In the heart of Toronto, Gather Packaging is making waves in the packaging industry with its state-of-the-art facility, which boasts North America’s only “turntop” machine. This advanced technology produces premium paper shopping bags featuring custom printing and robust handles, catering to the needs of major retailers like Abercrombie & Fitch and Hollister. The multimillion-pound plant, launched in early 2022, marks a significant shift toward domestic manufacturing, a response to the disruptions in global supply chains caused by the COVID-19 pandemic.
A Legacy of Adaptation
Gather Packaging was founded by father-son duo David and Ben Hertzman, who have deep roots in the packaging industry. Their family business, Progress Luv2Pak, has been operational since 1917. The pandemic highlighted vulnerabilities in international shipping, causing costs to soar from £4,000 to £20,000 for a single container from Asia almost overnight. Rail strikes further complicated logistics, leading to delays that left goods stranded offshore. “We just couldn’t supply our clients with confidence,” reflects David, who took over Progress in 1981.
The challenges posed by the pandemic prompted the Hertzmans to reconsider their business model. Many North American retailers began to favour local sourcing over overseas production, even if it meant incurring higher costs. In response, Gather Packaging was born, with a commitment to producing high-quality bags closer to home.
Cutting-Edge Production Techniques
The innovation at Gather lies in its unique turntop machine, which is capable of producing thousands of premium paper bags each hour, tailored to the specific needs of clients. The bags are designed to accommodate everything from sweaters to sneakers, combining strength and aesthetic appeal. “Our goal always was to manufacture as much as we could here in Canada,” says Ben, the company’s president and CEO.
Behavioural shifts in consumer preferences also play a role in the company’s success. According to Behrouz Bakhtiari, a faculty member at McMaster University’s DeGroote School of Business, the move to in-house production allows Gather to maintain greater control over quality and speed, reducing the risks associated with overseas suppliers. “When you’re working with a supplier on the other side of the planet, any disruption can lead to significant issues at the customer level,” he says. The “Made in Canada” label has become increasingly important for discerning consumers, particularly in light of trade tensions with the United States.
A Family Business in Transition
David’s journey with Progress began in 1981 when he inherited a company that specialised in producing hat boxes for notable brands. Over the years, he expanded the operation to include a variety of packaging products, adapting to changing market demands. Yet, despite its success, the reliance on imports grew, with local manufacturing falling behind by a ratio of 5 to 1 by 2010. That year marked a turning point when David opted to focus on design and importation, leaving domestic production behind.
Ben, who joined Progress in 2017, was well-acquainted with the family business from a young age. His diverse experience in operations and logistics, combined with a strong educational background, positioned him to take the reins as president and then CEO in early 2021. While David continues to serve as chairman, he has stepped back from day-to-day operations, allowing Ben to lead the company into a new era.
Together, they currently employ between 75 and 100 staff members across Gather and Progress, with plans to generate an additional 50 to 100 jobs as production ramps up. The Hertzmans are also actively exploring ways to localise their supply chain, including sourcing high-quality recycled paper from Canadian mills. “That probably sounds easy, but it sure isn’t,” says David, acknowledging the complexities involved in this endeavour.
Embracing Change and Innovation
As the packaging landscape evolves, Gather Packaging remains committed to modernising its operations. The Hertzmans are focused on creating efficient systems that leverage technology and the enthusiasm of younger generations. David understands that sticking to outdated methods will not suffice in today’s fast-paced environment. “If Ben ran Progress and Gather the way I did in 1981, it wouldn’t work,” he states emphatically.
With a blend of experience and fresh perspectives, Gather Packaging is well-positioned to thrive in a competitive market. The commitment to domestic manufacturing not only enhances supply chain resilience but also resonates with a growing segment of consumers who value local production.
Why it Matters
Gather Packaging’s innovative approach to local manufacturing reflects a broader trend within the industry: a shift towards sustainability and reliability in supply chains. As businesses increasingly prioritise local sourcing to mitigate disruptions, the Hertzmans’ vision for a domestic production model may serve as a blueprint for others in the sector. This evolution not only promises to enhance the quality of products available to consumers but also has the potential to create significant employment opportunities in local communities, fostering economic growth and resilience in the face of global uncertainties.