Market trends

Avery Dennison opens its first RFID production facility in India

Adyasha Sinha — Thu, 24 Apr 2025 08:19:23 +0000

Avery Dennison has opened its first RFID inlays and labels production site in Pune, India. The plant’s opening marks a pivotal step in the company’s long-term commitment to supporting RFID technology growth in South Asia under the 'Make in India' initiative.

The Pune facility establishes Avery Dennison as the first ARC-certified RFID inlay company to manufacture RFID inlays and labels in India. True to its legacy as a leader and innovator, Avery Dennison has introduced AD Cobra, an RFID inlay designed exclusively for the Indian market. The inlay is tailored to meet the unique environmental and operational challenges faced by Indian businesses, empowering brands to deploy innovative products with higher confidence and seamless integration.

'With the opening of our RFID inlay and label manufacturing facility in Pune, Avery Dennison is taking a significant step toward strengthening its presence in India,' said Saurabh Agarwal, vice president and general manager, South Asia, Avery Dennison. 'Local production will help us respond more efficiently to market needs, reduce lead times and better support our customers across industries. This aligns with our ongoing efforts to contribute meaningfully to the Indian ecosystem.'

'India represents one of the fastest growing markets for RFID adoption, and this facility underscores our commitment to being closer to our customers. By localizing production and
innovation, we’re not just enhancing our responsiveness and speed-to-market — we’re also partnering more deeply with Indian brands to unlock the full potential of smart supply chain
technology tailored to their unique needs,' said Kelvin Tan, director, APAC, intelligent labels, sales and business development at Avery Dennison.

Avery Dennison has an extensive RFID technology portfolio that spans the UHF, HF and NFC frequency bands and is widely used in the apparel, pharmaceuticals, FMCG, logistics and retail industries. RFID applications across these sectors are proven to minimize errors, reduce stock discrepancies and enhance real-time visibility throughout the supply chain. Moreover, RFID technology is critical in product authentication and anti-counterfeiting, and it is essential in maintaining brand trust and compliance in highly regulated industries. By supporting faster restocking, improving product availability and streamlining checkout experiences, RFID optimizes operational efficiency, elevates customer satisfaction and positively impacts brand loyalty.

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6 days 15 hours ago

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Avery Dennison opens its first RFID production facility in India

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The company also unveils unique inlay innovations to meet local customer needs.

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The company also unveils unique inlay innovations to meet local customer needs.

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South Asia

AWA publishes Release Liner Market Report 2025

Piotr Wnuk — Wed, 23 Apr 2025 23:52:54 +0000

Alexander Watson Associates (AWA) has published its AWA Release Liner Market Report 2025, offering a detailed and data-driven overview of a market undergoing continued transformation.

Following a period marked by disruption and atypical demand cycles, the global release liner market has entered a new phase of measured recovery. The report comprehensively analyzes market developments over the past year and future projections through 2027.

2023 was notably impacted by sharp declines across key application areas, most significantly within the label market, which accounts for nearly half of global release liner usage.

Europe was the most heavily affected region, registering a year-on-year contraction of 11.1 percent. In contrast, 2024 saw signs of stabilization, particularly in European labelstock demand. Despite this, broader recovery was uneven due to persistent macroeconomic headwinds, including sluggish global growth, supply chain constraints, and reduced consumer spending.

Nevertheless, AWA research indicates that the global release liner market expanded by 4.8 percent in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 3.4 percent between 2024 and 2027.

The 2025 edition introduces several enhancements that reflect evolving global dynamics, including the Global Trade Impact Assessment, a detailed evaluation of trade policy shifts, tariff changes, and geopolitical developments. It analyzes how these factors influence cross-border supply and demand within the release liner market.

The latest report also includes the Regional Deep Dive: Asia, offering deeper insights into regional market structures, emerging trends, and key growth drivers.

The company has also included the In-house vs Commercial Analysis, offering more granular analysis of in-house vs commercial volumes across end-use segments and the Macro-trend assessment with an overview of key market drivers on a macro level and for specific end markets.

‘The AWA Release Liner Market Report 2025 remains a foundational reference tool for stakeholders across the value chain, including raw material suppliers, release liner manufacturers and pressure-sensitive laminate producers. The report delivers robust quantitative and qualitative insights into critical segments such as pressure-sensitive labels, tapes, hygiene, medical, graphic arts, and industrial applications. These insights are based on extensive primary research, providing an authoritative benchmark for strategic planning and investment decisions,’ said the company in a statement.

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1 week ago

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AWA publishes Release Liner Market Report 2025

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The release liner market is projected to grow at a CAGR of 3.4 percent between 2024 and 2027.

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The release liner market is projected to grow at a CAGR of 3.4 percent between 2024 and 2027.

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Duane Pekar of Mark Andy discusses impact of global consolidation

Piotr Wnuk — Thu, 17 Apr 2025 03:25:25 +0000

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Herma grows despite German economic downturn

Selah Zighelboim — Tue, 15 Apr 2025 16:42:36 +0000

Amid a continued economic downturn in the German economy, the Herma Group demonstrated crisis stability and resilience in 2024.

