7 things To Open A Corrugated Box Manufacturing Plant Better

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At present, the demand for cartons as packaging boxes in the market is very considerable. Many customers have investment intentions in the box manufacturing business but don&#;t know much about what needs to prepare for a corrugated box manufacturing plant.

Today, We will mainly share the problems that may be encountered in the process of setting up a corrugated box manufacturing plant, hoping to help those entrepreneurs who are purchasing equipment and people who are preparing to open the carton factory.

Generally, people who want to start a cardboard box manufacturing business will ask me the following questions: What box making machine is needed for a new carton factory? How much labor is required? Is corrugated box manufacturing profitable? Is it cost-effective to build a corrugated box manufacturing plant by yourself or to lease it? What is the appropriate size of the factory?

Things need to prepare for a corrugated box manufacturing plant

1.Qualification

First, you need to go to the relevant department to apply for the documents and qualifications required for opening a carton factory, such as:

(1) Industrial and commercial office: apply for an industrial and commercial business license;

(2) Health Bureau of the Ministry of Environmental Protection: apply for a health permit;

(3) Taxation Bureau: apply for tax registration certificate;

(4) Other qualification documents required by local laws

2. Venue

Choose a site with convenient transportation, preferably in or near an industrial park, which is convenient for business expansion and can also reduce transportation costs. For the site area, if your carton factory purchases cardboard and processes semi-finished products, then the site needs about 300&#;600 square meters; if you need to produce cardboard, then you need a larger area. And also set aside storage areas for raw materials, semi-finished products, and finished products.

3. Funds

Generally, to open a corrugated box manufacturing plant, the places that need to be invested are: factory rent (except for funds built by yourself), carton machinery and equipment costs, Raw material cost, worker wages, management costs, working capital, etc.

4. Corrugated box manufacturing machine

1) Corrugated cardboard production line: 2/3/5/7 layer corrugated cardboard production line, the price is different according to the speed and the width of the cardboard.

2) Flexo Carton printing machine: There must be a printing slotting machine or printing die-cutting machine, manual, semi-automatic, and fully automatic. The automatic leading edge high-speed printing slotting machine is a little expensive, but the printing effect is very good, production speed is fast, and no manual operation is required; the manual printing slotting machine is cheap but requires manual operation by workers.

3) The carton forming equipment needs to have a box stitching machine or a box folder gluer, which is also divided into manual, semi-automatic and fully automatic. The manual box stapler is the cheapest. The cost of the box folder gluer is higher. If the order does not require box glue, no need to consider it for the time being.

4) Other auxiliary equipment:

a. The paper separator or thin knife machine cuts the cardboard into the factory into the required cardboard size. The functions of these two devices are the same, but the precision paper separation effect is different. If you want to save costs, you can consider starting a paper separator;

b. Flat creasing machine: It is used to produce cartons of opposite sex, and the cartons with relatively high processing precision.

c. Packing machine: After the carton is formed, it is packed in bundles, which is convenient for transportation and stacking.

There are also many other equipments: stacking machine, flute laminating machine and other equipments, customers need to purchase according to their needs.

5. Number of workers

A printing press master, a paper delivery master, a nail box master, a packing master, and a general worker can meet the requirements of the production task. There must be good technicians, because skilled technicians, especially printing masters, can not only improve work efficiency, speed of plate placement, and most importantly, print quality. In addition, a small number of sales personnel are needed to open the sales market asap and create sales performance and profits for the factory as soon as possible.

6. Market and customers

At the beginning of the factory establishment, carton factories are looking for customers at price. They need to be trained slowly, and they can be stabilized with a good service attitude and stable quality. After the technology and business are stable, customers can be selected. Customers who remit in a timely manner are left with priority supply, and customers who are not in time for payment and with low demand and complex styles gradually fall backward or even give up.

With competitive price and timely delivery, Heao Printing sincerely hope to be your supplier and partner.

7. Profit margin in carton manufacturing

The gross profit margin of carton factories is generally between 10% and 30%. Different carton factories have different proportions of costs due to differences in raw material procurement, equipment technology, and personnel structure, which ultimately affects product gross profit margin. How to achieve high profit and low cost?

1) Control the purchase cost. The material cost of the carton factory accounts for the vast majority of the total cost. The high is 70% to 80%, and the low is close to 40% to 50%. The focus and source of enterprise cost control start from the procurement cost.

2) Supplier management. Supplier&#;s selection and admission system. The establishment of reasonable procurement policies, objectives, and selection of ideal suppliers to open up good material supply channels are important conditions for ensuring normal production, reducing material consumption and increasing economic benefits.

Of course, controlling corrugated box manufacturing automatic plant cost does not mean purchasing the cheapest raw materials, cheapest machines or other auxiliary equipment, but choosing appropriate carton machinery and equipment and other necessary items for the factory according to the production needs and the development stage of the factory .

There is a saying in China: sharpening knives does not cut firewood by mistake, choosing a machine with good quality, suitable price and a supplier with good service can save a lot of time, manpower and money in production, communication and other aspects. Yangli is a modern professional manufacturer of carton packaging machinery and printing machinery. The company has a strong technical force, advanced production and testing equipment, professional technical and management personnel, and a high-quality sales team. We adhere to the quality of survival, technology, and development, taking the best, integration of domestic and international, to ensure the production of complete, stable quality, reasonable price, new, more efficient packaging machinery and equipment for users. Yangli looks forward to serving you!

