Like most companies, we have faced challenges with shipping logistics, port delays, labor shortages, and trucking capacity.
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What challenges are Mac facing today, and how are you handling them? Most, if not all, manufacturing and distribution businesses face challenges with their supply chains. Mac is an active acquirer of packaging assets and intends to be at the forefront of that trend. Over the last 18 months, the pace of mergers and acquisitions has accelerated, and we expect the industry will continue to consolidate into larger, diversified businesses (by line of product, geography, and vertical integration). Market supply and demand aside, another trend is the consolidation of the packaging industry.
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The continued shift to digital is a positive trend for Mac because it drives us to focus on paper products for eCommerce, the foodservice industry and other high-margin sectors. Just as the daily newspaper has moved online, the hospitality sector, for example, is shifting from paper menus to QR codes that direct your smartphone to an online menu. While the second half of 2021 will realize good year-over-year growth, it is unlikely that the fine paper market returns to 2019 levels, as the smaller or local players in the commercial printing space consolidate and consumers are migrating from paper to digital media. On the other hand, the fine paper market saw an acceleration of its secular decline in 2020 and early 2021. The wide format market has resumed its pre-pandemic growth trend of about 5% a year, as businesses continue to transition from conventional print graphics to more advanced wide format options. We expect this trajectory to continue for many years.
Packaging was a growth market heading into the pandemic, and that growth has only accelerated due to Covid. This work has paid off in the second half of 2021, driving financial results well beyond the targets we set at the beginning of the year.Ĭoming out of Covid, are there any lasting trends that will have an impact on the paper and packaging industry? We made investments in dedicated customer service hubs, centralized logistics, and concentrated on building our bench strength in key functional areas to position the business for future growth.
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Today, as our customers move toward varying phases of reopening, we see steady demand growth across all segments, including our fine papers line.Īs demand returned in late 2020 and early 2021, we used the opportunity to reevaluate and focus on how to support our customers better. The demand rebound started with packaging, supporting customers’ eCommerce needs, and was soon followed by wide format equipment and supplies. Like most companies, we experienced a slowdown immediately after the pandemic started, however, we were fortunate to see a resurgence in strong demand for our products and services in 2021. The business-and our team-has been extremely resilient. Overall, how has Mac rebounded from the impact of Covid-19, and how has the business performed in 2021? The company also prints and converts up to 16 million envelopes per day at its state-of-the-art envelope converting facility and recently added a sheet conversion facility to its packaging capabilities in Miami. Mac’s value-add services include the installation and technical service of packaging and wide format equipment, packaging design and kitting services and logistics expertise.
Mac serves thousands of customers across a wide array of markets and industries, including commercial printing, manufacturing, retail, pharmaceuticals, food & beverage, hospitality, travel, government, education and fulfillment and distribution. Mac Papers + Packaging is the largest distributor of paper, packaging, envelopes, and wide-format printing solutions in the Southeastern United States. Janu2022 Paper, Packaging & Wide Format Outlook – Interview with Mac Papers CEO Charles Paquin
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