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 : January 2014
INDUSTRY INDICATORS Signed, Sealed, Delivered Envelope Market Quality Up, Demand Steady By Lonnie Robinson The envelope industry is in a state of flux, due primarily to one of the largest manufacturers in the industry filing for bankruptcy for the second time in three years, then being purchased by another large envelope corporation. Now a single entity controls approximately 50 percent of the U.S. envelope market. As is often the case in any industry, this change has created uncertainty and some growth opportunity as buyers shift business and loyalties. In general, the envelope industry is very mature, with over- all production volumes being flat to slightly up year over year. Volume is expected to be stable for the next couple of years with an overall decline of about 60 billion envelopes by 2020 from the high of roughly 200 billion in 2006. USPS’ SUCCESSES Most of the volume of envelopes produced are filled and delivered through the United States Postal Service; conse- quently the industry ’s health and growth is directly tied to the USPS. The problems of the USPS are well documented today. The USPS is not a government agency and it is not supported by tax dollars; it is, however, handcuffed by legislative control. Rather than taxes, the revenue for the service comes from the postage paid by mailers. The most profitable product in the revenue stream is single piece first class mail. This product is susceptible to electronic substitution and, as a result, email and electronic bill payment have reduced the use of stamped mail and caused the highest profit line to decline the fastest. ENVELOPE MARKET TAKEAWAYS • Adhering to FIRST, increased lpi leading to improvements in print quality • Volume flat to slightly up for next few years; down from 2006 peak • One entity controls roughly half of U.S . market • USPS ended 2013 profitable before health care expenditure 24 FLEXO JANUARY 2014 www.flexography.org Courtesy of EMA Foundation Courtesy of Envelope Manufacturers Association