4. Pivot
To little surprise, Nikki recommended be ready to take fast action. “Change course. Tweak. Respond when things don’t go as planned. Agility is the key to your success.” Adding another caution, she said, “The process has changed. That means it requires more money.”
3. Don’t Leave Labels Lonely
Proper respect for humble beginnings took root here. “Labels got you to where you are,” Nikki noted. “Continue to focus on your core, even though your core is changing. Don’t lose sight of where it all began.” At Kala, roll stock-related flexibles are generally produced flexographically, while stand-up pouches, the big driver with current customers, go digital, given a propensity for one-stop converting and enhanced speed to market. Here, however, Nikki said, “Everyone’s experience differs; the right solution at one plant might just be the opposite at another.”
2. Crossover?—Ehh…
Admitting that what transpired at Kala was not what was expected, Nikki explained, “Digital is making more sense for flexible packaging production than we ever thought it would.” She also observed, “That contradicts what we know about flexo vs. digital, short vs. long runs, breakeven points, etc.”
Elaborating on the point, she detailed, “Speed to market is critical and crossover is deeply connected to price. At Kala, that’s not a game that we want to play. Instead, we insist on focusing on benefits delivered, namely speed, quality and customer experience.”
1. This Is Hard, but Can Be Very Rewarding
Nikki maintained, “It takes time to get proficient in providing consistent quality. It requires locking down processes and materials.” Her advice: “Test and validate. Make certain the supply chain is sustainable.”
At Kala, Nikki indicated that growth is on a steep incline. “Labels are growing; flexible packaging is outpacing the label application.” In a nod to strategic direction, she reported, “We continue to invest, knowing there is more to come. We’re eyeing a new facility before too long. While we started with the majority of work being flexo, we allowed emerging mid web digital technology to dictate where work is to go. Still, flexo is a market we will continue to promote and invest in.”
In offering final thoughts, Nikki commented, “This experience allowed us to automate pretty much everything we do. It’s all about being able to track and trace. It’s where we need to be. Kala will always advocate pursuing specialty applications super smartly.”
Eventual Experts
Tina Hart stood side by side with Nikki in encouraging narrow web converters to get into the flexible packaging space. Benefits she outlined included: brand loyalty, convenience, sustainability, differentiation and, of course, cost consciousness.
Among the objectives behind making the move, Tina offered her own short list. “Drive innovation. Fit consumer lifestyles. Use less energy. Reduce transport expenses, as well as your carbon footprint.”
Delivering some brief market demographics, she indicated that research pegged packaging as a $170 billion industry in the U.S. Corrugated, at 23 percent, takes the largest share, followed closely by flexible packaging at 19 percent—that’s a $30 billion+ business. Delving deeper, she said, “Food is the No. 1 player in printed packaging where narrow web is a major presence, with some 48 percent of food packaging printed on 10-in. to 13-in. presses.” For example, stickpacks are experiencing 5 percent to 6 percent annual growth and such finished packages are generally between 10-in. and 20-in. wide.
Label printers have reported narrow web flexible packaging production growth rates of upwards of 10 percent (some say 15 percent), according to the statistics Tina provided. Flexo printing for flexible packaging is up 12 percent.
Narrow web converters entering flexible packaging can capitalize on posture and experience in delivering customer benefits, Tina decreed. Such printers are often experts in small runs, short lead times, low setup costs and increased speed to market.
She challenged such operations to leverage these advantages. “Seize an opportunity. Move toward packaging consultation. Moving full speed ahead, embrace an approach for forward/backward integration with contract packaging.”
Tina, like Nikki, urged label converters interested in pursuing the dream of moving into flexible packaging to recognize the fact that complexity is entailed. She also maintained, “Flexible packaging production holds similar value claims to label printing.” To that, she added, “Ultimately, you know how to service the value chain.”
Steps to be taken, as conveyed by Tina: “Assess capabilities—presses, corona treaters, laminators, slitters, rewinders, inspection equipment, inks, adhesives—everything required to do the job and do it correctly.
“Eventual experts—see yourself that way!” she decreed. “Focus on existing customers. Service needs. Develop relationships. Look to co-packers to help in building your business. Upstream benefits are sure to accrue.”
FTA, touting its brand-new partnership with Tarsus (Labelexpo’s management), experienced the most active traffic in its history of exhibiting. More than 200 qualified attendees stopped by the booth, curious to learn more about the value of membership, what Flexographic Image Reproduction Specifications & Tolerances (FIRST) certification is all about, future events and the new MemberConnect online portal exclusive to its members. All visitors were entered into a member/prospective member appreciation raffle, where three winners were drawn from 300+ booth visitors to receive $1,000—one for each day of the event. Congratulations to:
- Neil Doniger, Nadco Tapes & Labels Inc
- Brad Keys, Flesh Co
- Rick Cervarich, DuPont Advanced Printing