Today the typical new car seems more like a product of the United Nations than of any one country. The average new car includes more than 20,000 individual parts, with thousands of suppliers around the globe contributing to arguably the most intricate supply chain of any manufactured product. Indeed, if car buyers got an itemized receipt listing every part in their new vehicle, they just might trip over it.
Take the typical Toyota made in America, for example: Only 50 percent to 60 percent of the car was actually assembled stateside, with the rest coming pre-assembled or fabricated by suppliers around the world. With auto parts streaming in from six continents and expected to reach the assembly line just in time for production, the pressure is on suppliers to deliver perfect parts that won’t slow down the carefully orchestrated assembly line due to damage or nonconformity.
Advances in Automotive Technology
To complicate matters even further, advances in automotive electronics are coming especially fast. In just the past few years, carmakers have begun offering safe-driver enforcement systems, which keep drivers’ cellphones quiet and restrict speed and stereo volume; backseat camera systems so drivers can check on their young children without turning around; vehicle-tracking software to prevent theft; and adaptive cruise-control systems, which match a car’s speed with that of the car in front of it.
These technological advances are creating demand for new parts and forcing suppliers to think about the best way to ship them. Damaged parts can cost both suppliers and manufacturers considerable time and money by slowing production and product loss, so using the right protective packaging designis paramount.
Opportunity in the Automotive Aftermarket
Protective packaging design is playing a central role in a growing opportunity for carmakers, dealers and manufacturers. With the rise of ecommerce, it’s now more common for parts to be shipped directly to consumers, cutting out auto-parts retail chains that serve as middlemen. In fact, according to the Auto Care Association, the ecommerce sector of the automotive aftermarket is expected to grow to $28 billion by 2020.
This direct-to-consumer aftermarket sector generally has two kinds of customers, according to the Automotive Aftermarket Suppliers Association – those looking to upgrade their cars through accessories and those seeking replacement parts for older vehicles. The untapped potential in this sector is huge: Approximately 85 million vehicles in the United States are six to 12 years old, meaning they are at the age when things start to go wrong. And many owners are choosing to buy parts online because of lower prices and the convenience of home delivery.
A 2017 report by Zion Market Research valued the global car accessories market at $361 billion in 2016 and predicted that figure would surge to $519 billion by 2022. The growth in sales will include a wide range of products such as interior and exterior LED lights aimed at enhancing the car’s appearance and solar-powered HVAC systems to reduce fuel use, the report said.
“Damaged parts can cost both suppliers and manufacturers considerable time and money by slowing production and product loss, so using the right protective packaging design is paramount."
As cars become more complex, they are also becoming more expensive to repair following accidents, making aftermarket collision repair centers a key driver of the growing demand for parts. According to a 2018 report from the Auto Care Association, car accidents in America over the most recently recorded 12-month period resulted in $45.8 billion in collision repair-related sales and services, representing 16.5 percent of the total spent in the automotive aftermarket.
Younger consumers are fueling strong interest in car collecting, presenting another opportunity for parts suppliers. The car insurance and valuation-tracking company Hagerty said that in 2018, it received more requests for classic-car insurance quotes and more vehicle-valuation requests from Gen Xers and millennials than from baby boomers. Overall requests in 2018 were up 17 percent from the prior year, which Hagerty analyst John Wiley said indicates “a healthy market and continuing interest in cars and driving across generations.”
Focusing on Protective Packaging
For parts suppliers, carmakers and manufacturers, there are huge opportunities ahead, but with opportunity comes complexity and new ways of thinking. Within these new emerging markets and the inherent complexities of the auto supply chain, those who hone in on the main considerations of protective packaging design will realize the biggest dividends.
To learn about Pregis’ full line of automotive protective packaging solutions, visit www.pregis.com/automotive--transportation.
