2023: Industry bodies on challenges and opportunities

Mark Dingley, chair, Australian Packaging and Processing Machinery Association

I think the biggest challenge and the biggest opportunity for Australian manufacturing businesses in 2023 are intrinsically linked. Technology and automation bring large opportunities, but with those comes the challenge of ongoing resources, and top of that list is ‘people’. But it’s not just getting good talent into your workforce, it’s getting the right people with the right skills.

Covid-19 has changed the landscape regarding people’s work expectations. We’ve already seen, and I think we’re going to see more in 2023, the challenges that manufacturers have in finding the right people with the right skillsets, and then increasing skillsets that lead into the opportunity of automation and technology – for example, remote diagnostics.

I also see as an opportunity addressing the challenges of what we’ve been through with the pandemic, and will continue to face, such as the dearth of talent in specific trades and industries – and even more so in manufacturing.

Manufacturing in Australia is not a destination for a lot of kids coming out of school; unfortunately, education streams are not set up well enough for people to come into this pathway. I think in 2023 there are the opportunities to do more with educational institutes. It has to be a priority. That education stream is critical from APPMA’s perspective; for us to get more engaged and start to have an influence there.

Looking at our members in manufacturing and supply businesses in the processing and packaging industries, we can see which skillsets are going to be needed in the future. It’s important to then develop those within businesses at the grassroots level, and then also from an industry and an association point of view, to draw graduates into manufacturing. APPMA recognises that’s our opportunity to expand in that remit as well.

All of our members are going through significant changes as a result of Covid-19, and I can say from many observations, that those businesses that were agile, who embraced technology when resources were limited from a manufacturing point of view, who focused on automation and technology to assist their people, those were the businesses that didn’t flounder.

Covid has certainly accelerated digital transformation, and, in my opinion, that will very much continue in 2023.

Chris Foley, CEO, Australian Packaging Covenant Organisation

What are the most significant challenges facing Australian waste management providers and policy makers in 2023? The low recycling rate for plastic packaging, particularly flexible plastics, is a major, system-wide challenge. There are positive signs. The amount of plastic packaging recycled is increasing year-on-year, showing that the capacity of the system is increasing. Industry is focusing effort on flexible plastics collection and recycling, with strong community engagement.

APCO’s members are reporting considerable latent demand for recycled content, and we are seeing unprecedented investment in reprocessing for post-consumer plastics by recyclers, the packaging supply chain, and governments. We estimate there will be sufficient reprocessing capacity to recover upwards of 60 per cent of plastic packaging within Australia by 2025. Work is now needed to increase collection pathways and sortation capabilities for HDPE, LDPE and PP.

The biggest opportunities are in improved collection and sorting for plastics, glass and paper. New and expanded facilities for reprocessing plastics will need more baled PET, HDPE, LDPE, and PP. The two glass packaging manufacturers have ambitious targets that require greater quantities of clean, sorted cullet. This demand can be met by:

• Finding the most effective and efficient collection pathways for large-scale collection of flexible plastics from households;
• Supporting households and businesses to improve source separation and use of collection pathways;
• Investing in additional facilities to sort plastic packaging;
• Expansion and alignment across CDS programs on accepted materials;
• Increased collection and recycling of business-to-business packaging, including cardboard and LDPE wrap; and
• Reduction of waste through increased utilisation of reuse systems, particularly business-to-business systems.

Nerida Kelton, executive director, Australian Institute of Packaging

With all areas of the industry actively working towards meeting the 2025 National Packaging Targets, I have no doubt that 2023 will see more advancements in packaging materials and formats that shift the dial even closer towards designing out waste, phasing out problematic materials and offering the lowest environmental impacts.

The challenge will continue to be how we can move the dial fast enough for some of the more difficult to recycle materials. The technologies and solutions are just around the corner, infrastructure is being built, funding is occurring and trials are happening so it will be exciting to see what 2023 brings in this area.

The opportunity for 2023 is continued collaboration across the entire value chain from materials through to waste and recycling. The industry needs to work together to be able to meet the 2025 National Packaging Targets and also the 2030 National Food Waste Targets and everyone has a role to play. (Read more from Kelton on food waste in Australia in Tech Speak on page 12-13 of the PKN January-February issue).

Pierre Pienaar, president, World Packaging Organisation

The biggest challenge is to get the message is getting across to the world so that we all understand that we only have one planet Earth. Once we have achieved the clear message, then to find a compromise between designing sustainable packaging that fits the circular economy guidelines (in terms of packaging materials type, weight, carbon footprint, mono material, 4Rs...) and at the same time to protect and extend the shelf life of food products.

The biggest opportunity for Australia lies in implementing new technology for using recycled content in the food packaging, while globally it is implementing Extended Producer Responsibility programs in more developing countries.