The company increased its turnover by 5.4 percent in 2024, to 452.6m EUR (510m USD), compared to 429.4m EUR (483.9m USD) in the previous year. This was due, in part, to Herma's strong business abroad, where it was able to grow by 6.2 percent. However, sales in Germany were also up 3.9 percent on the previous year. As a result, the export share rose slightly from 64.2 percent in the previous year to 64.6 percent.

'In the past financial year, we were once again able to reap the rewards of the Herma 2030 Strategy, which focuses on the further diversification and internationalization of our activities,' said the two managing directors, Sven Schneller and Guido Spachtholz. 'However, all markets were characterized by a sometimes aggressive price war, which we were not always able to escape. All in all, 2024 was a challenging financial year, but we were still able to conclude it with stable profitability.'

For 2025, the two managing directors expect sales growth in the low single-digit percentage range, with continued pressure on margins and earnings.

The number of employees remained almost the same in 2024. The total number of employees was 1,065 compared to 1,089 in the previous year. The number of trainees rose slightly, from 54 to 56.

'Promoting our own young talent is and will remain our most important strategy against the shortage of skilled workers,' said Schneller and Spachtholz.

The three divisions — self-adhesive materials, labels and labeling machines — all contributed to the increase in sales in 2024.

In self-adhesive materials, the Herma Group maintained its market share despite aggressive price competition and even grew more strongly in terms of volume compared to the European market as a whole. Film products in particular recorded strong growth. In total, the self-adhesive materials division increased its sales by 6.6 percent.

In the labels division, traditional industrial business was characterized by the slowdown in the domestic economy, particularly in the chemical and manufacturing sectors. On the other hand, Herma recorded a larger increase than planned in logistics labels. Demand for labels for office supplies also fell again due to the economic situation, as well as due to the ongoing effects of home/mobile offices and the further digitalization of previously paper-based processes. However, the decline in sales among globally active office supply retailers, which has been evident for many years, was halted for the first time in 2024. Herma also increased sales of products for schoolchildren and students. This meant an increase of 1.5 percent for the entire labels division.

The labeling machines division detached itself from the downward trend in the German mechanical engineering sector. While the industry as a whole experienced an 8 percent decline in orders for 2024, Herma increased its sales in this area by 6 percent. New market and customer segments played an important role in addition to a growing service business.

'Herma also maintained a good position in 2024 because we are active in a large variety of industries and in many different markets around the world. This has a stabilizing effect on the entire group,' said the two managing directors. 'As a family-owned company, Herma also priorities healthy growth and cultivates long-term customer relationships based on partnerships. This makes the company more resistant to crises and creates the optimum basis for sustainable corporate success.'

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2 weeks 1 day ago

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Herma grows despite German economic downturn

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Herma was able to grow by 5.4 percent in 2024 amid a challenging environment.

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Herma was able to grow by 5.4 percent in 2024 amid a challenging environment.

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Europe

AWA releases Global Pressure-sensitive Label Market Report

Piotr Wnuk — Mon, 14 Apr 2025 23:40:13 +0000

Alexander Watson Associates (AWA) has released the 11^th edition of its Pressure-Sensitive Label Market Report 2025, offering a detailed analysis of one of the labeling industry’s most dynamic and essential segments.

In its eleventh edition, this report provides a focused overview of market structure, key growth areas and the competitive forces shaping the global pressure-sensitive label landscape.

After facing a challenging 2023, the market saw a robust recovery in 2024, achieving a 7.4 percent growth globally. The momentum was particularly significant in the first and second quarters, with 11.0 and 10.3 percent yearly increases, respectively.

This growth was mainly fueled by resolving inventory imbalances and returning to a more balanced supply-demand dynamic. Europe spearheaded the recovery, while North America and Asia exhibited signs of stabilization and renewed demand.

This report not only highlights the market's direction but also explains the reasons behind it. Analyzing changing consumption habits, sustainability trends, and shifting regional dynamics offers insights into the factors influencing the data.

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2 weeks 2 days ago

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AWA releases Global Pressure-sensitive Label Market Report

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After facing a challenging 2023, the market saw a robust recovery in 2024.

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After facing a challenging 2023, the market saw a robust recovery in 2024.

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Opportunities in the Mexican label market

Selah Zighelboim — Mon, 14 Apr 2025 18:33:27 +0000

Market trends 14 April 2025

Opportunities in the Mexican label market

L&L hosted a recent webinar focused on the Mexican label market.

Labels & Labeling’s recent webinar looking at the Mexican label market featured panelists Cristian Reyes, group director of Mexican label converter Mayapack; Martin Maldonado, president of FTA Mexico; and Francisco Jiménez, applications manager for Latin America for Esko. The panel was moderated by L&L’s Latin America correspondent James Quirk. Here are edited highlights of the discussion.

L&L: How is the Mexican label market performing? Are you seeing good levels of growth?

Francisco Jiménez: We have seen growth in the Mexican market be a little more contained since the end of last year, but it is picking up again at the moment. It is not that growth has stopped, but it’s not quite as strong as it was in the years immediately following the pandemic.

Cristian Reyes: As a converter, we are optimistic about our sales within Mexico. We had high expectations for exports thanks to the nearshoring trend, but there is some caution about the export market at the moment. But local consumption is still strong and is driving growth within our company.

