FMN | 2017 Executive Outlook

An N.V. Publication The Bi-Weekly News Publication Serving The Flexographic Printing Industry FLEX

Market News

Executive Outlook

Arc International • Anderson & Vreeland • Bobst DuPont • Flexo Factor • FLXON • Harper • Mark Andy Pamarco • Nilpeter • Uteco 2017

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Executive Outlook

From the editor

Greg Kishbaugh

among younger demographics) state that environ mentally friendly packaging is a major factor in their purchasing decisionmaking, according to a new report from Mintel called Global Packaging Trends. Mintel points out that when product price and perceived product quality are equal, a pack age’s (and brand’s) environmental benefits will likely be the deciding factor for consumers. Fashion Institute of Technology Associate Chair person Marianne Rosner Klimchuk, one of the DuPont competition judges, cited material reduc tion, sustainability and ecommerce, sharing that the packaging industry is “thinking about ways to reduce our impact on the environment.” Packaging can be the answer to the many chal lenges facing brands, including safety, sustainabili brand’s identity, values and promise to consumers at the point of sale and delivering throughout the product experience.” In regards to safety and sustainability, data shows that investing in packaging is one of the most im pactful actions a brand can take to improve con sumer trust. As for improving satisfaction among consumers, the report suggests that safety, sus tainability and the retail experience are three areas for opportunity. In terms of safety, packaging appears to be the single most impactful action brands can take to build trust in their products. More than three quarters of consumers said it would be extremely or very impactful to their trust in a brand to “package products in ways that pro tect them from tampering and contamination.” (Cont’d on Page 18) ty and retail experience, as was shown by the recent Packaging Matters study released by We strock. “More than a container,” the study concluded, “packaging has become a key element of the marketing mix, communicating a

The esteemed contributors to this year’s Execu tive Outlook Special Report discuss and analyze a wide range of topics, unanimously finding a robust flexo industry poised for even greater growth. It will take an enormous amount of work and commit ment and most of all investment, not only in new technology but, in training the employees who will turn that technology into renewed innovations and surging profits. The judges for the DuPont Awards for Packaging Innovation recently discussed what they foresaw on the horizon for advances in packaging, namely that today’s most innovative packaging designs focus on the enduser, with increasingly customizable pack aging, convenience and enhanced ergonomics. Asked to cite the latest trend in packaging design, the judges reported seeing sensitivity to environ mental impact and a heightened focus on address ing consumer needs across all economies, improved functionality and smaller portions. “The latest trend in today’s packaging design and execution is innovation, bringing it at a costeffec tive manner, while embracing sustainability goals,” said Engineering Fellow Brian Rivers, Strategic Sourcing, Sealed Air Corporation. Environmentally conscious packaging, unsurpris ingly, will continue to play a major role in how con sumers interact with the products they purchase. A recent study, Global Green Packaging Market 2016 2020, from Infiniti Research Ltd., predicts the global green packaging market will grow rapidly at a CAGR of more than 7 percent during the forecast period. The demand for eco friendly and sustain able packaging materials by consumers is on the rise, according to the study, and hence vendors are largely focusing on developing materials that can be recycled and have the traditional capabilities of re sistance to friction, moisture, and heat. Twothirds of American consumers (even higher

Executive Outlook Flexo Market News 3

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Executive Outlook

ARC International

Mike Foran President

At ARC Internaonal, we connue to see aggres sive growth in the flexographic prinng industry. Whether it’s wide web or narrow web film and paper, envelopes or preprinted linerboard, the de mand for high quality graphics is at an all me high. The newest flexographic presses are more sophis cated than ever, with components that require the utmost aenon to crical tolerances and consis tency. This is especially true of the anilox roller or anilox sleeve—our core product—and thought to be the heart of the flexo press. At both ARC East in Charlotte, North Carolina, and ARC West in Las Vegas, Nevada, we have in vested in the latest fiber optic laser machinery, equipped with nanotechnology. On newly fabricat ed, as well as reconditioned rollers and sleeves, it is imperative that we are able to supply the pre cise engraving profile, or Cell By Design™, for each customer, press or job. Our engravings include OC™ Opticell™ 60 degree, HV™ High Volume 70 degree, HG™ High Graphic 60 degree or HD™ High Definition 75 degree. Each is suited for specific printing requirements. ARC is fortunate to have seasoned personnel with extensive technical backgrounds in flexo prinng and rollers. In addion to providing in plant roller audits, which detail the condion and performance capability of a converter’s roller in ventory, the “team” approach we choose to take with our end users and their plate, ink and sub strate suppliers, results in more enhanced graphics and consistent quality. In addion to the anilox line, ARC has an array of complementary flexo products and services for the industry. Our engineers can inspect exisng doctor blade chambers to recommend repairs or replace

