Tough Times

Many industry analysts have predicted for some time that the tag-and-label industry would experience consolidation at all levels. The depth of this recession could make consolidation a more likely occurance in the coming months.

"The recession is a 'deleveraging', a D-process," says Zarwan. "In every industry, weaker hands will fold, for whatever reason. We have already seen this with the very large integrated packaging converters … The tag and label printing industry will be no different from other industries in this regard. Some companies will close, others will be sold to those looking to acquire good assets at a discount."