The Pressure is Off, It's Cheaper

At first glance, pressure-sensitive labeling can appear cost-prohibitive, but many suppliers say to get a true picture, users should look at total applied costs.

ACCORDING TO THE 2004 North American Label Survey (NALS) completed for TLMI, pressure-sensitive (PS) labels still remain the top choice for consumer products companies (CPCs), with nearly 53 percent using PS labeling technology for the markets they serve. With such a high consumption rate for the PS labels, it would seem that users would not need any sales pressure to purchase the labels. Not true.

The whole story

Converters need to step back and take a look at the whole picture if they want see the real costs, says Lynn G. Crutchfield, executive vice president for Acucote Incorporated.

"The distinction is clear. The acquired-cost concept focuses only on the price of the label. When we consider the total applied cost for pressure-sensitive materials, it is widely believed that these materials are cost-effective for many, many applications," Crutchfield said.

The NALS report does project continued steady growth for PS labelstock materials. This segment grew 3 to 5 percent during 2003, and the outlook shows that growth will continue through 2005 at between 3 and 4 percent. The report lists PS sales revenues at $5,440 million in 2003.

So what's the big deal?

Using a total applied cost approach, it may cost less to use PS stocks, but are there other benefits? Crutchfield believes there are many advantages to using PS materials, and he named three major examples:

• Variety and versatility—"PS materials offer a wider range of products to select from than, say, glue-applied media. Thus, they give more flexibility with regard to the design and production of the label. They have the ability to be printed via different methods and offer the opportunity for less conventional shapes and sizes to be used."

• Clean and simple—"PS labels eliminate the need for messy glues, create less downtime on packaging lines, and lead to higher productivity and less waste at end use. PS labels are also more adaptable to short runs that are common in the industry."

• Better appearance and performance—"PS labels typically apply better (no wrinkles or edge lifts) and last for extended periods of time almost completely irrespective of where they are stored or used."

More possible trends

As reported in the NALS, it looks like one trend may be an increased strength in the relationship between label converters and their customers. According to the label study, nearly 63 percent of CPCs polled said they are a true partner with their label provider; 24 percent said their label converter needs to be more proactive vs. reactive, and 14 percent reported their label manufacturer only provides labels, and nothing else. But there are more trends becoming apparent that are specific to PS labels.

"The most exciting trends, in my opinion, revolve around security and brand protection. This is an intense focus area for our company," said Crutchfield. "I also feel that the 'digital explosion' will ultimately happen, although industry watchers can't agree on when or exactly how.

"We also see positive trends in the areas of food and beverage, personal care, and pharmaceutical labeling. Another trend worth mentioning is the constant evolution to film label use. As the cost differentials between traditional paper labels and film labels narrow, we believe that film will continue to make significant inroads due to its overall higher performance."

By Megan Wolf

Assistant Editor