PACK EXPO gives small processing firms a big boost

Small- and medium-size businesses (SMBs) play a significant role in the global economy. The European Community (EC) reports that SMBs are responsible for 70% of all jobs and EU GDP. In the U.S., 99.7% of employer firms, 46% of private-sector output and 98% of firms exporting goods fall into the SMB column.

PACK EXPO organizer PMMI (the Association for Packaging and Processing Technologies) is recognizing SMBs and offering them special assistance with the SMB FastTrack program. The targeted show content is designed to provide such businesses with special planning tools and resources to help them grow.

Charles D. Yuska, president and CEO of PMMI, told Food Production Daily that SMB FastTrack offers food processing firms on the smaller end of the scale a number of big opportunities.

FPD: Small- and medium-sized companies may make up the majority of the global economy, but these manufacturers face some hurdles. What is the outlook for SMBs in the manufacturing sector?​

Yuska: The latest industrial outlook report from the Manufacturers Alliance for Productivity and Innovation (MAPI) revealed that manufacturing firms with fewer than 50 employees expect sales to increase just 0.5 percent over the next 12 months, compared to a 1.6 % projected increase among larger manufacturers. Additionally, 57% of small manufacturers expressed a negative outlook, compared to 44% of medium-size businesses and 47% of large businesses.

In other words, SMBs are seeing market conditions that will make growth difficult, especially as they respond to increased demand for greater sustainability measures, and comply with new regulations emerging from the Food Safety Modernization Act (FSMA). SMBs must find solutions to enhance sustainability, ensure compliance and minimize costs in the most efficient manner possible.

FPD: How do SMBs stay profitable and continue to lead their industries despite these challenges? ​

Yuska: SMBs have been at the forefront of innovation over the last century thanks to a relentless focus on streamlining operations, minimizing costs and delivering product profitably enough to grow and expand. With less red tape than larger manufacturing organizations, small- and medium-sized processors have the agility to make purchase decisions with less lead time, speeding the implementation of new technologies.

FPD: What might prompt a smaller manufacturer to invest in a new solution rather than going with the industry mainstream?​

Yuska: That answer depends on the manufacturer. Though businesses are widely subject to similar market conditions and regulations, they all have unique hurdles to overcome.

For example, start-ups, which won’t have years of sales data and projections to guide their equipment decisions, may choose technologies that are flexible enough to run at faster speeds or accommodate upgrades in the near future. Likewise, a manufacturer that continues to branch out into new product categories will face different challenges than one that stays focused on just one or two product categories.

Both will seek out the most efficient solutions, but the manufacturer of multiple lines may place a higher value on faster turnovers and flexibility.

FPD:  Let’s talk about FSMA for a minute, as it’s a critical issue for food and beverage manufacturers. How does it seem to be affecting SMBs?​

Yuska: The U.S. Food & Drug Administration (FDA) recognizes the challenges faced by smaller businesses that have fewer resources to allocate to the installation of new compliance measures. For example, farms with “mixed-type” facilities as well as average annual sales below $25,000 will not be subject to the new regulations stemming from FSMA. Instead, these businesses will remain subject to applicable provisions of the Federal Food, Drug and Cosmetic Act.

In other instances, the FDA will offer staggered compliance deadlines, providing three to four years to meet requirements depending on the size of the operation. While these provisions continue to be finalized, there’s speculation that the FDA will defer to the Small Business Administration’s parameters for determining which small farms will qualify for specific exemptions.

FPD: How will PACK EXPO help SMBs source innovation?​

Yuska: One of the biggest challenges specifiers, buyers or any other executive at an SMB faces is limited time. Often, they’re wearing multiple hats, so taking three days and navigating 1,600 exhibitors can be a daunting proposition — from the time away from the office to the sheer volume of solutions providers.

What we did was to create the SMB FastTrack program, which we’re launching at PACK EXPO Las Vegas 2013. While the parameters for qualifying SMBs may vary between regions and industries, we’ve opened up the program to manufacturers with annual revenues between $50 million and $500 million.

The SMB FastTrack program will help these individuals make the most of their time at the show by providing resources geared to the particular requirements of SMBs. These benefits will include SMB-oriented planning tools, networking and educational opportunities to gain industry insight, and for qualified SMB FastTrack participants, a special retreat from the busy exhibition halls where they can enjoy some refreshments or meet in privacy with suppliers.

FPD: What are the key benefits of the SMB FastTrack program?​

Yuska: It’s really about being able to connect with solutions providers more quickly and easily. Participants will receive special planning tools, insight into which exhibitors offer special financing, discounts or support for SMBs and access to free on-floor education and an on-floor lounge to rest, recharge or network with exhibitors and peers. C-level executives at SMBs will qualify for the SMB FastTrack Platinum program, which offers access to a Personal Equipment & Technology Sourcing Service prior to the show, unlimited use of a dedicated FastTrack Executive Lounge, and free advance show registration.

To qualify for the program, participants must register for PACK EXPO Las Vegas before Aug. 26, 2013, and work for a company with annual revenues between $50 million and $500 million. There is no cost to participate.

To learn more about the SMB FastTrack program, visit www.packexpo.com/fasttrack​. While you’re on www.packexpo.com​, take a few minutes to learn about other show features including The Processing Zone, The Brand Zone and pavilions and lounges for the baking and snack, beverage, confectionery and pharmaceutical sectors.

PACK EXPO Las Vegas 2013 has a lot to offer attendees from any size company. This new program is one more way we’re expanding our customer-centric approach to make it easier for any segment of the PACK EXPO population to find the solutions they need to take their businesses to the next level.