Beauty and
 the Beast

So even though the recession is technically over, many companies are seeing the erosion of profit margins. This, coupled with the fragmented nature of the industry, means that merger and acquisition activity will continue for some time. According to the AWA report, "The companies involved in labeling and product decoration—as suppliers of raw materials, equipment, label laminates, printers/converters, and end users—have been the ongoing subject of consolidation. Fragmentation is highest at the printer/converter point of the value chain, and merger and acquisition has been a feature of this and other points over recent years."