Martin Maldonado: The flexo market continues to grow, but I agree that there has been a slight deceleration recently due to political uncertainty. But it remains a very interesting market and one which has a lot of work. Narrow web and mid web flexo are performing strongly.

L&L: How have the recent elections in both Mexico and the United States affected the economy and consumer confidence in Mexico?

Francisco Jiménez: There has perhaps been some impact on consumer confidence, although it hasn’t stopped the companies themselves from continuing to invest. There is some caution due to uncertainty around tariffs on exports. So there has been some impact, but not to the extent that it has caused a significant slow-down.

Cristian Reyes: It’s an interesting question, but we also have to consider other variables that are impacting the market in the country – for example, there has been a raise in the minimum wage, and this generates increased consumer confidence. So I don’t think there has been an impact on consumer confidence at a national level. There is always a period of uncertainty for a couple of months before and after elections, but things have returned to normal pretty quickly.

However, in terms of foreign investment into the country and the strength of our export markets – which had both been performing at record levels – sadly, there is some uncertainty because of what might be coming. So in this context there has been an impact, because our expectations as a converter were high. It is up to us as Mexicans to reinvent ourselves and to bet on national and local consumption. This is what we see our clients doing, and these months of transition have allowed us to strategize and increase sales in the local market.

Martin Maldonado: Local consumption doesn’t seem to be suffering, and indeed there is interesting growth in this area. Therefore there hasn’t been much of a slowdown for local converters serving the Mexican market. Companies in the industry – both suppliers and converters – are continuing to invest.

L&L: Which end-user markets have performed particularly strongly?

Cristian Reyes: Sectors such as beverage, personal care and household cleaning products have been showing good growth for us. Nutraceuticals is also a market which has continued to perform strongly since the pandemic – there is a trend towards consumers wanting to take care of themselves with health supplements. Logistics is also an important sector, because manufacturing companies have had to take measures to safeguard their products through the supply chain. So we have seen growth in security labels. In terms of label formats, the biggest growth we saw last year – and it has continued this year too – was in shrink sleeves, which offer 360-degree coverage and are widely used across many different sectors. Demand has risen greatly.

Francisco Jiménez: Our clients report strong growth in the food and beverage sector, as well as pharmaceutical and cosmetics. Nutraceuticals too, as Cristian mentioned. We have also seen our clients’ shrink sleeve production rise significantly in areas such as beverages and some food products, as well as the automotive market for products such as oils and lubricants.

Martin Maldonado: I agree with the markets mentioned by Cristian and Francisco that are showing strong growth. Personal care in particular is showing strong growth. I would add that there is an increasing trend towards personalization in consumer products in general.

L&L: During the pandemic, we saw many commercial printers shift toward label and packaging production, while their traditional sectors were affected. How has this increased competition affected the market?

Cristian Reyes: It is true that there is increased competition in the market. This forces us to think about how we can differentiate ourselves and how we can improve our customers’ experience. I think that service can be a competitive advantage. It has also put pressure on margins, but rather than focus on price, we believe the answer is to focus on the added value that we can offer. We have to focus on technical capabilities and the close relationships we have with our clients in order to maintain our position. As other companies enter the sector, bringing their own capabilities, it makes us improve.

Francisco Jiménez: We have seen lots of new companies enter the label market, for example from other areas of print such as flexible packaging. They can’t always print the same kind of products that a specialist label converter can print, such as a self-adhesive label, so often they will aim to leverage their existing equipment to print different kinds of labels which are not necessarily being produced by the traditional market.

Martin Maldonado: It’s a very interesting question. There was a ‘before’ and an ‘after’ for the industry when it comes to the pandemic. For many label converters in Mexico, 2021 was their best-ever year. It showed what this industry is about, showed its strength, and showed how fortunate we are to be operating in this market. It prompted many companies from different print markets to look at the label sector. Flexo is such a flexible printing process that companies who were dedicated to wider-format package printing were able to pivot towards label production.

L&L: What impact has the nearshoring trend had on the Mexican label market in recent years, and has it increased the need for transparency in the supply chain?

Francisco Jiménez: It has prompted a shift in culture. Demand for technologies that facilitate collaboration and traceability – which were perhaps not being fully taken advantage of by some converters before the pandemic – has risen. These include software systems, automation, and RFID among others. And it’s a shift that has not only happened in the label market, but in the wider packaging market as well.

Cristian Reyes: It has had an interesting impact on the evolution of technology being used. Nowadays, there are many options for platforms that allow traceability for products as they move through the supply chain, collecting accessible data along every step of the journey. A simple QR code, for example, allows the tracking of a product not just in terms of where it is in the supply chain but also all sorts of other interesting data points. I think this has happened not only due to the nearshoring trend, but certainly there is greater demand than ever for this kind of traceability in the supply chain. Nearshoring has increased the demands on us as converters to keep improving, because we are not just competing with our fellow converters on a national level, but also internationally too.

Martin Maldonado: Nearshoring is helping to drive the professionalization of the industry in Mexico. It has increased the need for not only traceability in the supply chain, but also for certifications. The global brands who have set up manufacturing facilities in Mexico to serve the US market require converters to meet certain quality and operational standards in order to guarantee the quality of their products. The US is a big export market, and this increases quality demands on Mexican converters, which in turn raises the quality standards in Mexico itself. This is part of the reason why we founded FTA Mexico – to help to develop and train the local industry.

