The Situation on Ink

Is ink price not important? Are metallics losing steam? Industry experts explain the results of packagePRINTING's Ink Usage Survey.

PACKAGEPRINTING'S 8TH ANNUAL Ink Usage Survey asked tag & label, flexible packaging, and folding carton printers, as well as ink suppliers, about everything from general ink usage/sales, to hybrids, specialty inks, and more. For a better understanding of the survey tallies, packagePRINTING asked ink suppliers to give their views on the results, many of which reflect a growing and evolving ink industry.

Issues that matter

On-press predictability and ink price have battled it out for the top spot on the list of package printers' main purchasing considerations for the last few years. This year, on-press predictability won out.

Ink dry time, ink availability, technical assistance, and industry knowledge rounded out the top five pre-purchase concerns.

Last year, ink price had the full attention of printers. But, in spite of rising costs due to the increasing price and shortage of ink raw materials, for the first time in four years, ink price didn't even make the top quintet.

That's not to say price isn't important to a buyer, said Ed Dedman, business manager of SICPA North America's Narrow Web & Energy Curable Group. "I can tell you that price is still a big concern for many printers, but I also know that printers are constantly struggling with improving color predictability, which certainly has more effect on their profitability than a few cents per pound of ink usage," he said.

The whole picture—from the quality of the ink to its finished results—includes more than initial price. This kind of well-rounded thinking validates each of the five main purchasing considerations, said Deanna Whelan, marketing manager of ANI Printing Inks.

Good business relies on solutions and profitability, which "are not a result (solely) of a good price," Whelan said. "Reliable inks (on-press predictability) can reduce press downtime, lowering overall costs. Inks that perform best on-press (ink dry time) will reduce press downtime and increase uptime, providing increased profitability. Inks that are made readily available support just-in-time environments, reducing capital overhead and adding to bottom-line benefits. Excellent technical assistance can reduce press downtime, as well."

Simply put, Bryce Kristo, chief financial officer and senior vice president of corporate affairs at INX International Ink Co., said, "Quality is cost. The price of ink is immaterial compared to the productivity benefits of a strong performing, consistent ink."

More is better

More than two-thirds of surveyed printers reported employing multiple ink vendors. This is similar to the results from two years ago when 84 percent reported using several vendors to meet their ink needs.

There are pros and cons to both single-sourcing and using multiple suppliers. "The advantage [to using multiple ink vendors] is that you can use the best product offering for any given application, from the supplier that produces it, since no one manufacturer is perfect at everything," Dedman said. "The disadvantage is that when you spread your total purchases around between several suppliers, you lose leverage and purchasing power."

Using several vendors can also wreak havoc on a printer's product quality. Whelan said, "Printers who seek multiple suppliers may experience inconsistency in their print due to varying ink technologies. They may not be able to take full advantage of re-work opportunities—it may be harder to combine various ink suppliers' inks to achieve the right end product."

In addition, Whelan said, "Purchasing departments cannot easily streamline their ordering process—it is much easier to order all you need from one source. And, bundling orders, may in some cases assist in a reduction of shipping costs or overall ink costs."

But, according to Jim Coleman, executive director of the National Association of Printing Ink Manufacturers (NAPIM), "Selling ink is still a service business so that geographic presence and technical specialty is important. Several companies can compliment one another to provide for varied printer needs."

Interesting combo

Energy-curable inks are being used more and more throughout the package-printing industry as prices in the ink and curing technologies come down. However, only about one-eighth of survey respondents reported using hybrid inks—inks that combine conventional and ultra-violet (UV) or electron beam (EB) chemistries.

For the second year in a row, the majority of printers cited lack of experience and ink price as the main reasons why they don't employ hybrids. And of the 87 percent of printers who have yet to implement hybrids, only 4 percent of them plan to do so in the next six months.

A host of benefits come with hybrids, including more substrate choices, augmented scratch resistance, and increased speeds. More so, said Don Duncan, director of research at Wikoff Color Corp., "UV hybrid inks have three major advantages: 1) they will UV-coat in-line without gloss reduction (glossback); 2) they will run on conventional rubber rollers and blankets; and 3) they will cure with one, or only a few, UV lamps rather than full interstation curing that 'conventional' UV inks need," he said. "If a printer is coming from oil-based sheetfed printing, No. 1 and 2 are especially important. If a printer is currently using conventional UV, No. 3 is more important (saving money in lamps)."

Gale Waller, UV/EB product manager at INX International Ink Co., added, "This technology allows a printer to coat 10 to 30 percent of his work himself on a press that is modified by having UV lamps installed. The rollers, blankets, fountain solution, and other press parameters are not altered. By coating in-line, the printer simplifies the process, saves time, and reduces his costs."

The minor addition of UV lamps and associated costs may still be enough to keep some printers from adopting hybrid inks and its advantages, said Duncan. "Also, the inks smell differently and any change can be an issue for some press operators," he said.

Something special

Specialty inks play an important role in the ever-expanding quest for brand owners to differentiate their products on store shelves. For the past several years, the sparkle and shine of metallic inks have made them the most-used specialty inks among survey respondents. However, this year, 67 percent of printers said they used custom colors most frequently, compared to the 56 percent who said they used metallic inks the most.

There is a very good reason for this, Duncan said. "Custom colors are a cheaper way to get some types of special effects than metallics," he said.

Another reason is that custom colors sometimes include metallics, Whelan said. "It is important to realize that custom colors also include metallic matches. We see many custom metallics—so, you are getting both at once," she said.

Hot stamping inks, which were ranked the fifth most used last year, moved up to third this year, followed by fluorescent and pearlescent inks.

Important developments

Responses were similar from surveyed printers and suppliers when asked what were the most significant ink developments in the last year. Advances in UV and water-based inks, improved pigments and resins, and RFID technologies received the most comments.

However, how printers felt about the ink industry in general varied greatly. Many printers gave the industry glowing reviews, such as: "When working with the ink companies, they generally answer all questions I have. There has always been a 'can do,' not a 'cannot do' attitude."

But industry consolidation and other short-comings didn't go unnoticed. One concerned printer said, "The ink industry base continues to shrink via acquisitions by the largest ink vendors. Individual attention and customer service suffer as a result. Ink vendors try to interact with those at higher corporate levels in purchasing and R&D, and ignore concerns of day-to-day operations."

In response, Dedman said, "All I can say is to look at the general business climate, not just the ink industry—the nature of business is changing and evolving, and industry consolidation, changing markets, and eroding margins are universal challenges, no matter which industry you're in."

"Printers must understand the positive aspects of such changes and embrace the opportunities they may get from a larger supplier, who (in most cases) has the roots of a mom-and-pop shop," Whelan said. "Larger ink suppliers should be able to provide more added value—equipment opportunities for converters, wider range of products, increased technical support and R&D capabilities, and testing facilities."

Michael Impastato, vice president of market development at Flint Ink North America Packaging Division, added, "The issue of shrinking margins is a real issue in the industry. In order to provide the services the printing industry has come to expect, and invest in the development of new technology, ink companies need to be able to earn a reasonable profit. When this is not possible, there is an impact on services, reinvestment is harder, and technology suffers."

But ink will always be a major part of a printer's productivity. Impastato said, "Packaging and often graphics become the final determiner when the consumer is making that split-second decision in the retail outlet. Inks and printing often make the difference."