 Good afternoon. I'm Paula Feldman, Director of Business Intelligence with PMMI, and I'd like to welcome you to today's webinar on flexible packaging. Over the next hour, we will listen to the findings of this report by author Donna Ritzen with DDR Communications. Topics discussed will include the size of the global flexible packaging industry compared to rigid packaging, how has the demand for flexible packaging changed in the past five years, what's driving future packaging equipment investments, and providing OEMs with an outlook of the future demand for packaging equipment. President of DDR Communications, Donna founded the company 25 years ago. DDR's business is based on a direct response methodology that delivers market research, business development, strategic alliance, and marketing intelligence to companies and virtually every business-to-business industry. DDR's experience is backed by over 35 years in marketing communications. Just a couple housekeeping notes before we get started. If you have any questions that we'd like to ask Donna or myself, please type your questions in the chat box that's located at the bottom right-hand corner of your screen. All phones are on mute so that we will not have any background noise. And at the end of this presentation, which will last approximately 45 to 50 minutes, Donna will be available to answer any questions. So at this point I'd like to hand the webinar over to Donna Ritzen with DDR Communications. Thank you Paula and welcome everyone to the webinar on flexible packaging. I like to keep it a bit informal so if there is something along the way that like Paula said, if you have a question about something specifically, certainly post that question and we'll get to it if it's right in the middle of the report, even if it's something critical. So the table of contents here, we've got this broken out into three different sections. It's structured a little bit differently than the actual report. We'll look at what the objectives were and up front we'll look at who the participants were so that as we go through the information, you've got an idea of the participants of this survey that we did. Like Paula said, we'll take a look at the future of flexible packaging, some of the trends that are occurring, how that's impacting the machine builders and material suppliers, and then taking a look ahead at what's coming next. So from the flexible packaging five-year update, we did a report on flexible packaging five years ago. So we'll look at how is the size of the market changed? How is the demand for flexible packaging changed? What's driving equipment investments? And then an outlook and some actionable suggestions for the OEMs. So if we look at one of three companies that we talk to do have future plans to use more flexible packaging, particularly in the food industry, which is the largest user of flexible packaging, food service industry, and particularly in medical devices. And the key influencers of why flexible packaging is growing is certainly the consumers we are the consumers. We tend to be buying more products in flexible packaging, but there's also the retail end that is influencing that in large restaurant chains and food service organizations that are looking for more convenience in their food service as well. Some of the things that are being looked at for flexible packaging certainly is lowering cost. Less material usage is definitely something we'll explore in the future here in a couple slides. It improved barrier properties to prevent light coming in and different things that would inhibit the integrity of the product. Reducing labor is an area where customers are looking and users are looking when they're looking at flexible packaging. In some instances higher output, but we heard some contraindications to that that in some instances it's a lower output, but certainly improving operating efficiencies wherever possible. And looking at capital expenditures in the year ahead, about two out of three companies that we talk to are making changes to their packaging line. In one in three of those companies we'll be increasing their spending on capital equipment. So we'll take a look at all of the subjects in a bit more detail as we go through this. We talked to 50 professionals in the packaging industry, mainly end users, but we also talked with material suppliers and some industry experts. We predominantly talked to food companies, larger food companies, but also medium and small companies. Food predominantly is the industry that uses the majority over half of the industry is used in flexible packaging from food manufacturers. But we talked to a good representation of beverage companies, household products, pharmaceutical and healthcare. And we talked to some of the leaders, some of the top leaders in food, in beverage, in consumer product goods in the household products area in the medical devices. And we talked to people that have a hand in and are part of the decision-making process of choosing if a company uses flexible. Are they going to switch a product from rigid currently to a flexible container? Are they going to bring a new product out and flexible? So we talked to the operations people, certainly innovations people, packaging engineers and managers, directors and designers of packaging engineers, packaging specialists, and certainly a smaller percent, but some of the procurement people that are involved in the acquiring the materials and the machines. So this next section is just an executive overview. I'll go through this a little quickly so we can get into some of the details. But we heard consistently that the decision to decide to go to flexible packaging or rigid packaging, it's really all