Technology and process trends in the Canadian printing industry
20 What’s holding back digitally printed packaging?
An exploration of the factors that are limiting the use of digital presses in packaging manufacturing
24 The potential of RFID technology
This tech is catching the attention of label and packaging converters who are looking to diversify into new markets
DEPARTMENTS
GAMUT
5 News, People, Installs
8 Calendar
NEW PRODUCTS
28 Introducing new solutions from Canon, Xeikon, and Miraclon
SPOTLIGHT
30 Ian Burke, owner and CEO, Burke Group
COLUMNS
FROM THE EDITOR
4 Nithya Caleb
Labels and flexible packaging options
INSIDER
8 Bob Dale and Gordon Griffiths Paper supply: Crisis or opportunity?
CHRONICLE
10 Nick Howard
The first Rolands in North America 24 30 20 12
Labels and flexible packaging options
Arecent webinar by the Digital Imaging Association explored the status of the label and flexible packaging market, the impact of digital technology, and opportunities for interested printers.
Consumer trends
5%
Flexible packaging has grown four to five per cent a year for the last 50 years.
According to Jeff Sommer, vice-president, business development, Lorpon Label, the label industry is seeing massive proliferation in SKUs, a drive for hyper-personalizations (different languages and regions), variable data-driven content, and a lot of small runs as well as requests for embellishments and special effects.
A lot of customers are forgoing creative ideas that they would have used in the past due to supply chain issues, added Deanne Sinclair, president & partner, Cambridge Label. Consumers are choosing standard options given the long lead time for procuring some unique substrates.
Stand-up pouch continues to be the major trend in flexible packaging, said David Haley, flexible packaging specialist, HP.
Things to keep in mind for new market entrants
People looking to enter the digital label printing market must become efficient in managing work flow, learn about adhesives and liners as well as become an expert in using die-cutting tools.
Phil Hampson, regional sales manager, Durst, urged interested printers to factor in the cost of finishing equipment.
“Finishing is extremely more complicated than the printing process,” he said.
Haley highlighted the difficulty in recruiting talented people in the flexible packaging sector. Flexible packaging printers must be open to paying a higher wage, such as $40 for a wide web operator. This concern was echoed by Sinclair, who said employees are feeling the pinch. Cambridge recently implemented a wage increase across the board to compensate people appropriately as well as to help with the rising cost of living and retain talent.
Inline or offline
“Emphatically no to inline finishing,” said Sommer. It’s far too complex with
multiple options that will slow down the digital presses. Sinclair agreed with Sommer. Since Cambridge Label does a lot of small to mid-sized runs, it would be time-consuming to switch between orders/finishing (e.g. gloss to matte and back to gloss) inline.
Supply chain issues
Both Sommer and Sinclair spoke about the challenges with procuring raw material. “We had to take over more warehousing space to store a large amount of inventory, which we never did in the past. Normally, I would receive supply every two days. Now, materials take months to arrive, so we have to plan and carry more,” said Sinclair.
According to Hampson, equipment lead times are dire, around four to five months. The other challenge is shipping the equipment to the customer. However, it wasn’t all doom and gloom. The panelists also highlighted possibilities for growth in label and flexible packaging. I’ll touch upon a few below.
Growth areas
Flexible packaging has grown four to five per cent a year for the last 50 years. This will continue, largely driven by demand for CPGs and pharmaceuticals. Digital flexible packaging, which has existed only for seven years, is growing by about 40 per cent a year, said Haley. He added that the digital flexible packaging market is estimated to be around $1.2 billion, and most of that is in food and nutraceutical.
Hampson highlighted that Durst plans to focus on increasing run speeds, creating different inks and formulations, as well as coming up with solutions for the corrugated market.
On-demand corrugated packaging is seeing tremendous growth, according to Cled DeSouza, senior director, technical solutions, Graphic Systems & Solutions, Spicers. “Single-pass printing in wider widths at high speed using water-based pigments to accommodate larger boxes” will become more prevalent, he said.
Reader Service
2022 |
NITHYA CALEB Editor ncaleb@annexbusinessmedia.com
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The Hybrid Software Group PLC acquires the business and assets related to iC3D from Creative Edge Software.
The iC3D software suite generates photo-realistic 3D virtual mock-ups on the fly, allowing cartons, labels, flexibles, bottles, shrink sleeves, point-of-sale displays, and in-store visualization to be accurately rendered for design verification and e-commerce applications. IC3D also offers the industry’s largest library of modelling templates for digital packaging design and prototyping as well as an online viewing platform, which allows designers, brands, and print providers to collaborate on new designs with accurate real-time 3D rendering.
Highcon Systems and Tilia Labs announce a partnership that will build the software capabilities of Tilia Phoenix into every Highcon system going forward.
As part of this partnership, Tilia Labs will develop functionality to automatically place optimized nicks and stripping lines within the base version of Tilia Phoenix, their flagship planning and imposition application.
Spicers Canada acquires Duroflex Specialty Papers, a distributor of specialty products to the graphic arts industry. Privately owned and located in Mississauga, Ont., Duroflex has operated for 22
years with a focus on delivering unique product solutions and service excellence with a sincere alignment to its customers’ distinct needs. Duroflex will initially operate independently while it is determined how best to align its customers’ needs to Spicers logistics capabilities.
Prime Data launches “Carbon Neutral Direct Mail – From Tree to Mailbox,” a net-zero carbon direct mail service that offsets all emissions from the tree through to the mailbox. For the first time, a direct mail piece can be produced and mailed with net-zero carbon impact. The program was made possible due to results of a study commissioned by Prime Data to account for the full scope of direct mail emissions. It included not only their employees’ commute to work and their production facility, but also the papers they use, and emissions reported by Canada Post.
