FMN | June 21st, 2021

Vol. 23 No. 13 An N.V. Publication Market News FLEX Serving The Flexographic Printing Industry For More Than Two Decades ®

June 21, 2021

Label Problems Slow Production

Paper Packaging Satisfies Consumers With physical stores closed during the pandemic, the boom in online shopping resulted in record numbers of packages arriving on consumers’ doorsteps. Along with all that mer- chandise came a growing awareness of the materials used to package and ship products, and the impact those materials have on the environment. A new survey commissioned by Two Sides North America and conducted by international research firmToluna found that U.S. consumers believe pa- per- based packaging is better for the environment than other packaging materials. Preferred Packaging Survey respondents were asked to rank their preferred packaging ma- terial (paper/cardboard, plastic, glass and metal) based on 15 environmen- tal, aesthetic and practical attributes. Overall, paper/cardboard packaging was preferred for 10 of the 15 attri- butes, with half of respondents say- ing paper/cardboard is better for the environment. Consumers also pre-

by Greg Kishbaugh

M anufacturers in the United States on average incur losses of around $1,174,000 per year due to production line shut- downs caused by label printing problems, a NiceLabel global study of IT directors in manufacturing organizations has revealed. This is slightly below the global average, with many companies losing more than $1.31 million each year.The study of IT direc- tors globally found that on average more than two-thirds of man- ufacturers in the United States (67 percent) were having to shut down their production line for more than an hour if there was a problem with label printing, with an additional 21 percent saying the line had to be shut down for more than 30 minutes. Recovery time was slightly faster but still problematic for U.S. manufacturers, with just more than half (51 percent) expe- riencing downtimes of 60 minutes or longer. Incorrect Labeling More than three-quarters (76 percent) of IT directors in man- ufacturing across the United States, UK, Germany, and France admit that more than 10 percent of their organization’s goods are labeled incorrectly every year.This rises to more than 25 per- cent of goods for more than a quarter (26 percent) of organiza- tions globally and nearly 1 in 5 (18 percent) in the United States.

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Label Problems (Cont’d from Page 1)

the United States (30 percent and 37 percent respec- tively),American manufacturers reported that meeting regulatory compliance (38 percent) was their greatest challenge, followed closely by reducing time to market (37 percent). Given the losses they are incurring due to shutdowns, it is unsurprising that 29 percent of the United States survey sample see“reducing costs”and 22 percent see productivity gains among the main benefits of mod- ernizing/automating their manufacturing processes, including labeling, with technology, while 31 percent reference “eliminating errors” as a key driver. Apex International Partners With Anderson & Vreeland Apex International has partnered with Anderson & Vreeland in Canada. Apex North America has been working with Anderson & Vreeland Canada for more than a decade; Anderson & Vreeland has been repre- senting Apex in Quebec and Eastern Canada.With this partnership, they will now service all markets, includ- ing flexible packaging, labels and corrugated printing. Anderson &Vreeland will have six teams throughout Canada representing Apex.These teams will deliver an all-in-one solution since they will handle everything from creating quotes to providing technical support.

The study also revealed that manufacturers — both globally and in the United States — were having to pause production lines just under six times a year on average due to such problems, with nearly three-quar- ters (77 percent globally and 69 percent in the United States) saying their production line had to be paused four times or more in the past year as a consequence of labeling issues. IT directors say incorrect labeling costs their organi- zations on average $89,000 annually, with 61 percent globally and 47 percent in the United States saying their organization incurred losses amounting to more than $69,000 from mislabeling on average in a year. And these are just the direct costs. Businesses should also be factoring in all the ‘hidden’ costs they may in- cur, such as loss of brand reputation, lost business, or lost time and money as a result of shipping delays, for example. In line with this, minimizing errors that lead to a need to relabel products is the second biggest chal- lenge manufacturers worldwide face in getting new label designs into production, cited by 35 percent of all respondents.The only challenge more pressing was extending the labeling process seamlessly across the wider supply chain, as noted by 38 percent of the glob- al sample.While these issues were also top of mind in

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Flexo Market News June 21, 2021 3

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Paper-Based Packaging (Cont’d from Page 1)