ment. We have aligned ourselves with Packaging Plast from Italy to supply dual blade or monoblade units with five layers of carbon fiber construcon. This gives them greater durability. The reduced vol ume of ink required to run the system and the use of special an adhesion resins can result in 11 per cent lower ink in circulaon. Most recently, ARC Internaonal has created a new division to supply premium nickel sleeves to the industry for plate mounng. Compared to con

venonal fiberglass sleeves that can crack and develop pinholes, these sleeves are much more pre cise and durable. ARC is a longme supplier of nickel screens to the texle industry and have since brought experienced sleeve manu facturing personnel on board to

grow this important area of the company. Print and impression cylinders, as well as wiper rollers for two roller presses, are also included in our stable of products. While online shopping will connue to grow even more in the years to come, there will always be a need for pointofpurchase graphics enhancement. Brick and mortar outlets such as WalMart, Target, supermarkets and the like are not going away. Con sumer packaged goods will connue to be pur chased based upon the package’s aracveness and security. Whether prinng flexo, gravure, offset or digital, we all play a big role in the worlds of packaging, suppliers and consumers. ARC Interna onal is proud to be a part of the flexo industry and will endeavor to connue supplying the highest quality products and exceponal customer and technical support in the years to come!

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The ART of the anilox printer It takes more than ink on a press to deliver the impact and emotion designed into today’s packaging. The artists of flexographic printing know that variation in temperature, humidity, substrates and a host of other conditions will affect the quality of their work. They have an eye for consistency and the insight to know that the cleanliness of lines, the accuracy of colors and the softness of feathered shades can make or break a press run. When these elements are addressed and the presses are finely tuned, the craftsmen running them can create masterworks.

The SCIENCE of the flexo rollers To stay profitable, you know your flexographic presses need consistent uptime and higher speeds. The anilox rollers and other components that keep the substrate flowing through your presses are only as good as the science behind them – the science of precision: Cell geometries engineered to make the most of ink using precise volumes and line counts. And all produced by skilled technicians who build to exacting OEM dimensions. When the rollers are right, there’s nothing that can stop your presses. When the artistry of printing and the science of rollers find balance, the result is a beautiful and profitable outcome. To learn more about what the science of flexography from ARC International can do to enhance the art in your production call us, go to our website or see us at InfoFLEX or CorrExpo.

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Executive Outlook

Anderson & Vreeland

Darin Lyon Executive Vice President

believe making the shi to digital label producon is crical for many converters. And so is selecng the right press. After evaluating the many options our digital team realized the Screen Truepress satisfied the needs of a wide variety of label converters. We considered the full range of jobs it could handle, from job length to substrates to ink types to real world productivity. Only once our teams were sat isfied did we commit to offering and supporting this powerful press. Customers were interested immediately.

Keeping Pace. With Change.

