Packing and Crating

SIC 4783

Companies in this industry

Industry report:

This industry includes establishments that derive more than 50 percent of their revenues from packing, crating, and otherwise preparing goods for shipping. Establishments primarily engaged in packaging and labeling merchandise for purposes other than shipping, such as retail packaging, are classified in SIC 7389: Business Services, Not Elsewhere Classified.

Most large manufacturers in the United States pack or crate their own goods for shipment, rather than relying on the specialty firms of this industry. Support activities for transportation, of which packing and crating was a part, generated about $1.6 billion in 2009. Packing and crating services are offered by many firms primarily engaged in other activities, such as shipping of freight. Firms specializing in the shipping aspects, however, are not included in this industry. Establishments in the industry typically offer a line of shipping-related services, such as supplying packing materials, physically packaging goods to the sender's specifications, and transporting goods to and from the packaging plant. Some businesses also arrange for the final shipment of goods, either through third-party services or through their own shipping networks, and may offer clients insurance policies on goods shipped and computer tracking of goods. About 1,282 establishments were primarily engaged in the packing and crating industry in 2009, according to the U.S. Census Bureau. A large majority (87 percent) of these establishments were small, employing fewer than 20 people. Total employment in the industry was approximately 14,300.

The packaging and crating industry is divided into four general segments classified by material type: paper and board, plastics, glass, and metal. A large, fragmented industry, this industry comprises thousands of competitors serving a variety of markets. The largest market for packaging products is the food and beverage industry, with health care products showing the strongest annual growth, at about 5 percent. Food and beverage combined reported annual growth between 3 and 4 percent range during the second half of the first decade of the 2000s.

Characteristic of the 1990s, packing and crating was part of the rise in small business start-ups. They responded to the needs of successful entrepreneurships that could not afford the packaging and crating of their own goods. A niche market was born with the "co-packing" industry. The term was first used in France in 1998, and quickly spread to the United States. The concept was simple: by outsourcing the packing end of the business, many small companies could direct their resources to sales and marketing. By 1999 co-packing was common jargon in small businesses and had been employed in several large ones, including Land O' Lakes Dairy Foods and Quaker Oats.

In the first decade of the 2000s, industry trends focused on packing materials, flexibility in accommodating various package sizes, flexible packaging, and tracking packages via Radio Frequency Identification (RFID) technology. Establishments in the industry were experimenting with alternatives to replace polystyrene packing peanuts with more cost-effective and environmentally friendly materials. Inflatable plastic bags and paper fill have been increasingly used, but peanuts proved less expensive, effective at protecting against damage, and simple to use. Nevertheless, individuals and companies intent on using the most eco-friendly options possible continued to look for other options. For example, Procter & Gamble announced in 2010 that it would use only 100 percent renewable or recycled materials for all of its packaging by the end of the decade.

Large retailers, particularly club stores and giant chains, have pushed firms in the packaging industry to provide more variety in packaging. With the need for packaging operations to be flexible and switch package sizes many times during a day, equipment has been designed to minimize changeover time. In addition to flexible operations, large retail chains have influenced the growth of flexible packaging with the use of such material as paper, plastic, or foil to form uniquely designed containers. Flexible packaging, the second-largest segment of the U.S. packaging industry behind corrugated materials, accounted for 20 percent of the $150 billion U.S. packaging market in 2008, with revenues of $20 billion. Giant chains, particularly Walmart, also influenced the industry by mandating RFID tagging in the distribution chain. Tagging at the product-item level allows for quick and easy checks for authenticity.

Among the industry leaders focused on packaging food products were Newstar Fresh Food LLC, of Soledad, California, and Peacock Engineering Co. of Geneva, Illinois. Peacock, which provided manufacturing and packaging services and had overall 2010 sales of $59.2 million, switched from providing a variety of services to focusing exclusively on food packaging in 2000.

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News and information about Packing and Crating

Contract Notice: Department of the Air Force (Texas) Issues Solicitation for "Packing and Crating Services"
US Fed News Service, Including US State News; February 2, 2018; 325 words
...WASHINGTON, Feb. 2 -- Department of the Air Force, Air Education and Training Command has a requirement for "Packing and Crating Services."The solicitation no. FA3099-18-R-0003 was posted on February 1, 2018.All responses are due...
Packing and Crating Service
Mena Report; December 19, 2017; 300 words
Contract Awarded for Packing and crating service Contract award date: December 8, 2017 Contractor...NAICS Code: Support activities for transportation/ packing and crating Contract award dollar amount: $1,883,353...
Contract Notice: Department of State (Egypt) Issues Solicitation for "Packing and Crating Service Solicitation"
US Fed News Service, Including US State News; January 23, 2018; 311 words
WASHINGTON, Jan. 23 -- Department of State, Near Eastern Posts has a requirement for "Packing and crating service solicitation."The solicitation no. 19EG3018Q0008 was posted on January 22, 2018.All responses are due by Jan 29...
Presolicitation Notice: Department of State Seeks "Packing and Crating"
US Fed News Service, Including US State News; November 20, 2017; 282 words
...Nov. 20 -- Department of State, African Posts, has issued a presolicitation notice (19LI6018R0001) for "Packing and Crating".This presolicitation notice was posted on Nov. 17.Contract, Tender Notice Type: PresolicitationThe NAICS...
Presolicitation Notice: Department of the Air Force Seeks "Packing and Crating"
US Fed News Service, Including US State News; October 31, 2017; 291 words
...the Air Force, Air Education and Training Command, has issued a presolicitation notice (FA488718R0002) for "Packing and Crating".This presolicitation notice was posted on Oct. 30.Contract, Tender Notice Type: PresolicitationThe NAICS...
Contract Notice: Department of the Air Force (Illinois) Issues Solicitation for "Packing and Crating"
US Fed News Service, Including US State News; September 14, 2017; 309 words
WASHINGTON, Sept. 14 -- Department of the Air Force, Air Mobility Command has a requirement for "Packing and Crating."The solicitation no. FA4407-17-Q-2005 was posted on September 13, 2017.All responses are due by Oct...
Contract Notice: Department of the Air Force (Idaho) Issues Solicitation for "389Th Packing and Crating"
US Fed News Service, Including US State News; September 12, 2017; 312 words
WASHINGTON, Sept. 12 -- Department of the Air Force, Air Combat Command has a requirement for "389th Packing and Crating."The solicitation no. FA4897-17-Q-0032 was posted on September 11, 2017.All responses are due by Sep...
Household Goods (Hhg) Packing and Crating Services (Direct Procurement Method) at Sasebo Naval Base
Mena Report; March 16, 2017; 351 words
Contract Awarded for Household Goods (HHG) Packing and Crating Services (Direct Procurement Method) at Sasebo Naval Base Contract award dollar amount: Estimated Grand Total $1,680,179...

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