Million-dollar Label Questions

Which trends will impact growth and profitability most?

Overcapacity. Competition at the base material supplier and converter level continues to be intense. Nick Calvetti, president of Amherst Label, believes there is excess capacity at the converter level. Because buyers have many choices, getting new business requires doing something the competition cannot do. Scarborough indicates excess capacity also exists at the base material supplier level, with at least four suppliers either recently adding, or planning to add, coating capacity, including the announcement that Raflatac will be building a U.S. plant.