about the cost. And all those costs need to be justified and considered when you're taking into consideration what type of packaging you're going to use. And here's some information from the Flexible Packaging Association. This is secondary research that we brought in to give you an idea of the growth in the flexible packaging market. It certainly is growing. Flexible packaging compared to rigid just took up 1 percent. It's 19 percent of the total packaging market is flexible packaging. It was 18 percent in the previous year, so it upkicked just a bit, but does continue to grow. And like I said, flexible packaging in the food industry takes over. Half the industry goes into food, then into some retail non-food products, consumer products, which would be your household products, and then some medical and pharma, and then each one from there down. Institutional food takes up just a small percentage, but that is a market that we heard is growing in terms of adopting more flexible packaging in the future. So here we compare the last five years in how flexible packaging has changed. Now the statistics between flexible and packaging on this slide are just coincidentally exactly the same. It depends on what companies we talked to, and we did talk to a handful of companies that were involved in the report five years ago. So this is not to give you an indication that flexible between rigid is not growing. 33 percent, one out of three companies, manufacturers, and users that we talked to are moving more of their products into flexible packaging over the next five years. This is just an average of when we talk to each end user, how much of their product mix is inflexible, and how much of their product mix is in rigid. And it was just a complete coincidence that both figures from both years 2010 to 2015 turned out to be the same. There is growth in flexible packaging. So if we look at spending in the next year, it's pretty much staying the same, but there's definitely been a shift since the last five years when we talked to end users. So if we look at the charts here, you can see that in 2015, that's the outer circle, and over half of the end users that we spoke to said they will be spending on capital about the same as they have in the last 12 months. But if you look at the inner circle, which was 2010, 61 percent greater majority said they would be increasing their spending on capital equipment for flexible packaging. And this does coincide with how flexible packaging was introduced years ago. Certainly it wasn't new five years ago, but it was still growing in terms of manufacturing capabilities. So in those five years, a lot of the companies that we spoke to had acquired the equipment that they needed. So if we look at the number of companies though, and I think that this tells a lot of the change in the dynamics going on in the industry, is the majority of companies that we talked to almost two out of three were making changes to their manufacturing lines in the next year or two. And of those companies who are making changes, three out of four of those companies are going to be purchasing new equipment versus trying to modify any equipment that they currently have. And 88 percent of the manufacturers that we talked to search for equipment that best fits their needs versus just looking at U.S. manufacturers first. So it's certainly a global market, which is not anything new that is being reported, just being reconfirmed in this industry as well. So we made some comparisons to predictions that the flexible packaging playbook made in 2012 with the near views that we had in 2015 about flexible packaging, and they definitely correlate and line up. The trend is certainly consumer convenience, more easy open, resealable closures, that's something we've seen in all of the food industry particularly, but certainly in consumer product goods is certainly a more easy open container, which is something that flexible packaging offers. And companies are looking for higher film transparency in some instances, particularly in food. U.S. is to follow Europe with more pouch usage. Europe uses more pouches than the U.S. It's growing, like I said, in food service, food and medical devices particularly. And in the cereal aisle, we're really not seeing so many changes. We heard some different considerations that were going on and being tested, but nothing yet to report if there's any changes moving out of a bag in a box. For the five manufacturers wanted more multi-layer barriers to extend shelf life. Certainly, there continues to be a reduction in packaging sizes. Retort is becoming more popular in stand-up pouches, particularly offering stand-up now to sauces and salsas and dressings. We see it on our shelves pretty consistently in terms of some of the new products that are continuing to come out in flexible packaging. In over half of the manufacturers we talk to are using a pouch to save on material usage and costs. And many of the products that are coming out in flexible packaging are also your larger, refillable sizes. Another area where flexible packaging is main packed. So let's take a look at the future here of flexible packaging and who's using it. Like I've said, food industry uses flexible packaging the most. These are representing the 50 companies that we talk to. This isn't necessarily an indication of all companies, but the food industry, over half of the food industries, companies that we talk to in the food industry have a majority of their packaging in flexible. Compared to beverage, it remains much more so in rigid. Compared to consumer product goods or your household cleaning products, certainly are remaining more in rigid. But that's an area where you're seeing some of the