Overview
The 1,600 contract packaging establishments in the US generate revenue by charging fees (or a “toll”) for packaging customer products in finished form. Turnkey packaging refers to projects in which the contract packager purchases inventory for the customer and takes responsibility for final packaging services. Firms may also generate revenue through telemarketing services or the resale of merchandise.
Unpredictable Work Flow From Customers
Demand for contract packaging firms can be extremely unpredictable.
Capital-Intensive Operations
Packaging operations require significant investments in plants, equipment, and machinery.
Industry Financial Benchmarks
Here are typical financial statements for packaging and labeling services.
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