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According to the Outsourcing Institute of Jericho New York, the outsourcing of packaging operations is growing at an annual rate of 15% with the greatest growth coming from smaller companies with $10 to $15 million in annual sales. About 60% of contract packagers said their business was up last year and 87% expect to see sales increases again this year.

Action Warehouse has been moving forward with a packaging division that is currently serving local manufacturing companies with service to retail outlets nationwide. Our warehouse background allows us to distribute from our packaging facility and ship to all corners of the country. We specialize in hand assembly, heat tunnel shrink wrapping, poly bagging and corrugated display assembly.

Dealing with a contract packager is a solid approach to confronting steeper marketplace demands. Here are some reasons why a company may want to consider a contract packager:

• On many occasions, contract packaging facilities have machinery and facilities superior to those of their manufacturing clients.
• Avoiding the necessity of hiring untrained, in-house packagers that exhibit a lack of expertise and slow productivity.
• Allows one to test the market’s response to a technology or package design without having to actually invest in it.
• A contract packaging partner can expedite the process of getting the product to the end user.
• It allows your firm to spend capital on other areas of the business rather than invest in packaging equipment.
• A company does not have to pay for idle labor for a permanent workforce that may be under or over employed because of volatile volume demands.
• If storage space is a problem, a contract packager may be able to store raw materials and finished product.