refills coming out in flexible packaging. And even in the medical device in the medical industry, predominantly that packaging is remaining in flexible. But a lot of your kits and medical devices now are coming out in more advanced flexible packaging. But we did talk to companies and say, what is their outlook for the future? And 61%, two out of three companies that were interviewed said they'd reached their level of flexible packaging and they don't anticipate any further changes in the near future. Which is a shift from five years ago, when only 49% said they had reached their level of flexible packaging. So over that course of five years, there's certainly a good portion of companies that continue to move products into flexible packaging were appropriate and have now reached a saturation level. But we've still got one out of three companies who are continuing to increase and evaluate flexible packaging. And just a very small percentage went to flexible packaging, returned to rigid, some very specific consumer requests and brand identity. This chart gives you a good idea of types of products of the companies that we spoke to. So it was everywhere from bakery snacks and all the way down through marinades and sauces and nuts and soups and coffee and chemicals and household products and personal care products, injectables and some generic and RX drugs. What this does is gives you an idea of we asked companies, are they going to be using more flexible packaging, packaging mixed staying the same or packaging returned to rigid? And in some instances, some of the product categories represent all three. For instance, candy. We talked to several candy companies. Some of them were using more flexible packaging. Some of them were staying the same. And in one instance actually was returning to rigid. So it certainly depends on if you're looking at specific customers to see where they're at in their manufacturing process of rigid versus flexible. Donna, can I interrupt for one second? Sure. We have a question about slide 14. And I thought maybe we could go back to that before we go any further. Okay. Let me get that down. Let's see, I'll wait until you get to it. The question is reduction in packaging size and shapes. What does that mean exactly? Well, it's really being driven by the consumer. Smaller portions, smaller packaging. We see a lot of the 100 calorie count now that is coming out in many different types of products. Portion control and just the reduction of packaging in terms of serving the on-the-go, eat-in-your-car type society that's really been growing over the last years in terms of reducing the size of packaging shapes. And it's being driven by the consumer. So more like on-the-go eating is a part of what's driving that. Absolutely. More convenience on-the-go eating in the car. There's several studies that PMMI has undertaken that particularly in the bakery and the snack food industry addresses that really well in terms of the on-the-go lifestyles that are changing. Great. Thank you. Okay. Let me jump back. So we were just going to talk about here about the types of flexible packaging that are used most often. And while pillow pouches certainly the most dominant in being used now, stand-up pouches is really right behind that. And stand-up pouches moving towards is at a greater rate. So companies particularly are looking at the stand-up pouch. It provides great shelf appeal. It allows the, you know, a 380 degree billboard. So the printing capability, the color graphics, there's a lot that can be done. And certainly the resealable of stand-up pouches is very attractive. We heard lots of different scenarios of how companies were moving in this way. You know, some cans were moving to pouches and we've seen it come out in soups. We've seen stand-up pouches come out in different types of convenience goods. Again, it's that kind of grab-and-go candy particularly is really starting to come out more in stand-up pouches. But certainly, you know, there's a lot of multi-layer that's going on in the stand-up pouch for protection and retortability. So we'll get into some of that when we get into the material area. So what are the some of the advantages and disadvantages when using flexible materials? Certainly some of the advantages are lower cost per package. But then, like I had said, we'd heard some indications where that necessarily wasn't the case for every manufacturer. But for overall, manufacturers are seeing a lower cost per package. An improved shelf presence is one of the high advantages that flexible packaging brings, like I said, better barrier properties as well and differentiating products on the shelf to appeal to consumers as they're walking by. It's certainly lower shipping costs in terms of the light-weightedness. And some of the disadvantages that we've heard about were some of the sealing issues out there in terms of the closability once it's opened and re-sealed. Some companies are still dealing with that. And the machinability of the variety of film gauges and strengths and different types of layered film still causing some machinability problems out there. But some of the reasons, one of the questions we asked is what are the top reasons that would encourage you to change to flexible packaging both from a packaging performance and manufacturing performance? Again, cost savings per package comes up as the first thing regarding packaging performance, material reduction, again, improved barriers. So there's certainly consistency and even redundancy in what we hear from the manufacturers, which gives a high confidence in terms of what flexible packaging is bringing to them. Certainly a reduction in labor, higher output again, lower transportation