Ink Industry Hopeful, Despite Adversities

With consolidation, one problem working against ink makers is that the rising cost of feedstocks will only further shrink the industry. "Because the other product streams that flow from a barrel of oil can garner a higher price, the competitive pressure will remain strong on that small portion that finds its way into printing inks," Coleman said. "With profit margins already well below acceptable levels, the only viable strategy is to recover those cost increases. Continual erosion of profit margins will jeopardize the existence of some companies and fuel the consolidation within the industry."