Change is everywhere you look. It’s part of the me we live in. For much of Anderson & Vreeland’s 56 year histo ry advances in our industry occurred gradually. There was me to consider, accept, and adapt to emerging technologies and new ways of thinking. But now, like much of life, the pace of change has become frenec, forcing adopon of new ideas, equipment and processes. At A&V we look at change as an opportunity to make strategic moves that can foster growth and success. Change is part of an ongoing conversaon we have with all our customers and is part of the relentless energy that drives our industry forward. Within this, two advances are especially important. First are operaonal advantages for flexo work flows. For example, the new Flint nyloflex® Xpress Thermal Plate Processor leverages the posive in teracon of a processor, plates, and developer that are designed to work together. This raises the bar on thermal plate quality, and reduces operang cost and maintenance requirements. Then there are the innovaons from Hybrid Soware, GMG Color, and Measure Color, which provide proofing and color management in ways that have never been done before. Together, these companies de liver praccal, funconal changes that can go right to the boom line. Second is the shi to digital prinng. Inkjet print ing has improved dramacally in just a couple of years, and our customers are asking us how to know when it makes sense for their business. To be honest, there is not always an easy answer, but we

Moreover, many of the same workflow and color management technologies from Hybrid, GMG Color and Measure Color also play well in the digital workflow of the Screen Truepress, and can create a synergy between flexo and digi

tal processes in your shop.

We don’t think the Screen Truepress—or any other digital press—is a replacement for flexo presses. Adding a digital system is complementary to flexo prinng. We think this is important because the pace of change tells us that digital prinng can be a proacve and strategic investment that can help many converters be beer posioned to com pete in a changing industry. If you plan to maintain a compeve edge in label and packaging prinng, the first thing you have to do is embrace change. And once you do that, de cide which changes come first for your business. We at Anderson & Vreeland are bullish on our in dustry and will connue to take on changes as op portunies that can make us, and our customers, stronger and more successful.

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GREAT PACKAGING starts with a GREAT WORKFLOW

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Executive Outlook

Bobst Group

Todd Blumsack Vice President Business Unit Web-Fed

How is Bobst poised to assist flexo printers in growing their business in today's environment? To sum it up with few words that syntheze the strength of our offerings: machine reliability and upme. We provide the most upme in our range of flexo presses, be they narrow to mid web inline UV flexo presses or mid , wide web CI flexo presses. As an example, BOBST Digital Flexo automaon when fied on its range of inline flexo presses, re sults in up to 95 percent press upme, no change of ink and no downme for color matching, 1 minute onthefly changeover, very lile waste, while pro viding brand owners the assurance of worldwide color consistency of packaging. Due to the precision of the impression seng ad justments, sophiscated mechanics in conjuncon with servo drive technology for anilox roll and plate cylinder slides, BOBST CI flexo presses also make a perfect fit for using the expanded gamut process and the manifold advantages it offers in terms of in creased efficiency and standardiza on of the process. Since the same sets of aniloxes and inks are used for all jobs, no me is wasted on changeovers, wash

What one thing, more so than any other, should flexo printers be most concerned with at the mo ment? What is it they should most be focused on? The quality control of the output: control of the register, control of the color and of its consistency and repeatability. Basically, control of all the vari ables so as to make the output exactly conform with the master request. We believe this — the digital world of prinng — is the way forward of the prinng industry, namely to print consistently repeatable quality, which can be digitally measured and validated by global digital standards. This can be achieved through the control of the process from prepress to output, which is something only a digital workflow can ensure. What areas of technology will most guide the fu ture for flexo printers? What new areas of tech nology will open up the most opportunies? Again all systems of digital automaon managing all the press operaon. And the press room taking advantage of the workflow opmizaon. IoT, the Internet of Things for machine connecvity, en abling the machine to dialogue with the environ ment. In the future an IoT prinng process can monitor automacally the press status, the require ments of maintenance, the use of energy, etc. What current developments in the retail environ ment (including CPG demands) do you see most creang opportunity for flexo printers? The connecon between brand owner and retail er with machine manufacturers and printers and consumers. The flow of the value chain is transi oning from a linear to a circular supply.

ups, and spot color matching. In addi on, the ink inven tory can be dramacally re duced and jobs with completely different colors can be print ed in one run. At the same me, digital

BOBST M6 equipped with Digital Flexo.

processes for color separaon like contract proofing and color control at the press foster the standardiza on of the flexo process and ensure perfect process consistency and repeatability of jobs.

