Handle with care: Minimum wage increases will limit operators' ability to scale up operations to meet demand

California industry revenue growth has been outpaced at the national level. The primary factor that has constricted revenue growth in California has been high real estate, utility and wage costs, all of which are above the national average. Not only have these factors put pressure on industry operators themselves, but have also been detrimental to the California manufacturing sector. As the minimum wage increases, operators will introduce automation where possible, but wage increases are expected to curb revenue growth over the five years to 2022. The wage increase will limit operators' ability to scale up operations to meet demand...read more.

Industry Statistics & Market Size
Revenue
$660m
Annual Growth 12-17
1.9%
Forecast Growth 17-22
Profit
Employment
4,493
Businesses
1,480
What Our Customers Say

Industry Threats & Opportunities

  • California businesses and consumer spending have increased, raising demand
  • Increased minimum wage leads California to drastically slash the size of the labor force
  • Industry operators are expected to slow the rate at which they hire more employees
  • Industry Report - Industry Key Buyers Chapter

    The Packaging and Labeling Services industry in California has a low level of market share concentration, which is also true of the national industry. IBISWorld estimates that the top four companies in the state industry have generated less than 10.0% of revenue in 2017. Also like the national industry, most industry players in California generate a vast majority of their business from local or regional buyers, although some do provide services on a state-wide basis. The market is fragmented because transportation costs, which buyers are typically responsible for, can quickly add up and make services from faraway businesses costly; but buyers must get their product to operators so they can perform services. As ...purchase to read more.

    Additional Insights for the Packaging & Labeling Services in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Packaging & Labeling Services in California Industry are

  • Ability to manage external (outsourcing) contracts
  • Ability to change which market the company operates in
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Number of Businesses in California and Consumer Spending in California in the Packaging & Labeling Services in California industry impact industry performance..

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    What is the Packaging & Labeling Services in California Industry?

    Industry operators in California primarily package client-owned materials on a contract or outsource basis. Operators provide labeling and imprinting package services as well. The industry excludes activity related to the manufacturing of packaging or labeling products.

    Industry Products
  • Packaging
  • Labeling
  • Assembly and fulfillment
  • Repacking
  • Industry Activities
  • Blister packaging services or skin packaging services
  • Cosmetic kit assembling and packaging services
  • Textile and apparel folding and packaging services
  • Labeling services
  • Mounting merchandise on cards
  • Packaging services (except packing and crating for transportation)
  • Product sterilization and packaging services
  • Shrink-wrapping services
  • Gift-wrapping services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of Businesses in California
  • Consumer Spending in California
  • Manufacturing GDP for California
  • Total trade value

  • Current Performance
  • California manufacturing struggles to catch up
  • Minimum wage rises
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry service demand remains strong
  • Minimum wage growth
  • Table: Packaging & Labeling Services in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Packaging & Labeling Services in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Chocolate Production
  • Brand Name Pharmaceutical Manufacturing
  • Generic Pharmaceutical Manufacturing
  • Hardware Manufacturing
  • Auto Parts Manufacturing
  • Retail Trade

  • Key Selling Industries
  • Cardboard Box & Container Manufacturing
  • Forklift & Conveyor Manufacturing
  • Glass Product Manufacturing
  • Metal Can & Container Manufacturing
  • Plastic Bottle Manufacturing

  • Products & Services
  • Packaging
  • Other
  • Assembly and fulfillment
  • Repacking
  • Labeling
  • Chart: Packaging & Labeling Services in California Industry Products and Services Segmentation

  • Major Markets
  • Personal care and cosmetics
  • Pharmaceuticals and medical
  • Other
  • Electronics
  • Apparel and textiles
  • Chart: Major Market Segmentation for the Packaging & Labeling Services in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Packaging & Labeling Services in California

  • Basis of Competition
  • Internal competition
  • External Competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Packaging & Labeling Services in California Industry

  • Aaron Thomas Company Inc.Blisterpak Inc.Central Valley Assembly & PackagingDCL Corporation
  • Table: Aaron Thomas Company Inc. - financial performance
  • Table: Blisterpak Inc. - financial performance
  • Table: Central Valley Assembly & Packaging - financial performance
  • Table: DCL Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Packaging & Labeling Services in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Packaging & Labeling Services in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Antistatic Bags
  • A bag used for shipping components that can be damaged by static electricity.
  • Blister Packaging
  • Packaging consisting of a solid backing with clear plastic formed around the mold of a product.
  • Clamshell Packaging
  • Packaging consisting of transparent plastic packages with one or more hinges.
  • Contract Packaging
  • Packaging and labeling of goods supplied by manufacturers or importers. Also known as co-packing.
  • Field Rations
  • A prepackaged meal that is easily prepared and eaten by military troops on the battlefield.
  • On-Demand Packaging
  • Packaging services that tailor package design on a per contract basis.
  • Shrink Banding
  • Packaging consisting of plastic bands which are heated to shrink and fit around an item (or items) tightly.
  • Shrink Wrapping
  • Packaging consisting of plastic film that binds loose or packaged goods together for transport and display.
  • Why buy this report?

    The Packaging & Labeling Services in California Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Packaging & Labeling Services in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Packaging & Labeling Services in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Packaging & Labeling Services in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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