A family-owned business for more than 100 years, Imprimerie Gauvin is looking to the future with GoLibro. The platform allows Gauvin’s customers to automate the print ordering process and deliver copies to multiple addresses. This way, publishers can reduce the number of copies they need to print, simplifying inventory management and cutting down on book returns.
To support the growth of Imprimerie Gauvin and GoLibro, the Fonds régionaux de solidarité FTQ Outaouais is investing $1 million in the company. This financing will help the company acquire new high-performance equipment and invest in business and operational intelligence.
Quebec-based Technorol acquires the offset division of Grimco Canada, formerly Cobalt Graphic and Ernest Green. Technorol manufactures rubber rollers, converts printing and varnishing blankets, and distributes chemicals and consumables for the graphic arts industry throughout Canada.
Heidelberg signs distribution agreement for AN Corporation’s Kawahara postpress systems.
In summer 2021, Heidelberg launched the Generation 4 CutStar, the Speedmaster XL 106-D rotary die cutter, and a new Performance Package for in-mold label production on the Speedmaster XL 106. It is now further expanding this portfolio by entering into a worldwide distribution agreement with the Japanese company AN Corporation for the Kawahara TXS-1100 and Kawahara BMS-1100 automated postpress systems. This marks the global rollout of a pilot agreement that concluded for the North America region last year.
The Kawahara TXS-1100 and Kawahara BMS-1100 blanking stations are both high-performance models. It takes less than 15 minutes to set up a job and tooling costs are minimal.
Ricoh Europe has agreed to a landmark €50 million print-
head technology deal to extend its successful collaboration with Durst Group AG
As part of this new deal, Ricoh printheads will be developed for upcoming Durst printing systems for their various fields of application.
Agfa is taking steps to encourage and promote more sustainable printing practices with the expansion of its GreenWorks program. Agfa is broadening the GreenWorks criteria to include PressTune, InkTune, and SPIR@L screening technologies. The GreenWorks program is designed to reward and bring awareness to Agfa customers operating in more ecologically responsible ways.
To become GreenWorks accredited, printers purchase any one of Agfa’s process-free, chemistry-free, or no-bake printing plates and or its sustainable software solutions that are designed to reduce ink, paper, and waste. Printers must actively participate in other environmental programs, use alternate energy sources, and promote their commitment to sustainable practices.
Fujifilm will invest $28 million to add a new facility in New Castle, Del., for the production of aqueous inkjet dispersions. The investment will double Fujifilm’s production capacity of pigment dispersions in the U.S. to meet the fast-growing demand for inkjet printing globally.
Construction of the new facility, which adds 11,000 sf of new operational space to the Delaware site, began this month. The new facility is expected to be operational by summer 2023.
Mike Rottenborn, Trevor Haworth, and Guido Van der Schueren celebrate Hybrid Software’s acquisition of iC3D.
The Durst headquarters in Europe.
Standard Finishing Systems hires Katelyn Bohr as partner manager. A dual graduate from the University of Wisconsin-Milwaukee, Bohr has a bachelor’s degree in journalism, advertising, and media studies and a master’s degree in business administration. Before joining Standard, she was the marketing director at Colordyne Technologies. In her new role, Bohr will manage partner communications and fortify sales tools to help Standard’s digital print partners deliver Hunkeler and Horizon finishing solutions to their end customers.
Nazdar Ink Technologies names Scott Holub as vice-president of quality and continuous improvement for manufacturing. Holub will manage the continuous improvement, quality and ISO processes for manufacturing at Nazdar, working closely with the manufacturing teams to identify opportunities, projects and investments to standardize and improve processes while controlling and reducing costs.
The company also appoints Joshua Tokar as inkjet field specialist. Based in the NewYork area, Tokar has extensive background experience in inkjet print, photography and the fine arts, and will bring a wealth of expert knowledge to his new role at Nazdar. Prior to joining Nazdar, Tokar spent more than 10 years working within the inkjet printing market, specializing in the set-up, operation and maintenance of systems, including testing inkjet inks in printers and prototype testing on inkjet printers.
Duplo USA Corporation appoints Rick Salinas as the company’s new president and CEO. Salinas will succeed Peter Tu, who will be stepping down from the president position. Tu will continue to serve as the organization’s executive chair of the board. Salinas has over 30 years of printing industry experience and joined Duplo USA in 2005 as a direct sales manager for the Chicago, Ill., area. Over the next 17 years with Duplo, his responsibilities increased, and he became the regional sales director for the central United States territory. Owing to Salinas’ extensive knowledge of the market and customer needs, in 2018, he assumed the role of vice-president of marketing with a primary focus on product development and shifting Duplo USA’s finishing business from mainly commercial print to on-demand packaging and print embellishment.
Kloman Studio in Brampton, Ont., recently upgraded to a new EBA 5560 21.6-in. paper cutter with fully adjustable clamping pressure, touchscreen programming, and an efficient safety light barrier system.
Simpson Print, Bloomingdale, Ont., adds a second Zund G3-3XL 3200 flatbed cutting system. The 10 x 10 ft flatbed cutter features a moving bed and is equipped with tandem zone mechanism.
Tonejet installs a new Cyclone C4+ with Tonejet Can Primer digital decoration system at Solucan, Que.
Scott Holub
Joshua Tokar
June 07-09, 2022
EskoWorld 2022
Grapevine, Texas
June 14-16, 2022
Amplify Minneapolis, Minn.
June 29-30, 2022
FuturePrint Leaders Summit Geneva, Switzerland
July 25-27, 2022
Wide-format Summit Palm Beach Gardens, Fla.
August 17-19, 2022
America’s Print Show 2022 Columbus, Ohio
September 13-15, 2022
Labelexpo Americas 2022 Chicago, Ill.
October 19-21, 2022
Printing United Expo 2022
Las Vegas, Nev.