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Flexo Factor Executive Outlook

Steve Wilkinson President

What one thing, more so than any other, should flexo printers be most concerned with at the mo ment? What is it they should most be focused on? The single most important thing that flexo print ers should be most concerned with at the moment is training of their exisng staff. Never in our history has technology been evolving at such an incredible pace and yet, when I consult and visit with printers, I never cease to be disappointed with the lack of any apparent focused training program for their personnel at all levels. I hope you noced that I said “at all levels” and not just the shop floor! Clearly it is mission crical that your operator must know how to run his machine efficiently, but just as im portant is how a job is presented to the operator. Support personnel and managers alike that do not have sufficient knowledge of the enre process will oen set the operator up for failure if all of the components necessary to run any job are all not in place. All too oen this failure is due to an obvious lack of adequate training for all personnel involved. The philosophy of never enough me to do it right the first me but always me to get it right the sec ond me, appears to be the mantra in too many print shops. Worse sll is the revolving door of per sonnel due in many cases to employees leaving out of frustraon of not knowing how to do the job properly and not being provided sufficient training. I know many owners and managers will say it is something of a “catch 22” due to the lack of per ceived loyalty from many employees in parcular with today’s young millennials. This can oen be the case, but must not be used as an excuse not to provide the best possible training from day one, and must be part of an on going pro gram. At each stage, the manager and employee must review and agree that adequate training and

understanding has occurred. It is not good enough just to rubber stamp a ‘yes’ in a file to say training has been given. I am constantly told there is not enough available qualified personnel, but that is a cry I have heard for my enre career. What the in dustry is failing to do is to provide connuous quality training at every level and is something that we must be focused on and I promise you will find that you will see a dramac reducon in loss of staff, greatly improved moral and, beer sll, greater profitability!

What areas of technology will most guide the future for flexo printers? What new areas of tech nology will open up the most op portunies? As we move forward, further im provements in automaon and soware will connue to provide

future flexo printers the ability to achieve more consistent print results at even greater speeds. Au tomated inline inspecon systems will enable 100 percent mapping of the full web and at the same me make automated adjustments to inks, impres sion sengs and registraon. Laser cung will eliminate the need for convenonal dies and sling blades. Convenonal printer skills such as register adjustment and seng of impressions will become less of an issue, and greater planning and set up skills will become the greater skill set as once this is done the press will be able to automacally make the final adjustments at start up and during the run. Hybridizaon of presses will connue to open up even greater opportunies for many printers in all market segments and must be embraced if we are to connue to meet the ever changing demands and expectaons of the consumer.

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What current developments in the retail environ ment (including CPG demands) do you see most creang opportunity for flexo printers? The retail environment is connuing to demand ever shorter lead mes, greater customizaon and even more personalizaon of the packaged product. This includes enhancement of the base stock mater ial with foils, films, embossing, die cung, reseal able flaps, foils and inks that are photochromac, thermally acvated, UV and rub resistant, front and back prinng and more. All of these demands will connue to create further opportunies for flexo as no other print system is so versale and capable of handling so many substrates and different technolo gies, many of which can be done in line. How is The Flexo Factor poised to assist flexo printers in growing their business?

With the many demands that printers face today and the speed in which the buyer expects them to react, it is not surprising that many companies are finding it difficult to keep up and even more difficult to decide what product or piece of equipment will be the best fit for them. This is where “The Flexo Factor “comes into the picture. With decades of experience in all areas we can offer personalized consultancy and technical support in making the right choice that suits your individual needs. This includes hands on training for all of your staff at all levels. In many cases we al ready represent a wide range of products from world class companies that we have proven are the best in their class, and more importantly will com plement what you already have. While it may be a well used cliché we are the true definion of a “One stop shop”!

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Executive Outlook Flexo Market News 11

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Flxon Executive Outlook

Paul Sharkey President

on The Toyota Way instuted 5 years earlier and therefore was not open to input. We le it like that. While I am slightly familiar with The Toyota Way, I am certain such systems would be open to input that could specifically and quickly eliminate 4 per cent of waste. Yet why not here? I have since dis cussed this situaon with others in the industry, both suppliers and converters. It turns out my ex perience was not unusual. Apparently many big companies get bogged down in people issues. It begins with management’s inability to hire and re

Your Future in Flexo?

