Speaking of Labelexpo

L&L speaks exclusively to two key speakers on the Labelexpo Americas conference program – Joel Carmany, president of Consolidated Label Company and Art Yerecic, TLMI chairman and president of Yerecic Label

How important is Labelexpo to you as an industry leader?

Joel Carmany: Labelexpo is a great venue for industry suppliers to showcase their technology and innovation rollouts for the next few years. It is an opportunity for converters like myself to view the opportunities we have to improve our businesses with the products and services presented and make decisions on where we want to spend investment dollars.

Art Yerecic: Our team that attends the show typically includes associates from sales, production, pre-press, purchasing, quality and R&D. Prior to attending the show, we meet and discuss our wish list. On day one and day two of the show, we split into small groups and canvass the show then discuss our findings at team lunches and dinners. Day three is spent as a team, pursuing the most promising opportunities. 

Almost all of our spend decisions on new technologies and improvement opportunities for the upcoming two years are made from information gathered at Labelexpo.

What are the key technology trends you expect to see at the show?

Carmany: The press manufacturers will focus on quick change overs and less waste. The labelstock suppliers will be showing their thinner film technologies. The digital suppliers faster and more efficient presses with coating capability.

Yerecic: I’m certain the show will have some interesting developments in the digital sector.  We expect to see an increased focus on printing packaging and unsupported films because these are big growth areas.  Automation will continue to be a key trend as converters look to grow their businesses without adding personnel.

Consolidation is a trend currently defining the US converter industry. Do you see this continuing?

Carmany: One of the themes in mature industries is consolidation so I expect this to continue. The label industry is ripe because there are many smaller companies with good financial performance that are attractive to both private equity and strategic industry consolidators.

Yerecic: I believe it will continue for two main reasons.  First, converters that entered the industry during its double digit growth heyday are getting to the point in their careers when they must determine an exit strategy.  Many will choose to sell if a next generation successor is not in place.  Second, automation is reducing costs for converters able to afford it.  Those who cannot make the investment will continue to face increasing competitive pressure.

What are the challenges – and opportunities – currently facing the US converter industry?

Carmany: The biggest challenge in the industry is finding growth. I believe ultimately that this is why converters will move into the packaging markets for opportunity.  Driving
cost efficiency is an ongoing challenge that is always on the front burner.

Yerecic: Finding ways to remain profitable in an environment where it’s difficult to pass on cost increases is a challenge for all of us.  However, TLMI’s LIFE (Label Initiative for the Environment) gives converters and suppliers a proven method to increase sustainability efforts and lower operating costs.

Partnering more closely with vendors to drive out costs is an opportunity that can easily get overlooked when relationships become adversarial due to price increases. 

Labelexpo provides a showcase of innovative ideas we look to carry to our customers and grow sales.  As an industry, we are printing better than ever and expanding beyond pressure sensitive labels to create a wide range of packaging. 

Briefly profile your company and how you see its role developing.

Carmany: Consolidated Label is focused on prime labels, flexible packaging , shrink sleeves and laser and inkjet labels. We have been able to grow organically through sales force expansion, new product introduction and internet sales. For the last 10 years we have been able to achieve double digit growth annually with superior service, products and consistent systems improvement.  We believe this approach will continue to produce profitable growth for us.

Yerecic: At Yerecic Label, we continually seek to better understand our customers and their customers’ needs.  We do this through original research and strategic partnerships that give us insight and deliver measurable results.  We’ll continue to prosper if we keep developing innovative new product lines that bring our customers success.

Yerecic Label is constantly looking for ways to reduce waste.  We employ a lean, cellular approach in both our office and our pressroom.  Our lean journey began in 1993 and we went cellular in 1998, so we’ve been at it for quite some time.  We focus on DIRFT (Doing It Right the First Time) by employing standard work practices in all of our processes. 

Over the last decade, we’ve added quite a bit of automation to reduce waste and increase throughput.  This requires significant capital investment but pays daily dividends. 

How will developments in the global economy affect the US converter over the next year?

Carmany: The economy will affect you as much as you let it. It can be an excuse or an opportunity. The decisions we make as business owners and managers will continue to be the most important indicators of performance. As long as we continue to work on adding new technology to our business through investing in the right markets and equipment we will grow.

Yerecic: Global economic uncertainty causes many worries for us all but there has been an upside. We’ve seen a nice run of low interest rates that we hope will continue until at least 2014.  For those in a good financial position, it’s a perfect time to invest in growth.

This article was published in L&L issue 4, 2012