The label industry’s digital future

Digital, digital, digital, automation and more digital is the future! With the rapid ascension of digital presses to the forefront of label production – and with the dominance of electrophotographic technologies in labels and packaging, alongside new digital technologies such as UV inkjet – I believe that conventional print has only a limited amount of time left.

Like flexo leapfrogging letterpress before it, I believe digital will shortly leapfrog flexo and become the industry standard method of printing for labels and packaging. We are witnessing the start of a market shift and a change that is here to stay. Flexo producers are fighting back with more automated systems and reduced set-up times, but ultimately I think files will completely replace plates. There are many new players in the digital market, which was previously dominated by a handful of companies. We also see all the major conventional print players (flexo and offset press manufacturers) entering the digital market. They realize that digital is here to stay and is affecting their sales. Everyone requires a digital offering to stay relevant.

Of course, at this moment in time running cost is a crucial decision-making factor and run lengths and ink coverage need to be considered. In addition there are still technological barriers in some applications, but as the market develops prices will fall and performance and productivity will continue to increase. Technical barriers will be overcome through innovative print solutions. For example, we’ve recently seen how HP Indigo has managed to grow and develop the folding carton and flexible packaging markets with its new press offerings.

Automation

From AB Graphic’s perspective, it is essential that we continue to monitor these changes and adapt to suit customers’ demands and the new challenges faced by the rapid change in technology. I believe we are doing well, but could still do more. We have seen that customers are now investing heavily in automation when it comes to finishing. ABG has developed many market-leading technologies to complement the digital print process. Auto die load, auto slitting, auto edge trimming, turret rewinding and laser die-cutting are just a few examples of automated processes developed by ABG in order to meet the demands of digital finishing.

On average, the sales value of each individual Digicon Series 3 is up 25 percent when compared to its predecessor, Digicon Series 2 . This is not because the product is more expensive, but due to the increased demand from our customers to automate everything and to maximize efficiency. In short, customers are prepared to pay extra for these automated systems as they value the savings our equipment can deliver. After all, what’s the point in having two very inefficient finishing machines when you can have one machine to do it all?

We have also seen how customers are diversifying and finding new value-added niches. For example, the ABG Digicon 3000, developed with Edale to complement the HP Indigo 20000 press, is taking off with customers looking to finish labels as well as flexible packaging. ABG continues to deliver roll-fed folding carton systems to customers. Typically these installations are at innovative label printing companies who understand digital and can utilize their digital press technology to open new profitable niches and use AB Graphic for the final production step.

I’m looking forward to working within this industry for many years as I thoroughly enjoy working with the ABG team. I have no doubt we will continue to develop as a company and increase the amount of automation on offer for our customers.

I believe that within my working life at ABG we will see the demise of conventional print and will witness a similar pattern of events as seen in the conventional print market, with conventional press sales down year on year and with strong growth of digital press technology. I believe this market shift is already in motion, so there are exciting times ahead.

This article appeared in L&L issue 5, 2015, which can be read online here