by Hanna Aronovich
When it comes to trends in the packaging industry, Jim Hamilton says, "Print converters like us are trying to do more than the typical folding carton we grew up on." The president of Lake Forest-based Colbert Packaging has seen the company evolve into the modern era. "We've been venturing into other areas with additional product offerings," he explains. "We've become a one-stop packaging shop."
Colbert Packaging was founded in 1959, with its roots in manufacturing heart-shaped boxes for Valentine's Day chocolates, as well as the boxes for Marshall Field's Frango Mints. "We were a rigid-box company," he says. "We still do some of that, but we've expanded into folding boxes, cartons and labels." Hamilton says Colbert Packaging is proud to remain an independent, privately held company. "There's been considerable consolidation among companies our size," he notes. They have been sold to larger, vertically integrated companies. We've been in business for 45 years, and we will stay independent. We like it that way." In addition to consolidation, Colbert Packaging faces challenges from operating in Illinois. Hamilton says the state has made doing business more costly because of workman's comp and other imposed operating expenses. As a result, Colbert Packaging maintains two facilities in Indiana "because it is a more favorable place to do business," Hamilton notes. Many of Colbert Packaging's customers are located in the Midwest - about 60 percent. But the company does have a nationwide presence, as well as some customers overseas. Of approximately 100 accounts, Hamilton estimates 50 percent are in healthcare and pharmaceuticals. The remaining customers are in the food and office products industries. "Some of our main accounts are with large companies such as Abbott Labs, Anderson Packaging, Wrigley Co., Novartis and Blistex," he explains. "Most of our accounts take many years to land. We can spend anywhere from one to five years to land an account. Especially with pharmaceutical companies, the barrier to entry is very difficult. Once we are brought on board, though, we have long-lasting relationships with our customers." |
Colbert Packaging has become a one-stop packaging shop that specializes in rigid boxes. |
Colbert Packaging works closely with customers to develop new packaging solutions. "It's an ongoing process of getting involved with the package engineering group for product development and evolvement," he says. "The relationships are deep because we need to be involved in all the new-product planning stages so we can anticipate issues during production runs. Entire teams work together. It's a trusting relationship."
Hamilton says about four years ago, the company branched into specialty products, such as packages that combine materials, patent-pending BlisterGuard for tamper proof packaging and Zip-Sert cartons in which a package insert is embedded into the side panel of a carton.
Colbert Packaging operates two almost-mirror-image facilities, one being in Indiana, as well as two facilities in Illinois - one corporate headquarters and one flexographic packaging facility.
Colbert's contract packaging division, Just Pack It, is also in Indiana.
Continuous software upgrades are also a priority for the company, and Hamilton says in the last year Colbert Packaging implemented a software program from Radius Solutions.
"[This] drives the total business from order entry to billing to shop-floor data collection," Hamilton says. "It took several months to implement and it's about 85 percent integrated. It was a major undertaking."
Because Colbert Packaging works with pharmaceutical and healthcare companies, maintaining strict manufacturing procedures is essential. Its facilities are cGMP compliant "because we have to treat the products we manufacture with the same care that our customers would take," Hamilton says. "Our manufacturing process is very lean. Production begins at one end of the facility and ends at the other. There is no backward movement."
Colbert Packaging has cut its lead-time from weeks to days with the help of new machinery. In the past, paperboard needed to be purchased in sheets from an outside vendor.
Today, however, Hamilton says a state-of-the-art sheeter allows the company to cut paperboard to exact specifications for the printing press, which "really helps overall turnaround. Now, we have 300 tons of boxboard on hand, and we can cut it when we need it. Newer die cutters and finishing equipment have also helped trim lead-time."
The company also joined a buying group, the Independent Carton Group.
He points to other notable highlights from the last several months. In March, Colbert Packaging was awarded the 2005 Innovation Award - out of 200-plus entries - from the Paperboard Packaging Council for its BlisterGuard product line.
Hamilton says the organization is the main spokesgroup for integrated and independent folding companies in the United States.
"They are our Washington advocate," he says. "They research marketing trends and provide statistics on the $7 billion industry that we're in. They also hold seminars that we participate in."
In the next few years, the company plans to remain independent and continue pursuing the pharmaceutical and healthcare markets.
"We expect to double the value of our business in the next five years," Hamilton says. "We will double our value as sales increase by watching our costs and headcount and not doing things in vain."
Employee longevity is one of Colbert Packaging's strengths and Hamilton expects the trend to continue. "Once we hire an employee, they don't want to leave," he says. "Many of our staff members have been with us for more than 40 years. They stay because of the way we treat people. It's our culture; we have rules, but we maintain a very pleasant, low-stress work environment. We treat our employees well, and that extends to the customers."
(Reprinted from the Fall/Winter 2005 issue, Illinois Business Executive. All Rights Reserved.)