Cover Story
Digital Printing: Addressing Converter Pain Points and Driving Industry Transformation
By Jeff Wettersten, Vice President of Labels and Packaging at Keypoint Intelligence D
igital printing has long promised to revolutionize the packaging industry, yet its journey has been anything but straightforward. In a previous article, we explored how digital printing’s impact varies from plant to plant, with many converters fi nding it either disruptive or transformational. Building on that discussion, this article delves deeper into the specifi c pain points faced by converters and how digital printing addresses these issues, driving industry transformation.
RETENTION AND HIRING OF SKILLED LABOR
A major pain point for converters is retaining and hiring skilled labor. This challenge aff ects all operations, from design through production. Digital printing off ers a solution by automating many processes, reducing the need for highly skilled labor. Automation ensures that once a process is perfected, it becomes repeatable with minimal intervention. Combined with AI and machine learning, digital printing systems deliver better quality and productivity, further reducing the need for skilled labor. This synergy improves effi ciency and helps manage workforce challenges more eff ectively.
RISING COSTS
The rising costs of materials and energy are signifi cant concerns for converters. Digital printing addresses this by reducing setup costs and waste. Traditional methods require extensive setup and material use, leading to higher costs. In contrast, digital printing allows for precise, small- batch production, minimising waste and reducing overall expenses.
REGULATORY COMPLIANCE
Converters must navigate complex regulatory environments, including environmental and safety regulations. Digital printing helps meet these requirements by producing less waste and enabling better control over the process. This ensures compliance and directly supports the converters’ aim to make the product more sustainable.
TECHNOLOGICAL ADVANCEMENTS Keeping up with technological advancements
8 July/August 2024
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and addressing cybersecurity concerns are ongoing challenges. Digital printing technologies continually evolve, off ering new capabilities and effi ciencies. Staying current requires investment and adaptation, but the benefi ts of improved effi ciency, quality and capability make the eff ort worthwhile.
QUALITY CONTROL
Maintaining high-quality standards and reducing defects are critical. Digital printing enhances quality control by off ering consistent output and enabling automated processes that reduce human error. This leads to higher quality products and fewer defects, improving customer satisfaction.
OPERATIONAL EFFICIENCY AND MARKET COMPETITION
Despite the perceived maturity of the digital print market in narrow web labels, feedback indicates signifi cant growth. Over the past fi ve years, throughput has increased, accelerating upgrade paths and enhancing digital participation. Converters reported a compound annual growth rate (CAGR) of 5 percent for pressure-sensitive labels, with digital asset production expected to grow at a CAGR of 68 percent. This demonstrates digital printing’s crucial role in shaping future strategies and maintaining competitive advantage.
DIGITAL PRINTING ACROSS PACKAGING TYPES
The impact of digital printing extends beyond narrow web labels, encompassing fl exible packaging, folding cartons and corrugated packaging. Each segment presents unique challenges and opportunities for converters, which digital printing is positioned to address.
1. Flexible Packaging: This segment benefi ts from digital printing due to its demand for high-quality graphics and short-run production. Digital printing allows for customisable, vibrant packaging produced quickly and effi ciently. 2. Folding Cartons: Digital printing off ers advantages in folding cartons by enabling shorter lead times and reducing waste. It supports just-in- time production, minimising waste and allowing rapid response to market changes. 3. Corrugated Packaging: Driven by e-commerce growth, the corrugated packaging sector is seeing a surge in demand. Digital printing meets the need for high-quality, customisable packaging that enhances the unboxing experience. The ability to produce variable data printing (VDP) allows for personalised packaging, enhancing customer engagement and loyalty.
The evolution of digital printing in packaging has been slower than anticipated, spanning over two decades. However, dismissing its signifi cance based on this slow uptake is a mistake. Digital printing remains a transformative force, off ering substantial opportunities for businesses willing to adopt and adapt. By addressing key pain points such as skilled labor challenges, rising costs, regulatory compliance, technological advancements and quality control, digital printing is poised to drive signifi cant industry transformation.
IS YOUR BUSINESS KEEPING PACE WITH YOUR CUSTOMERS IN LEVERAGING DIGITAL PRINTING INNOVATIONS?
Keypoint Intelligence has supported manufacturers, channels and end customers such as converters for more than 60 years. We identify opportunities and challenges, providing solutions to achieve goals and overcome obstacles, driving success.
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