The economic effect of changing from steel to aluminium beverage packaging metal cans within the packaging industry.

Abstract

The beverage can industry has been gaining much interest and focus because of the transition of many global players from steel to beverage cans. Some reviews have highlighted the economic effects and benefits of this transition in the packaging industry as well as local economies. Between 2014 and 2015, beverage cans companies in South Africa started converting to aluminium end with an all-aluminium can in order to meet up with the global competition that had already taken place in most part of the world. Most of these nations across the globe are ahead of South Africa in reaping the economic benefits from this conversion in the packaging industries and in their local economies. This study assessed the economic effect of changing from steel to aluminium beverage packaging metal cans within the packaging industry. A qualitative study was carried out using an interview guide. The qualitative study method was used for this study because it focuses on meanings of a particular subject. This research method was used because not much has been studied pertaining the change from steel to aluminium beverage cans within packaging industry in South Africa, as the research area is still evolving. The study was carried out on seven (7) interviewees’, selected using purposive sampling from five (5) different local beverage can packaging companies, and their feedback was analysed using thematic analysis. The study revealed that the global competitiveness on using aluminium beverage cans are increasing business activity, thus growing revenues for these companies. It was also uncovered from the study that there are growing business opportunities in the recycling sector, which are locally creating more job opportunities that will benefit the South African economy. The study also showed that the change was good for the economy, as local engineering and operations team skill levels were increased; as they had to be trained overseas before the changeover to aluminium beverage cans. It was also revealed from the study that environmental friendliness, cost effectiveness, quality and durability of aluminium were some of the factors driving the switch to aluminium beverage cans. The study recommended that local beverage can companies should maintain continuous training and development. This is in order to stay in the front of global positive trends in the aluminium beverage can industries in terms of employee skills. It was also recommended that local beverage can companies should seek global technical partnership, in order to assist them in understanding the changes in the global scene. Additionally, policy makers in South Africa should also ensure that Eskom provide relevant assistance in ensuring that their electricity challenges are managed, such that these economic developments can be sustained in terms of electricity to the beverage can companies. of electricity to the beverage can companies.