The Right Time For Investments

Maximizing the potential of existing investments in the package printing industry is more than just introducing new equipment or software; it’s about smart integrations, continuous support, and understanding the market’s evolving needs.

A majority of print companies today are morphing to becoming technology-based businesses that happen to put ink and toner on substrates. Synchronizing the configuration of both hardware and software in any installation is the first step to maximizing their investments.

That could mean investing in new hardware, such as printing presses or diecutters, or making software additions, such as MIS and EPR applications.

Greg Jones, executive vice president at Sun Automation Group, which provides a comprehensive line of standalone equipment and retrofits to bolster package printing quality, efficiency, and affordability, notes when investing in either hardware or software, companies should take a careful, strategic approach to their product selection. The most important step is addressing the company’s primary needs and identifying which technologies can best address those needs.

“Companies must also consider the compatibility of new technologies with existing equipment,” he says. “They need to ensure that any new technology can be seamlessly integrated into their existing systems.”

Additionally, new technologies should be able to scale, so companies need to determine whether the technology can support growth in the long term.

“Once the hardware or software is purchased, companies can further maximize its benefits by conducting routine maintenance, adequately training staff on the new technology, and monitoring its performance,” Jones says.

Mike Philie, principal of Philie Group, works as a management consultant for several printers, so he has a good handle on money and investing issues for the industry.

“Whether it’s packaging or other forms of print, the key is to match capacity and capabilities with revenue generating opportunities,” he says. “I encourage companies to assess what they are really good at and what type of problems do they solve for their customers. Beginning with that, work to find other opportunities that fit that description, and perhaps more importantly, have a clear understanding of the type of work and clients that don’t fit within your organization.”

Once that is done, Philie notes that a keen focus on operational excellence in each area of the company should be completed, from the front to the back door.

“Set performance goals, train your staff, set clear expectations, deliver timely and meaningful feedback, and don’t tolerate those who aren’t aligned with where you are going,” he says.

Folder Gluer being run by Color Ink's Eric Burgos. | Credit: Color Ink

Color Ink, which primarily does folding cartons, also produces merchandising displays, printing direct to corrugated.

Todd Meissner, president of the Sussex, Wisconsin-based company, says having experienced structural designers and project planners is critical when making these investment decisions.

“Putting ink on paper is the easy part,” he says. “Designing folding cartons so that they can easily be converted in the most efficient way will maximize profitability. This means utilizing the right substrate with the proper grain direction, nesting layouts with the best yield possible, and working with your finishing department to make sure that the product can be converted without any hand labor or multiple passes through the finishing equipment.”

Any decision Color Ink makes regarding equipment hardware and software will typically involve one or two key individuals within the most impacted department.

“They are the ones that have to deal with the impact of those critical decisions on a daily basis,” Meissner says. “It is our responsibility as owner/operators to expose them to all of the relevant options available in the marketplace. Simply put, we have to do our homework, before we begin the buying process.”

Time For Upgrades

Each company will have to decide for itself when it’s time to make a capital investment and improve its technology. However, a savvy package printing company will do so when it reaps the most significant rewards.

“In today’s expansive printing machine market, it is imperative to thoroughly comprehend your future needs,” Jones says. “You should then strategically align these needs with manufacturers specialized in your particular application. This strategic alignment should involve a thorough assessment of your budget constraints, machine performance, the anticipated return on investment, and the lead time entailed in your decision-making process.”

Beyond the initial investment, the real value lies in the longevity and performance of the equipment. Philie is often in the discussions that revolve around the problems that new tech will solve, as well as the opportunities that they will create.

Particularly in today’s market, Philie says skilled labor is a diminishing asset, so new equipment enabling less experienced operators to perform their best is certainly worth considering.

“Another opportunity is when you have firm client opportunities that require added capabilities,” he says. “Lastly, once the ROI is confirmed, a good time to buy is when the new equipment will provide the necessary added capacity or capability, and
better match up with the velocity flow in the plant.”

Meissner says when capacity becomes an issue, that would obviously be a driving force for changing out equipment and tech; however, if you have a missing piece of the puzzle that can increase throughput, you should invest in that as well.

“With the universal shortage of available skilled labor, automation and technology enhancements can allow you to increase volume without adding more staff,” he says.

He also believes involving employees in those decisions is an essential component. “In order for them to embrace new technologies and equipment, it’s important to seek their opinions and feedback,” Meissner says. “Culture plays a big role in this. Also, once those purchases are made, it’s important to cross-train as many people as possible so that you are covered if you need to shuffle people around based on workload or a disruption in available staffing.”

Data Unveils Opportunities

Jones notes Sun Automation Group’s tech is designed to increase efficiency by integrating with existing MIS and ERP applications, ensuring a seamless flow of information and maximizing profitability.

“One key way companies can maximize their existing equipment is by taking a data-driven approach to their operations,” he says. “By leveraging machine learning/IoT and printers, operators can collect and analyze useful data to conduct predictive maintenance, reduce bottlenecks/unplanned downtime, maximize machine utilization, and optimize plant productivity.”

Recently, a prominent box manufacturer in the Midwest partnered with Sun Automation to bolster its operations. Looking to improve quality and increase production volume dramatically, the company facilitated the strategic purchasing and installation of a cutting-edge five-color rotary diecutter featuring inside printing capabilities, in addition to deploying two flexography/folding/gluing machines.

“Complementing these key assets, we also integrated peripheral equipment on both the upstream and downstream sides of these machines to streamline and automate the plant’s printing processes,” Jones says. “This meticulous planning and execution of these three production lines ensure that the company will receive the maximum ROI, and customer orders were consistently fulfilled punctually and met the highest quality standards, with minimal rejection rates.”

Finally, strategic retrofits are another great way to maximize ROI on equipment. At a lower upfront cost than replacing existing machinery altogether, retrofitted technology can increase machine efficiency, reduce energy consumption, and extend the lifespan of existing equipment.

In conclusion, investing in new technologies and equipment can help package printing companies stay ahead of their competitors, increase efficiency, and improve profitability. However, making strategic investment decisions requires a thorough understanding of the converter’s primary needs, the new technology’s compatibility with the packaging manufacturer’s existing equipment, and the combination’s potential for long-term scalability. By taking a careful and strategic approach to investing, companies can maximize their potential and unlock new revenue streams.