Packaging machinery: market insights from Packserv

The FMCG industry has shown remarkable resilience in recent years despite tough conditions. While reports are that overall business insolvencies are at an all-time high, we are beginning to see some promising signs of recovery in FMCG manufacturing.

Packserv’s Managing Director, Nathan Wardell, provides an update on his company’s market observations. “Currently, there are encouraging signs of the onshore FMCG market gaining momentum and ramping up. Our clients echo this positive sentiment, with larger orders confirmed recently indicating that Australian manufacturers are committing to long-term production needs by investing in new machinery, processes and technology.”

Packserv has experienced a significant rise in demand for machinery rental services for some time. This trend is now being complemented by substantial increases in clients investing and purchasing equipment outright. “We have observed the start of this rebound in international markets such as the US and now we are seeing similar trends with our onshore manufacturers. We need to continue to support local manufacturing and Australian FMCG businesses to put local Australian products on our supermarket shelves,” Wardell said.

Packserv is one of the few packaging machinery manufacturers offering flexible rental terms, including short- and long-term hire options, with no minimum hire period. Additionally, Packserv manufactures its machines locally so its clients have immediate access to machinery whether they are renting or purchasing outright.

While many manufacturers welcome the opportunity to purchase locally made machinery which is readily available to upscale manufacturing, Australia remains heavily reliant on imported packaging machinery. This reliance exposes manufacturers to supply chain disruptions and external influences. Wardell explained, “There is currently a reliance on imported machinery with a 4:1 ratio of imported packaging machinery to exported machinery. There is a lot of interior machinery out there where FMCG manufacturers have waited for months for it to arrive only to find when it is finally delivered, it doesn’t work. Especially in these tough times, no one has patience for the inconvenience and cost of machinery that simply doesn’t work.”

Packserv upholds a “Buy for Life” philosophy believing that equipment should last indefinitely and never end up in landfill. “This is the standard we adhere to — it’s reflected in our team and our culture. We build machinery so well that it continues to operate reliably and consistently for decades. This is exactly what our onshore FMCG sector needs, not cheap imports,” Wardell said.