Press Retrofits—One way to seal the deal!

It happens over and over again to packaging converters and printers—customers walk into their shops asking for a packaging solution that incorporates effects the converters can’t accommodate because their press capabilities do not allow for them. Eventually these converters must decide whether to diversify their offerings or continue to turn business away. Some might be able to afford to let business walk, but for others, the extra business may make or break their year. For the latter, a major business decision is at hand.

A converter can take any number of approaches to provide solutions for its customers, but two options quickly emerge at the top of the list when considering press capabilities: invest in a new press that addresses a customer’s needs, or retrofit existing presses to expand their features and diversify the company’s offerings. “One has to look where a converter is with its business and financial plan,” says Denny ­McGee, president, MPS America LLC. “It can make a lot more sense to add expanded features to a brand new press versus adding those same additional features to an older model press in the field. It may cost less money in the long run and save downtime and operator training to put it all on the new press line. At the same time, it can make sense to add to your last press purchased, as it may be a current press based on press models not changing for several years.”

Adding capacity via retrofits

In general, there isn’t a trend one way or the other toward retrofitting versus press replacement. “The general market for retrofitting presses is converters who want to diversify their offerings with existing equipment,” says Paul Teachout, product development manager, Aquaflex, Inc. He adds that converters often retrofit to add capacity to their existing press line and increase their product offerings and application ranges. “There is not really a trend in play here,” he says. “Converters often opt for a retrofit solution to meet immediate needs or secure new client orders. Really this is a sales-driven practice.”

Dan Plash, sales manager, Telstar Engineering, agrees. “The market for retrofitting printing and converting presses stems from customer demands, internal creative thinking, and new application requirements,” he comments. “Therefore, the market is all printers with new and/or used presses looking to broaden their capabilities or tap into new exclusive markets.”

Adding other capabilities is another reason many choose to retrofit. “This would include, but not be limited to, adding rotary screen units, hot or cold foiling equipment, UV curing on one or more print units, and adding printing stations to accommodate the need for more colors,” says McGee.

Make no mistake, cost is also a factor. In some cases, it just makes more sense to retrofit a press to add capacity or capability instead of shelling out big-time bucks to purchase a brand new press. “The printing industry is constantly changing, and retrofitting presses offers our customers a faster and less expensive way to stay current,” says Gary Teeter, retrofit manager, Mark Andy. “This also allows the smaller companies to stay in competition with the larger ones.” According to Teeter, Mark Andy defines a retrofit as an addition to a press that allows it to run a new application. Teachout adds, “If the customer wants a certain capability, you figure out how to add that capability for the least amount of money.”

Never discount creativity. “Creative, cutting-edge companies tend to carve out their own niche and look for ways to differentiate themselves from the pack,” says Plash. “They constantly experiment and retrofit standard presses to do more, run faster, and print better than their competitors. The days of the creative entrepreneur are far from gone. One creative idea followed by a few retrofits could change the market or create a powerful new niche.”

Advantages/disadvantages

As with any decision, you must weigh the advantages and disadvantages and make the best choice for your business and customer base. Retrofitting won’t be for everyone, so it is important to look at all the options before purchasing a new press.

Advantages of retrofitting include getting into new markets for a relatively small investment; plus converters can upgrade older equipment with some design improvements and add improved capability. “For example,” says Teeter, “they can add UV, rotary screen, cold foil, RFID, inkjet, or coupon capability.”

Joe Posusney, marketing manager, Gallus, Inc., says, “The huge cost savings over buying a new press is the advantage.” Terry Trexler, product manager, also of Gallus adds, “There is very little disadvantage in retrofitting over the cost of purchasing a new press for additional capabilities.”

McGee cites as advantages speed to accommodate a specific customer’s requirement and the relatively small investment required for retrofitting compared to a new press line. He adds, “Retrofitting can minimize risk and allow the converter to get up and going. It may not be as pretty and not quite as productive as new press equipment, but the converter can make sure the project is for real and work toward a long-term contract with the customer.”

One disadvantage, according to ­Teeter, is that older presses may not be upgradeable to some design improvements, resulting in lower production and higher waste using older presses. He adds, “Existing equipment may already be fully utilized. Additional equipment may be the only choice.”

Effects on your business

The extent of your retrofit project will determine its effects on your business. Establish your requirements by identifying your needs; find out whether or not the OEM can retrofit the press to meet new requirements; then order, install, and commission the new system. “Keep in mind that this needs to be well planned on both sides like any important project,” says Keith Bermingham, service manager, Gallus.

“Usually the press must be taken out of production during the installation,” says Teeter. “Minimizing the press downtime is our primary goal whenever we do an installation, and that is why scheduling and staying on schedule is so critical.” He adds that usually one day on the site is all it will take to install, but the complexity of the install can result in a week-long installation.

Teachout agrees. “As with any new press purchase or retrofit installation, it’s always a challenge to not disrupt daily production. Our goal is to make the equipment’s capabilities productive, as quickly as possible,” he says. “Schedules can usually be worked out to perform retrofits [during] off hours to reduce the downtime and minimize the impact on the production flow.”

Bermingham advises to be prepared. “Always plan for the unexpected during retrofits,” he says. ­“Having a backup plan is part of the process of a successful retrofit. The timing can be anywhere from a few days to a week or more ­depending on the integration needed.”

ROI is also an important factor. The ROI on a press retrofit will vary depending on the type of retrofit, according to Teeter. McGee says it depends on the converter. “Some would say that if the retrofitting is not immediately paid for in six months or if the customer won’t pay up front for the equipment, [they’re] not interested,” he says. “On the other hand, for those that process a market relationship built around the philosophy of, ‘we will figure out how and make it work,’ might find this converter taking calculated risks and investing for the long-term relationship with the customer.”

“There is a wide range of opportunities in the market and each one will generate a different ROI,” says Teachout. “There is no set factor.”

Trexler asserts that the ROI printers may need to look for is simply, “keeping their label business in house and not losing [it] to the competition that may have capabilities a retrofit can bring.”

Careful does it

Retrofitting is not the answer for everyone, so you must carefully evaluate what is best for your business.

“Press retrofitting is usually done in response to an immediate need of the converter,” says Teachout. “It’s faster to retrofit an existing machine than it is to wait for a new machine to be built and installed. However, sometimes the retrofit reveals additional challenges that would not exist had a new machine been built with the proper specifications and technologies to satisfy both current and anticipated application needs.”

Gallus machines are modular in design, which predisposes them toward retrofitting. “The modular design of Gallus systems makes them easy to retrofit and expand to adapt to new customer needs and requirements,” says Jon Guy, president of Gallus. “New technologies and components can be integrated into existing machines at any time, keeping them constantly up-to-date.”

“Retrofitting makes sense for most customers in order to enhance their existing capability for higher production, updating the equipment with the latest design features, and especially to add more capability to get into new markets,” says Teeter.

“I believe we are at a point in the life cycle of the label converting industry where keeping alive a 25-year-old press through retrofitting may not be in the best interest of the converter and [its] customer,” says McGee. “Retrofitting to a newer model label press can make all the sense in the world, but only after a thorough look to ensure it meets technical and financial sense rules.”

The bottom line is the market for retrofitting is not going to go away. “Retrofitting will always be a factor as the industry continues to evolve and expand,” says Teachout. “New packaging technologies will continue to drive this need.” pP