in aggregate, and individual results are kept strictly confidential.

Research Methodology

Data for the Packaging Digest and Control Engineering 2008 Packaging Automation Benchmark Study was gathered over a two-week period in the beginning of June 2008. Respondents came from the subscriber base of the following publications' print magazines and E-newsletters:

  • Packaging Digest

  • Control Engineering

  • Plant Engineering

  • Converting

E-mail invitations were sent to the subscribers inviting them to complete a Web-based questionnaire. Over 3,900 industry members responded to the invitation for the second phase of the study. Respondents were qualified as to their company's role in packaging, with 198 respondents who meet the qualifications as an Equipment Supplier/OEM. Another 1,046 respondents met our qualifications as purchasers of packaging equipment and participated in a supplemental study. All results are posted in aggregate, and individual results are kept strictly confidential.

Research Methodology

Data for the Packaging Digest and Control Engineering 2008 Packaging Automation Benchmark Study was gathered over a two-week period in the beginning of June 2008. Respondents came from the subscriber base of the following publications' print magazines and E-newsletters:

  • Packaging Digest

  • Control Engineering

  • Plant Engineering

  • Converting

E-mail invitations were sent to the subscribers inviting them to complete a Web-based questionnaire. Over 3,900 industry members responded to the invitation for the second phase of the study. Respondents were qualified as to their company's role in packaging, with 198 respondents who meet the qualifications as an Equipment Supplier/OEM. Another 1,046 respondents met our qualifications as purchasers of packaging equipment and participated in a supplemental study. All results are posted in aggregate, and individual results are kept strictly confidential.

Research Methodology

Data for the Packaging Digest and Control Engineering 2008 Packaging Automation Benchmark Study was gathered over a two-week period in the beginning of June 2008. Respondents came from the subscriber base of the following publications' print magazines and E-newsletters:

  • Packaging Digest

  • Control Engineering

  • Plant Engineering

  • Converting

E-mail invitations were sent to the subscribers inviting them to complete a Web-based questionnaire. Over 3,900 industry members responded to the invitation for the second phase of the study. Respondents were qualified as to their company's role in packaging, with 198 respondents who meet the qualifications as an Equipment Supplier/OEM. Another 1,046 respondents met our qualifications as purchasers of packaging equipment and participated in a supplemental study. All results are posted in aggregate, and individual results are kept strictly confidential.

Key Findings

Business Demographics

  • 19% said their company's revenue is totally derived from the packaging industry.

  • Almost 60% of OEMs derive less than half their business from the packaging industry.

  • An overwhelming majority of OEMs believe packaging will stay the same or grow in terms of its overall share of their company's business in the next five years.

  • Those companies currently deriving 25% to 75% of their business from the packaging industry are expecting the highest growth.

  • The United States, followed by Europe and Canada, are currently the top markets for packaging among respondents.

  • In the future, respondents expect the most growth to occur in Asia, followed by the United States and Europe.

Machine design and functionality

  • The most typical types of packaging performed on the machines built are flexible packaging, cartons, and labeling/labels.

  • The most common type of packaging equipment made by OEMs is package handling, conveying, and cartoning.

  • Packaging equipment types expected to grow most over the next 5 years include product inspection, robotics, and form/fill/seal.

  • OEMs are incorporating the following types of automation most in their machines:
    - Instrumentation and controls
    - Motors, drives, motion control
    - Machine and embedded controllers
    - HMIs and industrial PCs.

  • Designing new packaging machines is a highly collaborative process, with 73% of machine builders collaborating with customers' packaging engineers, 54% collaborating with automation suppliers, and 51% collaborating with other departments internally.

  • OEMs say there are two main reasons end-users are not currently using all the automation features their machines offer: knowledge level of the workforce (77%), and automation features exceed customer needs (57%).

  • The majority of equipment manufacturers mention they are addressing this problem by offering onsite training, and creating easy to read manuals.

OEMs and end users disagree most in these areas

  • Currently, most OEMs customers are not too involved in specifying brands of automation controls. In addition, OEMs state their customers are willing to accept some level of alternative recommendation.

  • OEMs believe that automated packaging lines are more likely to be critical to maximizing customer capacity, while end users are less likely to agree with this.

  • OEMs think customers place less emphasis on the competitive advantage that integrated automation can offer, while the end user survey says they value the competitive advantage.

  • OEMs believe their customers don't place much value on packaging operations as a key strategic advantage, while end users have indicated that they do.

  • Most OEMs customers do not specify brands of automation controls. Among packagers who do specify brands, it is less likely they will accept an alternative recommendation. They also put greater value on being involved in the selection of components.



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Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
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Robotic integration and cloud connections; SCADA and cybersecurity; Motor efficiency standards; Open- and closed-loop control; Augmented reality
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Featured articles highlight technologies that enable the Industrial Internet of Things, IIoT-related products and strategies to get data more easily to the user.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Cloud, mobility, and remote operations; SCADA and contextual mobility; Custom UPS empowering a secure pipeline
Infrastructure for natural gas expansion; Artificial lift methods; Disruptive technology and fugitive gas emissions
Mobility as the means to offshore innovation; Preventing another Deepwater Horizon; ROVs as subsea robots; SCADA and the radio spectrum
Automation Engineer; Wood Group
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Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
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This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
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The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
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Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
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This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
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