Originally published by Packaging News
VIDEO: Industry Update with Nathan Wardell
By Lindy Hughson | 31 March 2026
As economic pressure reshapes Australia’s manufacturing sector, Packserv is strengthening local capability, expanding access to machinery, and tailoring innovation for SMEs.
In a wide-ranging video interview with PKN, Packserv managing director Nathan Wardell outlined the mounting pressures facing manufacturers, and how the company is positioning itself to support customers through a prolonged period of disruption.
Watch here:
https://www.packagingnews.com.au/video/video-industry-update-with-nathan-wardell
In the conversation, Wardell describes the current environment as one defined by uncertainty – and its ripple effects across the manufacturing sector.
“There’s a lot of uncertainty, and that has a dampening effect,” he said, pointing to inflation, interest rates, and reduced consumer spending as key factors slowing investment.
Manufacturers, he explained, are becoming more cautious, focusing on core operations rather than committing to new facilities or major capital upgrades. Labour shortages and high labour costs continue to compound the challenge, while tighter financial conditions are making borrowing less attractive.
At the same time, the sector is seeing an increase in business failures, with liquidations and administrations impacting confidence and creating flow-on effects through supply chains.
However, Wardell noted that downturns also create openings. “With every exit, there’s an opportunity for growth or a new player to enter the market,” he said, suggesting the current cycle may eventually reset competitive dynamics.
Lowering the barrier to entry
In response, Packserv is focusing on making machinery more accessible, particularly for small to mid-sized manufacturers.
A key strategy is the expansion of rental and rent-to-buy options, allowing businesses to bring production lines online without the upfront capital burden.
“For anyone that’s not able to manage a purchase straight away, finance options are readily available,” Wardell said, adding that this flexibility is critical in a cautious investment climate.
This approach aligns with a broader shift in the market, where speed to production is becoming a competitive advantage. Having machinery available for rapid deployment enables manufacturers to respond quickly to new contracts or product opportunities.
Innovation for SMEs
Innovation remains a core focus, but with a distinct lens: making advanced functionality accessible to smaller manufacturers.
Wardell argues that many emerging technologies in packaging machinery – from automation to data integration – are typically designed for large-scale operations, leaving SMEs at a disadvantage.
Packserv’s strategy is to bridge that gap by adapting these technologies into more compact, modular, and affordable systems.
Recent developments include machines with HMI touch panels, PLC controls, and data reporting capabilities, alongside fully pneumatic systems suited to specialised environments such as hazardous goods or washdown applications.
“We’re heading more into that Industry 4.0 space… making the technology easier to use and more readily available,” he said.
Sustainability through design and lifecycle
Sustainability is also embedded in Packserv’s approach, both in its operations and equipment design.
Wardell pointed to the use of recycled materials in manufacturing, internal recycling of production waste, and energy-efficient factory practices as part of the company’s footprint reduction.
More significantly, he emphasised the role of machinery design in minimising waste on the production line.
“Our machines are designed to run consistently… which reduces downtime and wastage,” he said, noting that product waste – particularly in food manufacturing – is a major contributor to environmental impact.
The company’s “buy for life” philosophy further extends equipment longevity, with refurbishment, trade-in, and redeployment programs keeping machinery in use and out of landfill.
Modular, connected, and AI-ready
Looking ahead, Wardell sees modularity, connectivity, and data integration as defining trends in packaging machinery.
Modular systems enable manufacturers to upgrade incrementally rather than replace entire lines, while improved data capture and processing support smarter, faster operations.
Packserv is also exploring AI integration, particularly in areas such as process optimisation and changeover efficiency.
“Helping manufacturers become more efficient and manage faster product changeovers is really important,” he said.
Expanding beyond Australia
The company’s recent expansion into the US market reflects both confidence in its model and the scalability of its SME-focused offering.
Wardell described strong interest following Packserv’s participation at Pack Expo East, with the US presenting significant opportunity due to its scale and depth of manufacturing.
Crucially, the same principles apply in the US as in Australia: local distribution, local service, and accessible machinery.
Supporting the next wave of manufacturers
Ultimately, Wardell sees Packserv’s role as closely tied to the growth of emerging manufacturers.
By supporting startups and smaller operators with accessible, modular, and scalable equipment, the company aims to grow alongside its customers.
“We’re working with a lot of startups and helping small businesses scale every week,” he said.
In a market marked by uncertainty, that focus on flexibility, local capability, and practical innovation may prove to be a defining advantage.
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