Opinion

Beyond labels: why folding cartons are the natural next step for converters

Piotr Wnuk — Thu, 31 Jul 2025 03:10:02 +0000

Folding cartons 31 July 2025

Beyond labels: why folding cartons are the natural next step for converters

By Will Parker, senior packaging executive and Labelexpo ambassador.

Labelexpo has long been the bellwether for change in our industry. From the digital disruption of narrow web to the transformation of mid-web and flexible packaging; the show has always spotlighted where we’re headed. This year in Barcelona, that evolution turns towards folding cartons, but in truth, this isn’t a new chapter. It’s a continuation of a story already well underway.

Will Parker, senior packaging executive and Labelexpo ambassador

Across Europe and the UK, the move toward fiber-first packaging is accelerating. Brands, governments and consumers are converging on a clear goal: eliminate problematic plastics, reduce carbon emissions and drive circularity. Folding cartons, especially those produced in-line, are a powerful answer.

In-line cartons: not new — just newly relevant

Despite all the buzz, in-line carton production isn’t a new concept. For over 15 years, food-to-go packaging, particularly in the UK, has quietly evolved using in-line flexo platforms to produce folded, glued and barrier-coated or lined fiberboard trays and wraps.

Likewise, the beauty and personal care sectors have long relied on short-run, embellished carton production using hybrid workflows to create rigid boxes, sleeves and gift packaging often produced in-line with hot foil, embossing and die-cutting in a single pass.

What’s new is the urgency of the conversation. Sustainability regulation, SKU proliferation and rising energy costs have brought these capabilities to the forefront for a much wider audience, especially label converters looking to diversify.

A fiber-first Europe

From the EU Packaging and Packaging Waste Regulation (PPWR) to the UK’s Plastic Packaging Tax and Extended Producer Responsibility schemes, the policy backdrop across Europe is clear: fiber-based packaging is favored.

It’s not just legislation; consumers are increasingly driving the shift. Gen Z and millennial shoppers expect recyclable, plastic-free and mono-material formats, not only for environmental reasons but for brand credibility. This is reshaping packaging decisions in food, pharma, cosmetics and e-commerce. As brands pivot, converters who can deliver recyclable cartons quickly and efficiently stand to gain a competitive edge.

Why label converters are uniquely positioned

Label converters already have the DNA required to succeed in the folding carton space: short-run agility, in-line print expertise, embellishment workflows and increasingly, automation and MIS integration.

Platforms from Canon Edale, Gallus, Mps, Omet, Mark Andy and Bobst; suddenly the leap into cartons becomes less of a jump and more of a step sideways.

These in-line systems allow converters to print, embellish, crease, die-cut and strip cartons in a single pass, offering unmatched efficiency in short-to-mid runs. Whether it’s food-to-go trays, pharma cartons or luxury sleeves; in-line workflows reduce changeovers, cut waste and simplify logistics.

Why in-line makes ecological and economic sense

Traditional sheet-fed carton production, especially for short or variant-heavy runs, often involves multiple stages, machines, operators and logistics, all of which increase power usage, CO₂ output, and material waste.

In contrast, in-line production offers:

Lower power consumption per unit
Less overproduction (ideal for SKUs with expiry or version control)
Streamlined handling and fewer process steps
Faster time-to-market with reduced carbon footprint

This aligns perfectly with brand ESG targets, especially in regulated or premium sectors like pharmaceuticals, beauty, nutraceuticals and boutique food and drink where the packaging is part of the product’s identity.

Where the growth is happening

Markets with high SKU complexity and demand for speed are ripe for in-line carton production:

Pharma and nutraceuticals: Versioning, serialisation and compliance requirements
Beauty and skincare: Embellishment-heavy, seasonal packaging
Pet Care and wellness: Sustainable, tactile formats
Food-to-Go and QSR: Rapid turnaround, fiber-based, grease-resistant coatings
D2C and E-Commerce: Printed secondary packaging, giftable formats, low MOQs

The key across all is high complexity and low volume; a sweet spot where label-style workflows meet carton performance.

Are the legacy sheet-fed players looking to cross over...?

It’s not just label converters leaning in. Increasingly, sheet-fed carton printers are exploring in-line technology as a strategic complement to their existing offset capabilities. By shifting short-run or high-complexity jobs to in-line platforms, they can free up litho capacity for longer runs, reduce bottlenecks in embellishment and die-cutting and offer faster lead times with fewer touchpoints. In-line doesn’t replace sheet-fed; it optimizes the overall workflow, allowing converters to deliver a broader, more agile supply chain to their customers.

With brands demanding greater responsiveness, versioning and sustainability credentials, this hybrid production approach positions sheet-fed houses to grow share, reduce waste and improve margin without compromising quality.

Labelexpo 2025: where the sectors converge

Barcelona isn’t just a change of venue as much as it marks a strategic pivot. The inclusion of folding carton technology this year underscores a market that’s shifting beneath our feet. It’s not labels or cartons; it’s labels and cartons, often printed on the same press.

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China label technology goes global

Akanksha Meena — Mon, 08 Apr 2024 07:54:56 +0000

Associations, events & awards 11 April 2024

China label technology goes global

Labelexpo Asia 2023 showcased a fully developed Chinese narrow and mid-web manufacturing industry with global ambitions, writes Andy Thomas-Emans.