Paper supply: Crisis or opportunity?
Turn this challenge into an occasion for change
By Bob Dale and Gordon Griffiths
uch has been written about the paper supply chain issues and shortages, but are there aspects of the situation that can actually be turned into an advantage?
Here is a summary of the current situation:
• not enough paper;
• printers are forced to pick and choose orders;
• some customers understand the need for paper price escalation clausess; and
Code
Use QR codes to link to online information so that the size of the printed piece can be reduced.
Customers need to understand there is a ‘shared risk’ due to price increases. Paper is only one cost element.
• owners are willing to sell their company due to the constant challenge of sourcing paper.
However, customer conversations are moving away from “best price” wins. Clients are willing to have detailed discussions with print providers regarding paper availability, price increases, and this can improve project planning.
While customers may accept price increase temporarily, this won’t last. Other efficiencies to control cost increases will be necessary. Since many customers are buying the ‘benefits of print’ rather than the printed product, consider marketing and communication alternatives. Mail post cards instead of letters. Combine print with digital marketing solutions or use QR codes to link to online information to reduce size of printed piece.
Customers need to understand there is a ‘shared risk’ due to price increases. Paper is only one cost element. Printers absorb other costs (transport, raw materials) that cannot be passed onto the client.
Suggestions
Things to stop doing:
• work for unprofitable customers or clients who do not pay according to agreed terms; and
• be proactive, stop focusing on the ‘crisis at hand’ and plan for the future.
Things to continue doing:
• implement operational and work flow efficiencies to lower operating costs;
• develop sales by meeting prospects and current customers, understand needs, build relationships, and explore how you can help and have wider discussions that go beyond mere transactional relationships;
• increase marketing activity today to support sales efforts in three months;
• develop programs for cur rent clients that help to se cure materials and orders that go beyond the current supply challenge (i.e. 12 months out); and
• create positive relationships with paper and consumable suppliers.
Things to start doing:
• offering alternatives to printed products; and utiliz ing production technology that has better economics for lower volume runs. While there are a number of options to work on to address paper supply issues, please use this time to make improve ments with your business rela tionships that are of mutual benefit for you and your current and prospective customers.
Bob Dale and Gordon Griffiths are with Connecting for Results, the premier management consulting company focused on the graphics communications industry. They can be reached at info@connectingforresults.com.
Covers
The first Rolands in North America
Manroland has held a pre-eminent position for the last 70 years in offset
By Nick Howard
Manroland, or Roland Offsetmaschinenfabrik Faber & Schleicher AG, as it was known in the 1950s, was the largest manufacturer of commercial offset lithographic presses between 1950 and 1990. Roland has been churning out offset technologies since 1911 when the brand name, Roland, was first bolted to the side of a press. A 1966 purchase of shares by the giant M.A.N. Group culminated in a 1979-takeover of the company. The company name was also changed to Manroland.
In the 1920s, German printers started paying attention to the new offset technology now underway in America. In the European world of stoic letterpress, Roland was an outlier and exhibited the most interest in developing radically new offset machines that would soon displace centuries-old typographic art. Therefore, it was a bit of a shock when the German juggernaut, Koenig & Bauer (K & B), made a deal with Roland in 1921. K & B agreed to cease production of their offset presses while Roland stopped its cylinder letterpress manufacturing. K & B mistakenly assumed letterpress would continue to dominate the market. A few years later, another surprise lit up the German press when the much larger Planeta aggressively pursued a merger with Roland. In 1927, both companies called off the deal, which was initially orchestrated by Planeta, and designed to remove a competitor from the marketplace. If only foresight was as reliable as hindsight?
Jumping ahead to 1934, Miehle Printing Press & Manufacturing Co. agreed to license certain Roland features for use in their offset program. Miehle thought so highly of Roland’s
new Ultra RZU, first shown to the public at London’s 1936 Olympia Exhibition, that they negotiated a further licensing agreement. It allowed them to use additional patents and drawings in the construction of their Chicago-built Miehle 60- and 76-in. offset presses. A fee of USD100,000 dollars (USD2-million today) was agreed and paid, but later seized by the US government at the beginning of the Second World War.
1871
Roland Offsetmaschinenfabrik Faber & Schleicher AG was founded in Germany in 1871.
Breakout year
New Roland offset technologies had come a long way, especially in the post-war years. Roland now had an industry-first and well-accepted five-cylinder design delivered on a stable of platforms such as the Parva, Rekord and Ultra.The Mabeg feeder would prove to be the world’s best feeder—it spawned today’s hi-tech versions. Ultimately, all these attributes along with the rare use of anti-friction-bearings and easy operational adjustments forced the industry’s operators to take notice of
the brand. Great Britain and the United States, both major markets outside of Germany, would be home to thousands of Roland offsets from 1951. Roland started conservatively in America by initially selling single colour 29-in., and then 36-in. presses.
The first US printer to install a Roland
On July 27, 1951, the first Roland Parva RP (known in America as the Miehle-29SC for its 23 x 29-in. sheet size) went to the Philadelphia firm of Edward Stern & Co. The company can trace its history back to 1871. Incidentally, Roland was established the same year in Germany. Bearing the serial number 8162-2, this Parva RP single color caught storm quickly, and by 1954, over 250 Roland presses were sold in America.
On November 10, 1955, the first Rekord (Miehle-38SC), a 25 x 38-in. single colour, was sold to the Jersey City Printing Co. A two-colour version (Miehle-38TC) made its way to San Francisco’s illustrious James H.
Top: A Roland 806-7+LE (1985).
Right: A Roland Rekord printer in action.
Barry Co. in 1955 too. On August 6, 1959, Roland’s first Rekord RVK (Miehle- 38FC) four-color size three press was running at Georgian Lithographers Inc. of New York City.
