FMN | May 25th, 2020

Vol. 22 No. 11 An N.V. Publication Market News FLEX Serving The Flexographic Printing Industry In Print and Online at www.nvpublications.com ®

May 25, 2020

CTI Launches Management Software

Manufacturing Falls 13.7% in April

By Chad Moutray Chief Economist

by Greg Kishbaugh

National Assoc. of Manufacturers The National Association of Man- ufacturers released data for April, demonstrating that with each week, the full extent of the economic dam- age from COVID-19 and the abrupt decline in activity can be seen in greater detail. The severe drops in

N ecessity, as the old adage tells us, is the mother of invention. When Vancouver, Washington-based trade shop Color Tech- nology found itself dissatisfied with its management software, the company launched its own proprietary system, enabling custom-

data are unprece- dented, according to the association. Consumer Price Index : Consumer prices fell 0.8 per- cent in April, the largest monthly de- cline since Decem- ber 2008 and ex-

Chad Moutray

tending the 0.4 percent decline seen in March. Sharply lower energy pric- es led the headline measure decrease, with gasoline costs plummeting 20.6 percent for the month. In contrast, food prices rose 1.5 percent in April,

ers to track their orders in real time and boost their productiv- ity. The system, called CORE, will now be offered commercially through Color Technology’s sister company CTI Solutions. CTI is a manufacturer of sheet flexo printing plates primarily for corrugated printers. In business since 1990, President Ralph Johnson purchased the company in 2002, and the former own- er remained and launched CTI Solutions. Color Technology has grown and expanded over the years, currently operating two

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Consumers Attitide Toward Packaging Increases Consumers are concerned about packaging in many ways due to COVID-19, however attitudes are chang- ing in a positive way, according to a survey conduct- ed by FMCG Gurus. 40 percent of global consumers stated they have more positive perceptions towards packaging as a result of COVID-19.This positive shift in attitude is said to be due to consumers wanting their food to be protected from the virus. Seven out of 10 consumers said that they believe that packaging keeps food safe. Consumers are also said to be re-evaluating their eat- ing and drinking habits as they look to lead healthier lifestyles. Whilst a high level of attention will be giv- en to product formulation and improved wellbeing, consumers will also pay close attention to packaging as they evaluate the role that it has on health, the re- search firm suggested. There is increasing global demand to establish the authenticity of food products by demonstrating an un- broken supply chain from the source through to the final consumers. FMCG Gurus research also showed that, across the globe, almost one in two consumers (47 percent) said that they are willing to pay for a product if the packag-

ing has less of an environmental impact. Fifty-five per- cent have now become “more concerned” about the environment as a result of COVID-19. However, consumers are not overly trusting of sus- tainability claims made by packaging brands, the re- search revealed. Green-washing — deceptive mar- keting about sustainability — and consumers being subject to high profile cases where environmental claims later prove to be misleading or inaccurate were noted to be the primary concerns for consumers.

Tarsus Confirms China Show Location, Dates

The organizer of the Labelexpo and Brand Print Global Series’ of international trade shows, Tarsus Group, confirmed Shenzhen as the location for the lat- est additions to its expanding print portfolio in China, which, at this writing, take place between December 8-10, 2020. The two co-located shows, Labelexpo South China and Brand Print South China, announced last Decem- ber, will be hosted at Shenzhen World Exhibition & Convention Center. Collectively, Labelexpo South Chi- na and Brand Print South China 2020 will reportedly cover 10,000 square meters of floor space.

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Flexo Market News May 25, 2020 3

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PMMI Analyzes Flexible Packaging Market

PMMI,The Association for Packaging and Pricessing Technologies has released its Flexible Packaging Mar- ket Assessment 2019 . Most industry experts foresee continued growth in the flexible packaging industry, fueled by two developments: increasing consumer de- mands for convenient packages, and an industry push for sustainable, shelf-ready product designs. Respondents and industry experts estimate the glob- al flexible packaging market will grow at a rate of 3.9

percent CAGR1 through 2023 to ~$291.6B.The flexi- ble packaging market in the U.S. and Canada are esti- mated to achieve $44B by 2023. •The U.S. flexible packaging market witnessed accel- erated growth of 61 percent from 2000 through 2017 (shown right) and is projected to increase in almost all end use segments of the industry. •The growth in flexible packaging is due to consum- er preferences for convenient packaging, as well as in- dustry demands for sustainable and consumer-friendly packages. Food is the largest end-use industry for flexi- ble packaging: it accounts for nearly half of the flexible packaging used.The food industry was an early adopt- er of flexible packaging and has experienced strong growth due to rise in convenient packaging for ready- to-eat foods, snacks, frozen meals, and cake mixes. •Two segments — processed fruits & vegetables and baby food — are expected to outperform the overall food market, achieving over 2 percent growth.Growth for both of these segments is being driven by demand for pouch packaging and convenience options. Globally, pouches account for the majority of the flex- ible packaging used. Pouches are the fastest growing category and within that, the pillow pouch is the pre- dominant format (39 percent). However, retailers such asWalmart are pushing manufacturers toward stand up pouches (SUP),which are viewed as shelf-ready. (Cont’d on Page 6)

