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FLEXO Magazine : September 2012
Plants & Processes Facing Intense Rivalry Jay Ziegler, Director, sales and Marketing: “We standardize everywhere We can” FLEXO: Can you begin by assessing the state-of-the-industry as it exists today? What are its top priorities and challenges? What is the outlook for efficiency, productivity, quality, safety and profitability? Is growth, both in volume and dollar sales likely this year and into the future? Why? ZIEGLER: As a generalization, the industry is swimming in a bloody ocean. As converters, we are currently challenged by each of Porter’s Five Forces. That includes: Degree of rivalry, threat of substitutes, threat of new entrants, supplier power and buyer power. That said, we are operating in an environ- ment of intense rivalry, where substitute products exist, with price compression from customers, rising costs from suppli- ers and in an industry that is relatively easy to enter. Overcapacity is certainly an issue. Quality used equipment is available at extremely low costs. New equipment is continu- ously being developed that is “faster, cheaper, better.” So, converters either enjoy less profit on product produced on older equipment; or they continuously have to invest in new TAPECON, BUFFALO, NY • Tapecon fouses on specificity. It continuously invests in technology, the plant and its people • History of delivering superior printed product, solutions and innovations to customers extends 90+ years • Recognized as a leading custom label manufacturer, bar code manufacturer, and self-adhesive label manufacturer, Tapecon has unparalleled capabilities and know-how to deliver high-impact products that decorate, identify and protect package contents • Here, cutting-edge technologies meet diverse capabilities • Active, engaged FTA Member in good standing for 40 years, 1972-2012 Printed labels as they appear on shelf-ready product. 52 FLEXO sePteMber 2012 www.flexography.org taPEcOn FTA MEMBERSHIP PORTRAIT: