BY PETER BRADLEY, EDITORIAL DIRECTOR
CONTAINERS & STORAGE
equipment&applications
contained optimism
about the future
Makers of reusable containers see potential in a difficult economy.
But if they hope to persuade penny-pinching DC managers to buy,
the projected returns had better be good.
IT’S TURNING OUT TO BE A ROUGH YEAR FOR MUCH OF THE MATERIAL
handling industry. But that’s not to say spending has dried up entirely. Conversations
around the floor of Chicago’s McCormick Place during January’s ProMat 2009
material handling exhibition suggested that buyers are out there, willing to
invest—if that investment offers a quick payback.
Among the industry players seeking to take advantage of that are manufacturers and sellers of returnable containers and related equipment and
technology. Their hope is that customers—particularly those shipping
within closed-loop and pooling systems—will see the advantages of
equipment that combines a quick return on investment with the benefits
of sustainability.
Bob Klimko is the chairman of the Returnable Packaging Association (
formerly the Reusable Pallet and Container Coalition) and the director of general industrial marketing for Orbis, a manufacturer of plastic reusable
packaging, including containers, totes, pallets, divider sheets, and storage products. He expresses confidence that 2009 will be a good year for
the industry.
“With all the things going on in the economy, with a lot of layoffs and
margin squeeze,” he says, “there are a couple of things we can do for
customers: help them use their capital better and help them reduce
their operating expenses.” Customers are looking for faster returns
on investment than in the past, he adds, but will spend money for
applications that offer returns in the range of 12 to 18 months.
Margot Beesley, director of marketing for Myers Industries, offers
a similar assessment. “A lot of people are chugging forward full speed
ahead, looking to implement savings and productivity opportunities
right away,” she says. (Myers is the parent company of Buckhorn, a
manufacturer of plastic containers and pallets, as well as dunnage.)
But that’s not to suggest this equipment is an easy sell. Steve Letnich,
vice president of sales and marketing for Worthington Steelpac, a
manufacturer of steel crates and pallets, acknowledges that even with
the returnables’ many benefits, selling into the current market presents
challenges. “Budgets are tight. Customers are spending every dollar as
