Data Points: Are you ready for GHS?

On June 15, 2015, chemical manufacturers, suppliers, and distributors in the United States must comply with the new Hazard Communication Standard for hazardous chemical labeling. The new standards stem from the United Nations’ Globally Harmonized System of Classification (GHS). This means that all chemicals considered “hazardous” must have a Safety Data Sheet (SDS) and be identifiable with a standardized label that includes product identifiers, explanation of the danger, and a pictogram conveying the danger.

The new system, intended to protect the health and safety of workers and the environment, could vastly change how chemical manufacturers produce labels. Previously, a monochrome-only label would suffice. Under the new regulations, the pictogram border must be in red, a change that could move many to a color “on-demand” printing solution.

This is a significant change for the chemical industry. It impacts label composition, how a label is printed, and its durability requirements. For many, it will entail a platform change, creating an opportunity for both printer and substrate manufacturers.

Historically, most chemical labeling has been done on a pre-printed shell (printed analog) with the variable information being done on a digital monochrome printer. For companies manufacturing or handling a small number of chemicals, this can still be a viable option. There is nothing for them to change except the composition of the label. Yet, while some manufacturers or suppliers deal with just a few hazardous chemicals, consider companies such as Dow Chemical, 3M, or Procter & Gamble. These companies have tens of thousands of chemicals in their product portfolio and a pre-printed shell solution will no longer work: it is simply impossible to carry every possible shell.

So the more chemicals a company is dealing with, the greater need for an on-demand solution. On-demand printing will ensure accuracy of the label, inclusion of the right data and the correct pictograms. We say inclusion of the “right data” because as this system is being adopted in the United States, there will certainly be changes and adjustments to the label requirements. Many companies will struggle with fully understanding what to include on the label, even as OSHA updates and adjusts their requirements.

On-demand printing will preclude warehousing of shells, and, as companies improve their compliance, will help prevent waste. It should be noted that the composition of the label cannot include blank pictograms. A company can’t just create pre-printed shells with nine red pictogram borders on them, filling in the applicable number of borders as needed.

This all presents opportunity for hardware vendors. For example, GHS requires the BS5609 durability standard for international shipments. Currently, Lexmark and OKI Data are currently the only vendors with fully BS5609 certified laser solutions, and Epson is presently the only vendor with a fully certified inkjet solution.

Eventually, more hardware vendors will have certified solutions and vendors who have good relationships with the label reseller channel will find success here, too. There is also an opportunity for equipment and software vendors to develop label composition solutions. Many chemical manufacturers and distributors will struggle to figure out how to take their SDS and create label content. A configurable software solution could help drive customers to a vendor’s hardware portfolio.

This is also an opportunity for the reseller channel, especially for those already in the label-centric market, to offer a comprehensive label solution. GHS-knowledgeable resellers can use their expertise to help a chemical manufacturer understand exactly which of their products need to be labeled and transitioned from their current system to the new one. Computype, in partnership with ChemADVISOR, is an example of a VAR that is already doing this.

And there is also opportunity for label producers to work with hardware vendors to develop certified solutions. We will eventually see a large shift from thermal to laser and inkjet technologies, and companies like Avery Dennison, Neenah, and 3M are in the forefront of creating durable stocks for the chemical market. There is no exact standard for the label size, it being contingent on the size of the container. This creates an opportunity for substrate manufacturers to develop custom labels—in conjunction with converters—for end-users. And let’s not forget that label converters can also be re-sellers of equipment. pP

To view this issue and past editions in a digital format, please click here.