Labelexpo Asia 2023, held in Shanghai in December, demonstrated beyond all doubt that China’s narrow and mid-web equipment, consumables and software industry has become a force to be reckoned with.

This was the show’s 20th anniversary, and it is fascinating to see how far the domestic manufacturing industry and the Chinese label converting industry has come since then.

The first show in Shanghai marked the move of Labelexpo Asia from Singapore. It quickly became clear that this would be overwhelmingly a Greater China show (which is why Tarsus later launched Labelexpos in India and ASEAN).

At the time there was no ‘labels’ industry in China. Label converters were seen as part of the general print packaging industry segment. This was something Labelexpo had to build with its then-association partner PEAIC, which mediated between the print industry and the government.

The first Labelexpo Asia show reflected this situation. Overwhelmingly, the exhibition was dominated by Japanese and Taiwanese letterpress machines, along with all the key Western press suppliers. The few Chinese suppliers present showed presses that appeared directly cloned from Western and Japanese machines.

The Chinese converting industry was very lopsided, with a tiny group of super-elite converters at the top of the tree who purchased top-of-the-range presses from the likes of Nilpeter (offset and flexo) to print labels for the global brands which were only just starting to move into China.

Technology today

Fast forward 20 years and the situation is transformed. There is now an established label community that held its
first Greater China Awards ceremony at Labelexpo Asia 2023 honoring both individuals and companies who had made significant contributions to the two-decade growth of the industry.

In addition, major global label converting groups including CCL Label, MCC and All4Labels have established a web of operations across China, further raising the overall technical level of the converting industry.

At this Labelexpo Asia, there were almost no letterpress machines. Chinese letterpress manufacturers have all moved
to in-line flexography. Those companies usually manufactured intermittent offset presses as well, and this technology sector has thrived, in some cases challenging digital for short-run, high-value print and embellishment work.

High-end show floor

Although there were some entry-level presses at the show, most suppliers demonstrated impressively high levels of servo-controlled automation. And the servos, for the most part, were top-line German Rexroth/Bosch motor units.

The rapid transition to automated machinery has been driven by memories of the brutal lockdowns which exposed the limitations of gear-driven mechanical machinery. Equipment that required high levels of skilled and unskilled manual intervention was fine when most converters were using cheap labor imported from the countryside, with workers often living in compounds on the production site.

But when these laborers returned to their villages during Covid-induced lockdowns, factory owners struggled to keep the machinery operating, and pressure grew on manufacturers to automate both machinery and production processes.

Another key trend toward shorter runs of value-added packaging has driven the development of digital press production. Chinese suppliers are using the same inkjet heads as Western manufacturers. Xaar, for example, launched a new partnership at the show.

There were both new UV inkjet digital presses and hybrid machines including a Weigang press demonstrating 8-color flexo printing, cold foiling, 7-color inkjet and digital embellishment in a single pass. Multiple high-build digital embellishment presses and laser die-cutting units were also on show. Running alongside this engineering effort is an impressive investment in AI and machine learning from companies like Luster Light, with the ambition of controlling process flow across entire print factories.

Notably, there were no conventional presses from Western suppliers at Labelexpo Asia 2023. Omet was perhaps the last company to show a machine at this show, building on its attempts to establish a Chinese manufacturing base. But most Western suppliers stopped showing presses a decade ago when they thought that to show a machine was to have it copied.

Today the Chinese market is far more sophisticated and the label converting industry is at a level where it knows how to make use of more advanced Western machines. And there is still prestige value in installing advanced Western presses – particularly for converters who service global brands in China. It will be interesting to see how Western suppliers react going forward.

As a final observation, it is notable that Chinese suppliers have global ambitions. In Europe, companies like Weigang and Wanje have set up local service, spare parts and demo hubs. And the winner of the first China Label Industry Technical Achievement award was Spande, which showed an advanced 26in-wide press at the show demonstrating hot-foiling onto shrink sleeves in a joint program with Pantec. Spande has booked the biggest stand at Labelexpo Europe 2025.

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Andy Thomas-Emans

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Biodegradable vs compostable materials

Akanksha Meena — Fri, 27 Oct 2023 11:12:21 +0000

Sustainability 26 October 2023

Biodegradable vs compostable materials

Biodegradable and compostable materials are gaining traction
in the label, but understanding their differences is essential

With the Federal Trade Commission updating its Green Guides, which were introduced in 1992 and last revised in 2012, it’s time for label suppliers and converters to understand the accuracy of their environmental marketing claims.

The terms ‘biodegradable’ and ‘compostable’ are often used to describe materials that break down in a specific environment and consumers often equate those terms with an environmentally-friendly product. However, the terms are often used inappropriately, and therefore a growing number of states, including and many municipalities around the US, have legislation about using those terms.

For example, in California, Maryland and Washington, it is illegal to use the term ‘biodegradable’ in any marketing terms associated with plastic. This is because ‘biodegradable’ is often interpreted as ‘compostable’ and can cause contamination for composters.

Biodegradable

Let’s look at the terminology and what the Green Guides want you to know about marketing.