costs and lower operating costs. Let's look at some of the trends that are really influencing why flexible packaging is gaining popularity. Sustainability initiatives, we talked about this at length and actually went back and had some additional conversations in this area. Flexible packaging, in terms of being a highly sustainable material, it's not so easy with flexible. It's primarily, again, about the cost of choosing flexible packaging. But sustainability certainly remains top of mind, trying to use renewable materials, reducing material usages wherever possible, recycling wherever possible, and again, minimizing the overall carbon footprint, which remains top of mind in all aspects for manufacturers. So when the packaging is taken out of use, it becomes waste. We put these definitions in here so that you can go back to this and review this more carefully. I've always packed these webinars full of quotes and comments that help you understand the why behind some of this when this becomes a standalone, something that you can look at and share with people at your company. But recovery, recycling, composting, and biodegradable. That's really the four words that make up what happens to our waste at the end of its life cycle. We'll get into a little bit more detail here because flexible packaging, while it's rising in popularity as a primary package, it needs greater strength and the secondary carton to protect that flexible packaging and the product that it's carrying. So lightweighting primarily requires better support from the secondary packages. The primary package changes. And we talked about Europe uses less packaging with stricter disposal regulations compared to the US. They have a disposal, which is the ERP. We don't have anything like that for packaging here in the US. They have three ways, and they have all 27 EU countries adhere to this, three ways to recover their package. It's either mechanically recycling it, taking it and recovering it and turning it into fuel or organic recovery and composting that, which flexible packaging doesn't lend itself very well at this point to composting. Earlier trials were done and it didn't prove successful. So one of the things we talked about with the manufacturers and some of the experts in the industry is ERP, how likely is that to impact the US in the near future? And the president of flexible packaging association talks about it's ERP will not impact us for a long time, but it's already indirectly affecting the US and that one in three manufacturers maintains global uniformity for their flexible packaging designs. But ERP is not being discussed by many of the customers out there in terms of the manufacturers or even the retailers. So it's not something that's top of mind here in the US, but it is certainly something to be aware of in the future. And we talked about some of the packaging regulations in terms of how they're impacting. We heard one company talk about the manufacturing moving it overseas because of some California legislation, which has been at the forefront of most of our legislation in terms of packaging. There are restrictions on which kind of chemicals can go into flexible packaging. There's specific regulations and certain hazardous substances that don't lend themselves well to that industry. Labeling regulations, certainly the whole nutrition labeling regulations is something that flexible packaging makes it a little bit easier having more space on the package itself. Again, back to some of the additional regulations that the EPR, which is the extended producer responsibility and the green dot program in Europe, definitely is a regulation that is in place. And what it does is it puts the responsibility on the producer, the brand owner to pay a fee per package according to many different scenarios of that package. And they pay a fee for that and in many instances that fee can be lessened by a flexible packaging, which is lighter weight. And that gets into a little bit more detail here on this slide. I've already reviewed it quite thoroughly, but we did speak at length with two of the people that did a global pouch forum, an end of life management outlook in June of this year. And it was good news for the flexible packaging, the life cycle analysis that they presented because it performed well in respect to material's use in the overall carbon footprint and waste reduction. It lowered the ERP fees, just as I had mentioned globally, and it has higher consumer acceptance. But some of the negatives that they found in the life cycle analysis using pouches was being able to dispose of it, the litter that where our waste and our packaging waste ends up. But the challenges for greener advancements in the U.S., certainly there's state and local government budgets that look at recycling, although our program here in the U.S. is not anything near like what it is in Europe. So something to be aware of, like I mentioned, we did canvas people and interviewed people of how soon do they think that might impact us, and it's not something that's going to be going through our legislation in any time in the near future. So if we look at what's, what are some of the external influences versus some of the direct influences consumers, we buy convenience, and marketing is responding with that innovation. And that innovation in a lot of instances is a more flexible carry-around type package. Big box stores continue to influence the use of flexible packaging and how they want their store shelves to be displayed. And like I said earlier, some of the larger restaurant chains are now looking at flexible packaging to help them with their food service and convenience that that brings. But really the consumer, we are the