Label industry Metamorphosis

The 2003 pressure cooker

Many label printers are probably glad that 2003 is behind them. According to Hulton, it was a year that was difficult for many label printers due to the extreme pressure on pricing, and he believes that the pressure will continue through 2004.

The effect of this pressure, especially from the consumer products companies (CPCs), is mentioned in the just-released Tag and Label Manufacturers Institute (TLMI) "North American Label Study (NALS) 2004" (copyright LPC, Inc., courtesy of the TLMI). It says, "… the modus operandi of CPCs and other institutional label procurers in the past three years has been to, first and foremost, implement supply chain strategies that cut costs. This issue remains a central one to the pressure-sensitive label converter in 2004, and these initiatives will continue to affect the success, or failure, of label converters to combat margin erosion and maintain customer loyalty."