Globalization: What’s the Deal?

Dahbura echoes Weitz’s comments. “On the positive side, new raw materials vendors have entered the U.S. market and have created an unprecedented level of competition for our business, which has helped us keep our prices lower and more stable,” he says.

Where are we?

Globalization really is that big a deal, whether or not all converters have felt its impact yet. “Converters are in a position to hear the giant sucking sound of manufacturing heading overseas,” says Dahbura. “The irony is that we have seen obvious inefficiencies in the way some of our former customers managed their label purchasing programs, and have experienced how difficult it was to get them to change their wasteful ways.” He says Hub Label reasoned that the customers had relatively painless efficiencies that could be gained, but instead, the easy short-term solution for them was to move operations offshore. Hub Label’s main strategy has been to target markets and customers that are less likely to pick up production and move it overseas.