L&L: How is environmental sustainability impacting the Mexican market? Is there growing pressure from brands and consumers?

Cristian Reyes: There is certainly growing pressure from brands for environmental sustainability, above all from international brands but also increasingly from national brands as well. Beyond there being pressure, for some brands it is simply a requirement. When it comes to consumers, there is a growing awareness and culture of environmental sustainability. But in order to strengthen this culture even more, we need the involvement of the authorities too. There is increasing interest in recyclable or compostable substrates and wash-off adhesives – products which can make label printing more sustainable. But thereis still a certain taboo around the pricing of more environmentally sustainable products.

Francisco Jiménez: There is increasing pressure on a national level. I think the market is also affected by norms in other parts of the world – for example the shift away from conventional curing towards LED curing. I think industry suppliers are united in their desire to lower their carbon emissions, and there has been much progress in different areas such as inks, substrates and more energy-efficient machinery, for example.

Martin Maldonado: It not so much a trend nowadays as simply part of the public consciousness. It has become a normal way of thinking for both the consumer and the industry itself. It should be a question of common sense. It’s a topic that has risen on the agenda in recent years. In other countries it has been a focus for more than a decade – it has become the norm. In Mexico it is a little more recent, but in the last six or seven years it has become an important focus.

L&L: More and more label converters are moving into flexible packaging production. What are the challenges and opportunities of entering this type of production?

Cristian Reyes: Diversification in general is a great opportunity to offer a more comprehensive range of products to our clients. Flexible packaging is one area of possibility for a label converter, if you are using presses with sufficient width. There are technical challenges and financial challenges – for example the investment in equipment. There are challenges in acquiring the kind of specialized knowledge that you need. While there are certain similarities between the processes of printing labels and flexible packaging, it is not as simple as swapping the substrates and suddenly being able to print different products. You need to learn about different laminate constructions. The adhesive requirements are different. There are some basic similarities in the converting process but also huge differences. Label converters who move into flexible packaging production can offer certain advantages which are appreciated by brands, such as shorter runs and quicker time-to-market.

Francisco Jiménez: As Cristian says, while there are some similarities in the production of labels and different kinds of packaging, they are all distinct areas of expertise. You need different areas of knowledge. The technical requirements for printing labels are different to those for printing flexible packaging. If the packaging is coming into direct contact with food, then that brings additional standards and requirements. We do see some of our label converter clients making this transition into flexible packaging production, but it is not an easy journey.

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Market focus: Mexico

Piotr Wnuk — Mon, 14 Apr 2025 00:18:28 +0000

Market trends 14 April 2025

Market focus: Mexico

The label market in Mexico is somewhat of an outlier compared to the rest of Latin America.

A country of more than 130 million people, Mexico has a large domestic consumer base and a robust manufacturing sector. It also boasts a strong export industry and the presence of the world’s largest consumer market, the US, to its north, which gives the Mexican label sector a unique dynamic.

It is increasingly common to find label converting operations often, but not always, part of international groups, boasting world-class technology and production quality and geared to serving the US market.

And yet it is also a market in need of professionalization, according to the FTA Mexico, which was founded 18 months ago to address the issue.

Growth in Mexico has been strong in recent years, particularly due to the nearshoring trend, which has seen international brands set up factories in Mexico to serve the US market with shorter supply chains.

Growth

According to Mordor Intelligence, the value of the label market in Mexico is estimated at 1.31 billion USD in 2025. It is expected to reach 1.62 billion USD by 2030, at a CAGR of 4.24 percent during the forecast period (2025-2030). The analyst cites food, beverage and cosmetics as sectors particularly driving growth.

Data from Mexico’s National Institute of Statistics and Geography (INEGI) has shown growth in the food and beverage sectors in recent years. It estimated the food industry’s production value in 2022 to be just over 13 percent higher than the previous year, while the beverage sector grew by 14 percent in the same period. Such rises in domestic production boost demand for labels and packaging.

Export markets have also been booming in recent years. According to the World Trade Organization, in 2022, Mexico exported goods valued at around 578.19 billion USD, a 54.6 percent increase from 2016.

The nearshoring trend has grown significantly since the pandemic and is a contributing factor to rising exports. Local label converters are taking advantage, with increasing numbers producing labels for goods destined for export to the US.

“Many commercial printers have moved into label production, seeing opportunities in the market”

‘The nearshoring trend has brought international manufacturers to Mexico, and this has been a benefit to the economy and a benefit to label converters who can label these products for export to the US,’ says Keren Becerra, operations director of Mexican label converter Etiquetas Lobo Impresores and president of Anpack, the Latin American association of packaging and labels manufacturers. ‘There are even converters in Mexico who export most of their production across the border. Border cities are showing strong economic growth. It has increased demand not only for prime labels for sectors such as pharma, cosmetics and electronics but also for logistics labels.’

A knock-on effect of this trend, according to FTA Mexico president Martin Maldonado, is increasing pressure on the local industry to professionalize its processes, operations and people.

