How Much Do Industrial Packaging Services Cost in 2022?

There is no average cost of industrial packaging services, as these services depend on a wide range of factors. Additionally, the COVID-19 pandemic caused unplanned shutdowns, labor shortages, and price increases involving packaging resins and lumber. The demand for industrial packaging services also rose significantly in 2021, which naturally led to supply chain issues and higher costs.

Despite the uncertainty in packaging costs, it’s still possible to roughly calculate how much you may have to spend on a certain project based on some of the factors we’ll cover in this article. 

Factors That Influence the Cost of Industrial Packaging Services

The five main factors that influence industrial packaging costs include run size, product intricacy (specifications, complexity of project, etc.), product volume, packaging quality, and material cost.

Run Size

Packages on a wooden pallet

Run size essentially means “how long will it take to finish packaging a product?” 

Naturally, if your product is more complicated (many regulations to follow) and you are packaging many items in one run, the size of the run will be larger. If you’re outsourcing your packaging, you want to make sure that your company a) has storage space for your products and b) has the bandwidth required to handle larger runs. 

In addition to the complexity and volume of the job, the cost of production/packaging is also reliant on the company that you choose and their set prices for setup, warehousing/storage, labor/assembly/kitting, and overall packaging design. This cost is hard to put a specific number on, as every contract packaging company is different.

Product Intricacy

Next, think about how complex your packaging project is.

  1. Does it require product disassembly? 
  2. What types of specifications must you stay compliant with?
  3. Do certain items need to be kitted?
  4. Is there a strict deadline that needs to be met?
  5. Is the part fragile and/or easily damaged?

If you answered “yes” to any of these questions, expect higher costs. Any project that requires more labor and attention will be more expensive, and again, the costs are dependent on the packaging company you’re working with. 

Product Volume

The next factor is product volume. How often will you need these products packaged? For example, would you need product runs three days during one month or five days every two months? If the second, the cost will increase, because there will be more setup involved. If the product runs are consistent, it takes less time to set up every time. 

Packaging Quality

Boxes out of wood for packing industrial machinery

It goes without saying that an emphasis on quality is essential. Whether you are working with a third-party provider or have your own in-house team, you absolutely should have standards of quality that you follow. The type of product that you’re transporting and any regulations surrounding it will directly affect the design of your packaging. If your standards of quality are more stringent, then the project will take more time and potentially be more expensive, but emphasizing quality assurance during packaging will prevent costs associated with non-compliance and product damage. 

Material Costs

Lastly, the cost of the materials you need for the packaging design will also influence the price. The types of materials you may use for each level of packaging (primary, secondary, and tertiary) may vary from glass and aluminum to lumber and resin. 

As we mentioned earlier in the intro, most packaging materials saw a drastic increase between 2020 and 2021. Some material prices have dropped, but many still continue to rise, including glass and polyethylene. And, some material prices are projected to increase in the coming months. The total cost of materials is influenced by the number of packages being designed and how much material is required for each product. 

Find Your Packaging Cost Today

We understand how frustrating it is to not get clear answers, especially when it comes to costs. But the truth is that all of these factors can change at any moment. Material costs continue to be volatile, and of course, not every packaging project is the same, so run size, complexity, and volume will vary from project to project.

If you want a hard answer as to how much your packaging services will cost, your best solution is to talk to an industrial packaging company. 

Our team at Export Corporation can help you understand all aspects of packaging costs, and suggest ways to minimize costs. We’ve been helping manufacturers in the automotive, aerospace, defense/military, and commercial sectors since the mid-1940s, and provide complete industrial packaging services. For more information, please fill out our online form today to schedule a consultation with one of our experts. We’re happy to further discuss your project with you and the packaging costs associated with it.