What is Industry 4.0 & How will it Impact the Carton Packaging Industry?

If you've heard all the noise surrounding the Industry 4.0, you've probably asked yourself what it is and why all the hype?

Quite frankly, when I first heard of the Industry 4.0, I thought "Here we go again with another marketing forecast that never actually happens."

Until I saw it happening all around me:

From self-driving teslas to self-flying drones to virtual assistants, the Industry 4.0 is not just a hype, but a reality that is taking over.

Those who adapt and embrace this reality will steal market share. And those who don't will subside.

This article will explain to you what the Industry 4.0 is, how it impacts the carton packaging industry, and how you — as a box manufacturer —should prepare for what's to come.

What is Industry 4.0?

Major shifts are taking place in the global manufacturing industry and time has shown that the “Industry 4.0” is more than just a “marketing buzzword."

But what is the Industry 4.0?

We’re amidst a great transformation in the way we live, commute, work, and communicate with one another.

More importantly, this transformation is changing the way companies make and distribute products due to the digitalization of manufacturing. 

This transformation is so disruptive that it has been dubbed as the arrival of a Fourth, and distinct, industrial revolution: The Industry 4.0.

In 1765, we experienced the First Industrial Revolution which was using water and steam power to mechanize production.

The First Industrial Revolution was the shift from doing everything by hand to being supported by machines. 

About 100 years later, in 1870, electricity arrived bringing in the Second Industrial Revolution which was using electric power to create mass production.

This was when the concept of factories and assembly lines all started.

Another 100 years later, in 1969, computers arrived bringing in the Third Industrial Revolution which was using computer technology to automate production.

This allowed us to automate blue-collar jobs, particularly at assembly lines, using computer technology.

And the latest revolution that just started is the Fourth Industrial Revolution, or the Industry 4.0, which is fusing technologies together in a new cyber-physical world of smart inter-connected machines and intelligent robots.

Industry 4.0 is about building on what we had started in the Third Industrial Revolution (using computer technology to automate production) and optimizing it with smart and autonomous systems backed with data and capable of communicating with one another.

Instead of looking at computer technologies as individualized systems, we are now beginning to see them as a network of cyber-physical systems talking to each other in smart factories.

Those computers are connected to each other, and to networks, that allow them to diagnose their own problems, generate big data, and utilize artificial intelligence.

All without human involvement.

How Will Industry 4.0 Impact the Carton Packaging Industry?

What Industry 4.0 means to companies in the carton packaging landscape is that we need to start re-thinking the way we do business if we want to continue to remain competitive. 

Companies that do not leverage those technologies will subside and quickly lose market share.

What is different about the Industry 4.0 is the breadth and depth of the changes it has initiated.

The Industry 4.0’s changes have proven to be faster and more disruptive than any of the previous industrial revolutions.

The reason behind this is that the disruptions caused by Industry 4.0 have been multiplied with the emerging technologies in AI, Internet of Things, 3D-printing, autonomous vehicles, energy storage, and quantum computing.

Artificial intelligence is already present all around us: From driverless trains to self-driving cars to the cloud, the progress made by AI is undeniably remarkable.

So, what does this all mean for the carton packaging industry?

What is interesting is that the Third Industrial Revolution is “new” to some countries around the world.

Many industries are still trying to catch up with the Third Industrial Revolution. 

And the packaging industry is no exception.

For example, in Japan (which is a country that we consider to be at the forefront of technology), most subject matter experts in the packaging industry have not fully reached the Third Industrial Revolution as of 2021.

Instead, they are still focused on automating mass production for specific carton products. 

In other words, producing, or reproducing, the same product thousands of times in their packaging production line. 

In contrast, Industry 4.0 is about personalizing specific products for each and every client’s unique needs.

We have entered the era of product personalization. 

What this means for the packaging industry is being able to produce different types of carton box formats, shapes, sizes, and meet the rapidly growing demand for orders without minimum quantities. 

That is, overcoming the top 5 challenges in carton packaging production.

The carton packaging industry is becoming more competitive than ever.

Everyone is trying to steal market share.

Everyone is competing for lower production costs.

Because lower costs mean greater price markups. 

And greater markups mean greater profits.

Greater profits mean business expansion.

Business expansion means happy bosses.

But the billion-dollar question is: How can you lower the cost of your packaging production while continuing to improve your productivity?

The answer is by adapting to the Industry 4.0 and changing the way we do business.

How to Prepare Your Company for the Industry 4.0?

While many box manufacturers out there are still in denial about how Industry 4.0 can impact their business, those who are already adapting will leverage market power in the next decade.

At IMPACK, we are closely, and continuously, assessing the development of the Industry 4.0 and how it impacts box manufacturers in the packaging industry.

Our solutions are consistently being adapted to help support and advance box manufacturers’ most aggressive production goals.

IMPACK is proud to collaborate with companies making this transition and moving towards producing more customized carton boxes.

It is worth emphasizing that some countries offer financial assistance to companies making this digital shift to become more efficient.

Whether you’re considering our Semi-Automatic Ergosa packer, our Automatic Virtuo packer, our Fully-Automatic Everio stacker, or any of our other folder-gluer packaging equipment, they are all ready to become more intelligent.

Your Next Steps:

👉 Are you in the process of searching for a packing system but feeling unsure which machine is right for you? Learn about IMPACK's 3 Main Machines & How to Choose the Best Machine?

👉 Discover the Top 5 Challenges in Carton Packaging Production & How to Overcome Them.

👉 Find out What Are Folder-Gluer Packaging Equipment & Which Machine is Best For You?

Got Questions?

Got questions about IMPACK's packaging equipment and the benefits they have to offer?

📞 Get in touch with an IMPACK Expert and we’ll be happy to answer any questions you have and show you how you can become the top speed producer in your market!