Login  |  Register          Free Newsletter Subscription
Zibb
Subscribe to Converting
Email
Print
Reprint
Learn RSS

Where are we headed next?

Rampant consolidation, niche players, high-tech machinery and material advances, and foreign competition are all impacting the future of our industry. Converters and vendors speak out on...

By the Editors of Converting -- Converting Magazine, 11/1/2002

What single issue will have the greatest impact on the converting industry?

Elisha Tropper, president, Prestige Label: "From our printing perspective, an area that will certainly affect the way packaging converters develop their businesses is the impact of digital printing as it goes mainstream. From an economic perspective, the challenge for converters will remain as it is today: to keep printed and converted product from becoming complete commodities. Failure to do so will mean the disappearance of many converters and suppliers to the industry."

Mark Steele, CEO, Technipac: "Cheap imports produced with low labor rates."

Stan Bikulege, president, Pliant USA: "I don't think there will be one single issue, but a multitude of issues that will have a different impact on both small and large players. Changes in materials will affect everyone, as will the consolidation of end users, growth of emerging markets and the fast changing economy."

Quino Lorente, president, Tidland Corp.: "The process of globalization, which has only started, fueled by advances in communications technology, is bound to profoundly impact how we do business, from the way we sell and market products to the way we engineer or manufacture those products."

Wolf Bielas, CEO, RSI ID Technologies: "The use of new technology and innovation to avoid commoditization."

Fred Lamp, manufacturing manager, Pillar Technologies: "A strong economy. As long as the most basic consumers are out spending money, the converting industry will do just fine."

Ron Suenram, product manager, Fife Corp.: "Internet—Sourcing products on the Internet will affect packaging requirements by reducing the need for on-the-shelf recognition, eliminating special considerations for shelf-life protection, and creating a need for smaller specialized 'shipable-to-consumer' containers. I see this affecting everything from building materials to medications."

What technological developments and trends are likely to dominate converting?

Ken Kidd, president, WS Packaging Group: "Digital printing, CTP prepress, laser diecutting, new film base materials and E-business."

Brett Gauntlett, COO, Payne Printery: "I think the next logical step is direct to press. They've gone that way in small formats, like the digital press. Eventually technology will get to the point where you'll see it on a 40-in. press, but it's going to be years and years."

Charles Sigmon, plant manager, Tufco Technologies: "[On the future of ink] It's possible that ink jet will be the next revelation for the point-of-sale market."

Bill Cornell, sales analyst, Kleen Test: "If you're not building something that's in-use specific or targeting something that's very specific, you're not going to be competitive in the industry. The industry seems to be maturing to the point where everybody's specific."

Bielas: "New prepress and platemaking technology, higher graphic quality."

Tropper: "First, there is what can best be described as the race between digital and flexo press manufacturers to produce a high-speed combination press bringing together the flexibility, control, and accuracy of today's leading digital presses with the high-speed and inline decorating and finishing capabilities of today's leading flexo presses. In addition, each year brings us closer to a digital or laser-diecutting solution, which when reached, could frequently eliminate the need for expensive tooling for custom print jobs."

Greg Gard, vice president of technology, Pliant USA: "Movement from rigid to flexible structures will continue to dominate. Standup pouches are replacing metal cans and other packaging structures because of convenience, safety and user-friendliness. Consumers already place a high value on reclosable features. Other material developments are related to aesthetics. Flexo-printed packages are becoming more prevalent in the marketplace because of improvements in process and ink technology."

Darrell Whiteside, product manager, MAGPOWR: "OEMs and large end-users are going to move toward a centralized control interface. This will drive improved communications and flexibility in controls, whether on a Serial Bus or through a PC."

John Gallagher, vice president of sales & marketing, Total Register: "Dramatically increased range of products using plain and holographic foils. Growth is particularly strong in cosmetics, pharmaceuticals and security products. The hottest market is health and beauty product packages. One of the next growth markets is food packaging, including direct-contact products. The point-of-sale attraction of foil, especially holographic foil, is a strong factor in this growth."

