FMN | September 14th, 2020

Vol. 22 No. 19 An N.V. Publication Market News FLEX Serving The Flexographic Printing Industry For More Than Two Decades ®

September 14, 2020

Sustainable Flexo Ink Launched

NAM Releases Outlook Survey

The National Association of Manu- facturers has released its third quar- ter Manufacturers’ Outlook Survey. The manufacturing economy has re- bounded since the second quarter of 2020. In the latest quarterly Manufac- turers’Outlook Survey, conductedAu- gust 14–28, 66.0 percent of respon- dents reported a positive outlook for their company in the third quarter (Figures 1 and 2), up from 33.9 per- cent in the second quarter. As such, positive sentiment in the manufactur- ing sector has nearly doubled since May, rebounding from the worst read- ing since the Great Recession, even as challenges persist and the outlook remains below the historical average of 74.4 percent. A Different Landscape Demand and business disruptions due to the COVID-19 pandemic se- verely challenged the manufactur- ing sector earlier in the year, with the global economy suddenly enter- ing a sharp downturn. Real GDP fell dramatically by an annualized 31.7

by Greg Kishbaugh

T he ongoing need for suppliers to introduce new products into the flexo marketplace that help printers achieve higher levels of sustainability becomes more urgent with each passing day.Werner & Mertz, in cooperation with its Recyclate Initiative partners, has launched a new printing ink system that promises applications beyond its industry.

Working with ink manufacturer Siegwerk Druckfarben, the EPEA Switzerland GmbH (Environmental Protection Encour- agement Agency), and the global packaging and paper company Mondi,Werner & Mertz has developed a recyclable printing ink system for flexography which has been awarded Material Health Certification (MHC) GOLD. The Recyclate Initiative was formed with the guiding princi- ple Cradle-to-Cradle, designed from the start to go into a closed Awarded the Material Health Certification (MHC) GOLD, the recy- clable printing ink system for flexography is used in the recyclable stand-up pouch for the Frosch brand. Copyright Werner & Mertz .

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Registration Opens For “Virtual Label Summit” TLMI has partnered with Tarsus Group for the first-ever Virtual Label Summit. Spread over five days and broadcasted early in U.S. Central Time to enable participation from a global audience, it is the first time an entire Labelexpo conference has been host- ed online. Designed to keep the worldwide label and package printing industry connected outside of Labelexpo shows and equip attendees with up-to-date knowl- edge, the Virtual Label Summit offers exclusive insight into how converters and label and package printing suppliers can simultaneously futureproof and move the global industry forward during these changing times.To this end, this knowledge hub of vital learning resources will also be made available to attendees for three months after the event closes. Metsä Board Opens New Finnish Excellence Center Metsä Board has started up operations in its new Excellence Center at the unique bioeconomy site in Äänekoski, Finland.The resources and capabilities will be shared across all of Metsä Board’s locations, includ-

ing the United States. The center, with technology for R&D, packaging de- sign and paperboard and packaging performance, aims to accelerate material and packaging innovation and provide a collaboration platform for customers and technology partners globally. Virtual collaboration workshops will enable joint de- velopment and co-creation when physical meetings are not possible. “As the amount of packaging continues to grow, new, sustainable solutions are needed to replace fossil-based materials and ensure circularity,” said Mika Joukio, CEO of Metsä Board. “The Excellence Center concept enables paperboard and packaging solutions that examine the entire value chain.With the material knowhow, competence and tools now available, we can optimize performance throughout the packaging lifecycle.” The Excellence Center, which covers a total of 16,000 square feet, includes R&D facilities, a packag- ing design studio, a customer feedback center and a laboratory providing more than 100 different measure- ment methods and analytics.The center also features a virtual store and a computer-aided engineering (CAE) tool to allow sophisticated simulation and analysis of packaging performance.

Designed with input from HP Indigo experts, our Parts Washer (model number A-44213-A) was created specifically to clean parts from HP Indigo digital presses. It speeds productivity through an extra long flush hose for direct hands-free flushing of press parts. The Graymills abrasive resistant pump, twin filtration system, and rugged power-coated steel construction are up to the challenge of cleaning with imaging oil. DOES AN HP INDIGO NEED ITS OWN PARTS WASHER? They Thought So.

Flexo Market News September 14, 2020 3

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Manufacturers’ Survey (Cont’d from Page 1)

percent in the second quarter, the largest quarterly de- cline in the history of the series, which dates to 1947. In addition, manufacturing production dropped 20.2 percent between February and April, with employ- ment in the sector off by a whopping 1,363,000 over that time frame. The Institute for Supply Management® reported that manufacturing activity expanded in August at the fastest pace since November 2018, buoyed by growth in orders that was the strongest since January 2004. Though it will take a while for output and hiring in the sector to recover to pre-recessionary levels, the survey indicates that production is on the rise. Higher Production Indeed, 50.6 percent of manufacturers report high- er production in the third quarter than in the second, with 22.7 percent predicting output will be lower and 24.8 percent feeling there will be no change (Figure 3). Similarly, 30.0 percent and 26.8 percent of those com- pleting the survey anticipate that hiring and capital spending will increase in the third quarter, respective- ly, with roughly 45 percent seeing no change in either measure relative to the second quarter. Relief funds played a significant role in helping businesses weather these challenges. Of the 82.7 percent of respondents who say COVID-19 had or will have a negative impact on their cash flow, 72.1 percent noted they had ob- tained funds through the Paycheck Protection Pro- gram, Main Street Lending Program or other liquidity programs. More importantly, of those firms taking ad- vantage of such programs, 91.6 percent reported that those funds helped keep their business afloat, retain their workforce or meet other necessary expenses. Returning To Normal Respondents were asked when they expect revenues to return to pre-pandemic levels. Sixty-two percent expect their firm’s revenues will not get back to pre- COVID-19 levels until 2021 or later (Figure 4). Just 17.6 percent note their revenues had already recovered, with 12.5 percent predicting them to bounce back in either the third or fourth quarter of 2020. The NAM Manufacturing Outlook Index measured 44.5 in the third quarter, up from 23.3 in the second quarter (Figure 5).The latest >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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