In the last twelve months, the trend towards purchasing inferior and unsafe packaging equipment from offshore suppliers has grown, primarily because it is ‘cheap’. Karen Wardell makes a timely observation for the equipment-dependent beauty industry.
Alarmingly, many significant purchases are made sight-unseen. This observation applies to the Australian Manufacturing and Packing Industry, particularly small operators within the Fast Moving Consumer Goods (FMCG) sector, including personal care and beauty.
As an equipment hire and services business, Packserv specialises in providing on-demand packaging equipment and has noticed this trend, mainly through servicing small business customers. An increasing number of small manufacturers and packers are opting to purchase cheap imported packaging equipment, including bench-top style machines, instead of investing in safe, superior equipment or renting the same superior equipment when required.
Nathan Wardell, Packserv’s Managing Director, explains:
“We have seen a great deal of inferior equipment in the marketplace recently that appears to be imitation, as it hasn’t been adequately designed or constructed. Customers can easily find cheap equipment on websites like eBay, even though they are aware the equipment is most likely not made to Australian standards. I found many retail/classified websites allow advertisers to sell their equipment on a global platform. The issue isn’t that they are using such websites to advertise and sell their products, but that these products are not policed in terms of fulfilling safety, function, and operational criteria to Australian Standards. Prices listed in these advertisements indicate or suggest this.”
Packserv has noticed a growing number of small manufacturing and packing customers enticed by spending as little as $800 for equipment that promises to fulfill the same requirements of Australian equipment manufacturers (or offshore reputable equipment manufacturers), who sell similar but superior equipment for between $10,000 to $15,000. The difference between the cheap and superior machines is not only significant in terms of price but, more importantly, the safety of operators and product integrity.
Also observed is a decline in small operators hiring quality equipment, preferring instead to purchase cheap equipment online, accompanied by an increase in enquiries from small operators requesting our technicians install, service, and train their operational staff on these inferior products. After seeing such budget equipment being used by unskilled operators, Packserv has several real concerns:
- Australian businesses are not supporting local equipment manufacturers or established offshore equipment manufacturers who design safe, superior machines that are built to last;
- Cheap and unsafe imported equipment is not built to Australian Standards and is becoming part of plant equipment used by unsuspecting operations staff;
- There has been an increase in small business owners choosing to purchase cheap, inferior equipment over quality and safety.
This article does not seek to ‘disrupt or disturb’ the growth of small manufacturing and packing businesses operating in the FMCG sector; on the contrary, Packserv’s mission remains unchanged — to support the growth of small, medium, and large businesses by providing safe, high-quality equipment. Packserv believes in offering a large range of the latest-technology equipment and supports and promotes those manufacturers and distributors building and selling high-quality equipment.
As professional packaging equipment technicians, Packserv has reviewed much cheap, inferior equipment on customers’ sites and, in accordance with Australian standards, deemed the equipment to be dangerous in most, if not all, cases. These dangers include:
- Exposed electrical connections
- Inappropriate gauge of wires used
- Absence of safety covers for electrical circuits
- Absence of safety covers for mechanical components
- Absence of electrical earth points
- Absence of color-coded wiring as per international standards
- Limited and/or incompatible parts or accessories required for product specifications
- Contact/wet parts made from inferior materials contaminating the product
- Poor general construction
- Poor design
Nathan Wardell believes, “it would be negligent on my part to not advise customers of a real concern for the safety of anyone who may operate cheap machines. In most cases, I have advised business owners who have purchased inferior equipment to engage both an engineer and qualified electrician to rebuild or modify the equipment to ensure appropriate safety standards are being met so their staff can safely operate the equipment. The quality of construction will never be realised at a price point of approximately 10% of that of superior quality equipment. Hence, the intention to invest in a piece of equipment built to last does not exist. This poses other problems down the track in relation to the business’ operational ability.”
The Safety Institute of Australia aims to develop, maintain, and promote a body of knowledge that defines professional practice in OHS. It notes, from a contributor on its website (https://www.aihs.org.au/), that “larger companies are now asking for compliance statements or submitting detailed specification forms that reference our Standards and require compliance. Smaller companies are still getting up to speed with this.” “In recent times… an importer of process lines from China and Taiwan did not comply, so the manufacturer was asked to redesign the equipment to meet Australian standards.”
Professionalbeauty.com.au released findings in May 2013 from their equipment survey of some 250 participants in relation to leasing equipment and maintenance, country of origin, and quality over price. They found the following:
- Choosing quality versus price — 55% of respondents said it is highly important, and 44% said it is important (with just 1% believing it not to be very important). When respondents were asked whether they think more expensive equipment is safer, 40% answered no, 25% said they think it is, and 35% were unsure.
- Matt Moncrieff, Managing Director of High Tech Laser, said of the response, “with many lower-quality devices copying the claims of high-quality devices, it is becoming increasingly difficult for buyers to separate the good from the bad, as the findings on price versus safety reflect. It is important buyers choose established suppliers with a proven record of performance and make a decision based on the long-term value a device will deliver to their business.”
In summary, Packserv is concerned that not only are these trends for purchasing cheap, inferior equipment at the expense of safety likely to increase, but in the process, well-priced, quality equipment manufacturers, distributors, and rental business suppliers will not be able to sustain the real costs of operating. This will result in future limited suppliers of quality equipment in Australia, with significant flow-on effects in terms of employment, growth, and opportunities for Australian businesses in the FMCG manufacturing sector.
All equipment manufacturers and sellers (local and offshore) should produce compliance certificates detailing specific standards relating to the country/region into which they are selling and should provide appropriate operating manuals and warranties as well as price equipment accordingly. Those businesses purchasing cheap, inferior equipment need to understand and be held accountable for their decisions, which impact the safety of their staff and the integrity of their product and packaging.
This trend may signify the emerging dominance of global retailing via the internet, which has the ability to produce healthy competition without compromising safety and quality.