‘The industry in Mexico is still in need of professionalization in terms of training and certifications,’ he explains. ‘The nearshoring trend has added pressure to professionalize because the global brands who have set up manufacturing facilities in Mexico to serve the US market require converters to meet certain quality and operational standards in order to guarantee the quality of their products.’

It was in recognition of this need for professionalization that FTA Mexico, headquartered in Guadalajara, was founded in 2023. The initiative was driven by a group of industry suppliers, led by DuPont, which pitched the FTA in the US to set up a branch of the Flexographic Technical Association in Mexico. Among its 42 supplier members are Comexi, Esko, Flint Group, Gallus, Hybrid Software and Mark Andy.

‘These are top-level companies who understood the importance of an association such as the FTA and knew the benefits of the technical education and standards that it could bring to the Mexican market,’ says Maldonado.

‘Due to Mexico’s proximity to the US, the FTA was always a reference point for the local industry. Converters here have always been keen to be a part of it, but there is often a language barrier, which makes it hard to take advantage of the conferences, studies and research. And there is the problem of distance.’

FTA Mexico will certify converters and host forums and roadshows around the country. It has the same objectives and philosophy as its US counterpart, says Maldonado: to aid the professionalization of companies and individuals in the country’s flexo sector to grow the local industry.

Legacy

If nearshoring is a legacy of the pandemic, so too is strong growth in online sales with the knock-on effect of increased demand for shipping labels.

‘Online shopping has been booming in Mexico since the pandemic,’ says Becerra. In 2023, Mexico’s retail market surged to 314.2 billion USD, a 22 percent increase from the previous year, as reported by Euromonitor. The country’s e-commerce retail sales rose from 28.3 billion USD in 2022 to 36.3 billion USD in 2023. A steady growth trajectory is now widely anticipated, with a CAGR of 12 percent expected to propel e-commerce retail sales to 66.3 billion USD by 2028.

A further shift in the local market has occurred since the pandemic. With commercial print businesses struggling during lockdowns, many wider web converters moved into label and packaging production.

‘There are many more label converters operating in the market in recent years. There has been an explosion in competition,’ says Becerra. ‘Many commercial printers have moved into label production, seeing opportunities in the market. Their businesses suffered greatly during the pandemic, whereas the label sector remained strong. This encouraged them to explore the market and diversify into label printing.

‘Part of the motivation is the same as what has encouraged label converters to move into sectors such as flexible packaging — helping to serve existing clients with the products they need. The result has been an increasing homogenization of the market.’

Etiquetas Lobo Impresores, for its part, serves a diverse array of end-user sectors, with Becerra citing food and pharmaceuticals as particularly important markets. Its export business has also been rising in recent years, she reports.

A strong tequila export industry is a driver of interest in GM’s high-specification finishing equipment, says the company’s global sales manager, Jos Kabouw, who describes Mexico as a ‘crazily competitive market with many players.’ GM is represented in Mexico by local agent EXI.

‘Labor continues to be cheap but highly skilled, so as a result, there is not a high level of automation,’ says Kabouw. ‘For example, converters in Europe and the US have been quick to adopt GM’s auto-knife box for automatic setting of the slitting knives, but it has been a bit slower in Mexico. Speed is often not crucial for local converters. Usually, the natural trend is for converters to install faster machines, but this doesn’t happen quite so much in Mexico.

‘The local economy benefits from the many Mexicans who work in the US and send the money to family back home,’ he continues. ‘This helps to generate wealth and increase consumption. So, despite a political background that is like many other countries in Latin America, Mexico is not affected the same way.

‘The US is a big export market, and this increases quality demands on Mexican converters, which in turn raises the quality standards in Mexico itself,’ Kabouw says. ‘I’ve visited many label converters in Mexico and the US, and the Mexican companies often work to better standards. The top level of converters in Mexico are world-class in technology and production, but not in automation, due to the cheap and skilled labor force at their disposal.’

“Mexican converters are investing in technology. There is a strong trend toward growth”

FTA president Martin Maldonado, who has more than 25 years of experience in the Mexican printing industry, believes there is optimism in the local market. ‘Mexican converters are investing in technology. There is a strong trend towards growth, which can be seen in the number of sales into the country by equipment manufacturers.’

One crucial challenge Maldonado identifies is recruitment.

‘There is a struggle to attract young people into the sector. There are many factors, but one has been a lack of representation from the industry to promote itself to students and show them what it has to offer. FTA Mexico has set up agreements with six universities and various local governments to get closer to young people and attract them to a career in the industry.’

FTA Mexico, an association partner of the show, will exhibit at Labelexpo Mexico 2025 and promote its industry initiatives and events. ‘We are very happy to be partnering with Labelexpo Mexico. We want to support it and see it continue to grow. There was a lack of this type of industry-focused event in Mexico.’

Labels & Labeling hosted a webinar that discussed trends in the local label market and the technology exhibited at Labelexpo Mexico.