Roland’s first 49-in. four colour press
The Ultra range of presses, with sheet sizes of 41- to 63-in., would soon find homes in book and folding carton plants. The first recorded Ultra four-color RVU-5 (Miehle-49-FC, a 36- x 49-in. sheet size) was installed on August 10, 1960, at Gulf States Paper Co. in Maplesville, Alabama. Gulf States prospered over the following decades while remaining a loyal Roland and Manroland customer for a good portion of that time. Today, after numerous mergers and acquisitions, Gulf States is part of
On July 27, 1951, the first Roland Parva RP was sold to the Philadelphia firm of Edward Stern & Co.
Manroland was the largest manufacturer of commercial offset lithographic presses between 1950 and 1990.
WestRock, the country’s second-largest paper packaging producer.
Spy vs. spy
The Favorit (Miehle Favorite) officially launched at Drupa 1967, but was already in development by 1964. It created a buzz around the world. After the Miehle coming out party at PRINT-68 (Chicago), Favorits’ started selling briskly even though they were an expensive 19 x 25-in. press. The earliest serial number [press]—3914/21181—was on display at Miehle’s showroom in Chicago for a few years, and then sold to Bradley Printing Co. of Des Plaines, Ill. Not far behind was the Ray Printing Co. Inc. of Kansas City, Mis., when their Miehle Favorite (Roland Favorit RF01 with serial number 3919/21257) was installed on May 14, 1968.
Perhaps the most interesting sales were to the Central Intelligence Agency (CIA) in Washington. On September 3, 1968, two Favorites, serial numbers 3934 and 3935, were powered up at the CIA’s rather large
and well-equipped printing plant in Mclean, Vir.
PRINT-68 was also the year Miehle asked Roland to change the colour of their presses from grey to blue. Roland agreed, but only for North America. Only in 1974 did other presses follow suit.
In 1971, when Roland’s 100 th anniversary was being celebrated, over 5,000 offset presses had been delivered to countries around the world. Roland held 21 per cent of the Japanese market, well over 40 per cent of the American, and even higher in the United Kingdom. If experience and longevity count, then Manroland has held a pre-eminent position for the last 70 years in offset.
, a partner in Howard Graphic Equipment and Howard Iron Works, is a printing historian, consultant and Certified Appraiser of capital equipment. E-mail him at nick@howardgraphicequipment.com.
NICK HOWARD
Technology and process trends in the Canadian printing industry
By Nithya Caleb
TThe following snapshot of the Iron Index 2022 survey produced by PrintAction compares current production trends to a historical benchmark of capital investments made by Canadian printers. The facts presented throughout the article relate 2022 numbers to past survey statistics. The first iteration of the Iron Index was launched in 1996, when PrintAction published a short, but important, list of innovative commercial printers that were the first to install computer-to-plate (CTP) imaging systems. Now, 26 years later, the Iron Index tracks the production-technology investment
trends of leading offset-based printing companies across Canada. This includes tracking the offset (by model, number of units and format size), toner and inkjet press specifications of participants, as well as employee levels, revenue, frontend technologies and MIS.The following statistics provide insight into what is going on with the direction of production ratios. The key statistics describe how the landscape is changing in terms of long and short runs, as well as the work of 29- and 40-in. printers, and how they are shaping their companies and Canadian printing. Based on the information provided by nearly 50 responding companies, it appears toner printing
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is enjoying an upward trajectory, as 29.2 per cent of all printers surveyed this year say toner printing accounts for at least 40 per cent of their work, up from 22.6 per cent last year. Since this year has its own unique challenges, we also asked survey respondents about how their workflow has been impacted by the coronavirus pandemic, and whether it has led them to change their business plans. More than 25 per cent of the respondents said the rising cost of paper and shortage of skilled labour are barriers to their company’s future competitiveness. To participate in next year’s Iron Index survey, please contact ncaleb@annexbusinessmedia.com.
Key statistics from The Iron Index describing technology advances in Canada
55%
Percentage of respondents sold PPE or social distancing-related products, up from 47 per cent last year.
Percentage of respondents cite rising cost of paper and shortage of skilled labour as barriers to their company’s future competitiveness. 26%
66%
Percentage of respondents found sales of PPE or social distancing-related products continued after the first wave of COVID-19.
THE IRON INDEX METHODOLOGY
For over 20 years, PrintAction has surveyed commercial printing companies across the country to track their production-technology investment and trends. Below is a sample of the survey questions respondents have answered to produce our results. This primarily includes tracking the offset (by model, number of units and format size), toner and inkjet press specifications of participants, as well as employee levels, revenue, front-end technologies and MIS.
Year of company founding:
Number of employees:
PPE:
• Did you produce and sell PPE or social distancing products during the pandemic?
• Did sales continue beyond the first wave?
Offset presses:
• List up to four primary offset presses. Include press brand, press format size in inches and number of press units.
Toner/Digital Presses:
• List up to three primary toner/digital presses. Include press brand and model number.
Management Information System:
• Provide brand, type and version if available.
Primary Frontend (Prepress) Software:
• Provide brand, type and version if available
Primary Platesetter:
• Provide brand and type if available.
Primary Offset Plate Brand:
• Provide brand and type if available.
Production Ratio:
• Provide approximate percentage of work done, in terms of total revenue generation, with Offset : Toner : Inkjet.
Wide-format Inkjet:
• List up to two primary wide-format inkjet machines. Include press brand and model number.
Production Inkjet:
• List up to two primary production inkjet machines. Include press brand and model number.
Challenges
• What do you see as the prime barrier to your company’s future competitiveness?
Future plans
• What is your best estimate at a dollar amount for how much printing technology, software and related services your company will purchase over the next three years?
• What areas does your company plan to invest in over the next three years?
