Flexographic Printers Discuss Business Outlook, Production Challenges in FLEXO Magazine Flash Poll

Revenues, results, production volumes and capacity—these four points drive every printer’s strategic plan.

Keeping projections trending upward is paramount to success. Maintaining momentum and preferably accelerating the pace of activity relies on finetuned abilities to rapidly respond to customer demand, accommodate surprise shifts in material availability, nurture skills development of the labor force, spend wisely, and utilize all resources ever-more efficiently.

In discussing best courses of action to meet continually mounting challenges, talk among FTA printer/converter members quickly turns to faster makeready, short runs, greater efficiencies and speeding time to market. Their focus is on the bottom line, updating their list of priorities and taking necessary actions to stay relevant, be responsible and improve quality, plus broaden capabilities.

A new FLEXO Flash Poll, open for 7.5 weeks stretching from Aug. 11 through Oct. 1, 2021 and drawing a response rate of 36 percent among FTA printer/converter member firms, addresses the concerns package printing plants face today, as well as their impact on strategic business plans, capital expenditure budgets, competitive positioning tactics and efficiency-enhancing pursuits.

It includes personal situational analyses from printers themselves. Among insights put out to share, with anonymity a guarantee:

“Runs are getting shorter and more challenging. As an industry, we must maximize all processes to be successful”
“The future is positive and bright, with many opportunities driven by customer demand. Small and mid-size enterprises (SMEs) will need capital leasing programs with favorable terms to afford new equipment necessary to stay relevant. New tools need to be flexible in application—i.e., doing shrink sleeve as well as label printing”
“Sustainable options are where the industry and brands will set their focus. However, supply chain issues, volatile pricing and personnel issues are currently taking center stage”
“Automation and working on distributing experience and expertise across more people will be critical to success”

Bottom Line

Future Forecast

What are your expectations for bottom line results in 2022?

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A whopping majority—78 percent of printers participating in FLEXO’s survey—expect business to grow in 2022. In fact, some say by unprecedented rates. Eighteen percent believe sales and production volumes will remain flat or stagnant. Just 4 percent anticipate a retraction in pace.

Soaring Sales

How will sales chart?

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“Measurable improvement” is forecast by 66 percent and “impressive growth” by 17 percent. Another 13 percent see conditions as remaining “status quo” and 4 percent anticipate a decline in activity.

Production Volumes

What will production volumes do?

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When it comes to production volumes, 73 percent of sample audience members view output as on the rise. An additional 21 percent are confident that throughput will hold steady. Mirroring negative growth projections, the same 4 percent point to a drop off in pace.

Capacity Calls

At what level will your plant operate?

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Forty-nine percent of plants report operating at near capacity and 22 percent at full capacity, meaning 71 percent of sites taking the poll describe business as “brisk.” Twenty-five percent view volumes as moderate; 4 percent, “less than ideal.”

Actual commentary speaks to the trends:

“Overall, business is very healthy. New innovations and equipment are allowing for much better process control. Sustainability will be driving the future of the industry changes”
“It’s a great time to be a label converter!”
“Flexible packaging continues to hold a solid position. There is still no better affordable packaging”
“Most everyone continues to need packaging. Printers have access to tools that continue to improve to meet the brands’ expectations. If you meet and exceed customer expectations, your future is secure!”
“Flexo is the future! Plates and machinery have improved over the last five years. There will be growth! Expect to see a lot of new equipment and technology. We will need to position ourselves to take advantage of it”
“Innovation is necessary to create new product offerings”