‘Biodegradable’ means that an item can be consumed by
organisms like bacteria or fungi that will help break the item down into some compounds found in nature. The term doesn’t reference any specific conditions required for the item to break down nor does it refer to the extent of the degradation or anything that might be left behind once the item degrades.

If you are claiming that a product is biodegradable, you’ll need to have testing data that shows under what specific conditions it will break down (Aerobic? Anaerobic? Marine? Sunlight? Heat?) and that the entire package (including inks, adhesives and labels) will break down within a year.

The current Green Guides also mention the term ‘after
customary disposal.’ This is important. If the customary disposal of an item is landfill, incineration or recycling, a biodegradable claim would be considered deceptive unless there is clear and prominent data that shows the rate and extent of the degradation in that customary disposal environment. Obviously, that’s not possible in an incinerator or recycling facility and nothing breaks down in a landfill in one year.

Claiming that an item is biodegradable is tricky business, and puts your company at risk of being accused of making deceptive claims.

Compostable

Now let’s look at the term ‘compostable.’ The term, by definition, is used to describe products that disintegrate in a composting facility via microorganisms, humidity and heat into natural, soil-enhancing material that is nontoxic. The finished compost product is comprised of CO2, water, biomass and inorganic (non-carbon) compounds.

When you claim that an item is compostable, there is no
confusion about under what conditions it occurs.

Compostable products require a commercial or industrial composting facility to break down, and, rarely, a home composting environment. ASTM International has specific tests for compostability - ASTM D6400 and ASTM D6868. These tests require a complete breakdown of materials into soil-enhancing compost in 90 to 180 days.

From the Green Guides: ‘Marketers who claim a product is
compostable need competent and reliable scientific evidence that all materials in the product or package will break down into — or become part of — usable compost safely and in about the same time as the materials with which it is composted. Marketers should qualify compostable claims if the product can’t be composted at
home safely or in a timely way.

Marketers also should qualify a claim that a product can be composted in a municipal or institutional facility if the facilities aren’t available to a substantial majority of consumers.’

That last paragraph is important because the US does not have an abundance of composting facilities. Many products qualify their compostability claims with a statement such as ‘This package meets ASTM D6400 Standard and can be composted where municipal or industrial composting facilities exist. Appropriate facilities may not exist in your area. Check with your local community as to availability.’

Everything that is compostable is also biodegradable, but the opposite is not true. If you are developing a compostable label, the entire construction: substrate, adhesive, inks, topcoats and any varnishes must all compost at about the same time as the item to which it is adhered. The ASTM tests, along with a third-party testing certification, will provide customers, and, ultimately, consumers (and the FTC) that the product is legit without any risk of deceptive environmental claims.

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Rosalyn Bandy

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Andy Thomas-Emans column: Sustainability and automation join forces at Labelexpo

Akanksha Meena — Thu, 17 Aug 2023 10:53:27 +0000

Associations, events & awards 17 August 2023

Andy Thomas-Emans column: Sustainability and automation join forces at Labelexpo

As Labelexpo Europe 2023 approaches, suppliers are revealing the new technologies on show. Most have to do with automation and sustainability

In the run-up to the first Labelexpo Europe show for four years, it has been fascinating to attend supplier pre-show
press conferences and learn about what they will be showing in Brussels and about their strategies going forward.

Two themes stand out: automation and sustainability.

Sustainability and automation are, in fact, closely linked. Making label converters more sustainable is not just a question of conserving energy and cutting waste in the production process. It is also about maintaining a sustainable workforce at a time when attracting young recruits to the industry is becoming more and more difficult.

Automation technology, increasingly powered by AI-driven machine learning, allows semi-skilled and skilled labor to
be replaced, leading directly to a more sustainable and profitable business. This does not mean a threat to the existing workforce. Automation creates new and different roles further up the value chain. Automation directly impacts
sustainability in other ways – most obviously in waste reduction.

One example would be the automated uploading of job information directly from a management information system to set up a press or finishing/inspection equipment.

This replaces manual double-keying of job data, which is not only laborious and non-value adding but is also likely to lead to entry errors, which ultimately results in waste.

Extended color gamut printing (ECG) in flexo allows pre-press automation of the color management process, with no
more manual color matching on press. But ECG also cuts down waste, both because print units do not have to be washed down between jobs, and because there is no leftover ink from mixing solid colors.

Automation is also impacting the converting end of the press, as we see a continuing move toward high-speed
semi-rotary die cutting allowing automated loading and ejection of dies. This, in turn, greatly reduces the need for heavy tooling and the associated manual labor.

Many other striking sustainability initiatives are being launched at Labelexpo 2023.

Linerless is a technology that has long been confined in commercial production to industrial and VIP labeling applications, where square/rectangular cut labels are standard and there is a solid installed base of linerless application machinery.

But cracking linerless in the prime label market has proved a bigger challenge. Brands have been reluctant to give up the ability to die-cut labels, and reluctant also to change out their highly efficient automated PS label applicators.

Now Avery Dennison and Bobst have announced the launch at Labelexpo Europe 2023 a linerless system which involves printing on a standard laminate (so no change in the label converter’s printing workflow), then delaminating the face material, which is microperforated, slit and surface coated with silicone all in a single machine pass. The backing liner is recovered and sent back to Avery Dennison
for recycling.

