Flash Poll Finds Flexographic Printers Staying Relevant & Competitive

Strategic Directions

Human and materials interfaces haven’t escaped notice, according to Flash Poll findings. Manpower and machinery, deployed in unison, have always built the business and stood at the heart of every operation. The poll population maintained, “They always will.” Critical evaluations of both components, coupled with the fortitude and foresight necessary to improve performance on both fronts, has long served the industry well—so, forecasters implied, they will continue to lead to prosperity.

When charting their perceived path to success, flexographic printers and converters proved non-hesitant to weigh in on strategic directions related to capital expenditures, training and certification, workforce development and must-attend trade events.

All of those factors were perceived as steps that could be taken to strengthen a plant’s competitive posture. Results spoke to the degree to which each is embraced.

• 72 percent of operations polled pointed to definite plans to “engage in workforce development through every channel accessible”
• 46 percent intended to automate operations
• 43 percent of those who commented on the future plan of action pointed to a strong desire to subscribe to and enroll team members in training and certification programs
• Significantly, 35 percent vowed to increase the capital expenditure budget for major equipment
• Finally, 32 percent pledged to investigate the purchase of a new press

Where might such searches take them? FORUM 2020 and INFOFLEX 2020 stood out as the likely destination. Fifty-three percent of Flash Poll respondents gave the event “must-attend” status. Next in line, Labelexpo Americas at 42 percent. It was followed by PACK EXPO International at 32 percent; drupa, at 28 percent; and SuperCorrExpo at 4 percent. Also garnering mention: EskoWorld, Dscoop and AICC’s (Association of Independent Corrugated Converter) conferences.

Admittedly, just 10 percent of the sample listed out choices.

Plant-Wide Priorities

Short runs, sustainability, raw material costs and hybrid technologies stretched plant-wide priorities beyond the list of primary strategic initiatives—best practices, artificial intelligence, customer demands and competition. They also corresponded with the ever-present drive to meet and beat customer expectations.

Based on the compilation of survey results, it appeared the jury is still out on the question of whether or not raw material costs were actually skyrocketing. In total, 30 percent of respondents put forth an opinion. Of those, 32 percent claimed the opposite was true in their experience. Similarly, 22 percent stood in semi-agreement and 18 percent fully embraced the position. The remaining 28 percent declined to either endorse or condemn the statement, however, they did not fail to submit valid and viable remarks.

Alluding to “another challenging year in flexible packaging,” one printer said, “Design difficulties increase against a customer-driven decline in pricing,” then asked, “At what point do we non-digital shops become less cost effective?”

One astute converter turned market watcher stated, “In our region, the concentration of label printers is high and pressure on price is extreme. Everyone complains about it, but we do a very poor job of supporting one another to hold pricing. Instead it is being cut, shaving on margins to literally steal business from one another—not very viable, long term, if you ask me. The only winner is the customer!”

Unique regional concerns came from others as well. “My operation is not in the US. Our economy is facing major trade deficits and shortages of foreign exchange. These inherent flaws hinder capital investment and require greater efficiency in the use of materials.” Along similar lines, another non-US-based converter observed, “Over capacity on liner and dropping costs of OCC (old corrugated containers) are resulting in lower costs. European mills are trying to sell in North America as well.”

A common pledge, voiced by several who answered the question on material costs, was to “work with suppliers to reduce, or limit, price increases, so as to more easily facilitate passing along relatively insignificant price hikes to customers.”

Among individual comment offered, “Like everyone else, we are squeezed by our customers. Material costs are rising. Efficiency and new technologies are the only thing we can control, so we’ll be focusing very strongly on these areas.”

Valid points relayed included:

• Resin pricing is volatile, not simply rising
• Film costs have been steady and declining
• Ink costs have gone up
• Raw materials represent the bulk of expenses and continue to cost more every year; in fact, we’ve seen multiple price increases in the last 12 months
• We have begun importing some materials to get better pricing

Given that level of comment, it should come as expected news that 58 percent of those polled saw materials cost as a weighty concern. Thirty-five percent indicated it was a mid-level worry and just 7 percent saw it as a low-impact point.

Short runs, often hyped as top-tier challenges, continue to live up to the reputation, according to Flash Poll findings. Forty-three percent said it had a strong influence on production; 45 percent preferred the “moderate to strong” label. Just 11 percent thought it was a small factor influencing pressroom floors and 1 percent saw no imposition.

When it came to going green, trimming the carbon footprint and following business practices that embrace sustainability, almost 80 percent perceived it as having moderate-to-heavy influencer status. Thirty-nine percent went with maximum impact; 41 percent, “considerable.” Nineteen percent specified, “little”; 1 percent, “zero.”

Views on the influence of hybrid print lines proved to be less enthusiastic, with just about 20 percent seeing such equipment as essential and another 28 percent “a nicety.” That compared to 41 percent who thought hybrid presses to be of little consequence and 11 percent that did not intend to give such models a place in the plant.

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