Since May 2016 there has been a significant increased demand for corrugated products resulting in increased production output by containerboard mills, corrugators and box plants. Last month Royal Containers’ box shipments increased over the previous October. Mills operated over capacity to satisfy growing demand and inventories dropped to the lowest levels in years.
The steady increase in demand for corrugated packaging is attributed to the growth of e-commerce retailing. This e-commerce retail boom is known as the “Amazon Effect”.
The corrugated sector is facing two challenges due to the Amazon effect:
Royal Containers, headquartered in Brampton, Ontario, has a long history of answering industry shifts by adopting sustainable innovations that balance changing consumer behaviour with environmental responsibility. In the era of online shopping, they’ve taken the lead to grow their business and innovate further using new technology.
“We’ve expanded operations to meet the growing demand for packaging,” says Kim Nelson, President & CEO of Royal Containers. “We recently acquired Rexdale Container Corporation to give us additional resources and shared knowledge that will benefit our customers. Next week we begin running a new high speed Bobst Flexo Folder Gluer (FFG) which will dramatically increase our production capacity and service levels.”
Another high speed FFG will be installed in May at Royal Containers’ London facility with further upgrades and improvements to their two production facilities in the works. Both plants are running three shifts and support staff, sales and design resources have been increased and enhanced.
Royal Containers is going “all in” to continue as a leading Service provider in the Ontario corrugated packaging market.