• What are your plans for diversifying your capabilities?
• In the next 12 to 18 months, which is most likely to happen at your company?
Percentage of respondents with 15 or less employees.
37.5% 11% 1880
Percentage of 40-in. printers surveyed in 2022 producing at least 70 per cent of their work with offset.
The oldest company to participate in this year’s survey.
50%
Percentage of 40-in. printers surveyed in 2022 with at least two toner printing systems.
37.5%
Percentage of 40-in. printers surveyed in 2022 producing at least some of their work with production-strength inkjet.
What do you see as the prime barrier to your company’s future competitiveness?
Rising cost of paper:
Lack of upfront capital for technology investment:
Availability of skilled labour:
Labour cost:
Increased competition from a narrowing market:
Other:
12.5%
Percentage of 40-in. printers surveyed in 2022 generating at least 30 per cent of their revenues from toner.
Business acquisition/merger:
Divesting/selling of equipment or capabilities: What else is your company considering besides investments?
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40-inch printers
The following statistics apply to Canadian printing companies with at least one 40-inch sheetfed press, based on their participation in The Iron Index surveys.
Key 40-in. printer findings in 2022: The Iron Index indicates the number of commercial printers with full-size sheetfed presses focusing solely on offset work has remained steady. More than 60 per cent of respondents use offset to produce their work.
29-inch printers
The following statistics apply to Canadian printing companies with at least one 29-in. offset press (or of smaller format) and no 40-in. presses, based on The Iron Index surveys.
Key 29-in. printer findings in 2022: The Iron Index survey finds that half of commercial printers surveyed in 29-in. market have at least two toner presses. The number of surveyed printers producing more than 90 per cent of their revenue with offset remains steady. At least a quarter of the surveyed respondents are producing at least 40 per cent of their revenue with toner production presses.
Percentage of printers surveyed in 2022 were founded 50 or more years ago.
25%
Percentage of 40-in. printers surveyed in 2022 producing at least 10 per cent of their work with inkjet.
Percentage of 29-in. (or smaller) printers that indicated they own at least one toner printing system.
25%
Percentage of 29-in. printers surveyed in 2022 producing at least 30 per cent of their work with toner.
25% 34% 25%
Percentage of 29-in. printers surveyed in 2022 producing at least 80 per cent of their work with offset.
Percentage of respondents owning a wide-format inkjet. 52%
Complete Iron Index participants by year
The following percentages are derived from 80 Canadian printing companies who participated in The 2022 Iron Index survey.
Percentage of printers surveyed in 2022 that plan to invest in equipment, machinery or technology upgrades.
Percentage of 29-in. printers producing less than 50 per cent of their work with offset, which remains important. 25%
67.9% 23% 33.33%
Percentage of all printers surveyed in 2022 producing work with all three processes (offset, toner, inkjet).
Percentage of all printers surveyed in 2022 generating at least 30 per cent of revenue from toner.
20.83%
Percentage of all printers surveyed in 2022 producing at least 10 per cent of their work with toner.
Projected investments in printing technology, software and related services over the next three years.
Less than $99,999 Projected investment Number of respondents
$100,000 - $499,999
$500,000 - $999,999
$1,000,000 – $2,499,999
$2,500,000 – $4,999,999
13 7 1 4 1 2
More than $5 million In the next 12 to 18 months, which is most likely to happen at your company?
PrintAction would like to thank all the companies that have participated in The Iron Index over its 26-year history, and in particular those who responded to our 2022 edition, enabling these statistics to be generated. To participate in next year’s survey, please contact the editor at ncaleb@annexbusinessmedia.com.
BARRIERS TO DIGITAL PACKAGE PRINTING
An exploration of the factors limiting use of digital presses in packaging manufacturing
By Tim Sykes
Companies can target messages directly at specific groups of customers and join social movements.
When all the market research of recent years is projecting market growth of between 10 and 15 per cent CAGR over the coming years, with corresponding advances in market share, it may sound unnecessarily provocative to suggest digital print in packaging has failed to fulfil expectations. The value proposition of digital print is familiar enough: the ability to go from PDF to POS in a matter of hours not only makes short runs and cool customization campaigns economical, but also enables supply chain efficiencies and leaner stock management. Digitally printing a package
thus caters to a swathe of key market trends and demands from agile marketing campaigns and proliferation of SKUs to streamlining processes for faster time to market. However, in off-the-record conversations over the last couple of years, both brand owners and digital print specialists have confided a mild disappointment that some of the more idealistic predictions of digital conquest have not yet come to pass. What are the reasons for this? Is the postCOVID world closer to the tipping point?
We don’t all need bespoke packages
We’ll start with perhaps the most basic and obvious point: the largest chunk of the market is still serving long-run jobs for packaging that are destined for the shelves of bricks-and-mortar retailers.
As Montserrat Peidro, former head of Heidelberg’s digital print business, remarks, “The main advantages of digital print can be quantified in terms of cost per box in short/mid runs, in faster turnaround times resulting in a leaner supply chain and in its ability to produce unique boxes profitably. Examples include packages with security features, unique identifiers for track and tracing of goods, codes for connected packaging and those personalized for a specific individual.”
Yet, there remains huge demand for generic packaging produced in high volumes and at high speeds. Analogue presses, which are considerably cheaper than the digital ones, still handle the bigger runs more cost effectively. This is hardly news, but those of us who get intoxicated by disruptive innovation could do well to remind ourselves of the enduring gravitational pull of simple mathematics. As long as not everyone needs bespoke, there will be a place for analogue.
Agile technology won’t accelerate time to market
That said, there is a significant and growing packaging market space where digital print can
add value. Brand owners need to differentiate their multiple SKUs and increase frequency of marketing campaigns to maintain consumer attention. In this landscape, flexibility rather than raw throughput is key to productivity.