4 May 25, 2020 Flexo Market News

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After using the CORE system internally for more than a year, experiencing 98 percent on time or better de- livery, Johnson felt it was time to bring the system to market so that other manufacturing companies could benefit from the ability to better control workflow. Since Color Technology’s sister software company CTI Solutions has already built a solid 16 year founda- tion servicing such global giants as Mars Corp., MGM, Timex, Guess, Fox, Nike and Columbia Sportswear, Johnson knew he could make the system accessible to other users quickly as the system had already been tested and proven. “The system is browser-based so any customer with an Internet connection can begin entering their own orders with little to no training,” said Johnson.“The sys- tem is very intuitive.” A big advantage of using CORE, according to Johnson, is that it offers the possibility for companies to vastly improve their efficiency. Johnson said “in the past year I have learned more about the day to day operations of our company than I did in the previous 15 years.” “There is no software or hardware to maintain,”he said. “Customers do not have to conform exactly to CORE as a reasonable amount of customizing will address individ- ual production needs.New users will be able to employ (Cont’d on Page 12)

CTI Management Software (Cont’d from Page 1) digital platemakers, two washout units, a Kongsberg table and two Heaford Digital Mounters.The company has a stable of some of the industry’s most renowned companies as customers, including WestRock, PCA and IP. Just more than a year ago, Johnson decided to intro- duce a software system within Color Technology that would allow his customers to place and follow the progress of their orders at their convenience, any time day or night, seven days a week. “The system provided our company with an excellent overview of the entire manufacturing operation step by step,” Johnson said.“in addition, customers have the op- tion to place orders, follow up on existing orders, see quotes, annotate and approve print cards, and check shipping details, as well as utilize an internal message system and oversee everything from prep to platemak- ing and mounting.” Working Together The CORE system is compatible with the company’s accounting system so quoting and invoicing are all tied together, as well. For repeat orders, the essential information is all auto-filled to provide speed and ease of use for customers. Flexo Market News Core Ad rev2.pdf 1 5/20/20 3:45 PM

W h a t D o e s B u s i n e s s S u c c e s s L o o k L i k e ? For Flexo Trade Shops and Converters, CORE provides a window into your entire operation in only a few minutes. CORE was designed by people who know your business and allows the option for your clients to place and track their own orders, approve print cards, see quotes and review shipping details. AWebEx demo will reveal many additional benefits provided by CORE. Contact Ralph for more info or to set up a demo.

Everything In One Place

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Build with your needs in mind,from the ground up. Color Technology’s Online Ordering System enables new job requests, submissions with all critical job criteria and order ticket build out. Communicating job and artwork requirements is simplified.

Every aspect of you projects is now accessible at anytime from anywhere via secure log-in. Checking, modifying or updating any order specifications or requirement is easily completed using our comprehensive array of features.

More than just reporting job specifications and visiual layout information we have also included full featured soft proofing and collaboration tools. Now it is easier than ever to communicate with your team and ours on every detail that demands attention.

TI

For More Information Please Contact Us At 971-235-2757 Or Email Us At ralphj@colortechnology.com

Flexo Market News May 25, 2020 5

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PMMI Assessment (Cont’d from Page 4)