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Harness the power of lean processes

Piotr Wnuk — Sun, 13 Apr 2025 22:44:56 +0000

Market trends 13 April 2025

Harness the power of lean processes

Small efficiency gains can translate to quantifiable wins when lean manufacturing is implemented, writes Brian Van de Water, CEO of SPL Consulting

Small efficiency gains can translate to quantifiable wins when lean manufacturing is implemented, writes Brian Van de Water, CEO of SPL Consulting, LLC

As SPL Consulting, LLC works with clients across printing and packaging industries, we often uncover that many companies are familiar with lean as a methodology for improving performance and even have teams focused on continuous improvement.

SPL polled a large group of senior executives about lean manufacturing and asked how many had documented over 1,000 hours of capacity generated in the last year. Roughly

15 hands went up out of nearly 200. I then asked how many had documented over 5,000 hours. Five hands were raised (three of them were SPL clients). Let’s explore what lean is and how you can harness its power to improve performance and the lives of your team members.

Through numerous conversations, it became clear that there are wide and varied interpretations of lean manufacturing and the processes it can impact. This is confounded further when we consider that many leaders accept the concept. They see some processes improve, see evidence of better organization in work areas and are happy with progress. I offer this thought: Although small incremental changes are a fundamental objective of lean manufacturing, major and transformational change opportunities are commonly unrecognized. Taking results from small gains in efficiency to literally thousands of quantifiable hours is within your grasp.

“I encourage you to challenge your paradigm and pursue transformational improvements”

One of SPL’s clients initially told me they didn’t need my lean consulting services as they already had mastered lean implementation. They had evidence of 5S (a future topic); they asked team members for ideas for improvement and often made small enhancements. They engaged SPL for coaching and developing a new sales-focused strategic plan. Due to the success, we generated with that project, the CEO shared that they had never had an outside lean process expert evaluate their lean maturity and asked me to look under the hood.

SPL was engaged to conduct an assessment to uncover potential opportunities. The process uncovered significant potential for generating capacity in an area that was significantly over capacity. This led to our first Kaizen, capturing over 5,000 hours of press capacity in a single Kaizen. Their VP of operations told me he thought he would lose his job because he should have known it was that bad. I share this because it is not uncommon for SPL to find opportunities, even in well-run companies.

This is not shared in judgment but to open minds to reflect on whether your journey yields thousands of hours, ultimately increasing profitability. If you’re not experiencing high-impact transformations, consider taking a deeper dive into the concept and process.

The concept of lean manufacturing is simply a systematic approach to improving efficiency and effectiveness by eliminating waste and enhancing value.

The primary goal of lean processes is to create more value for customers while using fewer resources. These opportunities are uncovered by identifying waste, such as unnecessary motion, waiting, transportation and overproduction. When waste is identified, various tools in the lean toolbox are used to reduce or eliminate it, improving performance, quality and profitability, allowing you to better satisfy customer expectations.

This is done most effectively through the Kaizen approach. Kaizen is commonly translated to ‘change for the good’ or ‘continuous improvement’. It is also often translated as rapid improvement. SPL prefers this definition as we operate with an extreme bias for action that I transfer to clients. Our experience is that most businesses have six to 10 opportunities for major, transformational Kaizens that typically range from 1,000 to 5,000 hours there for the taking. The true power of Kaizen is at the end of the event, not in the future; we immediately begin implementing the new standard work process capturing results.

When applied and facilitated properly, the Kaizen approach will also become one of the most impactful team-building opportunities a company can use to strengthen its teams. It consists of a cross-functional group of people working on a specific process.

Through the Kaizen, they understand what other teammates go through in their jobs. Invariably, people share comments like ‘I had no idea your job was so complicated’ or ‘I would never want to do your job; I’ll keep mine’.

One CEO shared that when SPL suggested having resources, like operators, participate in a customer service Kaizen, he thought I was crazy. After a few events, he acquiesced to my recommendation and shared: ‘We have team members still talking when they had never spoken even though they worked here for years’.

In summary, lean can be instrumental in improving performance in front-end transactional and manufacturing processes. I encourage you to challenge your paradigm and pursue transformational improvements as well. Harness the power of this process to improve the lives of your team members.

Consulting, LLC specializes in the printing industry and has expertise in strategic planning, lean enterprise implementation and talent development. CEO Brian Vande Water can be reached at brian@splconsultingllc.com

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Heidelberg acquisition paves digital future at Gallus

Adyasha Sinha — Fri, 11 Apr 2025 12:50:32 +0000

Conventional printing 11 April 2025

Heidelberg acquisition paves digital future at Gallus

Dive in to learn how Gallus’ acquisition by Heidelberg in 2014 brought benefits to both companies, particularly in developing digital technology.

Ferdinand Rüesch IV, widely known as Ferdi, has retired after a long and storied career leading his family business, the press manufacturer Gallus.

Winner of the R Stanton Avery Special Recognition Award at Labelexpo Americas last year, he will spend this year visiting and bidding farewell to long-standing customers. It’s an opportune moment to look back, with vindication, on perhaps the most important decision of his 45-year career: the sale of Gallus, the family business founded by his grandfather in 1923 and previously run by his father, Ferdinand Rüesch III, to Heidelberg in 2014. With Ferdi’s retirement, Rüesch family involvement in the company is no more.

‘There is some sadness about that aspect,’ he admits, ‘as there was in 1999 when we sold Heidelberg the initial 30 percent stake in Gallus. But you have a head and a heart, and, in the end, it was a decision of the head. At the time, my father and I decided that it was the best path for the future. It took a while to digest, but I look back, and I know that it was the right decision.’

