As the budget year 2016 is drawing to a close and plans for 2017 are being completed, the FINAT Radar reports provide very useful insights for label industry converters. With Radar #6 – the 2016 brand-owner viewpoint edition – about to be released, let us recap some of the key findings of the previous (converter viewpoint) edition.

1. Breakeven run length is important.
For the survey, the run length was defined as the size – in linear meters – of a finished order after subtracting production waste. Respondents identified decreasing run sizes for both conventional and digital jobs. When asked for their breakeven run length – the run length a conventional print job must achieve to return a profit – the average response was 1,598 linear meters.

2. Digital is gaining momentum.
When asked what capital equipment purchases their companies planned over the next six months, the number of projected digital press sales surpassed the conventional for the first time. This is likely due to the fact that digital presses allow a more flexible and cost-effective approach to handling shorter run lengths. Almost 70% of converters were interested in Toner-Based and Inkjet platforms, with Hybrid and Desktop rounding out the data.

3. Many converters are moving beyond self-adhesive.
The FINAT Converter Survey gauged converter interest in markets outside of self-adhesive. The greatest interest was in the in-mould sector, with 20% of converters indicating they were “very interested” in entering this space. Customers also love the lighter weights, reduced material consumption, and lower shipping costs of stand-up pouches and sleeves. Converter interest in moving beyond self-adhesive labels was also evident at Labelexpo Europe 2015, with 53% of exhibitors showcasing flexible packaging and 32% presenting folding carton options.

4. Customers want innovative solutions.
One point that rang out loud and clear was that brand owners and packaging buyers want their label suppliers to be more innovative. They are looking for solutions to help them differentiate themselves, and they want converters to educate them on innovative options. Here are the top innovations they are looking for:
1. Cost-saving solutions, such as thinner material constructions.
2. Digital printing and more efficient run solutions.
3. A wider variety of applications, such as extended text/booklet labels and shrink sleeves.
4. Internal artwork design services so they don’t have to outsource.
5. Next-generation technology solutions like RFID, smart labels, and other security applications.
5. What does the rest of 2016 hold for converters?

Will companies be able to sustain the strong growth 2015 delivered? For many converters, the key to success is finding ways to deliver high quality work at a variety of run lengths, both high and low.

There are many technologies and services to help achieve that goal, and the FINAT network is there to support label converters on their path to success in an evolving market. Make sure to stay or get in touch with the European Label Forum in 2017!


Jules Lejeune is Managing Director for FINAT, the Europe-based label industry association.