A growing customer base for fast-moving consumer products and consumer durables in emerging coun- tries is one factor projected to drive the global market. Asian and European markets have been early adopt- ers of the format and continue to innovate in flexible packaging designs. • Flexible packaging is growing fast worldwide for use as primary packaging, owning the highest share (39 percent) compared to other packaging types in the market. • Plastic pouches will witness the largest growth (20 percent) among other flexible packaging types through 2022. • Global demand for consumer flexible packaging will continue its upward growth trend especially as developing economies continue to expand. USA & Canada — Est. Market Size by 2023: $44 bil- lion. CAGR: 3.16 percent from 2018-2023 Mexico — Est. Market Size by 2023: $4 billion. CAGR: 12.6 percent from 2018-2023 Asia — Est.Market Size by 2023: $49 billion. CAGR: 6 percent from 2018-2023 Europe — Est. Market Size by 2021: $41 billion. CAGR: 7.8 percent from 2018-2021. Trends: Convenience, Sustainability Convenient packaging and sustainability are two ma- jor trends companies cite as continuing to grow. As a result,manufacturers continue to accelerate their adop- tion of flexible packaging designs for on-the-go packag- ing and recloseability.Sustainability also continues to be a major focus, with manufacturers using compostable and biodegradable films to meet industry demands. Manufacturers continue to see a shift in products transitioning to flexible packaging where they had not used it before. Examples: Pouch production of canned products (e.g., sauces, soups, and processed meat). Also in demand are innovative dispensing functions that let consumers pour or consume products more easily. Example:Transition of some baby food formerly packaged in jars transitioning to pouches with an an- tiswallow closure feature. Many companies are trying to offer easy-open fea- tures, such as snap-toseal tops and press-to-close zip- pers, as convenience factors. Examples: Sour cream, shredded cheese, and lunch meats in flexible bags. Sustainability, Waste Reduction New ways manufacturers are exploring to drive sus- tainability include: • 3D printing, decreases cost through significantly cheaper molds;

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6 May 25, 2020 Flexo Market News

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Manufacturing (Cont’d from Page 1)

with food-at-home costs jumping 2.6 percent. Over the past 12 months, the consumer prices index has risen 0.4 percent (seasonally adjusted), the slowest year-over-year pace since November 2015.At the same time, core inflation (which excludes food and energy) decreased 0.4 percent in April, the largest monthly de- cline in the history of the data series, which dates to 1947. On a year-over-year basis, core consumer infla- tion has increased 1.4 percent since April 2019, the slowest rate since April 2011. The data reflect the deflationary effects of the COVID-19 outbreak,with higher costs for grocery and medical care items but declines in every other catego- ry except for shelter (which was flat).The outlook is for consumer prices to rise by 0.7 percent in 2020, the slowest pace of growth in five years, with core infla- tion up 1.9 percent this year. Industrial Production: Manufacturing production fell sharply by a record-setting 13.7 percent in April as firms grappled with the COVID-19 outbreak, including closures, reduced activity and significant global supply and demand disruptions. Output in the sector fell to its lowest level since July 1998. Durable and nondu- rable goods production plummeted 19.3 percent and 8.2 percent, respectively, with all 19 major sectors ex- periencing declines.The largest production decreases for the month were jaw-dropping in scale, including motor vehicles and parts (down 71.1 percent), appar- el and leather (down 24.1 percent), aerospace and other transportation equipment (down 21.6 percent), printing and support (down 21.2 percent), textile and product mills (down 20.7 percent), furniture and re- lated products (down 20.6 percent), primary metals (down 20.4 percent) and petroleum and coal prod- ucts (down 18.5 percent), among others. On a year-over-year basis, manufacturing production has declined 18 percent, with durable and nondura- ble goods output down 25.5 percent and 10 percent, respectively. Manufacturing capacity utilization has plummeted from 75.0 percent in February to 70.8 per- cent in March to 61.1 percent in April, an all-time low for a series that dates to 1948. Meanwhile, total industrial production decreased 11.2 percent in April, also the largest monthly decline on record,with mining and utilities production off 6.1 percent and 0.9 percent, respectively.Over the past 12 months, industrial production dropped 15 percent.To- tal capacity utilization has declined from 76.7 percent in February to 73.2 percent in March to 64.9 percent in April, a record low. Job Openings and Labor Turnover Survey :There were 320,000 manufacturing job openings in March,

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PMMI Assessment (Cont’d from Page 6)

• Stains in flexible packaging film that facilitate pack- age breakdown after a set time period (well after the end of the product shelf life), which help the plastics degrade much faster in landfills; • Starch-based and biodegradable films; and • Consolidation to fewer films to maximize scale in order quantities. Trends: High Performance Film Continued consumer health-consciousness propels demand for new types of packaging films that increase shelf life by improving oxygen barriers and slowing down microbial growth.On the retail front, companies are demanding shelf-ready packaging with the use of pusher trays to improve operational efficiencies. Industry experts see an emerging trend in extend- ed product shelf life and product transparency across packaging films.

In addition to its bi-weekly print edition, Flexo Market News also offers unprecented online reach for advertisers, as well. * Every ad in our print edition appears in our online edition, which includes a link back to your company’s website. • Banner ad opportunities exist at both www.flexomarketnews.com and www.nvpublications.com.