It is instructive to look at today’s digital printing landscape. Can any major press manufacturer in the sector claim to be a medium-sized, independent, family-run business? All are either major multinational manufacturing corporations themselves or have partnered with one for technology development. Gallus was seeking investment and resources for the development of digital printing technology when it sold an initial stake to Heidelberg in 1999 before completing the sale in 2014.

Global growth

Ferdi Rüesch took over from his father in 1990 and set about accelerating Gallus’ global growth by opening subsidiaries in the US, UK, Germany, Australia and Denmark. Toward the end of that decade, sheet-fed offset press manufacturer Heidelberg, which was keen to diversify into the flexo industry, approached Rüesch about the possibility of an acquisition.

Heidelberg, says Rüesch, was attracted not only by Gallus’ flexo technology but also by its experience in combination printing, where the company would routinely employ different systems such as flexo, UV flexo, offset and screen on its presses.

“I look back, and I know that it was the right decision”

‘We are at home in the roll-to-roll market; their expertise was in sheet-to-sheet. Our technology would complement the Heidelberg portfolio.’

Having not run the company long, Rüesch was reluctant to endorse a full sale. ‘But I knew there was a need for digital printing in the industry and recognized that Gallus needed support in order to develop it,’ he says. Gallus had attempted previous forays into digital press development, including with Benny Landa in the mid-1990s.

Heidelberg offered to acquire a 30 percent stake in a deal that included an option to buy the remaining 70 percent in the future. ‘I spoke with my father about it. We decided it was a good offer to enter this kind of partnership,’ says Rüesch.

The partnership quickly bore fruit, with the joint development of the Labelfire hybrid press and a digital finishing module for the Gallus ECS flexo machine. ‘It was an advantage for customers to have one supplier for these different printing technologies. And Gallus benefited hugely from Heidelberg’s technology expertise. We wouldn’t have been able to do it without Heidelberg’s support,’ says Rüesch.

Following 15 years of collaboration, Rüesch says it was then the right time for both parties to complete the deal. ‘It was complicated to divide the R&D costs. Heidelberg had a greater reach worldwide, they could open doors for us at big companies which we otherwise couldn’t enter.’

The full acquisition was finalized in 2014. Rüesch became Heidelberg’s largest individual shareholder at the time and focused on managing key accounts before becoming a supervisory board member in 2018.

A low point came in 2021 when an attempted acquisition of Gallus by Benpac failed. ‘It was the toughest year of my career. We lost some credibility among the converter market and had to spend all our energy regaining trust from our customers. The fact that my team and I were still in place helped this. It was a lost year and a hard time. But we got through it, and now it is not an issue.’

The high points, in contrast, are many. ‘My proudest achievements are continuing the work of my father and moving Gallus into the digital printing world with Heidelberg,’ says Rüesch. ‘We have a place in the digital arena with products that suit the demands of different profiles of label converters. Heidelberg was looking for growth markets, and the digital label market was one of the biggest areas of growth, so our digital technology development with them was a hugely important achievement.’

Rüesch sees Gallus’ legacy as a series of pioneering presses in different technology areas. ‘Our T180 press set the world standard in combination printing. We were also a pioneer in UV flexo technology, with the industry’s first fully servo-driven flexo press. The RCS330 set a benchmark in roll-to-roll label printing. And our Labelfire hybrid press was launched in 2014. Ten years later, hybrid technology is in fashion. So, we set many benchmarks. My father traveled around the world, so Gallus was early in establishing a global network of customers.

‘The label industry allows a very close relationship between supplier and customer. I see this with Gallus but also with our competitors. There is something special about the industry.’

Gallus CEO Dario Urbinati is clear that Heidelberg’s acquisition of the company in 2014 has been ‘hugely beneficial’. Urbinati joined Gallus in 2007, when Heidelberg was a minority shareholder, and spent nine years with the company before stints at Omet and Actega. He rejoined Gallus as head of sales and service in 2021 before becoming CEO in 2022.

‘We had attempted several times as a smaller company to enter the digital space,’ he recalls. ‘Gallus had shown great ambition and determination to enter the sector. But the timing was not quite right, and the technology was not quite there.

‘Developing digital technology is a different game. It’s not the same as conventional press development. The language is different. It is less mechatronic and requires a better understanding of chemistry and software. It is a challenging, expensive and long-term venture. Partnering with Heidelberg — and then later becoming fully owned by the company — was absolutely the correct decision. Gallus is an important pillar in the Heidelberg Group’s packaging business, which offers long-term growth potential.’

Strategy

Urbinati’s return to Gallus as CEO took place a year after the failed acquisition. ‘It had been a difficult time. But it was the catalyst for a rethinking of our strategy. We spoke to our customers and listened to their challenges. They cited labor, input costs, sustainability and industry consolidation. We drilled down to how we could really address these concerns, and it became the starting point for a new development cycle focusing on smart, connected printing technology. We started designing products together with the customer, for the customer.