In recent years, we’ve read about and seen the evidence of the astonishing achievement of the flexographic prinng process. Technically, flexogra phy can print a 4,000 dpi dot. New wide web press es are running at 2,000 fpm and with Expanded Color Gamut; downme between jobs is reduced to a few minutes. There are pressrooms running 24/7, changing doctor blades once a week. In short, what was once a compromised process favored for its low cost is now quality compeve to other print methods based on quality and cost. In a way — we are in the Golden Age of Flexo. Yet — a majority of today’s pressrooms are not operang at such advanced levels. While most have benefited from improvements in prepress, anilox, inks, ink metering and so on, they sll operate today much as they did 20 years ago. When dis cussing pressroom KPIs, many admit to struggling with the same issues as before. Waste resulng from print defects is oen higher now that ma chines are running so much faster. Fixing a defect on press produces 10,000 feet of printed waste. Recently a flexible packaging pressroom admied to operang with a ±18 percent waste rate; a num ber that has been more or less constant for 10 years. They said the value of 1 percent of waste is $200,000. This admission came aer observing pressroom pracces related to job changes — to be almost nonexistent. Yet — when I suggested 4 per cent or $800,000 could be easily trimmed off that rate by establishing more comprehensive basic Stan dard Operang Procedures coupled with operator training — something FLXON can help with — the conversaon died. During a follow up, I was told the pressroom was following a corporate direcve based

tain the right people. And it’s al most impossible to overcome a pressroom level resistance to change ... even when it’s clearly for the common good. Geng back to the advance ments in flexographic technology. It turns out companies who invest in

the newest technology and invest in connuous op erator best pracces training are beer able to con sistently meet their customer’s quality needs at lower price points. They prevent waste before it happens. FLXON, like other supplier stakeholders in the industry, is challenged by how to help press rooms gain their compeve advantage. We spe cialize in helping pressrooms drive waste out of their everyday pressroom pracces beginning with print defects. Even with a proven track record and no financial risk, most listen politely but don’t act. Is Darwin Right ... does survival belong to the fiest? Will there be another round of consolida ons and closures in the industry? Will fewer new machines running more efficiently with fewer oper ators replace old presses and pressrooms? If so – how will it affect your business, your future?

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Harper Corporation of america Executive Outlook

Lee Kluttz President

Working directly with our customers and industry suppliers, we connue to push the envelope on new technology and products. This will include our new QD™ Printer – a digital ink proofer enabling you to set your speeds for faster and more consis tent color matching to press. We’re also adding on new cleaners to our HarperScienfic product line; most recently the Anilox Surface Cleaner, an envi ronmental friendly, mul purpose cleaner. Harper has made many developments in the anilox processing and the component side ranging from the lowest porosity and lowest RA ceramic coangs, to the ghtest tolerances of any surface

Since picking up momentum in the 4th quarter of 2016, 2017 has started out very strong. It seems that some of the 2016 issues have been parally resolved, at least enough to let business get back to usual. There was a huge push from customers to pur chase a total digital press, but as fast as they le to go buy them, they seem to be coming back to buy a flexo hybrid type press. The supplier demand for digital is also higher than the customer base is right now. Plus, printers are wanng a one stop press where they can have access to beer cost, faster speeds, and customizaon. Customer service and support sll seem to be the highest demand category from our customers. Cus tomers today have an even higher level of service expectaon than three years ago. A lot of this is dri ven by advancements in technology. Customers don’t just want it easier, faster, and cheaper; they want to feel 100 percent confident that their busi ness needs have been, are, and will be properly taken care of. The number one question from any customer on any given day is, “What do you have new to offer?” If your answer is nothing, then you have probably just hurt you and your company’s chances of getting any business. However, if you do have something new and dif ferent to offer but you can’t provide the customer’s expected level of service and support for that prod uct or technology, you have also probably deterred you and your company from geng the business. This is why at Harper we continue to invest in our technology each and every year. We perform at least two different R&D projects per quarter. We love to take on new challenges every chance we get. By continuing to help customers be better at what they do, we only become better at what we do.