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ferred paper/cardboard packaging on other environ- mental attributes, including being home compostable (65 percent) and easier to recycle (44 percent). Glass packaging was preferred by consumers for four practical and aesthetic attributes, including being reus- able (39 percent), having a preferred look and feel (39 percent), providing a better image for the brand (38 percent) and better protection (35 percent). Forty-five percent preferred metal packaging for being strong and robust. Plastic packaging was not preferred for any of the 15 attributes but was ranked second for six attributes. Only one in 10 respondents believe plastic packaging is better for the environment. Brands and retailers play a crucial role in driving inno- vation and the use of recyclable packaging. In response to increasing consumer pressure to operate more sus- tainably,brands and retailers in many sectors, fromwine, spirits and soft drinks to candy, cosmetics and apparel are shifting from plastic to paper packaging. Removing Plastic The survey found that 49 percent of consumers would buy more from brands and retailers who re- move plastic from their packaging, and 39 percent would consider avoiding a retailer that is not actively trying to reduce their use of non-recyclable packaging. “It’s important for consumers to understand that just because packaging is recyclable does not mean it actu- ally gets recycled,” explainedTwo Sides North America President Kathi Rowzie.“Around 66 percent of all pa- per and paper-based packaging and nearly 89 percent of corrugated cardboard gets recycled into new prod- ucts in the United States. These high recycling rates and expected increases are due to the paper industry’s already completed and continuing investment in recy- cling infrastructure, which between 2019 and 2023 will exceed $4 billion. In comparison, the U.S. Envi- ronmental Protection reports that plastics, glass and metals are recycled at just 9 percent, 25 percent and 34 percent, respectively.” As consumers, businesses and governments looks for ways to create a more sustainable, circular economy, waste from single-use packaging, particularly in ma- rine environments, has come into sharp focus.When consumers were asked who has the greatest responsi- bility for reducing the use of non-recyclable, single-use packaging,more than a third (36 percent) said individ- uals have the primary responsibility, followed by 23 percent who believe it’s up to brands and retailers, 23 percent who believe it’s up to packaging manufactur- ers, and 18 percent who believe it’s the government’s responsibility.

To boost your market presence contact:

Greg Kishbaugh / 317-306-1060 / [email protected]

Robyn Smith / 910-553-4055 / [email protected]

4 June 21, 2021 Flexo Market News

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DuPont Installs Cyrel System At Comexi

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DuPont has installed a Cyrel Fast 2000TD,solvent-free thermal platemaking system at Comexi’s Manel Xifra Boada Technology Center in Girona, Spain. DuPont claims that the Cyrel Fast system offers su-

perior productivity and performance while helping to reduce processing costs, processing time, and envi- ronmental impact compared to existing solvent-based platemaking methods. The equipment is the result of more than 20 years of evolution and investment into this platform and has more than 1,500 installations globally. Bobst Details Future Strategy Bobst, in preparation for a post-COVID economy, has announced new procurement decisions to en- sure customers have access to new equipment, spare parts and consumables. Global GDP is expected to rebound by +5.1 percent in 2021, the company notes, which will drive high demand for raw materi- als across various industries. Breaking Bottlenecks In addition, bottlenecks in the global supply chain remain as high as during the peak of the pandemic. In these circumstances, raw material for the packaging industry, as well as some key materials required for the production and maintenance of equipment, including standard components across electronics, electrical, bearings and consumables, are in short supply, gener- ating longer lead times and prices increases.The price of hot rolled steel plate hit record prices across all ex- change markets, increasing by more than 120 percent over the last three quarters. ( L-R ) Ricard Domingo, DuPont, Brandor Beco and Yago Luling from Comexi with the Cyrel Fast 2000 TD platemaking system.

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IoPP Names Winners Of Packaging Scholarship Fund Each year, the Institute of Packaging Professionals (IoPP) awards over $10,000 in scholarships to stu- dents studying packaging or a related field. Chosen from a pool of qualified applicants are this year’s IoPP scholarship winners: • Grace Ellis, a packaging student at Michigan State University (class of 2022) has been awarded the Pepsi- Co R&D Scholarship worth $5,000. •Anna Kent, a packaging student at University ofWis- consin – Stout (class of 2023), has been awarded one of the $2,500 IoPP Packaging Education Scholarships. • Seohee Jang, a packaging engineer technician stu- dent at Conestoga College (class of 2021), has been awarded one of the $2,500 IoPP Packaging Education Scholarships. •Wallace Layman, a dual degree student studying Pa- per Science and Engineering and Chemical Engineer- ing at North Carolina State University (class of 2023), has been awarded the $1,000 IoPP Packaging Educa- tion Scholarship, sponsored by IoPP’s Central Ohio Chapter. • Haliah Offutt, a graphic communications major at Illinois State University (class of 2022), has been awarded the $500 IoPP Packaging Education Scholar- ship, sponsored by IoPP’s New England Chapter.

FPA Publishes Flexible Packaging Buyer’s Guide

The Flexible Packaging Association (FPA), an advo- cate and voice for the U.S. flexible packaging industry, has released its 2021–2022 Flexible Packaging Buy- er’s Guide . The Buyer’s Guide provides a detailed listing of FPA members’ manufacturing and material supplying ca- pabilities and is a tool and resource to assist users in finding the best flexible packaging solution for their packaging needs. This reference resource provides specific informa- tion regarding the product lines and end uses (retail, institutional, medical and pharmaceutical, and indus- trial applications); value added services; printing and converting processes; and, suppliers of flexible pack- aging machinery, equipment, supplies, services, adhe- sives, inks, coatings, resins, and substrates. It also includes contact information and a brief nar- rative description of each member company. FPA dis- tributes the Buyer’s Guide at industry trade shows and conferences. The Buyer’s Guide is publicly available on the FPA website, www.flexpack.org .

6 June 21, 2021 Flexo Market News

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Registration Opens For Label Congress 2021

impact the future of smart labels and packaging. Day 2 starts with Lifetime Achievement winner Fed- erico d’Annunzio examining how converters should respond to brands’ increasing demands for >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16

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