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• Manufacturers are integrating higher performance packaging films that hinder microbial growth and slow deterioration of perishable goods. Several re- spondents have also implemented plastic barrier technologies on their flexible packaging lines to help preserve and protect contents and to optimize the shelf life of perishable goods, which reduces the need for preservatives. • Manufacturers are also seeing growth in flexible packaging for films that have textured or matte finish- es. Such packaging feels soft to the touch and can be perceived as a more premium type of film. Caution: Manufacturers claim that such packaging would like- ly behave differently on the equipment, which might need some adjustments. As a result, the equipment yield will decrease because it is thicker and requires

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Manufacturing (Cont’d from Page 7)

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the slowest pace since November 2016 and down from 422,000 in February. Over the past 12 months, job postings have averaged nearly 430,000 per month. With that said, given the COVID-19 outbreak and the sharp decline in economic activity, job openings will likely continue to decelerate in the April figures. The sector hired 299,000 workers in March, down from 334,000 in February,but separations rose from 318,000 to 732,000, the largest monthly increase on record.As a result, net hiring was -433,000 in March. In the larger economy, nonfarm business job open- ings pulled back from 7,004,000 in February to 6,191,000 in March.After experiencing more job open- ings than the number of people looking for work for 24 straight months, the abrupt stoppage of economic activity amid the COVID-19 outbreak sharply reversed that trend, starting in March.There were 7,140,000 un- employed Americans in March—a figure that rose to 23,078,000 in April, according to the latest jobs data. Digging further into the separations data, fewer workers were quitting their jobs, both for nonfarm businesses (down from 3,436,000 to 2,782,000, lowest since July 2015) and for manufacturing (down from 183,000 to 142,000, a pace not seen since June 2016). At the same time, layoffs increased sharply. Nonfarm business layoffs jumped from 1,846,000 in February to 11,372,000 in March. Initial unemployment claims (see below) would indicate even greater losses inApril and May. Similarly, layoffs in the manufacturing sector rose from 113,000 to 566,000. New York Fed Manufacturing Survey : Manu- facturing activity in the New York Federal Reserve Bank’s district remained very weak despite the rise in the composite index of business conditions from -78.2 inApril to -48.5 in May. Respondents continued to be challenged by disruptions in their operations due to COVID-19, with 60.2 percent of manufactur- ers in the region reporting weaker orders in May. There were also sharp contractions in shipments and the average workweek. Employment stabilized somewhat but remained negative. In May, 20.8 per- cent of manufacturing leaders said that hiring was declining, improving from 58.6 percent who said the same thing in April. Despite the historic declines seen the past two months, manufacturers in the Empire State Manu- facturing Survey felt cautiously positive that activity would rebound over the next six months. The for- ward-looking composite index rose from 7.0 to 29.1 in this release, its best reading in 10 months. More than 56 percent, for instance, expected new orders and shipments to rise moving forward, with 28.4 percent (Cont’d on Page 11)

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Flexo Market News May 25, 2020 9

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Flexo Market News

PMMI Assessment (Cont’d from Page 8)

rolls to be changed more quickly.

Shelf Readiness Interest in retail-ready packaging continues to push companies toward flexible packaging to simplify stocking and shelving. • Large retailers and club stores in particular are driv- ing this trend. Retailers are demanding packaging that can minimize labor in stocking products on shelves. Stores such as Safeway use gussets with pusher trays to help products stand. Retailers are moving away from using peg bars due to the time required to put pouches on the peg, according to manufacturers. Trends: Technology Key technology developments continue to support packaging industry growth across a broad variety of manufacturing segments. Intelligent packaging using smart labels permits effective product location and verification. Innovative printing advances use flexographic print- ing and biodegradable technologies that promote lon- ger sustainability of flexible packaging materials. Trends: E-Commerce E-commerce is influencing trends to make flexible packaging more durable to protect products during shipping – consumers are more concerned that their actual products arrive in good condition, rather than how they appear online. E-commerce is also changing specific packaging requirements, prompting manufac- turers to develop a business focus that caters to flexi- ble packaging for this channel. Packaging Innovation Innovation in flexible packaging includes the use of customized, eyecatching packaging shapes or special- ty closures to attract consumers or make dispensing neat and easier to use.As more products transition to flexible packaging, manufacturers are adding built-in freshness indicators to showcase the quality and shelf life of consumer goods. Challenges, Opportunities Challenges in flexible packaging — such as chang- ing consumer preferences, rapid technology devel- opments, and tariffs and rising material costs — may hinder growth and make manufacturers more cautious about investing in new equipment. However,most ac- knowledge pent-up demand for transitioning products into flexible packaging, especially pouches.

