Trends that are having an impact on paper converting include operating speeds, converting equipment technology, the globalization of the paper market and the constant demand for cost reduction. The biggest single trend, however, is the use of variable data.

Variable data is important in many applications, like target marketing, short-run jobs, and a variety of individual packaging needs (shipping, warehousing, medical, etc.). The impact of variable-data use on converting operations is significant. Roll sizes (width and diameter), printing technology application (direct thermal, thermal transfer, laser) and label-making material (paper face stocks, films and foils) all present challenges to the material suppliers as they address modern market challenges.

The choice of supplier for the materials has become more critical, but suppliers have limited and specific equipment to produce converted products. Slitting, winding and coating equipment is engineered for specific end-uses in the market. The supplier market seems to have split in half—those who serve the big commodity consumers, and those serving the smaller markets.

Investments made by the bigger companies are directed primarily at the big end-user market, favoring little changeover and recognizing cost pressures. The smaller companies have invested in equipment for serving local markets, those using high-tech variable data, and those wanting to use more distinctive materials in packaging.

Let's take, for example, the beer and wine markets. Beer labels represent a high-speed, commodity-driven market that requires very little difference from order to order (except, perhaps, manufacturing location and date). The big companies like International Paper and Stora Enso have made investments to produce gigantic amounts of commodity coated papers to sell to big converters to make label stock for beer bottles. Their focus is on uniform quality and they compete on cost. IP's mills in Wisconsin make the backing papers and release liners of various qualities and target sales to the big labelmakers. Cost efficiency is their big concern in manufacture and sales, which is a great advantage to the big breweries and beverage companies. The sheer size of their equipment and distribution systems makes for great efficiencies, which benefit consumers with national focus.

The wine market is completely different. Regional marketers desire distinction and must act fast to catch consumer trends or customer needs. The label-material supplier must be flexible and skillful in filling orders for odd-sized rolls (re: smaller), choice of face stock, manufacture and transport, and terms. The paper mills have done a good job in providing a wider variety of materials to converters, like triple-coated papers, text and writing papers of various surface textures and colors, and strong papers for processing (embossing, engraving, foil).

Savvy label-making materials companies like Wausau Coated Papers and Rhinelander Paper have invested to serve these markets with coating equipment, slitting and winding houses and new product development.

These producers have narrower equipment and precision operations to serve the ever-growing short-run market with smaller rolls of specialty materials. Though big markets exist in health and beauty aids, where films are said to be growing, warehousing and distribution systems are currently growing fastest. Internet e-tailers have been forced to create "brick and mortar" operations. Their traditional retail rivals have had to compete against the e-tailers with more aggressive and precise shipping strategies.

The way competitors seek operating effectiveness and efficiency is through labeling. The labels are made using variable data, and require a variety of sizes and qualities. To serve this market, it's probably best to choose a more service-focused supplier—one with more flexibility in materials inventory and quick delivery.

Paper companies have done a good job of providing label-making materials companies with different stocks, including premium uncoated, freesheet papers. Premium uncoated papers from Neenah, Fraser, Beckett, Wausau and others come in various whites, creams and colors, as well as textures like linen, laid, columns—just to name a few. These papers are now made to withstand rigorous label converting.

Liner technology is also improved. Several mills have adequate glassine technology, which is just a big dryer for surface finishing. The paper range is from translucent to supercalendered.

Converters are always seeking to reduce cost. That often means lowering the basis weight of the paper (the thickness across an area). Unfortunately, when the paper weight decreases, quality of the label can also suffer. The material must have a sufficiently strong matrix to avoid strike-through and show-through. It is therefore important to sample and test new materials of lower weight.

When the papermaker lowers the weight, he removes fiber and adds fillers—not expensive ones like titanium, but cheaper ones like calcium carbonate. This reduces strength, which not only has an effect on print quality but also on processing. With labelmaking operations reaching such high speeds, the paper must be very stiff and strong. Reducing fiber decreases the stiffness.

Acid-free papers have gained some interest—not necessarily as an archival feature, but for safety. Stickers for kids and foods are required to be acid-free. Also, the products are actually brighter and cheaper than acid-containing papers.

Market growth and maturity also influence materials. The thermal-transfer market is a case in point. Nonexistent 10 years ago, thermal-transfer today occupies a full third of label converting. Today, labelmakers have lots of choices of suppliers. To gain distinction, label-material producers have to be able to provide a variety of coated and finished face stocks to fit the newest needs—including inventory control, roll tracking, retail, Internet shipping and bar coding—all at low cost.

Technology has had a great impact on converting processes and materials. The theme is not always "bigger, faster, wider," as it is for established companies that are national or international in scope. The new group is focusing in on high quality for local customers. Roll sizes of 15 to 20 in. wide and 15,000-ft lengths are not unusual.

These smaller rolls must perform perfectly with the new equipment—primarily variable data at high speed. Release characteristics and strength of the facestock are key to performance. Label-material producers must perform silicone coating with great precision and accuracy. Paper companies and label producers who do not have their own on-site silicone coaters are challenged by inconsistency. In any case, these variable-data producers require consistent quality reproduction.

The latest challenge is demand for films for roll applications. Obviously, converters with their own silicone-coating equipment have an advantage in flexibility and shipping.

Look for a variety of new roll films to be hitting the market this year to satisfy high-speed, variable-data requirements.

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