Nimble and Fit Wins in North America

Danielle Jerschefske explains how the market continues to mature in consolidation, investment, technological advancement, process control and diversification

It’s hard to discuss the North America label market in 2012 without bringing up the United States presidential election. US citizens were divided, to say the least, in the leadership direction that the nation should follow, particularly in the wake of the global financial crisis, impending tax changes, rapidly rising debt and uncertainty surrounding the stability of Europe.

At the Label Printing Industries of America annual conference, a sub-sect of the Printing Industries of America, the association’s vice president of political affairs, Lisbeth Lyons, pointed out that in the wake of the election, there are now 60 new faces in the House, which means key decision-makers are not well-informed about printing and the economy.

Lyons implored a room full of leading packaging executives to, ‘educate these new representatives on Capital Hill about the benefits of print – the jobs, the economic output – and promote the industry. Invite your newly elected officials into your plants for a tour, and attend meet and greets.’ Certainly as political negotiations continue to unfold around fiscal and environmental issues, it is the industry’s duty to lobby accordingly.

Still, economist Alan Beaulieu of ITR Economics pointed out at TLMI’s Converter Meeting earlier in the year, ‘The US economy is 26 percent of the global GDP and the American consumer represents 70 percent of the national GDP.’ So while many small business leaders put their strategic plans on hold in anticipation of a final leadership decision, the label and package printing industries experienced solid movement and success.

Various acquisitions were made in all regions: Wisconsin-based Tailored Label acquired Stratix in Georgia; Labelink in Quebec, Canada purchased Labelad in Ontario; California-based Western Shield Label acquired Southern California Label; WS Packaging purchased three companies broadening both its geographic breadth and production capabilities.

Investment was seen across the board. Each of the major conventional press suppliers with a strong presence in the market installed equipment – low to high-end. Gallus placed a 12-color EM 410S in Cincinnati at the start of the year. Interestingly, the converter is a division of an Italian-based company that has a strong balance of narrow web flexo capability complemented by wider sheetfed offset. Mark Andy too has installed Performance Series machines in every model as converters advanced in replacing two older machines with newly engineered designs.

Digital printing equipment continues to find its way onto shop floors. The region will host its eighth Dscoop (Digital Solutions Cooperative) conference next year, an educational gathering promoted by HP’s Graphics group intended for users and print buyers. Comprehension around all types of digital print technology has matured – liquid toner, dry toner and inkjet, while market leaders are better understanding how the myriad offerings best suit their current and progressing business models.

HP Indigo, Domino, Jetrion, Xeikon, Durst, Epson, OKI Data, Allen Datagraph, Primera, Colordyne, Screen and many more – each offer a unique solution that deserves careful evaluation.  

Still, the majority of brands, all sizes and markets, are not ‘digitally aware’. It’s common to find brand managers, their marketing teams and label buyers with a bias against digital. They just don’t believe that the technology can meet their requirements for color matching, quality print and consistency. Yet already, early adopters are realizing great savings, well-managed new product launches and expansions, and other marketing benefits.

The market has seen leading packaging and label converters obtain G7 Master Printer Status – Spear, Hammer Packaging and Huston Patterson, – which helps to balance the output of print color across variables. G7 is a qualification granted by IDEAlliance for the process of measuring color using grayscale while specifying the media color and inks in accordance to ISO12647-2. In doing so converters can adjust the color tone thereby more effectively matching print across printing processes, substrates and from press to press.

Standardization, automation and Lean or on-demand processes are increasing profit margins in light of rising raw material costs and pressure from procurement to lower prices. With tight systems working, leading converters are acting more as branding companies with an expertise in graphic arts, extending their offerings beyond label and packaging production – as design-for-print experts, marketing and social communication experts and content managers.

More converters are integrating cloud-based ordering, proofing and tracking systems to speed the approval process and delivery time. Such systems are complementary to G7 Near Neutral Calibration as it gives brand owners more confidence in signing-off online proofs; there are systems in place to match color across regions, type of package – flexible pouch, label and carton – and print process. EskoArtwork’s alliance with Chili Publish software for its WebCenter platform will help spur brand marketers’ editing ownership as this trend progresses.

To that end, converters must invest more in data security and holding capability for their business as the world continues down its path in this Information Age. The International Data Corporation (IDC) expects that by 2020 IT departments worldwide will need to administer 10 times the number of servers – both virtual and physical – 50 times the amount of data, and 75 times more files.

Industry events and conferences – FTA, TLMI, Labelexpo, Label Institute – all broke attendance records over the year demonstrating that the market is eager to keep the business moving forward by training its people, investing smartly and sharing ideas. The future looks bright.

Things to watch for in 2013:

•          Label recycling/contamination breakthroughs with regard to all primary packaging

•          HP Indigo to bridge the way to full digital package printing production with commercialization of 20000 and 30000 presses

•          Combination printing will continue growth by adding value in the right markets

•          Increased investment in process control software and hardware

This article was published in the Labels & Labeling Yearbook 2013