Richard Washebeck, R&D/director of engineering, Pillar Technologies: "The trend for increased integration of equipment, faster operating speeds, with less machine wear will set the stage for future developments."

What will be the effect of converter and/or supplier consolidation?

Marvin Fenster, CEO, Marfred Industries: "Hopefully, the effect will not be damaging from a price or service standpoint, but the decrease of major suppliers could have a detrimental effect on pricing."

Doug Ehert, vice president of production, Payne Printery: "I don't think the Mom-and-Pop shops are going to be around. Financially I don't think they'll be able to keep up with the technology."

Steele: "More core competencies don't do you any good unless you retain and maintain the skilled people who understand them."

Tropper: "On the positive side, consolidation can often yield suppliers with broader product lines and increased financial wherewithal to offer improved services as well as expand R&D. However, fewer suppliers generally mean fewer options for converters, and less price competition (unless each of the remaining players remains committed to growth and the success of their customers).

"If we were to see consolidation among smaller [label] converters, that could have a significant impact on the industry. Then you could conceivably see many microeconomic repercussions, such as increased price wars, lowered salary scales, and a harsh business climate for suppliers."

Bikulege: "Overall, the continued consolidation will result in greater efficiencies and process improvements related to changes in manufacturing assets. End users may look to their converter partners to provide everything from materials to R&D and technical developments."

Gauntlett: "Consolidation in the way of not as many employees to produce the product because of the advancements down the road."

Lorente: "The consolidation trend of converters and suppliers will continue with the result of greater efficiencies from less equipment, which in turn will require companies to expect faster web speeds and wider material widths."

How will the packaging/converting supply chain look 20 years from now?

Ehert: "I've been here a long time, and I've seen the evolution of things coming faster and faster. Every time you think it can't get any faster, it does and that becomes the norm. After a while the ink isn't even going to have time to dry."

Kidd: "20 years is a long time. The supply chain will look much more automated with more value-added services such as maintaining inventory via auto-replenishment. Office, staff and printing services will be performed at customer locations."

Fenster: "Supply chains will be more tightly integrated, which will result in drastic improvements in lead time and efficiency."

Tropper: "The biggest changes will be in the tooling and material suppliers because these are the primary contributors to both the finished product as well as the variable costs of converters. I can see many of the larger end-users of converted products acquiring their converters or developing their own in-house operations where warranted."

Gard: "That's a great question, but a very difficult one to answer. Consolidation is sure to continue, as is development of new materials and new markets. These changes are what make this industry so exciting."

Steele: "Major infiltration from overseas; so much less manufacturing done in the US except for customized products that cannot be easily reproduced."

Whiteside: "20 years...much different! The supply chain will be shorter and more efficient as a result of consolidations and a concentration of suppliers. Technology and more readily available information will allow the elimination of many traditional intermediaries in the supply channel and result in a tendency toward buying directly from the manufacturer."

Bielas: "More integrated and able to see further into the future and anticipate and respond to market demands."

Suenram: "Middle men will be eliminated as communications, speed and education improve the ability to handle many tasks that were once relegated to suppliers/specialists. The entire converting process will be simplified and...converters will find themselves more proficient at a greater variety of applications."

Mark Stoll, general manager, Pillar Technologies: "As the question pertains to North America, more of the low-end equipment and converted products will be manufactured off-shore and imported here. It will be important for North American companies to stay at the forefront of product/process improvements."

Email
Print
Reprint
Learn RSS

Talkback

We would love your feedback!

Post a comment

» VIEW ALL TALKBACK THREADS

Related Content

Related Content

 

By This Author

Sponsored Links

 
Advertisement

More Content

  • Blogs
  • Video

Blogs


Sorry, no blogs are active for this topic.

View All Blogs RSS
Advertisements





NEWSLETTERS

Click on a title below to learn more.

Frontline News (Every Tuesday)
OEM Update (Monthly)
About Us   |   Advertising Info   |   Site Map   |   Contact Us   |   FREE Subscription   |   Useful Sites   |   RSS
© 2008 Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.
Use of this Web site is subject to its Terms of Use | Privacy Policy
Please visit these other Reed Business sites