driving influence of packaging styles. Individual servings answers the question that we had a little bit earlier of package sizes and shapes and what does that mean? Easy convenience, grab-and-go functionality. We want it to open and close quickly. We want multi-packs. We want variety packs in and all of that as a consumer. We're always looking for the cost-effective choices. Marketing is driving a lot of the choice of flexible packaging in terms of design and in the shelf appeal and consumer appeal. Sales certainly has an interest in that R&D and obviously working with the package designer as well. So how is this all influencing the machine builders? And where are they looking for innovative designs? Innovation in itself just defining the word innovation means different things to different people. But we've talked to people that we interviewed and how do they view innovation and where do they see it coming from? And the majority, three out of four companies, they expect innovation from their materials and machine builders. They depend on it. They ask for it. They look for it. And very small percentage said they didn't feel that they were getting it. So in terms of meeting the needs of the end user with innovation, material suppliers and machine builders are answering their needs. But there still remains machine challenges with thinner gauge films. We talked to both the end users and material suppliers. It was surprising that the material suppliers actually more frequently acknowledged that there were challenges with thinner films. They're aware of a problem. They're working to solve that problem. But certainly the combination of using thinner films and wider sizes and faster speeds is never a good combination in terms of making it easy for manufacturing. But they certainly are not turning a blind eye to this. All the material suppliers we talked with said it's something that they continue to work on. Sealing integrity at higher speeds is something we heard was a problem. Sealing in general was one of the top reasons of the challenges that we heard. Inconsistent film quality, like I said, the material suppliers are certainly aware of this and working with end users and machine builders to bring some resolution to that. There is often times slower filling speeds using a flexible package that's definitely product dependent. And certainly just the transition between packaging styles if a company is moving from rigid to flexible packaging, they have manufacturing challenges they're going to have to come in contact with as well. In some other very specific challenges here, we listed them all as you go through this with your teams and your companies. There might be something more that you relate to directly in terms of some of the challenges you might be experiencing as well. But we looked at in terms of how end users are considering their current equipment. Do they look at their current equipment first during package design or do they just design the package and then acquire the equipment that they need? It's a combination. Nearly half of the manufacturers that we talk to, they really consider both options. Certainly try to avoid buying new equipment if they need to or if they don't need to. 55% of the top we talked to you said that they consider their current manufacturing capabilities during the package design. So they're looking at what capabilities do they have and how can they most efficiently bring out innovative new designs and certainly if their product lends itself, how do they move into flexible packaging? But then there's certainly a handful of companies that are going to move to flexible packaging that are going to acquire the equipment that they need to accommodate that package. So then we've looked at what are the reasons, what operational reasons are driving change and production output increasing. We've heard this for several years now. Oh, since projects that we were doing in 2008, even some PMMI reports as well as some proprietary reports that production output increasing, we continue to hear it in our conversations. Increasing product changeover, there's more SKUs now in a manufacturing location than before. And changeover needs to be as quick as possible, looking for flexible machinery that can handle a variety of packaging sizes and be able to have that changeover to be as quick as possible. Again, like I just said, easier changeover, we ask them, what is the number one machine improvement you'd like to see in flexible packaging? And this is not just flexible packaging, we hear consistently easier and faster changeover to handle a variety of packaging sizes and a variety of film types. So that does remain number one top of mind at end user manufacturers. Again, improved seal integrity came back up in this part of our conversation. And just easier to use simpler machines for operators to use, cleanability comes up as well, being able to easier and faster have a machine cleaned and back up and running. Then we asked the people that we interviewed, where do they source their machines typically? The majority of machines in the U.S. are U.S. sourced. And this is only from the participants of this report. This is not a broad statement, but on average global sourcing of packaging equipment, the majority of it is coming from the United States, second Europe. So 78% of the end users that we talk to approximately three out of four facilities operate more than 50% of their equipment as U.S. sourced. Parts availability, local technical support, pricing, getting the equipment when they need it. So certainly that remains consistent. There's a secondary report that we've done that also shows that this is very consistent. But all of the participants, nearly all