“The printing speed of analogue does not take into consideration all the presses’ setups, including colour calibrations, waste and plates making and mounting,” says Marcelo Akierman (HP Indigo marketing manager – EMEA region). “The time to market printing digitally is dramatically reduced; brand owners can do the proofing onsite and when the target is achieved sign on the final substrate.”
However, all too often the end user isn’t thinking as fast as the technology. As a major corrugated converter observed to me, they can handle an artwork change in little more than a day on traditional presses. If the brand owner’s marketing signoff takes days or weeks, is it
even a few days, in a process taking months.The entire packaging production chain needs to be rewritten. Digital printing will be part of the new Industry 4.0 packaging landscape, but the digitalization of an entire process will be the most important element.”
Conversely, as analogue print technologies are adapted to function within this connected ecosystem, they will become quasi-digital themselves.
We are still rewriting the rules
Digital print facilitates an altogether more intimate degree of consumer engagement just as the broader digital transformation of our world is making consumers expect gratifying communication from brands.
“There’s no question customization is one of the biggest trends driving the adoption of digital package printing,” says Donald Allred,VP of packaging, Memjet. “When packaging is produced in a late-stage cus-
If digitally printed packaging represents a cultural, as well as a technological, revolution, I have the sense that what we are seeing today is an influential counterculture rather than mainstream.
possible the bottleneck is as much a business systems problem as a technological one? Brand owners need to become as agile as digital presses if they are to leverage their full potential, and they need to get used to making more decentralized marketing decisions.
Harnessing the value of digital print will rely on integration into the wider value chain.
“We often forget it, but packaging production is more than printing and part of a longer supply chain, from packaging design to printers, converters, packers and retailers (online or physical),” reminds François Martin, senior communication advisor at Bobst. “Printing digital will save a few hours,
tomization process, using digital printing is not only possible, but also is preferred by brands that want to connect with their consumers by adding personalized messages and images to their packaging. These messages can include support of regional sports teams, seasonal messages, and/or images of local interest. Compare this close customer relationship with the more traditional process whereby brands ship products to distribution centres. In this supply chain, products are distributed to vast geographic and demographic markets with little opportunity for personalized packaging experiences.”
However, return on investment will increasingly require
more sophisticated strategies than the now familiar ‘product with your name on it’. This is a new game, and the rules of how to create meaningful experiences through customized packaging are still being written.
“Personalization goes far beyond customizing or styling products,” suggests Jose Gorbea, head of brands & agencies at HP GSB EMEA. “It’s about intelligently curating and shaping the whole experience for those in our community: makers, designers and consumers alike. One industry shift is personalized storytelling with mass customization seen as the next frontier for global brands. With digital print, design runs that used to number in the tens of thousands can now vary unit by unit, making labels, cases, POS materials and direct mail more relevant and personal than ever before. Companies can now target messages directly at individual groups of customers as well as join social movements (as seen in Smirnoff’s #chooselove campaign). The speed of digital printing also allows brands to interact with real-world events. For example, you can now print the daily news on a package to communicate product freshness.”
Amid such endless possibilities and several impressive applications there is also a sense that brands are only beginning to map the new landscape. If digitally printed packaging represents a cultural, as well as a technological, revolution, I have the sense that what we are seeing today is an influential counterculture rather than mainstream.
Inertia and investment
Another consideration is that industry earthquakes don’t always happen overnight. Even in industrialized countries many fields were being
Leveraging consumer data enables brands to communicate in a personally meaningful way.
The digital print packaging market is projected to grow between 10 and 15 per cent CAGR.
cultivated by manual labour decades after the invention of the mechanical plough. We tend to embrace change when we must, especially when we suspect ROI may be remote. Speak to any of the big players about the enablers of digital print and eventually they will acknowledge that getting the market to understand the opportunity is the key challenge.
“Brands are facing more SKUs and shorter runs but are quite busy in their day-to-day pre-occupations to understand that digital can go beyond the ‘special projects only’,” muses Klaus Lammersiek, marketing manager, HP Indigo Labels & Packaging EMEA. “Meanwhile, if they don’t have digital, converters may prefer still to keep running longer runs in their existing presses without the need to invest further. The solution comes in educating both brands and converters about the possibilities of digital. Every day we can see more and more digitally printed products in the supermarkets and online.”
Montserrat Peidro, former head of Heidelberg’s digital print business, echoes this perspective.
“In my personal experience in recent years, the main enablers have been the ability to integrate digital technology into existing pre- and post-press processes, sell new benefits to customers and manage lots of smaller jobs per day in an efficient way with as few touchpoints as possible,” she remarks. “But not all companies are aware of these enablers or take these topics into account when planning their marketing investments.”
COVID and the catalyst of direct-to-consumer
I made the connection above between digital printing and the
broader digital transformation of manufacturing. Of course, with online retail we can see this in the context of a wider digital transformation of our culture and commerce. Even before the Coronavirus changed everything, it seemed inevitable that the irresistible rise of e-commerce would be the ultimate catalyst for growth in digitally printed packaging.
In the first place, the online brand or vendor has a much more personal relationship with me than the traditional shopper in a conventional supermarket. It’s a one-on-one communication. The brand knows who I am, where I am and what I like. It is going to deliver a product, possibly tailored to my needs, directly to me.
As a direct-to-consumer brand of a different sort (and on a very different scale) to the FMCG giants, Packaging Europe (the author’s firm) conducted a customization experiment in 2019. We distributed our magazine in corrugated sleeves featuring 20 localized designs and printed on a HP PageWide C500 press. The #unboxingEurope campaign got a warm response from our readers – ‘love’ that came from the ability to leverage individual subscriber data. Knowing our readers’ location enabled us to give each one not just a nice surprise, but also a personally meaningful one.