Avery Dennison has worked with Harlands on the applicator side, so this forms a complete ecosystem. Will this finally convince brand owners that the sustainability benefits of prime linerless labeling outweigh the marketing benefits of die-cut labels? Maybe it will be the ‘challenger’ brands who take up the technology as part of their overall drive to use sustainability as a unique selling proposition.

With a greater focus than ever on flexible packaging at this Labelexpo, flex pack sustainability comes under the spotlight. Label converters diversifying into flex pack have been quick to point out that mid-web flexo and digital presses can produce short runs of flexible packaging with far less waste than on wide web CI and gravure presses. And on the materials side, we will see the launch of fully
recyclable mono-material plastic stand-up pouches along with a clear trend toward mono-material paper pouches. Xeikon and Screen both introduce presses targeted at this latter application.

And looking at label material sustainability trends, we see a pivot away from biodegradable and compostable materials toward those that ‘enable’ a truly circular economy. This is most noticeable in adhesives that separate the label cleanly
from glass and plastic containers, enabling the recovery of clean PET and allowing glass bottles to be cleaned, relabeled, refilled, and back around the loop. Visitors will also note a trend to use more post-consumer waste in label constructions, helping create the economic underpinnings of the circular economy.

The special Labelexpo Europe 2023 show features will allow visitors to explore each of these themes in more detail. These include the Automation Arena, ECG workshop, Flexible Packaging Trail and masterclasses on flexible packaging and sustainability. In addition, make sure you continue to follow Labels & Labeling online as we report new sustainability and automation technology launched closer to the show.

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Andy Thomas-Emans

Strategic director

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Back to Brussels - Editor’s note

Akanksha Meena — Wed, 16 Aug 2023 09:30:03 +0000

Associations, events & awards 16 August 2023

Back to Brussels - Editor’s note

Labelexpo Europe 2023 will unleash four years of pent-up technology development and innovation for the global label
industry

When Labelexpo Europe 2023 returns to Brussels Expo –
the first time since 2019 – it will unleash four years of pent-up technology development and innovation for the global label industry.

Labelexpo Europe arrives at a time when automation, sustainability and product diversification are coming together, and this year promises to deliver.

After an absence in 2022, flexo manufacturers are making a return with Bobst, Etirama, Lombardi, Mark Andy, Nilpeter and Omet all bringing narrow and mid-wed flexo technology to the show floor. It will also be an exciting year for digital technology, with the innovations launched in Chicago last year, taking center stage at the Europe show, including technology from Dantex, Domino, Gallus, HP Indigo and Konica Minolta on show.

Flexible packaging will be a major theme, with event organizers hosting a flexible packaging trail that takes on both digital and conventional press technologies, along
with material constructions, decoration options, migration
testing and more.

This is alongside a new wave of digital technologies for
flexible packaging that will be launched this year, from the
likes of HP Indigo, Screen and Xeikon. Turn to page 100 for a comprehensive preview of all the technology on site.

In other news, we are grateful to have the support of Leonhard Kurz once again for this beautifully embellished
cover design. Kurz has been supporting the cover of Labels
& Labeling as a platform to showcase its eye-catching
embossing materials and hot stamping technology.

The Kurz material used on this L&L cover was a Conductive Blue Luxor 110684 and was chosen by the design teams to reflect current packaging trends. Conductive Blue Luxor is metalized and ultra-glossy and had sustainability features.

Hot stamping dies were provided by Hinderer + Mühlich. The design includes nanoembossing effects for a unique front cover. In nanoembossing, only the surface of the hot stamping transfer product is modified, while the printing stock remains unchanged for limitless design options.

This issue of the magazine and should be used as a guide
to help you navigate Labelexpo. L&L looks forward to seeing you there.

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Chelsea McDougall

Group managing editor

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Upgrading the barcode to the web: GS1 Digital Link turns five

Akanksha Meena — Tue, 11 Jul 2023 08:33:36 +0000

Market trends 21 July 2023

Upgrading the barcode to the web: GS1 Digital Link turns five

Major brands are realizing the enormous business value of product digitization with GS1 Digital Link, writes Dominique Guinard, VP, Cloud and IoT, at Digimarc

Five years ago, the GS1 Digital Link standard was announced, promising to disrupt the consumer goods industry for the better by allowing products to be digitized at scale, and transforming how brands and consumers interact.

The standard upgraded the ubiquitous barcode used by over two million manufacturers so that every product can connect to the web, be smartphone interactive, and transact with point-of-sale systems – all with one code or tag on the product (QR code, NFC tag, digital watermark, etc.).

In short, GS1 is the global standards organization responsible for the barcodes seen on the products we use every day. GS1 barcodes are scanned about 5 billion times a day.

While the barcode – also referred to as a UPC or EAN – has provided excellent service to supply chains across industries for 50 years, the barcode has two major shortcomings. Unlike QR codes or NFC tags, barcodes are not scannable nor readable by consumers via a smartphone without the use of a special app. Before the GS1 Digital Link standard, a consumer’s mobile device
would have no idea what to do with the series of numbers contained in a barcode (known as a GTIN).

The GS1 Digital Link standard resolved this issue by turning all the information contained in the 1D barcode (and more) into a web address (a URL or Web URI). With GS1 Digital Link, this information is natively encoded in a 2D code like a QR code or an NFC tag. This is game-changing because
mobile phones, and literally every software client in the world, support URLs and know how to read them to access the content.

