News

The packaging industry is at odds over the benefits of consolidation, judging by the comments left on this week's Soap Box.

Albert Shuttleworth described consolidation as "a natural phase of any market, especially one with over-capacity and duplication". However, he said independents still had a roll to play.

"The big boys are not always best and often approach innovation from a 'what they can make' and not a 'what the customer wants' perspective," he said.

Shuttleworth was responding to a comment by James Smith, who proclaimed: "Big is best!"

"I think consolidation has to be a good thing for packaging. The big number of small firms would be far stronger if they were to build themselves into, say, £10m businesses rather than having sales of only a couple of million," said Smith.

Packaging News columnist Des King suggested that workers were often overlooked in mergers and acquisitions. "Most businesses are up for sale or absorption given the right price. That's fine for owners and investors, but what about the shop floor?"

King also questioned that "big was best", as "the greater the company's control over its markets, the less likelihood there is for genuine innovation".

"There's also the risk of marginalisation, with UK firms being absorbed as satellites into globalised groups."

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