Adheso-Graphics, Inc. www.adheso-graphics.com

AGI manufactures, distributes and converts current technology flexo mounting tapes and backing sys- tems for corrugated plate mounting. Flexstik hard vinyl, FlexSoft, bi.esse brand, Gold Series Thin tapes for sleeve and Narrow web plate mounting. Specialty tapes that cover the vast thick- ness range requirements and specific adhesion systems for all flexo mounting requirements. We provide technical service and problem solving ser- vices for unique customers & applications. A&V manufactures a complete line of photopolymer plate processing systems and is a leading distribu- tor of flexographic platemaking materials. A&V also sells digital imaging systems and software specifical- ly designed for flexography. ARC International www.ARCInternational.com Anderson & Vreeland, Inc. www.andersonvreeland.com ARC International is a world leader in the manufac- turing of roller products for flexography. The latest nanotechnology laser engraving in our Charlotte and Las Vegas manufacturing facilities ensures superior quality and consistency in anilox rollers. DuPont Packaging Graphics www.cyrel.com/na DuPont Packaging Graphics is the world’s leading supplier of flexographic printing systems in digital and conventional formats; including Cyrel® brand photopolymer plates, Cyrel® FAST processing equipment, Cyrel® round sleeves, mounting and fin- ishing products. For more than 35 years, beginning with Cyrel®, the first photopolymer printing plate, through to today’s digital workflow revolution, DuPont has been driving innovation in the Flexo and package printing indus- tries. The Digital Cyrel® FAST imaging system has been broadly recognized for its efficiency, productivity, print performance, and environmental benefits.

10 May 25, 2020 Flexo Market News

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BestBrightHalfHOUSEfive.qxp_Layout 1 9/12/18 4:26 PM Page 1 The underlying data reflected the downward shift in sentiment and increased uncertainty. For instance, the rate of owners planning to hire in the next three months decreased from 21 percent in February to 9 percent in March to only 1 percent in April, the slow- Manufacturing (Cont’d from Page 9) anticipating more employment. Capital spending was the exception, with 29.7 percent predicting declines in capital expenditures over the coming months. NFIB Small Business Survey : The National Fed- eration of Independent Business said that the Small Business Optimism Index fell to its lowest level since March 2013, declining from 96.4 in March to 90.9 in April. The report states, “The business impact from COVID-19, government stay-at-home orders, and man- dated nonessential business closures has had a devas- tating impact on the small business economy.” Indeed, the measure for real sales expectations fell to the low- est level in the 46-year history of the survey, and the percentage of respondents saying that the next three months were a “good time to expand” fell from 28 percent in January to just 3 percent in April.The top “single most important problem” was poor sales, sup- planting hiring difficulties, which had been the prima- ry concern for two straight years.

est pace since December 2012. On the capital spend- ing front, 53 percent of small firms have made an in- vestment over the past three months, down from 60 percent in the previous survey and also the lowest since December 2012. Producer Price Index : Producer prices for final demand goods and services fell for the third straight month, declining 1.3 percent in April, the largest monthly decline since the series began in December 2009. More importantly, producer prices for final de- mand goods plunged 3.3 percent inApril, pulled lower by a whopping 19 percent decrease in energy costs on oil price shocks. Food prices were off 0.5 percent for the month. Core inflation for goods, which excludes food and energy, decreased 0.4 percent in April, and producer prices for final demand services were off 0.2 percent for the month. Over the past 12 months, producer prices for final demand goods and services decreased from 0.7 per- cent in March to -1 percent in April (seasonally adjust- ed), the lowest year-over-year rate since December 2015. Likewise, core producer prices have fallen by a seasonally adjusted 0.2 percent year-over-year, slowing from 1.1 percent growth in March. The Federal Reserve remains concerned about de- (Cont’d on Page 13)

The Best And The Brightest Are Waiting To Hear From YOU

An ad in Flexo Market News is a direct sales meeting with thousands of Presidents, Owners, VPs and General Managers of flexo operations — the key people who make decisions on equipment purchases.