of the participants except one company, has experience purchasing and operating equipment that's non-North American based. So it certainly is a global community in terms of packaging and machinery and acquiring that machinery where needed. So if we look at flexible packaging, manufacturing occurs, where is that occurring? It's certainly closest to the site of sale. So the majority of companies that we interviewed operate their operations for the most part in the U.S. or wherever that's going to be closest to the site of sale. So if they're manufacturing overseas, they're manufacturing where that product is most likely going to be consumed. And we asked about what about in the future? How do they see that changing? And pretty much it's staying the same. We did hear a few companies who were increasing their manufacturing overseas and actually a medical device company that was coming back to the U.S. There's lots of reports on reshoring. It's something we continue to hear about, not particularly in this industry, but some of the other industries are reshoring back to the U.S., again, very specific to product and manufacture. So if we look at contract packaging, what role does contract package players play in this industry? They have a significant role. Two out of three companies are using co-packers today. The majority of brand owners that are using contract packages, though, it's at a small percentage. Five percent or less of their packaging requirements are being handled by co-packers. And the reason, certainly, that they're using them as convenience and a test market product or getting a product to market quicker if they don't have the equipment, a co-packer can do that for them, they're certainly then moving in that direction. And using co-packers in the future, not seeing it changing significantly for the most part, staying the same. Their role is significant and important. There are several companies out there who predict they will begin using co-packers at an increasing rate in the future. And why are they using co-packers again? As I just reiterated at the avoid capital expenses, if they're looking at testing a new market or a new product, if that co-packer certainly has the expertise that is not in-house at the manufacturer, minimizes risk with any new product trials just in terms of is it going to be successful in the future, they'll try that out with a co-packer first. And certainly smaller packaging seasonal runs are typically with a co-packer as well. So some of the material innovation that we're looking at, not significantly anything new here that we found out, but 63% of the companies, two out of three, continue to look, consider, test new materials, looking for better barrier properties again, that was one of the top goals that they're coming up with. Extending shelf life, looking for puncture resistance, improved ceiling again makes that list, light weighting, improved clarity, some of the properties that we've already certainly talked about. There wasn't anything significantly new that we heard in this area. Some of the plant-based products that we've heard about in the past have not necessarily panned out. They can be very costly and as the cost of oil has gone down recently, then some of that exploration in other areas diminishes and the availability lessens and it increases the price. So there's been some concerns on strength of those materials and the availability and using them in general and like I said in many instances is actually costing more. We talked about the impact of nanotechnology in the packaging industry here for flexible packaging. The majority of the interviews that we did, they weren't really aware of the impact that nanotechnology can have. It's really the science of small materials and small molecules, but it certainly can offer in some instances stronger barrier properties. It can have some antimicrobial agents which would be enhancing sanitation on that package and a host of sensors that can detect and trace contaminants and gases. There's lots of different things. Again, it's a costly initiative, not really widespread at this point, but nanotechnology is changing our lives in many ways and we'll see it enter this market more significantly in the future as well. When we talked about what are manufacturers looking for in the characteristics to extend shelf life, certainly multi-layer and freshness were top of the list. It's again the barrier properties that flexible packaging offers. And then if we looked at sourcing the materials, this very much is consistent with sourcing the actual machinery, but most of the materials that are being used in flexible packaging in the U.S. are being sourced in the U.S. In terms of finding the best material, 90% of on average manufacturers source material from North America if they're manufacturing here in North America as well. Better lead times, gauge of material is more consistent, service, pricing, all the reasons involved in sourcing materials here in the U.S. So if we look out at the future, how are flexible packaging, what role will continue to play, and what are end users looking for? In terms of services, over half of them are looking for training, understanding the machine capabilities, aftermarket support. There's a very detailed aftermarket parts and services report that PMMI put out earlier this year that gets into these details much more significantly, but training and aftermarket support is certainly a differentiator and something that the end users consider significantly. And they're also looking for improvements in technology in terms of automation and easier to use and finding ways that machines can do shorter runs and still be cost effective. We continuously hear this