and base technology. We also offer new color coded RTV for our sleeves, end ring and bump ring designs, and now our U.S. patent pending cladless sleeve. This is all great stuff, but none of it would maer if we couldn’t back it up with our service and

support – another area Harper stays significantly in vested in. We know we must have both pieces in order to connue to be successful and true to our Harper brand, as well as connue to grow the flexo graphic industry to whole new levels. Get involved in the flexo industry educaon. There are so many educaonal channels and net working opportunies available in this industry. From programs through the FTA and Phoenix Chal lenge to Harper Roadshows and OEM training cen ters, there is no reason not to take advantage of these offerings. Some are minimal cost with huge reward or absolutely no cost other than me. Whatever you decide, there are so many new and different things out there today in this industry. Just make sure it’s the best fit for what you are doing or what you are trying to accomplish. If you do that and take advantage of all this industry has to offer, you will certainly be successful.

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Mark Andy Executive Outlook

Kevin Wilken CEO

ty beyond what is achievable with exisng stand alone digital or flexographic prinng workflows and assets. Users of the Digital Series are seeing signifi cant labor and me savings, and waste reducon, and we see this flexo/digital hybrid soluon as a driver to evolve and best ulize both technologies into the future. We are so encouraged by the results of the Digital Series that Mark Andy has further evolved the flexo/digital hybrid concept into a more robust hy brid por olio, including an entry level soluon (Dig ital One) and retrofits to exisng flexo pla orms (Digital Plus program). Even more encouraging though is that the leading associaon commied to the suc cess and future of flexography has given credit to this evoluon by awarding Mark Andy the 2017 FTA Technical Innovaon Award for the Digital Series hybrid press plat form. This demonstrates to us that a larger part of the industry is evolving too, understanding that different technolo gies don’t have to be compeve, they can be com plementary, and they are showing a bright future. This evoluon has not been instant, nor is it fo cused solely on one technology or product line. Our enre organizaon is a part of it and has embraced the evoluon. It has meant a shi in the way we concept and design our soluons, as well as the way we support our client partners. We look at co supplier relaonships differently. We are expanding and extending our experse beyond prinng and finishing equipment, understanding more about complete workflows and how they impact our cus tomers and their profitability. It hasn’t been simple. But it is a journey. And we know it’s gonna be all right.

You Say You Want an Evoluon?

Every year we reflect on the changes in our indus try, discussing how imperave it is to adapt in order to sustain relevance, growth and success. This year is no different. The Mark Andy 70+ year success story has been built on responding to changing cus tomer needs with efficient, producve soluons, and we are very proud of that history. The art of designing, manufacturing, and supporng label and package prinng presses is in our DNA, and we be lieve in the benefits of flexo technology. We are proud to be a partner converters turn to for guidance both when starng their business and to support them as it grows. Some of our earliest innovaons have been in service for more than 20 years, running just as hard alongside their newer, more producve assets. This has encouraged our recent introducon of the nextgeneraon, award winning Performance Series flexo line, featuring simplified operaon and increased producvity. But as different prinng methods (namely digital) have emerged in the label and packaging space, and the needs of brand owners and label buyers have changed, we quickly understood that adapng was not all we as a company needed to do to suc ceed. Mark Andy needed to evolve. Evoluon to us involves moving far outside our comfort zone, impacng and even disrupng the future of the industry. It has resulted in the devel opment of a soluon that combines and leverages the unique strengths of the dominant prinng tech nologies — flexography and digital — into an inte grated hybrid pla orm. The Mark Andy Digital Series provides producvity, flexibility and capabili

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Serious Brainpower. Serious Business. What happens when you challenge the world’s brightest digital engineers to build upon 70 years of flexo innovation? You infuse digital printing with hybrid performance, maximum versatility and true production speeds. You develop superb print quality at the lowest total cost per label. You create serious new opportunities. That’s the Mark Andy Digital Series.