The same dynamic applies to the new and emerging supply chains, vastly accelerated by COVID that are based around personalized consumption, and served by emerging direct-to-consumer, on-demand or subscription models. In this ecosystem, relevant communication that reflects the consumer’s needs and identity are likely to distinguish the most successful brands. Late-stage customization, at least in higher value goods, will surely become the norm.
Meanwhile, successive advances in technology are cumulatively eroding all those barriers to adoption. We’re going to see improved quality, higher speeds, lower costs, more viable market entry points, seamless integration and developments in design tools such as algorithmically generated iterative engines.
Tim Sykes is brand director at Packaging Europe. This article was originally published in Drupa Essentials of Print Series.
RFID technology can help companies combat staff shortages, costs of labour, raw materials and transportation, and the safety and security of product deliveries.
THINKING OF RFID PRINTING?
This tech is catching the attention of label and packaging converters who are looking to diversify.
By Mark Andy
Although RFID technology has been available for many years, it’s only in recent times that it has become a part of our daily lives. Today, all kinds of sectors use RFID, from the food and beverage industry to clothing, laundries, hotels, and car parks. RFID has been growing rapidly in logistics and warehousing, where use of the technology plays an important role in ensuring a product is delivered on time and to the correct address. This global trend is catching the attention of label and packaging converters who see an opportunity for diversification into new markets.
With an increasing number of new applications, the market has begun to appreciate the benefits of RFID in terms of greater efficiency and reduced time and cost.
“RFID technology brings huge benefits to logistics and warehousing because it saves time and money, and that’s why it’s growing in popularity. Converters are noticing this trend because more of them are receiving enquiries for RFID labels every year. It seems likely that all warehousing will eventually adopt RFID. So, it’s a good idea to be prepared for this new demand, as well as other applications like sales labels for self-service retailing with instant check-out.There are so many opportunities and possibil-
On March 22nd, Annex Business Media’s Manufacturing Group teamed up to host ADVANCE: Women in Manufacturing, a one-day virtual summit that brought together industry experts and thought leaders to promote gender equity, diversity and inclusion in Canadian manufacturing. Visit womenincanadianmanufacturing.com to view on-demand content, including videos and podcasts.
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ities going forward,” said Lena Chmielewska-Bontron, European marketing manager for Mark Andy.
RFID benefits
A number of food and clothing networks have already decided to implement RFID technology to combat staff shortages, high cost of labour, the increasing cost of raw materials and transportation, and the safety and security of delivery. For these reasons, Mark Andy’s view is that label converters should pay particular attention to RFID with the use of transponders, chips, and tags. Although varying in size, each is a data carrier that can register, store, and read important product information at every stage from manufacturing through sales to delivery.
One good example of this trend is the sports equipment and clothing manufacturer,
Decathlon. The company initially tested the process with an own-brand product that it marked and tracked from the factory to distribution centres and retail outlets. It was so successful that soon after all Decathlon products were using RFID labels and tags to monitor items in its shops worldwide.
The benefits are enjoyed on all sides. For the customer, purchasing is simpler and more streamlined, safe in the knowledge that the item chosen is
available and will be delivered on time.
For Decathlon employees it’s a benefit because specific products can be found on the shelves or their availability can be quickly checked, while for the company itself, inventory management is improved with electronic supervision that offers greater security. Taking it a stage further, one of Decathlon’s shops in Poland uses a robot that scans all shelves and checks all items every night. It
involved with RFID tagging, as Chmielewska-Bontron explained. “An RFID tag guarantees that the product is what it is supposed to be. It’s come from the right factory in the right country with all customs duties paid, so there are no hidden extra costs, and you know that it is not a fake and there is no counterfeiting involved. As supply chains become more complex,
Top: A Mark Andy machine with RFID modules. Right: RFID printing in progress.
RFID technology brings huge benefits to logistics and warehousing because it saves time and money.
– Lena Chmielewska-Bontron
Investing in RFID technology allows label and packaging converters to be more innovative with their labels and packaging. – Lukasz
Chruslinski
and the protection of brand identity become a greater challenge. RFID can play a key part in resolving these issues.”
Automating jobs
Two sectors that already enjoy the benefit of RFID are the food and clothing markets, where a significant number of tedious manual tasks have been eliminated. At a time when staff recruitment is proving difficult, the removal of time-consuming stock checks is a bonus. Not only is the use of RFID more accurate, but it also allows redeployment of staff to other more useful functions. The application of an RFID tag at the time of manufacture also assists staff at the warehouse, who have a more accurate and up-to-date picture of what is in stock and what needs to be re-ordered, as well as ensuring the correct product is picked and supplied from the shelf.
American printing company Repacorp installed presses equipped with RFID technology 15 years ago.
continued to grow in popularity as customers trust its accuracy and see more of the benefits it can offer. Repacorp’s customer portfolio includes major retail chains as well as manufacturers in the automotive and healthcare sectors and warehousing. Since installing RFID, one of its major customers claims to have significantly improved stock-keeping accuracy and reduced labour costs in its warehouses. It’s not just Repacorp’s customers that have benefitted. The company now uses RFID technology to track products in its own warehouse and has streamlined its supply chain in the process.
An excellent example of this is the American printing company Repacorp, which invested in presses equipped with RFID technology 15 years ago. According to the company’s management team, RFID has
Summing up, sales manager for Mark Andy Europe, Lukasz Chruslinski commented, “Every brand owner looking to eradicate human error from its business needs to investigate what RFID has to offer. Converters also need to look at what it can do for their business by way of responding to market trends and opening new opportunities. Investing in RFID technology allows them to be more innovative with their labels and packaging, and this is very attractive to brand owners.”
