One of the fastest-growing industries in Northern Kentucky is Advanced Manufacturing. A big part of that growth has been due to the innovation and expertise of the packaging industry in Northern Kentucky.
Packaging companies in the region have developed a specific expertise in:
- packaging
- labeling
- insert creation
across various industries — from industrial and automotive to food and beverages. Once packaging is complete, the resources are available for fulfillment and shipping.
While the packaging industry in Northern Kentucky is established, it is always evolving. There is a strong push to develop innovative new solutions, create sustainable processes, and streamline logistical operations.
In this article, we will look closer at the factors driving the growth and success of packaging manufacturing in the region. In doing so we will look at how
- geographic location
- a skilled workforce
- business-friendly environment
and - access to manufacturersÂ
has created an environment for success and packaging innovation in Northern Kentucky.Â
Northern Kentucky’s Role in the Packaging Industry
Recently, Kentucky was one of only five states to receive an “A” rating for the health of its logistics industry. That rating is given annually by the Center for Business and Economic Research at Ball State University. The packaging industry in Northern Kentucky was a key part of that honor.Â
Northern Kentucky is home to advanced manufacturers from a wide range of industries. The common thread across them is the need to get their products to market. To do that, they needed quality packaging materials.
This meeting of product suppliers and packaging manufacturers spurred tremendous growth across the region. Growth that is supported by strong logistics operations.
The Packaging Industry in Northern Kentucky
There are over 49,000 people in the region working in the advanced manufacturing industry. Their knowledge, skills, and work ethic got them the job. But, it might be said that packaging manufacturers keep them employed.
That’s because the packaging materials industry in Northern Kentucky is very closely linked to the region’s robust manufacturing and consumer products goods sectors, which include food, flavoring, and beverage manufacturing. Without being able to safely and reliably get goods to market, manufacturers would not be able to achieve the levels of success they have.
In addition to offering diverse career opportunities, the region’s manufacturers drive innovation by tackling challenges such as improving packaging efficiency, adopting environmentally sustainable practices, and integrating AI into their operations. In an effort to streamline processes and become more efficient they may be:
- looking for new ways to package a product
- investigating how to pivot to a business model built on environmental sustainability
- wondering how AI can be integrated into their industry
With two industries (manufacturing and packaging) so close together, and so specifically intertwined, these questions become opportunities for collaboration. Collaboration that turns to innovation. And in the supportive business atmosphere of Northern Kentucky, that becomes a success.Â
Sustainable PackagingÂ
In 2024 it is expected that e-commerce sales for retail items will exceed $4.1T (U.S.). When commercial figures, across all industries, are added to that, you can see why the packaging conversation has changed. As the number of packages being delivered increases, consumers and corporate interest in eco-friendly packaging options grows.
Many companies are taking on that type of packaging innovation in Northern Kentucky today.
Ecoshell, LLC has turned to perhaps nature’s perfect package for inspiration. And materials. They have developed an innovative packaging solution out of eggshells. Ecoshell can replace up to 50% of the plastic in packaging with an eggshell-based material.
- A Jones makes the machines/equipment that national food brands use to package products for consumers around the world. They are not just looking for ways to create eco-friendly packaging, they are looking to create a more sustainable package manufacturing center. They recently installed nearly 4,000 solar panels on their facility. The resultant energy will power the entire 250,000 sq. ft. space with a zero-carbon output.
Signode offers customers a full suite of packaging and transportation services. They are currently doing so under their Twentyby30 initiative. To achieve those goals they are working on developing innovative new eco-friendly packaging solutions. This has included turning to automation to streamline manufacturing processes
The Creative Packaging Company isn’t just focused on their own sustainable packaging efforts, they want to help others as well. Companies without a recycling program can contact them to take certain materials that will be recycled in an eco-friendly packaging process.
Zumbiel Packaging specializes in creating custom paperboard packaging solutions for the food and beverage industry. They create 100% certified sustainable packaging solutions, sourcing paperboard from sustainably managed forests. They are also developing a 15-year plan to achieve carbon neutrality.
Steinhauser Inc. is a custom label printing company based in Newport, Kentucky, focusing on pressure-sensitive and shrink-sleeve labels for various markets, including beverages, household products, personal care, and spirits. Steinhauser is dedicated to offering sustainable packaging solutions tailored to client objectives, such as minimizing materials, reducing waste, saving energy, and adhering to the Association of Plastic Recyclers (APR) guidelines for recycling
Verst Logistics offers comprehensive packaging services, including shrink-sleeve labeling and contract decorating, specializing in large-volume projects for globally recognized brands. Verst has implemented numerous safety and sustainability initiatives, including software, processes, and certifications that improve driver performance and support environmental compliance.
