A Short Note On Folding Carton Industry And Specializes Essay

Better Essays

Statement of the Problem Carded Graphics (CG) is a modest-sized competitor in the $160 billion U.S. folding carton industry and specializes in smaller, highly customized orders. CG, along with other players, grew to dominate the small-order niche very early in its lifespan due to its ability to provide a seamless information infrastructure linking client specifications to final products and differentiate through its quality and speed to market. Despite its early success, CG saw growth stymied from 2007 to 2008, with the tightening of margins that resulted in a reported loss for the year. By 2009 sales had exceeded 2008 sales levels and operating margins had returned to the 2007 level, however, net income had not improved at a pace proportionate to sales. To alleviate this stagnation and to exploit efficiencies, CG is determining whether to augment its current sheeting process with a new sheeter that has higher capacity. Until the 19th century, product packages were made primarily by hand, held together by tacks and strings. With technological innovations, this changed dramatically to what is known today, the modern packaging industry. Today, demand for cartons is driven by commercial activity and population growth and because prices are highly competitive, operational efficiencies are the primary factor that fosters growth within the industry. Folding carton companies primarily focus R&D on greater production efficiencies, such as devising information management

Get Access