Competitive pressures from other packaging materials, particularly plastics, is intense, and although the volume of demand in most product sectors is generally high, the industry operates with very low margins. Tinplate steel and aluminium are the principal materials used by the industry in the manufacture of cans, large containers, drums, pails, foil, and bottle, can and drum closures. The industry also relies on the services of a large number of ancillary contributors that are vital for the finished product. These include lacquers, coatings and varnishes, printing inks and sealing compounds.
Aerosols require propellants, valves, etc., as well as containers.
There is likely to be increased competition from the steady improvements in the quality and versatility of plastic containers and closures, the main source of competition. Furthermore, the new packaging ordinances will be fully implemented by the year 2000, and these are intended to apply strong pressures to reduce overall demand for packaging. Conversely, metal packaging is also undergoing technical improvements and continuous cost cutting.