Sustainability, innovation, and community action fuel PAKFAB’s mission to revolutionize returnable packaging
Founded in 2003, PAKFAB is a pioneer of premium sustainable packaging products in the automotive manufacturing sector. Coming from humble beginnings, the company now has a national presence and is leading the industry toward a more sustainable future. As VP of Business Development, Herbert Hildebrandt, begins: “PAKFAB was founded by a few dedicated entrepreneurs working out of a converted barn. It had just one employee and one customer during its first year in business. Since then, we have grown, weathered the industry crisis of 2008, as well as the 2020 pandemic, and emerged even stronger than before.
“Our operation is incredibly versatile. We’re headquartered in Aylmer, Ontario, Canada, and we have also grown to encompass locations in Greenville, Ohio and Lewisburg, Tennessee, USA as well as Cuauhtemoc, Chihuahua, Mexico. With over 400 employees across four locations, we are proud to serve the automotive, recreational, agricultural, and aerospace sectors across North America.” 
Specializing in returnable packaging for the automotive industry, PAKFAB provides sustainable solutions to customers across North America. As Herbert details: “Our primary focus is still steel and aluminum racks, along with plastic totes and custom dunnage solutions for automotive components moving from Tier One facilities to the OEM assembly plants. Our unique repurposing and recycling program is a circular and self-sustaining development of the cradle-to-grave model, known as C2C or cradle-to-cradle.
“Our ongoing investments have successfully resulted in the generation of circularity throughout the returnable packaging sector. We do this by working with our customers to return end-of-life packaging to our recycling hubs. Our focus is on a proprietary zero landfill repurposing strategy that can see racks, totes, dunnage, and other components go through multiple model launch cycles. We have effectively made returnable packaging not only returnable over one life cycle, but rather multiple life cycles. This multiplies the sustainable impact of our products and is a mutual benefit to our customers, our company, and, most importantly, the environment.”
Expansion and innovation
To support such a unique product portfolio, PAKFAB requires the very best manufacturing tools and technology. The company boasts some of the industry’s most advanced production facilities, as Herbert discusses: “PAKFAB has invested tens of millions of dollars in CAPEX (machinery and infrastructure) over the past decade. Our investments have been primarily in automated processing machinery, such as tube lasers, sheet lasers, robotic weld cells, and waterjet cutting capabilities, along with massive plant space expansions at our facilities in Canada, USA, and Mexico.
“In 2023, we added full aluminum processing capacity to our facilities, which allows us to provide lightweight packaging for customers that are moving less robust and heavy-duty components. This lightweighting creates residual fuel savings on every load, as well as ease of transport inside of the manufacturing facilities.
“We are also investing heavily in automation, utilizing the latest technologies in robotic welding of components and entire racks, as well as deploying machine to machine communication and AI software analysis in our processes.”
ESG achievements
For PAKFAB, challenges are nothing more than opportunities for growth and innovation. The company is dedicated to problem solving and customer support above all else. As Herbert affirms: “Our core raison d’être is centered around providing holistic, sustainable packaging solutions that effectively support our customer base, not selling products.
“We have been a part of the global transition over the last two decades. OEM internal packaging design groups have started to allow returnable packaging providers to maximize their collective design team strength for the benefit of all customers. This exponentially drives efficiency and innovation.
“PAKFAB has 175+ years of internal design, engineering, and sales experience in the returnable packaging industry, and we are proud to deploy this intellectual property for the benefit of each of our customers, big or small.”
To maintain such a high and consistent standard of service, PAKFAB works closely with its supplier network. “Our supply chain network is mature and increasingly efficient. Our procurement team works closely with our supply chain partners to drive consistent quality and efficiency. We scorecard our network and ensure that we are building mutually beneficial relationships that are sustainable, productive, and cost-effective,” details Herbert.
As providers of returnable packaging, the PAKFAB team is inherently motivated by sustainability, and building a better future. “We are particularly proud of the great strides we have made as a company over the past few years regarding our ESG metrics. In 2022, we kickstarted a comprehensive internal ESG analysis with follow-up audits across all locations, which showed sound fundamentals as a team with significant room for improvement.
“At the end of 2024, we completed another third-party audit which showed us in the 90th percentile of implementation and broad success of all major initiatives. We were proud to accomplish this without relying on complex bureaucratic processes. Our process ensured that cross-departmental implementation was completed effectively in a meaningful way,” enthuses Herbert.
The company’s sustainable approach goes hand in hand with its community action. As Herbert asserts: “We are deeply involved in every community where we are located. Some of our social initiatives include sponsoring local sporting events, hosting food drives for food banks, and employing at-risk youth. We also create workplace opportunities for employees with disabilities. PAKFAB was founded on the principles of giving back and creating a safe space free of discrimination. We are open to all members of the community.”
Prioritizing the planet and its people will no doubt ensure a bright future for PAKFAB. As Herbert concludes: “Our forecasts suggest that 2025 will be the busiest year in our corporate history. We expect that all our facilities will be running at capacity, with strategic CAPEX investments being made as we speak to increase capacity across the continent to allow for onboarding of new customers in 2025. We are bullish on our prospects in the automotive industry, underpinned by our focus on circularity and sustainability.”