Pregis receives FSC Chain of Custody Mix certification for Easypack paper
Pregis LLC, a leading protective packaging materials and automated systems manufacturer, has received a Forest Stewardship Council® (FSC®) Chain of Custody, FSC Recycled certification for its Easypack paper portfolio. The certification is for 100% recycled-content, single and multiply-paper produced at its Plymouth, Indiana facility.
Pregis joins Amazon Packaging Support and Supplier network
Pregis LLC, a leading protective packaging materials and automated systems manufacturer, has joined the Amazon Packaging Support and Supplier (APASS) network. As part of the APASS network, Pregis can certify that packages meet the requirements of Amazon’s Frustration-Free Packaging programs and its 3 tiers of certification.
Pregis invests in new protective packaging innovation center
Pregis LLC has invested in a new 50,000 square foot innovation headquarters designed to help solve protective packaging challenges. The Aurora, Illinois facility is called the Pregis IQ. The customer-focused training, design and testing services hub deploys a variety of package engineering tools to achieve performance-oriented, cost-effective protective packaging solutions.
Pregis invests $6 million in third W&H blown film line in Grand Rapids
Pregis has announced yet another $6 million investment in its Pregis Films facility located in Grand Rapids, Michigan. This latest investment is for a third multilayer Windmoeller & Hoelscher (W&H) blown film line to address growing demands for output. It is in addition to the $23 million outlay for the first two, five-layer W&H lines, converting equipment and expanded production space, made between 2016 and 2018.
Pregis announces restructuring of its European operations
“By combining the air and paper systems portfolios, we will be creating a new European entity that will enable us to recommend the best on-demand, inside the box packaging solutions to meet a wide set of customer needs,” said Kevin Baudhuin, president and chief executive officer, Pregis.
The Unboxing Experience: How Premium Packaging Can Boost Your Brand
As retail continues to shift from physical stores to digital, the unboxing experience in consumers’ homes is replacing the store experience. Over the years, the retail store experience has become a science which includes branding, placement, merchandising, personalized service, music and even scent. But many retailers have failed to replicate that euphoric in-store experience with home delivery, potentially putting customer lifetime value at risk.
Is package damage impacting your bottom line?
E-commerce retailers and manufacturers put in a significant amount of effort and investment making sure the products they produce meet quality and performance goals. However, if insufficient packaging protection results in customers receiving your product in damaged, broken and/or non-functioning condition, the impact to your brand’s profit margin can be significant.
Big Ideas for 2019: Surge in Direct-to-Consumer shipping impacts protective packaging
In 2018, a simple question – “What’s in the box?” – became more of a mystery for online shoppers coming home to a package on their doorstep. With consumers ordering a wider variety of products online than ever before, that package could contain just about anything, making the unboxing experience feel like a mystery grab bag.
Pregis invests $10 million-plus in its Sharp Packaging Systems operation; adds blown film line, enhanced printing capabilities
Pregis LLC has invested more than $10 million in manufacturing upgrades which include a blown film line and enhanced printing capabilities in its Sharp® Packaging flexible packaging operation in Sussex, Wisconsin.
Pregis joins How2Recycle coalition to help simplify recycling instructions for consumers
Pregis LLC has joined the How2Recycle coalition to help get more materials into the recycling stream by taking the guesswork out of the process. Initially, Pregis will be printing a How2Recycle label on its low-density polyethylene EP Flex film which is made into air pillows and widely used in e-commerce applications as void-fill.
Pregis announces new global branding for its surface protection films, cohesive materials and single-face corrugated products
Pregis is announcing a new brand and business unit SG PolyMask to service a global market with its surface protection films, cohesive materials and single-face corrugated products.
Pregis launches Easypack paper-based protective packaging equipment
Pregis is launching a new line of paper-based protective packaging equipment in North America. Easypack by Pregis equipment uses 100% recycled-content paper to create cushioning and block/brace solutions for a wide variety of applications.
- Marco Borruso
- Company News
- Created 29 Jan 2019
- Modified 15 Apr 2019
- Hits 69