Awards Gala November 10, 2022
Showcasing the latest offerings from Canon, Xeikon, and Miraclon
series lineup, designed to provide vivid output, be vigilant during production and allow customers to provide additional value to their clients, as well as be a versatile digital press that production environments can depend on.
Xeikon introduces gold and silver metallic toners
The ImagePress V1000 colour production digital printer from Canon simplifies repeat tasks for PSPs.
Canon unveils ImagePress V1000 colour production digital printer
Canon Canada announces the upcoming release of the ImagePress V1000 digital press. With its strong emphasis on automation, tasks such as colour repeatability and registration alignment are simplified for
print establishments looking to produce a wide range of applications, from direct mail and business cards to booklets, posters and other creative marketing collateral.
The ImagePress V1000 digital press, which is scheduled to be available in Canada in July 2022, is the first of the new “V”
Sakurai: 1, 2 or 4 colours and any size (newer model)
Polar: any size/older or newer models
(66/72/76/78/82/90/92/107/115)
Horizon-BQ: 220/240/260/440/460
Xeikon launches gold and silver metallic toners for its Xeikon Cheetah 2.0 Series. This is in line with the company’s strategy to focus on the label industry and develop application-tuned solutions. These metallic colours fit in the fifth colour station of the Xeikon Cheetah press. Dry toner technology also allows for hassle-free colour swapping by just replacing the toner dosing unit and the developer unit.
The Kodak Flexcel NC Central Software integrates multiple advanced plate surface patterning features.
Miraclon launches Flexcel NX Central Software
The Kodak Flexcel NX Central Software streamlines the platemaking process and enables the integration of multiple advanced plate surface patterning features. A successor to Kodak Tiff Assembler Plus Software from Miraclon, the new automated plate layout process is optimized across the user’s portfolio of media sizes to maximize utilization.
Flexcel NX Central Software also allows for multiple users to remotely manage plate layouts, while its job tracking features enable more accurate billing and a comprehensive breakdown of production costs. The software is included with all new systems.
Xeikon launches gold and silver metallic toners for its Xeikon Cheetah 2.0 Series.
Ian Burke / Owner and CEO / Burke Group
Ian Burke, 53, is the proud owner and CEO of the Burke Group of companies with offices in Edmonton and Calgary, Alta. The Burke Group is a graphic communications solutions corporation with a one-stop-shop philosophy. It began as a commercial printer, but when Burke recognized the market was changing, he expanded his product offerings and acquired many companies such as Target Advantage, King Sign, McCallum Printing, Topline, Printcor and Skyline Signs. These moves allowed Burke to build a company with diverse offerings.
What is the state of the print industry today, in your opinion?
IB: In my opinion, it is better than ever. The print sector is no different than other industries. You need to be willing to adapt and diversify to stay competitive. We understood our customers wanted to expand their marketing into other avenues besides print, so I ensured Burke was able to offer them that. Now, along with print we offer digital print, warehousing, graphic design, mail, large-format printing, commercial and exterior signage, installation, and digital marketing services. Creating a seamless transition from print and mail to digital services has allowed us to not only retain clients, but also educate new ones on the value of print and cross-media marketing.
What attracted you to the industry?
IB: My neighbour worked for Quality Colour Press, a great company, and they introduced me to print. What kept me in the industry is the fact that it is very diverse and there are many avenues for growth. It’s always exciting and I love the challenge.
How can the industry attract more young people?
IB: Trust and freedom. My goal is to create a flexible and positive working environment. I trust my team to do their jobs and, in return, they trust me to give them the space to do so. I do not micromanage my team, and I think that letting my team control their day is a huge draw for young people. Employees thrive when they are given the opportunity to succeed. My team is meticulous and on point because they are in charge of their responsibilities, and they take pride in that.
57% Take the time to educate your staff so that they have the ammunition to win more sales.
Integrated campaigns receive 57 per cent more attention and 46 per cent higher brand recall.
In such a competitive landscape, how can printers win more sales?
IB: By educating our customers and understanding as an industry that we must be willing to expand into the digital marketplace. I personally believe cross-media marketing is the solution. We all know this works, but the key to winning more sales is internal training so that you can educate your clients. For example, when you integrate direct mail with digital, the mix will drive more action. When combined, campaigns receive 57 per cent more attention and 46 per cent higher brand recall. Overall, integrated campaigns drive 39 per cent more attention and multichannel customers spend three to four times more than single-channel customers. Take the time to educate your staff so that they have the ammunition to win more sales.
What are some of the biggest opportunities in the print industry?
IB: Our biggest opportunity is that print advertising is trending up. Obviously, digital marketing is a common way to advertise your business, but if you aren’t getting results, then something has to change. Digital marketing campaigns
have become flooded with noise and media, taking away the consumer’s ability to engage with the message. Meanwhile, direct mail has a stronger perceived value. Consumers touch and feel a tangible, and often, personalized piece delivered straight to them and for them. Additionally, after the negative push from the media in the mid 90’s and early 2000’s, customers are now realizing that print media actually is environmentally friendly and recyclable as well as an integral part of a marketing budget. I think a lot of clients are starting to realize digital media channels simply cannot compete with the tactile nature of print.
What do you think is the most exciting thing about print today?
IB: Easy, two things. The diverse groups of clients we get to work with, and our staff at Burke. My team is always coming up with great ideas to help both ours and our clients’ businesses and it’s a privilege to work with them.
Burke’s responses were edited for length. For more Q&A Spotlight interviews, please visit www.printaction.com/profile.
D E MA ND ILLU MI N A
• No more annoying heat from UV lamps or dryers means a better environment for you and your crew.
• By far the lowest energy consumption costs are lower, presses run faster and produce more sellable product per shift
If you’re sick of web or registration issues due to heat, temperature variation during jobs and all the abundance of waste, Illumina is the cure. It’s the future of