Challenges in the Corrugated Box Industry

Today, companies in the corrugated box industry are facing many of the same challenges. Though these challenges may vary in urgency and intensity from company to company, you may be struggling with some of the issues below. To help you overcome these challenges, we must first analyze why they are occurring. 

Fortunately, there is some good news about corrugated box trends, and despite its challenges, the corrugated industry is positioned for growth in the coming years. We cover more on these trends below, along with how EAM-Mosca Corporation can help you overcome corrugated box challenges.

6 Challenges the Corrugated Box Industry Faces

Below are some of the challenges you may be facing in the corrugated box industry.

1. Supply Chain Issues

Supply chain issues have affected many industries and the corrugated box industry is no exception. Everything used for running a plant has been affected, from paper to glue to strapping materials. For some products, lead times have increased from days to weeks. These supply chain issues have required corrugated box companies to adapt by evaluating demand from customers to better tailor solutions for them.

Disruptions in the supply chain are also caused by issues with transportation, labor, and equipment. Shutdowns have impacted corrugated box manufacturers and their suppliers, causing delays that make it challenging to maintain supplies. Though supply chain issues are still present, many companies in the corrugated box industry are noticing improvements.

2. Increase in Raw Material Prices

The cost of the raw material used to make corrugated packaging is increasing, which is another major challenge the corrugated box industry is facing. Many industries are competing for raw materials, and the supply is dropping daily. Due to the increase in demand and the drop in supply, the cost has risen accordingly. Since companies in the corrugated box industry need to spend more on raw materials like kraft paper, prices throughout the supply chain have increased. 

Another one of the reasons behind this increase in raw material prices is the increase in energy costs at paper mills. This increase in production costs has trickled down the supply chain to companies in the corrugated box industry.

3. Demand for Custom Packaging

The demand for custom packaging is growing rapidly. This is due in part to the demand of varied shapes in the carton packaging market. Custom packaging is the new norm. Though the demand for custom packaging is good, it can be troublesome for those not equipped to handle it. 

Corrugated box manufacturers need to be capable of swiftly adapting to customers&#; changing needs to stay competitive. As a corrugated box manufacturer, you also need to be able to produce innovative custom packaging efficiently while keeping costs as low as possible per package. Maximize the folder gluer&#;s productivity by optimizing your production capabilities and installing quality folder gluer packaging equipment.

4. Small or Single Orders

There is also an increasing demand for orders that do not meet a manufacturer&#;s minimum quantity requirements. Whether a customer requests 100 boxes or one, you need to be able to provide what they need and adapt quickly. To ensure your business&#;s longevity in the corrugated box industry and stay competitive, you need to remain flexible. 

If you don&#;t currently offer your customers the option to place an order without minimum quantity requirements, you may want to implement this option to surpass the competition and retain your customers. Though they may not seem worthwhile, small or single orders can help keep you in business. 

5. Equipment Downtime

Due to the substantial volume of output the corrugated box industry produces daily, the industry is very dependent on reliable equipment, as it is sensitive to productivity numbers. As a result, unexpected equipment downtime can be costly. Equipment downtime could be caused by mechanical failures or disasters, such as floods or fires. 

Be sure to keep up with preventative maintenance to minimize downtime. The proper maintenance should keep your equipment in ideal working condition so you can continue meeting your objectives. EAM-Mosca Corporation has systems that can reduce downtime, allowing you to meet and exceed performance goals.

6. Last-Minute Orders 

The corrugated box industry is also facing the challenge of receiving last-minute orders. This is one of the most challenging ongoing issues that corrugated box manufacturers face. While last-minute orders can mean more business and revenue, they can also mean tighter deadlines and more stress for your team. If an order arrives at the end of the day, you&#;ll need to manage it first thing in the morning the next day. 

Though these orders are placed at the last minute, the requirements and customer expectations are still the same. You need to provide high-quality boxes that meet your customers&#; needs in a timely manner. To successfully manage last-minute orders, incorporate a high-performance machine that has the power to produce more at a faster speed with fewer packing personnel.

The Good News About Corrugated Box Trends

Fortunately, there is some good news for companies in the corrugated box industry. The e-commerce industry is growing, and there has been an increase in demand for sustainable packaging.

• Increase in e-commerce: One of the most promising corrugated box trends is the big increase in the e-commerce industry. Businesses are going online more than ever before, and there is a huge boost in demand for corrugated packaging. The corrugated industry represents a large portion of e-commerce demand, which means that growth in the e-commerce industry may also lead to growth in the corrugated industry.
• Demand for sustainable packaging: Corrugated cardboard is sustainable, and there is currently an increasing demand for sustainable packaging and solutions like strapping.

Looking Towards the Future 

Despite its challenges, the corrugated industry is positioned for growth in the coming years. Though companies may have to adjust how they do business, there is still potential for growth, especially if you can be flexible and overcome the challenges the industry is facing. 

To stay ahead of the competition and continue growing your business, it&#;s essential to have the right equipment for the job, such as strapping machine for the corrugated industry.

Overcome Corrugated Box Challenges With EAM-Mosca Corporation

EAM-Mosca Corporation has more than three decades of experience manufacturing and distributing strapping systems, along with polyester (PET) and polypropylene (PP) strapping. We have installed more than 25,000 machines across the Americas, and our automatic strapping machines can increase line speed, package protection, and productivity. Benefits of choosing us include:

Our comprehensive system includes groundbreaking technology, environmental responsibility, customer satisfaction, and superior performance. Contact us today to learn more about our corrugated solutions and for excellence in strapping solutions.

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