Changing Environment

Opportunities

For those converters that are able to make the investment in highly flexible new press technology (and the TLMI NALS study indicates that a good number of converters are planning on making such investments), the options to branch out in any number of segments will be readily available.

Says Hickey, “Depending on the converters appetite for adventure, the new presses we are buying can print virtually anything on a roll, leaving the finishing and the market penetration as the issue. As long as one is playing in the middle markets, many converters have gravitated to flexible packaging, cartons, shrink, and IML. The bet you are making is the ability to compete on the cost of the substrate side along with your ability to convince new customers you are a ‘player.’ The bigger converters address these opportunities in a market-driven way, whereas smaller converters try to sell their best customers on a chance to supply something other than labels.”