With GS1 Digital Link, all this information can be encoded in an on-pack QR code. Once scanned by the phone camera, the code redirects to a web experience chosen by the brand. Consumer goods brands are using the standard, combined with digital twins and the product cloud, to deliver
personalized, dynamic experiences to consumers. Brands can choose to create static redirections, or they can make them fully dynamic and linked to the context using platforms like Digimarc’s patented technology. This allows brands to deliver relevant content directly to consumers via a single standards-based code that serves multiple applications rather than individual proprietary codes for each application.

An evolving standard

Several enhancements have been added to the standard since its initial release in 2018. The standard can now compress data to make URLs smaller for use cases with
limited space.

Why does this matter? An uncompressed GS1 Digital Link looks like this: https://dlnkd.tn.gg/01/9780345418913. With GS1 Digital Link compression, the link is transformed and shortened to: https://dlnkd.tn.gg/ARHKVAdpQg.

The difference in size is six characters, which might not sound like a lot, but it is enough to allow the compressed Digital Link carrier to be printed at significantly smaller sizes while still being decoded offline.

The power of GS1 Digital Link doesn’t stop here. The standard also has the power to completely replace the 1D barcode as more POS system manufacturers and supply chain partners begin to support the standard.

Regulatory initiatives like the EU Digital Product Passport are accelerating the adoption of the standard. The EU digital passport requires many consumer products to feature a unique and accessible digital identity to help consumers make greener choices. The standard uniquely meets most of the early criteria mandated by the EU.

Pilot projects and full-scale rollouts have also been initiated. Digimarc has partnered with MOWI, the world’s largest provider of Atlantic salmon, on the first mass-scale rollout of GS1 Digital Link on products. Digimarc technology combined with GS1 Digital Link provides MOWI’s customers
with unprecedented transparency and product traceability. A package of MOWI salmon with a GS1 Digital Link allows
consumers to scan the product in-store to learn information including, where the fish was farmed, when it was harvested, and its journey to the grocery store.

Combining simplicity with direct actionability and consumer reach, we believe that the GS1 Digital Link is a game-changing standard. And we are at an exciting inflection point in the industry. As we celebrate the fifth anniversary of GS1 Digital Link, major brands are realizing the enormous business value of product digitization with GS1 Digital Link facilitating the digitization of products at mass scale. Now is the time to act.

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Greatest risks facing label and packaging companies in 2023

Akanksha Meena — Wed, 10 May 2023 08:56:40 +0000

Market trends 11 May 2023

Greatest risks facing label and packaging companies in 2023

Inflation, staffing challenges, material shortages, environmental considerations are challenges facing label and packaging businesses

Inflation, staffing challenges, material shortages and environmental considerations are a few of the challenges and opportunities facing label and packaging businesses in 2023

Running a profitable labels or packaging business takes a lot of savvy. Over the past year, market dynamics did some of the work for us. Inflation, staffing challenges and continued consolidation afforded us he luxury of raising prices, extending manufacturing times and increasing customer tolerance for any encountered issues. Material shortages, while troublesome, created a magic storm
that produced volume and demand beyond any other growth year. Indeed, 2022 was quite favorable and we have much to be grateful for.

As we delve into 2023, we need to readjust. While risks
are a given, they change based on emerging trends, customer expectations, and other internal and external influences. Every leadership team needs to stop and evaluate current circumstances and how they may impact your business, strategic plan and trajectory.

The greatest risks are those that we aren’t prepared for.
Let’s look at the top six risks of 2023 and how we can
address them:

Skilled labor and staffing — Finding new, skilled (and
hard-working) employees remain a challenge. In our post-Covid world, many employees still want — and expect — to work remotely. In manufacturing, this simply isn’t possible. We need people at our plants running equipment and making products. The physical presence of customer service, product design and estimating is also integral.

Manufacturing has never been considered a glamorous industry, and perhaps the last time we saw a television character in a manufacturing job was ‘Laverne & Shirley’. But there is no reason to perpetuate the stereotype. Our industry is thriving, and our technologies have delivered some of the most intriguing and high-profile innovations in food and beverage, pharmaceuticals, healthcare, automotive and other venues. We have enormous
growth opportunities and investment influx. Namely, great
excitement and energy surround our business, and we must
showcase these on our websites, social media, and other platforms to attract talented labor and new industry entrants.

Hiring pressures will continue to strain all label and packaging companies, so competition for talent will be fierce. Your biggest risk will be losing existing staff. Beyond the financial costs, the impact on morale, productivity and customers can be significant — and spur ongoing exits. Make 2023 the year to implement strong retention measures that resonate with your unique employees.

Inflation — Inflation has been a friend for many of us. It has
given us dollar-sales-per-press-hour increases along with margin expansion. But it’s slowing in the US and is expected to decline globally over 2023 and 2024.

Thus, we’ll need to upsell, cross-sell, increase volumes and
customers, expand capabilities, etc., to increase revenues. Namely, we’ll have to go back to getting growth the hard way — earning it. This makes skilled labor and staffing that much more important.

