VISION 21 study points to packaging's bright future

Staff -- Converting Magazine, 1/1/2001

The Printing Industries of America's eight-month study, VISION 21: The Printing Industry Redefined for the 21st Century, describes the major macroeconomic and technological trends that will affect the printing field in the coming decade. For converters, it reveals a bright future ahead for printed packaging materials.

Despite signs of an impending economic slowdown this year, the study predicts a healthy 3.4 percent annual rise in GDP over the 2000-2003 period, and a 3.2 percent annual increase over the 2004-2006 period. Capital equipment purchases are forecast to climb 8.5 percent a year through 2003, and to increase 7.8 percent a year over the next three years.

Packaging, labels and wrapper printing will remain one of the stronger print-market segments, the study says, because it is largely immune to digital substitution and will become increasingly important in an evolving retail arena split between the bricks of huge superstores and the clicks of virtual Internet-based businesses.

Although much of packaging, labels and wrapper printing requires substantial investments in large-scale unique production systems, VISION 21 reports, there will be increasing opportunities for mid-size commercial printers in converting labels and wrappers for local manufacturing operations.

Test-market packaging will also offer an opportunity to enter this market, the study suggests. These extremely short-run, mockup products require creative design and production capabilities that are often well-suited to local innovative printers.

The PIA study was sponsored by Heidelberg, Sun Chemical, Kodak Polychrome, Georgia-Pacific and Impresse (an industry e-commerce portal). More info: 703/519-8100, fax: 703/548-3277, www.gain.net