STATE OF THE INDUSTRY ON THE OFFENSIVE

Though prospects for the label converting market remain favorable for the foreseeable future, converters must be realistic about the time it may take for the economy to right itself. Freedonia Group's World Label Study, released in November 2001, forecasts just over 5 percent growth for the U.S. label market through 2005 (in real terms, or sq. m). Pricing is estimated to grow 7 percent during this period. "As far as [label market growth in] 2002 specifically, it depends on the economy, and that's anyone's guess right now," remarks Paul Bailin, senior industry analyst for packaging and security. Bailin notes large converters are likely to continue to turn their focus internationally as growth in the United States continues to be slow.