Inquiring Converters Want to Know...

Before making equipment choices, learn about trends in flexible packaging and tags/labels from converting gurus.

By Associate Editor Holly Ann Suzik -- Converting Magazine, 1/1/2001

Technological evolutions in the flexible packaging and tag/label industry are making it an exciting time to be a converter. With evolution comes choices-and manufacturers are offering plenty in the way of gearless, UV flexo and digital presses.

CMM International, April 23 to 26, 2001, Chicago, will showcase these choices and inform you where industry is headed. Before deciding to buy, hear about the trends affecting industry. Will servo-driven presses come to dominate the market? Will flexo take over the converting industry? Converting asked CMM exhibitors, as well as converters, these questions and more.

Following, you'll find questions answered by Kurt Flathmann, vice president/sales manager, Fischer & Krecke, Inc. (Fairfield, N.J.); Elisha Tropper, president, Prestige Label Co., Inc. (Burgaw, N.C.); Tom Jacques, global business development manager, Paper Converting Machine Co. (Green Bay, Wis.); Suzanne Zaccone, president, Graphic Solutions, Inc. (Burr Ridge, Ill.); and Wolf Bielas, chief executive officer, RSI I.D. Technologies (Chula Vista, Calif.).

Q: Will servo-driven-so-called "gearless"-presses come to dominate the market?

Flathmann: Yes, I think they will dominate. They have a tremendous amount to offer the industry. First, is a reduction in capital costs by substantially reducing or eliminating plate cylinders. Second, is the elimination of gears, hubs, splines and associated equipment that go on the plate cylinders. And then, you can do incidentally varying repeats within the limitations of the equipment. That means you can compete directly with rotogravure.

Jacques: I think they will; it's just a matter of time. One of our customers, who had a mismounted plate on an Infiniti, adjusted the infinitely variable repeat capability on the press to compensate. As a result, they didn't have to redo their artwork and they printed something commercially acceptable. The technology actually helped them overcome a mistake in their process. You can't do that on geared presses.

Q: Will digital-print stations or digital presses become everyday, standard equipment?

Zaccone: In some areas, it will replace flexo. But first they must pick up their speed in a big way. Second, the materials must get more competitive. They are excellent presses if you have a customer who wants a real-life sample before an actual press run. But there is no way you can run 5,000 to 10,000 for all your customers everyday. It would take forever. Once they increase speeds, the press will greatly serve that small-volume market.

Q: Are technological advances moving too quickly for converters?

Tropper: It used to be that you bought a new press and the obsolescence factor was 20 years. Now, we're down to a 5-year cycle, where in 5 years, the press you buy will be obsolete. It's not that it won't run perfectly, but its capabilities will be far surpassed by the newer technology. From that perspective, the technology is outpacing the spending parameters of most companies. On the other hand, these are important technologies that must be developed.

In an industry like ours, speed is extremely important and is one of the parameters we use when choosing a press. After you achieve the ability to do something, you have to achieve the ability to do it at high speeds consistently, and then price it so it makes sense for a converter.

Q: Will flexo take over the converting industry?

Flathmann: I see it expanding more and more into areas that have been traditional strongholds for other print processes, but I don't see it ever eliminating offset, rotogravure or other processes.

Tropper: Certain customers will always pay for the luxury items. Rolls Royce will always be able to sell its cars. And there will always be a standard that certain people insist on surpassing. I think that gravure will always be there as the "Rolls Royce" process. Flexo will increase its market share, but it won't take over. There are inherent limitations to it. But it is getting a lot better, and the difference from five years ago to today will be magnified even greater during the next five years.

Q: How can today's flexible packaging or tag/label converter survive?

Zaccone: Differentiate, differentiate, differentiate. Invest in people's training and skill improvement. Also, spend time on in-process improvement to drive out costs. Our customers are asking for cost savings, and the materials, equipment and labor aren't going down in price. So the only thing you can do is either differentiate yourself to the point where price is no longer a concern, or drive costs out of your internal process to make that marginal difference.

Consider new markets and recognize that anything you can push through your press is a potential business opportunity. If I can run it through my press profitably, I'm looking at it. But I would caution that you research whether it fits into your strategic plan.

Bielas: As competition gets tougher, it's going to be who can produce at smaller costs by using technology. [Converters] need infrastructure and information systems. It's not just about buying a press-you must have the infrastructure to make everything work.

Q: Is there a trend toward flexible-packaging structures, such as plastic laminations, becoming simpler, but offering equal or greater barrier properties?

Jacques: There are a lot more multilayer structures. But other customers are laminating films to something for barrier properties. They are looking at new coating to put on the film to keep a simpler structure and achieve what they want with the coating, as opposed to another layer of film.

Flathmann: If anything, structures have become more elaborate with seven-layer extruders and laminators of all different types.

Q: Is UV flexo becoming a popular or even standard print method?

Jacques: It's becoming more popular, particularly in folding cartons, because folding cartons compete with offset printing. With UV, you can apply glossy coats and varnishes for an offset look.

Q: Other comments?

Tropper: There is a growing trend of label companies expanding into packaging and packaging companies expanding into labels. Some organizations will succeed by having this diversity and others will get in trouble by doing more than their core competencies.

Jacques: It's an exciting time to be alive in this industry because there is so much technological change. You can never know everything in the industry-as soon as you think you know everything, someone invents something new.