Additionally, label and packaging companies need to brace
themselves for the risk of a recession, which is predicted to set in by mid-year. This means evaluating your customer concentrations and balancing the industries you’re doing business with. If you’re heavy in retail or hospitality (which are typically hit hard by recession), focus prospecting efforts
in industries more resilient to rising costs and interest rates
(such as healthcare and pharma).

The greatest risks are those that we aren’t prepared for

Customer demands — Widespread supply chain
issues and material shortages made customers more
accommodating, and to some extent, more loyal. As capacity and material return, so will price, service and competitive pressures. Additionally, customers’ own budgetary challenges will enter into demands.

Expect to have some pushback on estimates as
companies tighten their belts. And don’t be surprised to see
recession‑unprepared competitors throwing in unrealistically low bids.

We’ll need to get back to positioning ourselves as value-added solutions partners and keep the emphasis off price. Get a jump start on this, show your customers why they need you specifically, and pursue contracts that shield you from these changing demands.

Sales — Expect also to see customers wanting more face time. Zoom meetings were great when there was no other possibility. But our business is highly technical, requiring planning, design and testing that delivers customer confidence. These activities are optimized by close communication. Find out customers’ current health protocols and bolster your relationships through more
in-person visits and interactions. Be prepared with ideas
and opportunities that help them avert current risks and build their businesses.

ESG considerations — ESG (Environmental, Social and
Governance) is a framework for organizational consciousness that businesses are increasingly looking for in their vendors. ESG measures are also being called for by new government regulations (both state and federal).

Label and packaging businesses will need to start adapting for ESG demands if they have not yet done so. As such investments can be costly, you’ll need time to evaluate which measures are most valuable to your business and customer territories and give you the greatest ROI.

With market dynamics changing, 2023 may also be a time to consider an acquisition, a company sale, or a strategic partnership. Regardless of your trajectory, preparing your business for these 6 risks is critical. What you do now can avert these risks and best position your company for the future.

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Bob Cronin

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Labor shortage: building an organization for lifetime employee

Akanksha Meena — Wed, 10 May 2023 06:50:42 +0000

Market trends 10 May 2023

Labor shortage: building an organization for lifetime employee

Label and packaging converters are facing a dramatic labor shortage, making continuous improvement strategies even more critical

The concept of a lifetime employee sounds antiquated as we read reports from the Bureau of Labor Statistics that the average worker changes jobs every four years.

The cost of losing an employee runs between $2,000 and $10,000 depending on the level of skill. A friend in his mid-50s attended a working symposium and learned he would likely have four more positions before retirement. A recent story in the New York Times underscored a study by Economist Nicholas Eberstadt, who identified nearly 7 million capable working men between the ages of 25 and 54 choosing not to work. The US Bureau of Labor Statistics reports civilian labor participation rates at 61.6 percent or, better said, the lowest rate since 1976.

It’s no wonder converters and suppliers in the label and packaging printing industry are complaining about finding new employees and their current employee retention. The deck seems stacked against traditional employers who still need to figure out a working environment that minimizes employee loss. We know that over the past two years, many companies aggressively implemented wage corrections addressing the number one complaint by employees. Pay alone does not address all the desirable traits an employee is looking for in an employer. We have an employment gap that will take years to resolve, and it is clear that converters are not only going to compete on growing their business levels, but they will also compete with each other on attracting employees.

Learn from the experienced

This workforce is getting older, with fewer individuals interested in this career. There is a significant gap in providing the opportunity for new printers to have proper time to learn from experienced ones. Pressures of throughput have shortened training, and there needs to be more formality to sharing, or the knowledge is soon to be lost. The common link is that in years gone by, crew leaders, supervisors and plant superintendents would work side by side with newer employees, listening to their expertise and then pulling together to solve the customer demand.

The companies with the best training have individuals on the print room floor who may be newer to the industry, but they share the stories of their company origin with their friends and peers as if they were there for years.

Finding magic in consistency

As I hear these stories from converters, I am searching for an elusive magic formula to help companies understand the best actions they can follow to fill their employment gap. It is essential to provide meaningful training experience so that employees will find contentment and fulfillment enough to work proudly at the company for a very long time. One leadership element is consistency. The notion that job satisfaction has little to do with the job but is more about providing an individual with personal fulfillment needs more attention.

Over the past two years, company employment policies and cultural norms rocked with change because of the pandemic. Many individuals are just now shaking off the impact of work restrictions, including travel and on-site working, with new policies many companies implemented to survive. Companies returning to a more normal state of employment are finding that changes are still occurring in the industry. Companies were bought and sold, and many older leaders began transition activities to next-level leaders. These actions can be unsettling and cause employees to consider what type of work experience, they are looking for. At the foundation, the company’s cultural norms need upgrading.

Operational focus is key

A common complaint from tenured employees is their leadership’s need for more focus, who often blame issues on outside influencers. Due to supply chain interruptions, leadership’s attention to lean manufacturing, ISO procedure and continuous improvement principles waned. These interruptions resulted in increased lead times, constant schedule changes and decreased productivity. Costly performance barriers have gone on too long because price increases passed on to customers hid the actual impact on the organization. Financial decline masked the importance of a company’s best practices, and the leaders need to clarify process disciplines. These actions allowed waste and increased time back into the business processes. The result, in some instances, has led to a catastrophic collapse of cultural gains not internalized by leadership. The economic climate has changed, and operational cost increases need resolution. Customers are starting to refute price increases and go out for bids based on the results.