‘Previously, we primarily designed machines; now, we primarily design modules. If you have a modular framework, it is easier and cheaper for customers to adjust to an ever-changing production environment, and it provides greater investment security. A customer once asked me: “How can I buy a machine which depreciates over 10 years, when I don’t know what I’m going to print in five years?” I decided to address that challenge.

“We provide the instruments to the customer, and they compose their own symphony”

‘The primary task was reducing the TCO barrier to profitable digital labels, which we tacked with the Gallus One. But ensuring long-term success is about more than just machinery. Modularity and flexibility by design must incorporate all the other elements, such as software, service and overall business model and strategy. By incorporating modules such as inkjet, flexo, screen, converting options, it allows standardization of the production environment while allowing flexibility of application, because you can add or remove modules as you please. We call it “System to Compose”: we provide the instruments to the customer, and they compose their own symphony.

‘In the last couple of years, this new strategy has been put into reality, so I believe that out of a challenging situation came a very positive outcome. The teams at both Gallus and Heidelberg worked together better than ever to adjust to our customers’ challenges.

‘Our success since the new strategy was implemented shows it’s the right path. We want System to Compose to set a new industry standard. It’s an open system designed for collaboration. We have more than 20 industry partners showing their technology in our Experience Center in St Gallen: Esko, Martin Automatic, Actega, Prati and many more.

‘We have some tremendous products in our pipeline. System to Compose will continue to be updated with new technologies and options for our customers. We have a drive to automate our industry to bring ease of use and flexibility to our products and systems. I am excited by our upcoming technology, and I’m sure the industry will be too.’

A consolidating industry

Two key factors are driving the continued consolidation of the label industry, according to Ferdi Rüesch: a generation shift among converting businesses and the influx of private equity investment into the sector. ‘In the 1970s, many industry pioneers founded successful businesses. The second generation then took over 25-odd years later, in the mid-1990s. Now another generation change is happening as that second-generation retires,’ he says. ‘Secondly, private equity investors have been moving into the industry. From a private equity point of view, the label sector is still fragmented and ripe for consolidation. So there are two significant drivers.’ Rüesch points out that in the US, the tax system encourages the sale of businesses rather than passing them down to the next generation. ‘This attitude towards business is now coming to Europe through private equity investment.’ It remains important to carve a niche, he believes. ‘Small and niche is good; big and profitable is good. It is the medium-sized companies that are under pressure. The converting industry is still very strong in local and regional markets, but it can be harder to compete in the international market.’

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James Quirk

Latin America Correspondent

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TLMI addresses imposition of tariff rates across countries

Piotr Wnuk — Tue, 08 Apr 2025 00:04:10 +0000

TLMI has addressed an executive order signed by President Trump, imposing reciprocal tariffs on most nations. The new tariffs are being imposed under the International Emergency Economic Powers Act of 1977 (IEEPA).

Of note, the reciprocal tariffs do not apply to Canada or Mexico, or those goods currently covered or scheduled to be covered by sector-specific tariffs under Section 232. More information on that is below.

According to the Executive Order, beginning April 5, 2025, a baseline 10 percent tariff will apply to imports of most goods from almost all countries. Additionally, effective April 9, 50 countries that maintain large trade surpluses with the US – and that impose various tariff and non-tariff barriers on US exports – will be subject to even higher rates, in some cases up to 50 percent. The country list and specific tariff rate may be found here.

The tariffs will not apply to goods loaded onto a vessel at the port of loading and in transit on the final mode of transit prior to the effective date and entered for consumption or withdrawn from the warehouse for consumption after the effective date.

The highest tariff rates (scheduled to take effect April 9) were assigned to countries with the largest trade surpluses with the US. They include China (54 percent, which includes earlier tariffs), all countries within the European Union (20 percent), Vietnam (46 percent), Taiwan (32 percent), Japan (24 percent), India (26 percent) and South Korea (25 percent).

The reciprocal tariffs will not apply to certain goods, primarily those goods already subject to (or likely to be soon subjected to) sectoral tariffs. These include steel, aluminum articles and their derivatives, as well as automobiles and automobile parts. Also excluded are energy and energy products and certain critical minerals, as well as a limited list of IEEPA-exempt goods. Annex II includes the complete list of exempted products and goods.

The reciprocal tariffs are in addition to certain other applicable duties, including those required by antidumping and/or countervailing duty orders, Section 301, and normal customs duties.

The reciprocal tariffs outlined on April 2 will not apply to Canada and Mexico. In addition, goods entering the US that qualify under the current USMCA agreement will remain exempt from tariffs.

The reciprocal tariffs will remain in effect until President Trump determines ‘that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated’. The president may also increase or decrease the tariff rates depending upon actions taken by foreign governments. The Administration has left open the prospect of negotiation with individual trading countries and revisions to each country’s specific rate.

TLMI will continue to follow the US-imposed tariff rates, retaliatory tariffs from other countries for US exports (anticipated, but not yet finalized), and other changes moving forward.

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TLMI addresses imposition of tariff rates across countries

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The reciprocal tariffs do not apply to Canada or Mexico, or those goods currently covered or scheduled to be covered by sector-specific tariffs.

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The reciprocal tariffs do not apply to Canada or Mexico, or those goods currently covered or scheduled to be covered by sector-specific tariffs.

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