By Shaun Byron
BURTON, MI — Times were changing for Landaal Packaging Systems five years ago.
An equipment manufacturer, which was also a good customer, opted to package its products in-house instead of using the Burton-based packaging company.
“Really, we had wanted to diversify for a long time and get a broader range of customers and services to offer and this put us in a position to say now is the time to act,” said Terry Choate, sales and operations planning manager for Landaal Packaging Systems.
The loss of that client led to a series of changes for the family-owned packaging company, which will soon open offices in downtown Flint as part of a process to expand and, quite literally, think outside of the box.
In five years, the company has made inroads into the point-of-purchase market with easily assembled retail stands for clients across the country. It has also entered into agreements to supply green packaging materials that can keep products safe, while not impacting the environment.
“We are family-owned and operated,” said Robert Landaal, vice president of sales and marketing. “When you look at the sustainability of the company, you have to do it for those reasons and doing it the right way with our thought process has allowed us to expand out of the state.”
One of the earliest changes the company made was in aligning itself with KTM Industries Inc. in Lansing to provide its Green Cell packaging material for clients. The material is made from cornstarch, rather than polyurethane, and is biodegradable.
Items that have to be kept at a certain temperature won’t go bad by being packaged with the material, which also won’t have a negative impact on the environment, said Bernie Scibienski, vice president of operations for Landaal Packaging Systems.
The second change was obtaining the United States patents from Canada-based Poptech to enter into the point-of-purchase market.
Poptech holds the Canadian patents for easily assembled stands typically seen in retail stores for items like movies, food or toys.
The technology allows for retail employees to easily assemble the stands, which Landaal Packaging Systems designs and creates.
Some clients have very rigid guidelines as to what the stands should look like, while others come looking for suggestions, Choate said.
A third change that will be completed in September is opening its “innovation center” at the Rowe Building in downtown Flint.
The center will house 10 employees and focus on design, marketing and consumer research. The company will still retain its Burton facility, using the Flint location as a place to foster creativity.
Opening the “innovation center” will allow Landaal Packaging Systems to take part in rebuilding Flint’s economy and move the creative side of the business out of the Burton plant, Landaal said.
The changes made by Michigan companies like Landaal Packaging Systems is an example of how businesses were able to continue being competitive during the recession, said Harry Blecker, senior business consultant and former regional director of the I-69 Trade Corridor Region for the MI Small Business & Technology Development Center.
The MI-SBTDC provides counseling, training, research and advocacy for new businesses, existing small businesses and technology companies
“The recession has caused people to be really smart,” he said. “We have seen companies through our office comb through their resources, people, money, connections that come up with new ideas and new services.”
The initial pains caused by a bad economy can result in a stronger company if the right changes are made to diversify, rather than continue to rely on one product or service, he said.
“It’s critical,” he said. “That is part of what we have seen, the impact of what happens when a community is dependent on one thing. Unless you diversify or have a diversified base, if something happens with that one source of revenue, then you are hurting.”
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