even beyond this industry in terms of flexible packaging, it's industry-wide. Certainly the sanitary design, more and more conversations we've been involved in several others about the mechanics and the safety of the actual design of the machine, using more stainless, easier to clean, easier accessibility to cleaning in all aspects of that machine. And certainly end users are looking for collaboration between themselves and the suppliers and the machine builders, looking at best practices where having everyone together at the same table is certainly an advantage for all parties. So what are some of the greatest obstacles we end our conversation with a couple outlook questions of the future? What challenges do they have in the future? And they both relate to material challenges, which we've covered in several slides here, the material inconsistency and certainly finding the appropriate materials that they need. And also improving operational challenges, reaching those higher production efficiencies and doing it in a manner that is most efficient. And again, flexible equipment to accommodate different sizes and different products. We hear that consistently across many different markets. And if we look at what we're looking for in terms of predictions and flexible packaging, definitely advances in flexible packaging use and innovations in machine design. It's the outlook that end users have in terms of when they look out at the future, what do they see? They see greater use of flexible packaging. They see improvements in properties and film consistency, lower cost materials. And certainly some of the regulations that are affecting Europe will likely be imposed in the U.S. but most, like I said, experts say not in the near future. But if you look at the flexible packaging machine of the future, it's certainly going to have innovation. It's going to be able to handle different size products more efficiently. It'll have faster changeover to handle smaller runs that's increasingly becoming more popular. Design improvements to have better sealability more reliability in that seal, certainly increasing speeds where appropriate and in general, more automation in packaging equipment in general to improve uptime. And certainly a continued competition from overseas. That brings us to the conclusion this morning. Or for many of you on the East Coast this afternoon, I would encourage you to download the full report of flexible packaging at the PMMI website as well as downloading the new 2016 flexible packaging playbook that is really intended for the manufacturer who has got a new packaging project coming up in flexible and a lot of recommendations on how to make that most productive and efficient. So I will turn this back to you, Paula, if there are any questions you've got posted. That sounds great, Donna. Thank you for all the insight and information on the trends and issues within the flexible packaging industry. As I mentioned earlier, we can open up the session for questions. So if you have any questions, you can enter them in the chat box on the right hand side of your screen. I do want to say back on slide 21 and 23. Let me see if I can get there pretty quickly. There were some mentions about some interviewees speaking to total cost of ownership and PMMI's OPEX Leadership Network addressed this earlier with a playbook this year. And I just sent out a message, if you look at the bottom of my hand corner of your screen, their website is opx, opxleadershipnetwork.org. You can go to total cost of ownership playbook and download that which should also give you some more insight on any of those questions that you might have. Right at the moment, we don't have any questions. Donna, it was a great report that we did. Great information in the webinar. I will piggyback on what Donna said. Please go and download the report. There is a wealth of information on it, PMMI.org research. On behalf of PMMI, I want to thank you for participating in today's webinar. And as a final note, you will be receiving an email to complete an evaluation for today's webinar. It'll just take a couple minutes of your time. Let us know how we're doing. Let us know how we can do better and let us know what reports you might like us to do some research on. So again, I thank everyone very much for their time. I do have one question here. Mentioned many times the findings are industry wide versus only flexible packaging. Deb mentioned that. And I'm not quite sure what she pertains to. Deb, you can hit star two to unmute your phone or you can email me directly and I can answer that question in further depth to you. I can answer it a little bit further. Some of the equipment desires when I say they're industry wide, it doesn't relate to just flexible packaging. We do a lot of research in a lot of different industries. We consistently hear the increasing production is driving a lot of change at manufacturing locations. And they're looking for equipment that can easily change over and handle the variety of sizes that they're being faced with in shorter runs. So having equipment that is flexible, handle different sizes in different shapes is not unique to the flexible packaging market. That's what I referred to you often times when I was saying it's industry wide. Some of the desired attributes that manufacturers are looking for. That's great, Donna. Thanks for the clarification on that, Deb. I hope that answered your question. And once again, thank you for participating in today's webinar. We will have another one coming up towards the end of January on food packaging trends and advances. And so I hope to talk to everyone then and have a great holiday. Thanks again, Donna. Thank you, Paula. Thank you, everyone.