Greg Kishbaugh / 317-306-1060 / flexo@nvpublications.com

Robyn Smith / 910-553-4055 / rsmith@nvpublications.com

Flexo Market News May 25, 2020 11

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a system designed and refined by our customers and ourselves. CORE provides management the ability to sit at their desks and survey everything that is happening in production. Real time information allows those in au- thority to make the best decisions. A one-hour Webex online meeting will convince the biggest skeptic that everything we are saying is true.” Rol-Tec Purchases Axis Machine Company Green Bay, Wisconsin-based Rol-Tec, Inc. has pur- chased Axis Machine Company, a grinding company producing metal rollers and machine parts used in flexographic printing, paper making, and coating oper- ations. Rol-Tec provides rubber and cast urethane roll coverings, roller machining services, tungsten carbide roller coatings, urethane molded parts, and laser en- graved rubber coverings used in converting, printing and other industrial applications. Axis will operate as a division of Rol-Tec and will re- main in its existing 20,000 square foot facility in Green Bay just one block from Rol-Tec’s primary plant and headquarters. Glenroy Publishes Life Cycle Assessment Glenroy, Inc., Annapolis, Maryland, recently pub- lished its Life Cycle Assessment of STANDCAP vs. Rig- id Plastics Report . Glenroy contracted Shelbyville, Michigan-based firm PTIS, LLC to provide life cycle assessments (LCAs) and a report with descriptions on key environmental indicators based on comparing the premade STANDCAP Pouch to a rigid package equiv- alent across a range of product categories including sauces, condiments, and personal care.The purpose of the LCAs is to use the results as an educational tool and better understand the environmental impacts of the different package options. To help summarize the key findings of each LCA case study, the Flexible Packaging Association (FPA) part- nered with Glenroy to produce fact sheets in keeping with previous and future LCA case studies that FPA has done with PTIS.According to the study, choosing pre- made STANDCAP Pouches instead of rigid plastic bot- tles (including rigid inverted plastic squeeze bottles) results in up to: 63 percent less plastic (by weight); 61 percent less fossil fuel consumption; 62 percent less greenhouse gas emissions;76 percent less water usage; and 52 percent less landfill waste (even when factor- ing in plastic recycling rates). CTI Management Software (Cont’d from Page 5)

Flexo Market News

Eaglewood Technologies, LLC www.eaglewoodtech.com

Eaglewood Technologies provides the award-winning Sitexco Laser Systems, Sanilox ™ Systems and Sani- Blast ™ Mobile Service. Sitexco Laser Systems are the latest technology in anilox roll cleaning and are perfect for packaging and label printers. Sanilox ™ Systems are the global standard of reliable, environmentally safe anilox roll cleaning. Sani-Blast ™ cleaning service has been cleaning rolls for over 20 years and offer several cleaning options to minimize downtime. Flint Group www.flintgrp.com Flint Group Flexographic Products develops, man- ufacturers and markets an extensive portfolio of printing consumables, including: nyloflex ® photopoly- mer printing plates and processing equipment, and dayCorr ® die-cutting blankets and anvil covers. With a strong customer focus, unmatched service and support, and superior products, Flint Group strives to provide exceptional value, consistent quality and continuous innovation to customers around the world. Harper Corporation of America www.harperimage.com We’ve made ceramic anilox rolls longer than any- one in the world and pride ourselves on being the best in the world. Whether wide web, narrow web, newspaper, or corrugated markets, Harper continu- ously strives to bring new flexographic products and services to the printing industry that will improve the

quality of your graphics. J I MacWilliam Co., Inc. www.jimacwilliam.com

Used equipment for flexible packaging, folding carton, paper, film, foil and non-woven industries. Professional, knowledgeable service for more than 30 years.

KBA-Flexotecnica – Get the Edge www.kba-flexotecnica.com/en/

Flexotecnica’s patented Safe Sleeve Change ® system and Speedy Clean ® auto washup system are designed to give converters a competitive edge through Flexotecnica’s commitment to research and development. Sales, service and support for Flexo- tecnica presses is provided by KBA North America, Inc. in Dallas, Texas with U.S. resident technicians, an extensive spare parts inventory and an experi- enced, dedicated service staff.

