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  • 05 May 2016

The state of the label industry

Bob Cronin of The Open Approach outlines seven key drivers behind today’s M&A transactions.

The label business is at intriguing juncture. As we come off 2015’s ‘Year of the Deal’ 4.3 trillion M&A transaction volume – and labels’ and packaging’s role in it – it’s important to stop and see where we’re at, where we’re going, and what issues we need to address. Times have changed from five, and even three, years ago. We need to regroup and decide how to tap into today’s dynamics to ensure our future. While the overall industry remains opportune, not every label segment, market, or entity is positioned to thrive.

Over the last few years, the label industry has undergone remarkable change. We have witnessed manufacturing breakthroughs, security and anti-tampering revelations, new substrate introductions, and digital capabilities that are changing the way we do business. With it all, we saw increasing global competition and accelerating M&A activity, primarily from strategics – a sure sign that our industry is consolidating.

When you look at the ongoing consolidation of the label business, you may be asking yourself why this is happening, whether it can continue, and what it means to the industry as a whole.

ABOUT THE AUTHOR

Bob Cronin is a regular columnist in Labels & Labeling, writing about M&A activity in the industry.

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