Leaders who joined the executive ranks only in robust economic times, must prepare themselves for the toll on the organization and the action plans needed to reinvigorate their operational focus. The lack of experience managing an entire business cycle of highs and lows has challenged their ability to maintain cultural continuity, and they must now begin anew. Experienced leaders, seeing the gaps in execution, realize their succession planning must become more robust for the health of their company and their employees. Fortunately, the continuous demand for products provides the opportunity to set in motion actions that can regain momentum in company cultures stagnated by the events of the past few years.

As I work with the converters on renewing their commitment to continuous improvement, I reminded them that while the pandemic caused significant obstacles, the market segment remained robust. Equipment providers and consumable suppliers in the market fought their battles with supply chain issues. Many of them gave up on the continuous improvement focus, trying to survive the component shortages that plagued productivity. Some companies built inventories only to be stagnated by the missing final component that prevented shipment. This problem plagued just about every capital equipment industry. But the actions of prebuilding inevitably added costs and drained cash flows. The company’s reaction to the supply chain issues allowed process shortcuts and un-quality back into their operating systems.

A new normal

We are all dusting ourselves off from the calamity of the uncontrollable economic and pandemic events and find that we are now entering an economic cycle that will no longer accept price increases. Companies have to focus on cost containment. What if the thought process included the actions required to retain and attract employees? Leaders would have to determine the steps to restore commitments that foster productivity improvement, cultural involvement and accountability to flourish robustly in the market segment. Strategic plans placed on hold would be set in motion for rapid execution so that the employees could quickly see some benefit from their involvement. Two years ago, we talked about pay being the most significant obstacle to employee retention, and the business owners in the industry responded. Today a company’s leadership is tested again for their fortitude in sustaining a cultural environment that demonstrates attractiveness for the next generation workforce. What employees are asking now is: ‘are the next generation leaders committed to a culture of improvement, and do they have the stamina to stay
the course?’

Several leaders have asked me to communicate a path forward that will ignite change. Subject matter experts
who were my mentors always emphasized that a company must renew its commitment to improvement every three years and find the catalyst that will force the issue. The best foot forward is ensuring the executive team is the catalyst. Holistically they have to embrace their commitment and rally together as an unwavering force, often revisiting actions they already know but have lacked the discipline to sustain. The group needs to start again learning the behaviors they must outwardly demonstrate each day. As a team, they should begin reading material pertinent to the focus. They should select the reading material and discuss their readings as a group.

Next, I recommend they dissect metrics that highlight fundamental process problems, discuss what needs to change, and then identify and commit to aggressive, quick-hit actions that benefit quickly. I provide a reading list of critical materials, including books like “The Gold Mine” by Freddie and Michael Balle or “Lean Thinking” by Womack and Jones.

Real-world examples

Some forward-thinking companies have designed and implemented continuous improvement certification plans for their employees to foster engagement. One such program is called the Bronze Certification Plan, which includes a list of books required to be read, complete with a simple write-up indicating the best takeaways from the reading. The certification process consists of a list of four to six more tasks plus participation in at least two kaizen events followed by actually leading an event. The certification is awarded when the criteria are verified. Additionally, the employee participates in a leadership communication and planning session for their career in the future. In this example, employees who completed certification become advocates rewarded with a slight pay bump as recognition of their commitment. Larger organizations have formed Lean Promotion Offices, where they set aside office space for a library dedicated to education about lean manufacturing. They equip the library with several books that the employee can check out. In addition, they have created company stores with promotional items promoting the production system commitment and have assigned an executive leader to organize kaizen teams based on feedback from the metrics and organizational leaders.

The most important takeaway I emphasize is that outside forces will constantly challenge an organization. The most successful organizations continuously learn to shift with the market changes. No one can predict all of the hurdles a company will face, but the best leaders act on securing the best assets for the company in people. Leaders that wavered on process disciplines thinking process shortcuts could help weather the trying times are now seeing that had they held on to their convictions, their employment culture would be much healthier now. These leaders will become invaluable to the company if it truly is a lesson learned. If nothing was learned, they will repeat the mistake and create a less-than-desirable workplace. Find those companies, and you will find employees looking for a better workplace.

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Paul Brauss

Continuous improvement columnist

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Andy Thomas-Emans column - Labelexpo Arena showcases automated future

Akanksha Meena — Thu, 04 May 2023 07:09:51 +0000

Associations, events & awards 05 May 2023

Andy Thomas-Emans column - Labelexpo Arena showcases automated future

Labelexpo Europe 2023 will feature the first Automation Arena in five years

Labelexpo Europe 2023 will feature the first Automation Arena in five years, allowing visitors to see a real-time exchange of machine data with an MIS

The Automation Arena is set to return to Labelexpo Europe
this year, showcasing the tremendous leap forward in
capabilities since the last automation feature at Labelexpo
Americas back in 2018.

The 2018 automation arena concentrated on what I would
call ‘linear’ automation – setting up machinery remotely from
a centralized workstation.

As was demonstrated at the time, there is a lot of information that can be transferred to presses and converting equipment via JDF/JMF to reduce or eliminate manual intervention during machine setup.