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Manufacturing (Cont’d from Page 11)

Labelexpo Southeast Asia 2020 September 10-12, 2020 Bangkok International Trade & Exhibition Centre Bangkok, Thailand FTA Fall Conference October 4-7 Cincinnati Marriott at RiverCenter Cincinnati, OH TLMI Annual Meeting Industry Events

flationary pressures from the sharp drop in econom- ic activity due to COVID-19, and as such, it has pur- sued extraordinary monetary policy measures to help prop up the economy—providing a financial “bridge” for consumers and businesses until activity picks back up.These data support that notion, with prices pulling back sharply inApril in light of a severe global recession. Retail Sales : With Americans under stay-at-home orders nationwide, consumer spending plummeted 16.4% in April, the largest monthly decline since the series began in 1992 and extending the 8.3 percent de- crease seen in March.The extent of the decline in retail spending in April was extraordinary, with the largest declines in clothing and accessory stores (down 78.8 percent), electronics and appliances stores (down 60.6 percent), furniture and home furnishing stores (down 58.7 percent), sporting goods and hobby stores (down 38 percent), food services and drinking places (down 29.5 percent), department stores (down 28.9 percent) and gasoline stations (down 28.8 percent), among others. Motor vehicle and parts dealers said that sales were off 12.4 percent. Excluding motor vehicles and gasoline, retail sales were down 16.2 percent for the month. On a year- over-year basis, retail spending was down 21.6 per- cent, with a decline of 16 percent if automobiles and gasoline are excluded. Nonstore retailers were the only bright spot, with sales up 8.4 percent as Americans purchased more on- line.This exacerbated the consumer dynamics seen in recent years,with retail shifting from brick-and-mortar stores to online retailers. Along those lines, sales for nonstore retailers jumped 21.6 percent year-over-year, but department store sales fell sharply, down 47 per- cent over the past 12 months. To be fair, this decline was also exaggerated by the shutdowns, making it im- perative to watch what happens in the coming months as stores start reopening. University of Michigan Consumer Sentiment : After falling to the lowest level since December 2011, the Index of Consumer Sentiment edged up from 71.8 in April to 73.7 in May, according to pre- liminary data from the University of Michigan and Thomson Reuters.The underlying data were mixed. Americans were somewhat more upbeat in their view of the current economic environment, with that measure rising from 74.3 to 83.0. However, there was continued deterioration in the outlook for future economic conditions, down from 70.1 to 67.7. The release notes that financial conditions of respondents were the lowest in six years despite

Oct 11-13, 2020 The Broadmoor Colorado Springs, CO Labelexpo India October 28 - November 1, 2020 India Expo Centre Greater Noida, Delhi NCR Pack Expo International November 8-11, 2020 Chicago, IL TLMI Converter Meeting March 21-23, 2021 Windsor Court Hotel New Orleans, LA FTA InfoFlex 2021 May 3-4, 2021 Kansas City, MO SuperCorrExpo 2021 August 8–12, 2021 Orange County Convention Center Orlando, FL Labelexpo Europe September 21-24, 2021 Brussels Expo Brussels, Belgium CorrExpo 2021 September 27 - 29, 2021 St. Louis, Missouri FTA Fall Conference October 4-6, 2021 Frisco, TX TLMI Annual Meeting October 17-19, 2021 Naples Grande Beach Resort Naples, FL

(Cont’d on Page 15)

Flexo Market News May 25, 2020 13

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Classified Advertising

People & Places Anderson & Vreeland

Andy Gillis has been named Vice President of Sales & General Manager for Anderson & Vreeland Inc., manu- facturer of flexographic print technol- ogies, equipment and consumables. Gillis is joining the Sales Team of An- derson & Vreeland after being a part of the team at Provident as the Gener- al Manager.

Rates: Boxed Ads: Print: $95.00 per column inch . On-Line: $95.00, ($65.00 if placed with print ad). To place ad call (317) 306-1060 or email: flexo@nvpublications.com.

Flexo Market News® is published bi-weekly by NV Business Publishers Corporation, in association with Board Converting News®, Corrugated Today® Recycling Markets®, International Paper Board Industry®, Folding Carton Industry®, and Board Converting News International. Marketing and Circulation offices: PO Box 802, Manasquan, NJ 08736-0802, Phone: (732) 245-3702. Subscription Rates in U.S. and Canada $60 per year or $105 for two years. Overseas rate per year $80 USD. Current issue single copies (pre-paid only) $5.00 in U.S. (elsewhere $7.50); add $5.00 per order for shipping & handling. No part of this publication may be trans- mitted or reproduced without permission from the publisher. Eaglewood Seeks Sales Reps Eaglewood Technologies, a leading supplier of SAFE, SMART, SUPERIOR products for the FLEXO market, seeks Independent FLEXO sales representatives in the Eastern and Western regions of the U.S. to represent our growing product portfolio. Please send your inquiries to Petej@eaglewoodtech.com Subscriber Services For change of address, missed issues and other subscription questions call: (317) 306-1060 or email: flexo@nvpublications.com

Andy Gillis

AWT Labels Michelle Zeller has been promoted to President of

AWT Labels & Packaging, Minneapo- lis, Minnesota. She will also retain her CFO role. Zeller played a key role in AWT’s ac- quisition and integration of the com- pany’s South Elgin, Illinois, flexible packaging division, as well as AWT’s Citation Healthcare Labels division in Hauppauge, NewYork. Zeller is a CPA and has spent more than fifteen years as AWT’s Chief Fi-

Michelle Zeller

nancial Officer (CFO), and over seven years as the company’s Chief Operations Officer (COO). Zeller is a board member of the Tag & Label Manufacturing Institute (TLMI).