Regional Advantages for the Packaging Industry in Northern Kentucky
The packaging industry in Northern Kentucky has grown to be an industry powerhouse. That has happened in part because of the old real estate motto — “location, location, location.”
Major market access
- The Northern Kentucky region is home to several commercial airports, including the award-winning Cincinnati/Northern Kentucky International Airport (CVG), the sixth-largest cargo airport in North America.
- A strong interstate network promotes accessibility as well. In a one-day drive, you can reach 54% of the U.S. population.
There are also strong rail and river lines that help cargo get in and out of the region.Â
A manufacturing “supercenter”
Employment growth in the manufacturing industry in Northern Kentucky outpaced the national average through 2019 by 70% and continues to grow. The over 300 manufacturing companies in the region can only build on their success with the support of packaging manufacturing companies.
A growth-friendly infrastructure
The governments of Northern Kentucky have invested considerable resources to create a business-friendly region. That investment can be seen in the implementation of a strong utilities infrastructure. It can also be found in the development of business incubators.
- The industrial electrical rate is 11% lower than the national average (2022).
- The connectivity of the region using fiber optics makes it “one of the most wired in the world.”
- Blue North is a startup accelerator. They connect young companies with the resources and support they need to succeed.
Packaging and Manufacturing Companies in Northern Kentucky
Regardless of what they are producing, manufacturers in the region have access to a wide range of packaging options.Â
Food, beverage, and consumer-packaged goods suppliers rely on companies like Zumbiel for:
- canning
- bottling
- plastic packaging
- paper-based packaging
Zumbiel has developed a series of streamlined services and processes. These have enabled them to become the industry leader in lead times for paperboard packaging.
Industrial companies turn to the experts at Signode forÂ
- strapping
- wrapping
- stapling
- case protection
Signode is a global corporation with an engineering and manufacturing footprint in Florence, KY. They have developed a series of automated packaging solutions. These allow them to efficiently provide end-of-line services.
Other companies focused on packaging manufacturing include:
Matrix Pack has found an innovative way to merge nature and technology for a sustainable packaging solution. Using plant-based fiber from specifically cultivated forests, they produce 3D packaging options.
In 2023, Matrix began planning for a $47.9M (U.S.) expansion in the region. This new facility would create 140+ new jobs.Â
Flottman has a 100+ year history in the industry, printing packaging and inserts for a range of consumer products. This certified women’s business enterprise has a particular specialty in miniature folding.
Automotive Service Products, Inc. recently celebrated the opening of a new 55,000 sq. ft., $8M (U.S.) facility. This enables them to support smaller businesses around the country with a full range of packaging and logistics services.
JBM Packaging focuses on “packaging with a purpose.” They develop sustainable packaging. Their products meet six key areas of environmental support while fulfilling their customers’ needs.
Future Trends in Packaging Materials
The two biggest trends in packaging involve the integration of AI and the search for sustainable packaging options.
The AI integration
Like many other industries, AI has cast its shadow across the packaging industry in Northern Kentucky. AI and ML (machine learning) can be valuable tools, particularly in managing production lines.Â
Some estimates say that AI (when added to the IoT (Internet of Things)) can lead to a 77% increase in line productivity.
Eco-friendly packaging
Perhaps the two biggest terms in packaging right now are “sustainability” and “circular packaging.”
Sustainability is a desire to have a more environmentally friendly product. This isn’t just the packaging material though, it also encompasses material suppliers and manufacturing processes.
Circular packaging involves public education and manufacturing readiness. That’s because the goal is to create packaging material that the end user will recycle. The recycled material will then be repurposed by the packing manufacturer into a new package. And the circle will continue.
Success in the Packaging Materials Industry in Northern Kentucky
For years, packaging hadn’t really changed much. However, as demand has increased, packaging manufacturing is shifting. Companies are looking for more sustainable packaging solutions. Ones that can be efficiently rolled out and quickly brought to market.
Perhaps nowhere is that more apparent than in Northern Kentucky. Packaging materials companies there are working to develop new ways to help products get to market. And the resources and partnerships available in the region are seeding that innovation.
Supporting the packaging industry in Northern Kentucky is BE NKY Growth Partnership. The programs and services they provide help companies of all sizes expand, plan, and grow. If your company is interested in packaging innovation and wants to join the packaging industry in Northern Kentucky, contact BE NKY today.