On the flexo side, we demonstrated that we can now automate mechanical processes including printing pressure adjustment, cross- and machine-direction registration and tension control depending on the substrate to be printed. These parameters can be saved for when that same job is run again, representing a kind of machine learning.

At that time there was a roadblock to a more complete
integration of flexo presses into factory management/MIS
systems. Most flexo press manufacturers used closed, or
proprietary press operating systems, meaning a certain amount of double keying had to take place for parameters like run length and job description, with the consequent loss of efficiency and potential to introduce mistakes.

MPS, however, did demonstrate MPS Talk to Me (now MPS
Connect), which at the last automation arena was already
able to communicate directly with a Cerm MIS and other
industry‑standard MIS workflows to upload job information.

On the digital press side, automated setup and integration into MIS systems have been available for some time, since Digital Front End (DFE) systems were either directly provided by companies like Esko, or were easily able to integrate with them.

The 2018 automation arena also demonstrated how the set-up of finishing systems could be automated from a central data point, and not only for PS labels but also for shrink sleeve processing.

The Automation Arena at Labelexpo Europe 2023 will focus
on closing the data loop. This means not only being able to set up machines remotely but also being able to retrieve real-time production data from the press and converting machine and returning that data via the Cloud to an MIS, where it is processed and made available for distribution.

Machine monitoring technology has been developing quickly. During the Covid-19 pandemic, when it was impossible to send out engineering teams to maintain machinery, there was a lot of progress in remote diagnostics systems able to monitor press or converting machine performance and upload that data via a secure Cloud-based portal to remotely located engineering teams.

This allowed predictive maintenance and fault-finding programs to be run, increasingly making use of AI and machine learning algorithms to monitor machinery 24/7 and alert engineers to developing problems.

These remote diagnostic systems have now morphed into
more user-friendly machine data collection systems, targeted at delivering real-time actionable data to the operations manager as much as remote engineering teams.

The information can be filtered and sent to different destinations – for example, the factory/operations manager, press team and managing director can be given different subsets of the data most relevant to their own tasks.

The goal is to improve press utilization and efficiency, to help operation managers make immediate process adjustments, and management to make strategic data-driven decisions, all resulting in waste reduction and higher efficiency.

The Automation Arena at Labelexpo Europe 2023 will showcase real-time machine data collection, analysis and distribution, centered around a Xeikon digital press, a Grafotronics converting line, Esko automated pre-press and Cerm MIS.

The inclusion of the MIS element is an important one.
All printing press and converting machinery manufacturers
are working on their own machine data collection systems and setting up their own Cloud-based portals where factory managers and press teams can see their own machine data on a personalized dashboard.

But there is a danger that these portals become ‘closed’, without the ability to share machine data in a standardized format with MIS/ERP systems – or at least making it very difficult to do so.

As label converters run machines from different manufacturers, would they then have to set up different Cloud portals for each machine, or for each group of machines?

It is useful to start these debates now, while these Cloud portals are still under development.

The Automation Arena will be a great place to see how data can be seamlessly exchanged between manufacturers’ machines and an MIS - and what additional functionality can be achieved.

The Automation Arena will also look at implementing as
much of a ‘lights out’ operation as possible – including on the converting machine.

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Andy Thomas-Emans

Strategic director

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Editor's Note - Same storm

Chelsea McDougall — Fri, 31 Mar 2023 13:49:34 +0000

Market trends 31 March 2023

Editor's Note - Same storm

Regional market reviews are evidence we're all managing the same storm

If you read nothing else in this issue of the magazine, (though I hope you’ll read it cover to cover) I suggest spending some time with our global market reviews.

This annual round-up from our team of international editors and correspondents paints a vivid picture of the global state of affairs in today’s label market.

Although the label and packaging industry operates on a global scale, it was clear to me from reading these dispatches that the problems are strikingly similar whether you’re in Delhi or Detroit, Bangkok or Bogota, Venice or Vancouver. We may be in different boats, but we’re all weathering the same storm.

I’ll be honest, I wish there was some better news from this special feature, but the clouds that have darkened our skies in recent years, don’t seem to be clearing anytime soon.

Managing a manufacturing facility during the height of the Covid-19 pandemic almost looks like child’s play compared to the forces label business owners are up against today. I wish I could report that a tight labor market, stretched and fragile supply chain, price hikes, and limited material availability are yesterday’s problems, but I fear that business owners must weather this storm a bit longer.

However, if I’ve learned anything about the label industry, it’s nothing if not resilient. In fact, during most economic downturns, the label market still thrives. This tough-as-nails industry can weather adversity better than most. It’s proven time and time again that it’s a market that sees opportunities in challenging times, and I expect that to continue.

In fact, there are some exciting technological advancements on the horizon, as conventional press manufacturers tell us on page 90 in an article that explores the future of flexo. Conventional technology will make a return to Labelexpo Europe this fall, in a show that will highlight the latest in automation, among other trends. As Andy Thomas-Emans details on page 19, an Automation Arena promises to highlight the technology advancements that can help label converters chase what was described to me as a ‘tenacious pursuit of efficiency’ and ease one of its most intractable problems – labor.

It will be fascinating to watch as the industry responds to the challenges it faces with technological advancements and continued resilience.

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Chelsea McDougall

Group managing editor

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