FLEXO Magazine’s Year in Review 2015

Spurred by Rising Demand, Industry Advancements & Complementary Processes, Flexography’s Dominance of Package Printing Continues

Robert Moran & Brad Pareso

In the 12 months since FLEXO last took a wide lens view of the package printing industry, plenty of things have changed. New machinery became available for purchase. Companies large and small expanded, merged and rebranded. Consumer preferences worked to pull different pack types to the forefront and leave other formats behind. Technology continued to become ingrained in both sides of the grocery aisle.

INFO*FLEX 1
An aerial shot of the show floor at INFO*FLEX 2015, inside the Music City Center in Nashville, TN

Amid this perpetually evolving landscape, one constant remains: Flexography’s dominance. The package printing industry’s overall growth means every format has room to stretch, but flexography’s continuing to grow in tandem with demand means it remains the leader. And as its efficiencies improve, its practitioners become more skilled and its virtues become understood in new areas of the world, flexography will remain the undisputed king of the market.

Forecasts

Making good on many of the predictions of the past few years, flexography—and package printing as a whole—continued to grow. If recent forecasts are to be believed, that won’t be changing in the short term, with many market segments expected to see strong growth.

  • Flexible packaging will be valued at $248 billion globally, according to Smithers Pira
  • U.S. label demand will grow at a rate of 3.8 percent annually and be worth $19.7 billion by 2019, according to Freedonia Group
  • Folding cartons will be valued at $100 billion globally, according to Smithers Pira
  • The corrugated market will see a compound annual growth rate of 4 percent through 2020, according to Persistence Market Research
  • The flexographic ink market will be valued at $9.3 billion globally, according to Transparency Market Research
  • The market for tube packaging will be worth $8.63 billion by 2020, according to Markets And Markets
  • Stickpacks will see 6.26 percent compound annual growth through 2020, according to Markets And Markets

Industry Happenings

The flexographic industry lost several of its most vital members this year, all with long records of devoting their time and energy to FTA’s endeavors. They included:

  • Peter Giannandrea, 66, who volunteered as a judge at four Excellence in Flexography Awards competitions
  • Larry Kubicki, 55, who volunteered as an Excellence Awards judge for three years and served as a committee member for two
  • Frank Siconolfi, 89, an FTA Hall of Fame member who was instrumental in several editions of Flexography: Principles & Practices and involved with the organization since its inception in 1958
  • D. Wray Peal, 83, also an FTA Hall of Famer, who was a vital member of the industry and gave back in his ideas and teachings

Flexography related business continued to be attractive targets for mergers and acquisitions, both by outside firms and other companies in the industry. Some of the M&A activity this year included:

  • Maxcess acquired Fives North America Guiding
  • MeadWestvaco and RockTenn merged to form WestRock Co.
  • Glenroy Inc. acquired PF Flexibles
  • A&M Labels and Labels Unlimited merged to form Fortis Solutions Group
  • Esko acquired MediaBeacon Inc.
  • COMET Group acquired PCT Engineered Systems
  • Bobst Group acquired a majority share of Nuova GIDUE S.r.L. and renamed the company Bobst Firenze S.r.L.
  • Brother Industries acquired Domino Printing Sciences
  • Taylor Corp. acquired Standard Register, Inc.
  • Electronics For Imaging acquired Matan Digital Printers and merged Corrugated Technologies Inc. into its Productivity Software Business unit
  • Fort Dearborn Co. acquired Core Label
  • Tapp Label Co. acquired Metro Label
  • Barry-Wehmiller acquired Bielomatik’s paper processing line
  • Goss International was sold to American Industrial Partners
  • Maxcess acquired Valley Roller Co.
  • ContiTech acquired TEGU Walzen und Sleeves GmbH
  • Microscan Systems, Inc. acquired Label Vision Systems
  • Wellspring Capital Management acquired Ampac Holdings and Prolamina Corp., naming the entity ProAmpac
  • Transcontinental Inc. acquired Ultra Flex Packaging Corp.
  • Flint Group acquired Xeikon
  • Graphic Packaging International acquired G-Box S.A. de C.V.
Awards Judging
Judges get up close with print samples entered in the 2015 Excellence in Flexography Awards competition.

To keep up with demand and take advantage of the growing industry, many flexographic businesses expanded in 2015, opening new locations and adding square footage to existing ones:

  • CCL Label DES expanded in Clinton, SC
  • MacDermid Printing Solutions expanded in Morristown, TN
  • Uteco opened a new facility in Kennesaw, GA
  • INX International Ink Co. opened a new facility in Lebanon, OH
  • Kocher + Beck expanded its Lenexa, KS facility
  • Maxcess expanded facilities in Chicopee, MA and Neenah, WI
  • Yazoo Mills expanded in Hanover, PA
  • Prisco expanded its Charlotte, NC facility
  • Sun Chemical opened six facilities in Latin America
  • Nordmeccanica opened a new facility in Hauppauge, NY
  • Inland expanded its La Crosse, WI facility
  • Menasha expanded its facility in Neenah, WI
  • OEC Graphics opened a facility on Mitchell Island
  • Eaglewood Technologies opened a facility in Illinois
  • American Packaging Co. expanded its facility in Story City, IA
  • Label Technology added a flexible packaging plant

And in an effort to reposition themselves amid new offerings and expanded capabilities, some flexographic businesses rebranded:

  • Inland Label rebranded as Inland
  • Apex Group of Companies rebranded as Apex International
  • Genesis Brand Design rebranded as AMPHORA Brand Design
  • Brewers Ink rebranded as Kor-Chem Graphics Arts Division
  • RR Donnelley split into three companies
  • Rogers Corp. rebranded its High Performance Foams Division as Elastomeric Material Solutions
  • SGK rebranded Matthews Brand Solutions as Schawk