New Mark Andy CEO Kevin Wilken Shares His Perspective on the Packaging Market

Mark Andy has been at the forefront of flexographic printing and converting almost since its inception nearly 70 years ago. Over the years the company has continually innovated and brought forth new technologies that have helped package printers and converters move forward and add value for their customers. Kevin Wilken, the new CEO of Mark Andy arrived in the top job just as the company rolled out its new hybrid digital technology, the Digital Series, which draws a line in the sand stating that digital printing has a role to play in the labels and packaging space. The new fully inline system offers printers and converters a unique option not available from some of the digital-only companies that are intruding on the label and packaging space.

This month, packagePRINTING caught up with Wilken to hear his perspective on the changes in the packaging market and how Mark Andy fits in.

pP: First of all, congratulations on the new Mark Andy Digital Series. How are customers reacting?

KW: There's a high level of interest and feedback is very positive. But you have to understand that we didn't create this system on our own. It was designed with the input of an advisory board made up of a cross-section of converters. Their help was invaluable in developing the system based on how it would fit their businesses. There have been a number of digital presses that required customers to change their business to fit the press but the Digital Series adapts more easily to converters' business environments.

pP: This was not your first attempt at a digital offering. What did you learn that you applied to the new system?

KW: In a previous pass at digital integration we had a printing system that was too slow and a converting system with changeover times that were too long. We have learned a lot in recent years. Now we have a high-speed digital inkjet and flexo printing platform with fast set-up and changeover for converting. Our mantra is to let the converter to pick the technology that works the best in their business environment. We don't care what technology they choose, we just want to provide the right solution to fit their business need.

pP: By bringing this hybrid technology to market you must have a vision of what the future may be like for packaging printers and converters. What does it look like?

KW: Converters need to be able to address all the needs of their customers so they will have to be flexible in terms of the technology they choose, what it can do, and they will need to be very responsive. Shorter runs and proliferating SKUs are a reality and converters have to be able to supply them and still be profitable.

pP: What about the technologies they will be working with?

KW: There are about half a dozen flexographic press suppliers, various offset suppliers and some digital press suppliers. They all do certain things and there's no one-size fits all solution, so the successful converter really needs both digital and flexo systems. For example, a CPG (consumer package goods) company coming to a shop using a digital press might say, "Run these prototype brand labels for me." And the shop proofs them and does some small lots with the pricing based on the short runs. But then the CPG comes back and says, "OK now we need 500,000." They are expecting the discounts that come with high volume, but the converter can be stuck being unable to deliver at those volumes and price points if they are relying solely on digital equipment.

Or turn it around. During the development process a converter could be running jobs on a conventional press that really isn't practical for those runs, hoping to make up the cost difference when the run lengths grow. But suppose they don't grow, or the job goes to another provider? So you really need to have both types of presses to be cost-effective across the board.

pP: You mention commercial printers stepping into the label and packaging space. This sounds like a natural transition but it's actually not as simple as it seems.

KW: It's not. Workflows within a typical label or packaging operation are actually quite a bit different than commercial operations. Customers want to vary copy and graphic content, print on both sides of the web, add and evolve package decoration so they have to mix several print options, decorations, and reverse and/or turn the web. Then jobs are converted in line, where it has to go through diecutting or sheeting resulting in completely finished product in one-pass. The difference between the commercial shops and converters is that most converters are continually evolving with new product development, adapting to changing consumer product packaging trends, looking for ways to differentiate themselves and offer the highest quality with most efficient production processes. They all buy much of the same equipment but customize it to add features and capabilities to help differentiate their businesses.

pP: Talk about differentiation for a minute.

KW: There are lots of ways to do this. It can be in the technology you have available and the value it delivers. Some converters develop internal processes that make them much more efficient, or develop new and unique applications and internal processes that add value for customers. Converters need to think about all of this and more to gain an edge, especially with competition coming from so many new and different directions.

pP: Let me circle back for a minute here. The digital press companies are aiming at the package market and so are some commercial printers. How does the confluence of these players work?

KW: They both have a learning curve to climb in developing a profitable business model. Packaging is so much more complex. It is decades of experience in applications, how to support customers and brand owners, how to help converters configure a press to produce applications as demand changes. Knowing how difficult packaging can be, I struggle to see how someone with just an inkjet or digital technology background and who is unfamiliar with packaging can come easily enter into the industry.

pP: Thank you for for the time, Kevin. Any final thoughts?

KW: At the end of the day, the technology used to print labels and packaging is secondary to meeting the needs of the customer. You have to print and convert and do a whole lot of things to be a profitable converter. And it's essential that the press supplier also be able to integrate many technologies and combine it with in-depth packaging knowledge to develop a solution. That's what it's all about. pP