The facts and figures were furiously flying from a few presentations at last month's Flexible Packaging Assn. annual meeting in Carlsbad, CA. But beyond the alliteration, the good news for the more than 250 flex-pack professionals on hand was that the industry has weathered the storm. The rebound has solidified into consistent growth for now and into 2005.

After falling into negative territory in 2001, the flex-pack field grew 1.6 percent in 2002, 3.1 percent in 2003 and should be about 4.4 percent for last year, said outgoing FPA chairman George Thibeault Jr. in his State of the Industry review. Final numbers will be available later this spring when the trade group publishes its 2005 Report.

Other positive stats for the $21 billion US flex-pack industry were generally higher gross margins in 2004, a continued rise in profit before taxes as a percent of net sales, and renewed growth in domestic mergers and acquisitions among converters (11 last year).

The FPA itself has some positive numbers to report as well. Sixteen new converter members and 11 new suppliers have joined the ranks, stemming the tide of declining membership through recent defections and attrition. And interest in its annual Achievement Awards competition has clearly grown with entries topping 89 this year versus an embarrassing 13 entries back in 2000. (Check out the 2005 winners on page 10).

Fortunately, the members of the FPA are smart enough to not stand around congratulating themselves for three days on their accomplishments without preparing to deal with the significant issues that the industry will face in the future.

Topping that list for converters as well as suppliers remains materials costs and availability. The margin squeeze from oil companies on the one hand, and retailers and packagers on the other, shows no sign of letting up on the converters stuck in the middle.

Market competition is secondarily on everyone's list. Whether the problem is volume (or the lack of it), customer consolidation reducing the field of prospects, or production overcapacity, flex-pack makers see this issue as having a major impact on business today and tomorrow.

A litany of other concerns was expressed as part of Thibeault's review. Among them: consumer demands for convenience; product safety and security; innovation in closures and barrier films; RFID and smart packaging; and new retailer requirements.

For its part, FPA is specifically addressing that last one. A study is underway to determine what's sometimes called "The Wal-Mart Effect"—the impact of retailer demands on packaging and how to deal with it.

No matter what the issue, flex-pack converters seem to be ready and willing to tackle the problem head on. If past experience is any judge, the solutions are out there.