Change the way you think about digital printing. markandy.com/rethinkdigital

From The Editor Executive Outlook

commitment to sustainability is to have products packaged in an environmentally friendly way. “Even more,” said the report, “consumers ranked packaging higher than sustainable sourcing prac tices, partnerships with NGOs and activism. While these activities are all important to consumers, the packaging is a very direct, tangible way to show commitment to sustainability.” When it comes to demonstrating commitment to sustainability, consumers ranked packaging higher than many major operational activities. The key tightrope for brands now appears to be the ability to balance sustainability without affect ing functionality. Nearly 80 percent of consumers believe it important for brands to focus on innova tions that make it easier for them to use the prod uct. Additionally, 77 percent of consumers said it’s extremely important that packaging keep products fresh and/or effective, and 82 percent said it’s ex tremely important that packaging prevent spilling/breaking. Counterfeit Threat Sustainability and branding may still monopolize much of the discussion in the packaging markets, but there remains one key issue that will continue to grow in importance: Anti Counterfeiting. Counterfeit goods pose serious threats to con sumer welfare as well as the brand loyalty of many CPG companies. The success of CPGs hinges on noth ing greater than its ability to control the quality of its products. It is very difficult to gain goodwill among consumers, and once that goodwill is jeopardized it is even more daunting a challenge to regain it. Several reports suggest that the anticounterfeit ing packaging markets will continue to grow by enormous margins as CPGs and retailers struggle to bring this epidemic under control. The AntiCoun terfeit Packaging Market size is projected to grow from $82.05 billion in 2015 to reach $153.95 billion by 2020, at an estimated Compound Annual Growth Rate of 13.41 percent, according to a new report from MarketsandMarkets.

( Cont’d from Page 3)

More than 80 percent of U.S. consumers, accord ing to the report, say safe packaging makes them: • More favorable toward a manufacturer or brand (88 percent), • Trust the brand more (88 percent), • More likely to purchase products from the man ufacturer or brand (87 percent), • More likely to recommend products from the manufacturer or brand to friends and family (82 percent). And confidence in the packaging efforts put for ward by consumer goods companies also appears strong. Three quarters of consumers said compa nies are doing enough to ensure product packaging does not contain harmful materials of substances. Additionally, 92 percent of consumers believe pack aging safety is headed in the right direction. Sustained Growth In the area of sustainability, the importance to consumers has reached all time high levels. Accord ing to the Westrock survey, 98 percent of con sumers indicated that sustainability is extremely important in their view of a brand. CPGs and packaging converters have spent mil lions of dollars to minimize greenhouse gas emmis sions, using recyclable materials, and partnering with community groups, but the survey suggests that they could do much more to communicate their sustainability efforts to consumers. WestRock concludes that companies are experi encing a disconnect when it comes to sustainability. They are making enormous investments and then missing their opportunity to demonstrate their commitment to consumers at the most immediate point of interaction—through the packaging. “When asked for the most impactful action a brand could take to demonstrate its commitment to sustainability, consumers said: the packaging,” according to WestRock’s report. Twothirds of consumers said that the most im portant action a brand can take to demonstrate its

18 Executive Outlook Flexo Market News

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The 1st word in nilox FACT: For high graphic flexo

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Nilpeter Executive Outlook

Paul Teachout Vice President Sales and Marketing

only our needs but more importantly our partners. This commitment in manufacturing will increase our efficiencies and improve our workflow. For our partners it will allow us to provide the most sophis cated automated narrow web soluon available, allowing them to increase their producvity and economic growth while at the same me address ing the workforce challenge. The Manufacturers Alliance for Producvity and Innovaons (MAPI) states that, “The economics are simple; automaon allows people to complete tasks faster with fewer errors at less cost.” Isn’t that something we all want? Nilpeter is commied to this vision by taking the lead, providing the latest

