The packaging and labeling industry is changing fast. New technology, changing customer preferences, and M&A activity are all impacting how businesses operate.
KPMG researchers undertook a close examination of the sector. The results of their analysis—just released in a report entitled, Releasing untapped potential: Driving post-M&A performance improvement in packaging and labeling companies—show that players across subsectors and performance tiers are not achieving peak operational efficiency, nor are they maximizing profitability.
Yet, these same companies can drive significant profitability improvement through the use of deep data analytics. Those that do it well will be best positioned for leadership in the industry in the future.
Unlocking business value and boosting performance
The packaging and labeling industry has seen a wave of M&A activity as businesses seek to build scale, and expand their capabilities and market presence. This, in turn, has created potential for substantial synergies and efficiencies. While companies are strategically growing their top lines and market share through acquisitions, however, they are not tactically integrating these acquisitions in order to realize the full cost-savings and operational synergies.
Central to unlocking value is the use of advanced analytics and custom tools. These can be deployed in conducting deep assessments of company data and generating valuable insights into unseen opportunities in process efficiency, pricing, customer demand, and more.
KPMG expects companies that use data analytics effectively to identify and address sources of value leakage will be among the industry’s leaders in the future.
To find out more about data analytics’ potential to unlock value in the industry, read Releasing untapped potential: Driving post-M&A performance improvement in packaging and labeling companies.