In our ongoing, semi-weekly look at establishment and employee counts of graphic arts businesses, we have been looking at packaging/paper converting establishments. In 2012, there were 348 establishments in NAICS 322219 (Other Paperboard Container Manufacturing), and by 2020, that number had declined to 278, a drop of -20%.
The Bureau of the Census definition for this business classification:
This U.S. industry comprises establishments primarily engaged in converting paperboard into paperboard containers (except corrugated, solid fiber, and folding paperboard boxes) without manufacturing paperboard.
As you may have guessed, this is a catchall category that rounds up all the businesses that don’t fit into 32221 (Paperboard Container Manufacturing). This NAICS was created in 2012 after the 2012 Economic Census, and was used to round up discontinued subcategories, such as setup paperboard box manufacturing; fiber can, tube, drum, and similar products manufacturing; and nonfolding sanitary food container manufacturing. Some of the products that are produced by establishments in this NAICS include fiber cans and drums (i.e., all-fiber, non-fiber ends of any material) made from purchased paperboard, milk cartons, sanitary food containers, and other forms of liquid packaging, such as that used to hold water, soft drinks, dairy products, and fruit juices.
Establishments in this category are larger than we usually see in the printing and publishing industries. Small paperboard container manufacturers (1 to 9 employees and 10–19 employees) each account for 16% of all establishments, while large manufacturers (50+ employees) account for 32% of establishments. Mid-size establishments account for 36%.
These counts are based on data from the Census Bureau’s County Business Patterns. Every other week, we update these data series with the latest figures. These counts are broken down by printing business classification (based on NAICS, the North American Industrial Classification System).
Next up, we’ll continue through the converting NAICS categories:
- 32222 Paper Bag and Coated and Treated Paper Manufacturing
- 32223 Stationery Product Manufacturing
- 32229 Other Converted Paper Product Manufacturing
- 322291 Sanitary Paper Product Manufacturing
- 322299 All Other Converted Paper Product Manufacturing
To clarify what is included in the 2021 CBP, establishment counts represent the number of locations with paid employees at any time during the year. If an establishment existed at any point during the year, it would be included in the CBP count of the number of establishments for 2021 CBP.
These data, and the overarching year-to-year trends, like other demographic data, can be used not only for business planning and forecasting, but also sales and marketing resource allocation.
This Macro Moment…
Well, this is good news for those for whom inflation has been a persistent problem. Says the BLS:
The Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in May on a seasonally adjusted basis, after rising 0.3 percent in April, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 3.3 percent before seasonal adjustment.
More than offsetting a decline in gasoline, the index for shelter rose in May, up 0.4 percent for the fourth consecutive month. The index for food increased 0.1 percent in May. The food away from home index rose 0.4 percent over the month, while the food at home index was unchanged. The energy index fell 2.0 percent over the month, led by a 3.6-percent decrease in the gasoline index.
Even inflation in services, was has been persistently high, came in at a low of 2.4%.
This took economists a bit by surprise, and one month’s data does not a trend make, but over the past year the inflation rate has been generally moving downward. So that’s good!