The Age of Automaon

Over the past decade, we have connued to see a generaonal shi in our workforce. Baby boomers and Gen Xers are rering or moving on faster than we can replace them, and the Millennials are now the largest workforce on the planet. We have seen our industry shi from a cra to a science by the numbers. This transion has created a workforce challenge like we have never seen. A generaon raised on disrupve technologies operang the world with their thumbs. They want it faster, beer, and easier and we have to provide that both in process and soluons. By 2020, there will be 5 generaons in the work force and the majority will be digital naves requir ing automated soluons. All roune and predictable tasks will be automated and our process will be a repeatable science. It is predicted that one third of our workforce will be replaced with some level of automaon by the mid 2020s. At Nilpeter, we are meeng this demand head on. Our new FA line of products will directly ad dress the workforce challenge and the age of au tomaon. These soluons will include complete moon control features where all press funcons are managed by automaon, tablet controls and clean hand technology operaon. These innova ons are being designed and offered with our own investment in the most sophiscated automated machining centers available in the world. We have recently completed a 5.7 million dollar renovaon of our operaon in Cincinna, Ohio. This 24/7 lights out manufacturing system will provide the highest level of quality and consistency of any nar row web press ever manufactured, fulfilling not

automated soluons manufactured by the most sophiscated auto mated machining technology. We are also very proud to say that we will be able to provide these solu ons across three manufacturing facilies around the world includ ing Denmark, the United States and Asia. These soluons are also

supported by a 24/7 Global Hotline that allows us to directly communicate with any partner, in any me zone for immediate technical support. As with every other innovaon in the industrial and technology age, humans will be affected. But as always we will adapt and be stronger and beer for it. In our market, Nilpeter is proud to lead the way by connued investment in the most sophiscated manufacturing pracces and providing the most in novave soluons for our partners current and fu ture dynamic packaging requirements. We invite all to come see these innovaons at our upcoming open houses and trade events, the Age of Automaon is here and we are excited to show it!

20 Executive Outlook Flexo Market News

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Partnership adds true value to our business

We have been working with Nilpeter for years now, their commitment and attention to detail is unparalleled.

Bill Cheringal & Jeff Levine Control Group

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Uteco Executive Outlook

Mario Mucciacciaro Executive Vice President

• Quicker startup time • No need for Sleeves, Anilox, Plates, RTO and Mounting equipment Today, Uteco is implementing a steam Inkjet technology on our New Sapphire EVO digital press. We can deliver high definition print quality & reso lution of 600 x 900 with speeds of more than 500 feet per minute on film substrates. Stream Inkjet Technology produces a continuous flow of ink with uniform dot size and accurate dot placement, re gardless of coverage, substrate, and even speed. This technology can be used in a variety of printing

The flexible packaging market experienced steady growth for 2016 and Uteco feels that will continue in 2017 by upgrading obsolete equipment for more technologically advanced and efficient machinery. Also, fueling this growth is the increasing demand in the market place. Uteco witnessed this first hand as sales goals were exceeded for 2016 with the sale of one press every eighteen days into North America. Uteco sees an existing need for quick change and more efficient presses to accommodate the short run demand that companies expect. The everchanging packaging graphics along with the move to less inventory continues to fuel this trend. As the new administration takes office we believe this will influence the flexible packaging in dustry by bringing business back home. Uteco sees a continued growing trend in the narrow web mar ket as label printers have expanded their business models into flexible packaging and has answered this expansion by developing a mid web solution. In order to stay competitive and meet market de mands, Uteco continues to invest heavily into inno vation. This innovation can be seen in the development of our latest digital Sapphire press with speeds of more than 500 feet per minute and widths more than 26 inches wider than ever previ ously thought before. The Uteco Sapphire was first unveiled at Drupa in 2016. Operating at speeds of 300 400 feet per minute with variable data printing on film for the Label Industries. This Prosper Inkjet technology is water base inkjet that applies ink directly to the substrate. This fully digital Sapphire was equipped 7 color process plus a digital varnish. The main benefits between Digital vs traditional flexo print are :

applications from, flexible packag ing, Tag & Label, and Folding car ton segments. As our Industry forecasts reflect growth for the next several years, Uteco will continue to focus on the latest innovations and industry

Sapphire EVO

demands allocating resources appropriately as a worldwide leader in flexible packaging equipment. Uteco feels that innovation is the key to becoming a market leader.

• Faster time to market • Variable Print formats • Waste reduction

22 Executive Outlook Flexo Market News

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