by clicking the arrows at the side of the page, or by using the toolbar.
by clicking anywhere on the page.
by dragging the page around when zoomed in.
by clicking anywhere on the page when zoomed in.
web sites or send emails by clicking on hyperlinks.
Email this page to a friend
Search this issue
Index - jump to page or section
Archive - view past issues
FLEXO Magazine : November 2008
INDUSTRY INDICATORS they are using their supply chain and leverage to make it afford- able. Many retailers have the same program. They believe there is a benefit to consumers.” During his keynote address, Scarborough told attendees that consumers do consider environmental issues when buying a product. However, on the show floor, he added an important caveat: “Consumers are not going to pay a premium for environ- mentally friendly products. They can’t afford it. If it’s a choice between feeding your family and being green, you are going to feed your family.” In this arena, Wal-Mart’s influence has been very positive. He noted that being both green and affordable is “tough to achieve— that’s why there is such a high level of interest.” And for the small label converter, where bulk runs are not common, it’s even more challenging. His solution: thinner label stock material. “Using less product for the same result,” he said. “Trees are a renewable re- source! As long as forests are responsibly managed, there should be no problem using paper. Films have the advantage of being easily recycled. There are a lot of options out there. The economic pressure actually helps. Using less input to get more output is not only good for business; it’s good for the environment.” BIG AND SMALL When asked about the effects of the globalizing market, Scarborough’s response concurred with that of label guru Mike Fairely in that, in the narrow-web industry, it was noticeable but not as severe as in other markets (see FLEXO August page 30). “There are certain applications and markets that are more vertical by nature,” he said. “If you are going to work with a pharmaceuti- cal company, it is going to have a more global look in terms of what it does. The challenge there is how to deal with them.” Global expansion is not in the cards for everyone, he added. “For a small label converter doing $25 million in sales, it doesn’t have the resources to open a shop in China. It can link up with established companies and learn from each other. However, even today, label applications tend to be small and localized. In this case, differentiating yourself through service, sticking to your knitting and innovation is the other strategy.” The idea is to go beyond competing for price. “When label converters get in trouble is when they go out and bid on existing jobs. Bring some innovation to the picture. Demonstrate some- thing different. The market is consolidating, but it’s consolidating from 10,000 to, what, 6,000? That’s still pretty fragmented.”?