Stora Enso Stora Enso has appointed Katariina Kravi as EVP,Head of Human Resources and a member of the Group Leadership Team. She will start on September 1, 2020, and be based in Helsinki, Finland.

Katariina Kravi

Robyn Smith - President/Publisher Len Prazych - Vice President

Obituary Jimmie Andrew (Jim) Johnson, former President and owner of Progress Container Corp., Winder, Georgia, passed away on Friday, May 8. He was 84. In the 1960s, Johnson went to work for a corrugated box plant in Conyers, Georgia, where he sold packag- ing in the north Georgia market. In 1971 he opened Progress Container Corporation in Lilburn, Georgia. In 1974 the company moved to a new facility in Lawrenceville, Georgia. Along the way the business expanded to provide high graphics packaging along with industrial packaging, and the name was changed to Progress Container & Display. In 2000, the business moved to its current campus inWinder,Georgia,where it is still owned by the Johnson family.

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14 May 25, 2020 Flexo Market News

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Manufacturing (Cont’d from Page 13) the continued issuance of CARES Act relief checks. Final data will be released on May 29. Weekly Initial Unemployment Claims : There were 2,981,000 initial unemployment claims for the week ending May 9, down from the 3,176,000 claims added for the week ending May 2. Since peaking at 6,867,000 for the week ending March 28, initial claims have decelerated,which is encouraging, but these con- tinue to be heartbreaking and unprecedented levels. Over the past seven weeks, 36,471,000 Americans filed for unemployment insurance, illustrating dire conditions in the labor market as the COVID-19 crisis has taken hold. California, Florida, Georgia, New York, Texas and Washington each had at least 100,000 ini- tial unemployment claims in the latest week, with 14 states having new claims that exceeded 50,000. (Con- necticut later reported that it had over-reported its ini- tial unemployment claims, which were 29,868 instead of 298,680 as stated in this release.) Meanwhile, continuing claims increased from 22,377,000 for the week endingApril 25 to 22,833,000 for the week ending May 2 in this report, a new all- time high.The latest figure suggests that 15.7 percent of the workforce received unemploym nt insurance that week, a rate that will continue to increase substan- tially given the initial claims data.

The unemployment rate could peak around 20% to 22 percent this month before starting to fall.The fore- cast is for the unemployment rate to be 9 percent to 10 percent by year’s end—a shocking turn of events in the labor market following February’s 50-year low, which registered 3.5 percent. Annual EFIA Print Awards Move Online The Board of the European Flexographic IndustryAs- sociation (EFIA) has announced that its annual awards event will now be held online on September 17th 2020, rather than at the planned location in York, due to the ongoing Coronavirus situation. “All Gala event tickets sold are now valid for next year’s event,”DebbieWaldron-Hoines, Consultant CEO, “which I’m delighted to announce will be held on Thursday May 20th 2021, at the original planned loca- tion of York Railway Museum.”

Labelexpo/Brand Print Americas Postponed

Labelexpo/Brand PrintAmericas has been postponed and new dates will reportedly be announced by the end of May.

ExecOutlookHalfHOUSE.qxp_Layout 1 9/12/18 4:28 PM Page 1

Executive Outlook

The annual Executive Outlook Special Report exclusively from Flexo Market News is now available in print and online at www.nvpublications.com .

Anderson & Vreeland · ARC International · Bobst BST North America · DuPont · FLXON · Mark Andy Nilpeter · Uteco · Windmoeller & Hoelscher

Flexo Market News May 25, 2020 15

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YOU ARE ESSENTIAL

As COVID-19 has taken over North-America the past few months, the Printing & Packaging Industry has worked endless hours to keep up with increased demand for essential products. Thank you to our employees & to all of our customers who put their fellow citizens first, ensuring our supply chains remain intact and keep Americans stocked throughout this pandemic. You are essential and are greatly appreciated.

www.providentgrp.com

www.andersonvreeland.com

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