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West Bend, WI, United States

Wednesday, October 5, 2011

Bridging the Technology Divide









    As machinery moaned in the background, attendees at the FTA Great Lakes Fall technical meeting were presented with a juxtaposition of eras and technologies fighting for a place in the package printing market of tomorrow.  Surrounded by examples of time-tested, solidly engineered equipment including a still functional Kempsmith milling machine built in 1888, the meeting focused on the challenge of integrating the newest production technologies into the package printing workflow in order to achieve exceptional store-shelf impact and customer engagement. 
    Fitting that the meeting was held in Wisconsin, a state with a rich history of manufacturing.  With access to the Great Lakes for transportation, rivers for power generation, and plentiful raw materials including forests for lumber and related products; Wisconsin was well positioned to help lead the industrial revolution.  The skilled immigrant labor force brought with it a work ethic and old-world craftsmanship that took root in this area of the country. 
      The Wisconsin Historical Society points out that “Milwaukee built foundry, machinery, and metal-working businesses before the iron and steel industries were concentrated in Pittsburgh, Cleveland, and Chicago.  By 1860, Milwaukee had become a center of modern manufacturing.”  As railroads worked their way west, the Milwaukee Iron Company opened its doors in 1870.   The voracious appetite for iron rail provided a base for the foundry and machinery industry in Milwaukee. 
    In 1888, Kempsmith Machine began producing industrial milling machines, providing manufacturers the ability to rapidly and repeatably produce machine components and allowing for the growth of heavy industries such as Allis-Chalmers, JI Case farm machinery, Beloit tissue milling equipment, Harley-Davidson motorcycles, and countless others.

   The explosion of the paper industry in Wisconsin facilitated the State’s rapid growth to prominence in the printing and packaging industries.   Kempsmith’s core business adjusted to this new opportunity as it shifted from milling machines to the production of equipment for folding carton, die-cutting , paper converting, printing and tinting.  Today, Kempsmith is the world leader in die cutting equipment for office products including tab folders, hanging folders and other applications. 
    Brett Burris, Kempsmith’s President, pointed out that just like every label needs a die cut, so too does every folding carton.  Showcasing a variety of examples garnered from the grocery store shelves, he pointed out how cartons today are engineered to entice consumers to buy the products.  He said “the carton is the billboard and the printer is the artist”.   Through the addition of graphics, embossing, promotions, unusual shapes or added functionalities, the cartons grab attention and engage consumers at the point of purchase. 

    While much of packaging has shifted to plastics, Brett is convinced that folding cartons provides a growth market as a sustainable, recyclable and compostable alternative to petroleum based packaging materials.  Creative use of converting and decorating processes combined with targeted marketing promotions turns ordinary cartons into what Brett described as a “billboard to tell your story”.  Running limited editions geared to sports milestones, feature films and other popular culture icons has the power to transform a cereal box (or collection of cereal boxes) from containers into collectibles.       
    Package engineering enhances convenience value for consumers. For example, ‘fridge-pack” soft drink cartons allow easy storage in the refrigerator, while providing easy access to the cans inside.  Cutaway cartons enable consumers to view thermo chromatic ink printed on the side of beer cans to visually indicate that the product is cold.   Modern popcorn packaging folds to become a bowl for dispensing the product. 
    As packaging design features evolve to higher levels of quality and intricacy, the processes for producing them has made stellar leaps to meet the need.  Flexible magnetic dies have replaced the extremely expensive die tooling of the past.  Where a conventional die could cost upwards of $20,000, a magnetic die can be produced for about 1/10 the cost.  Magnetic dies add precision, reducing costs, increase die life, and reduce machine downtime for replacement.  Rotary die cutting equipment with mating cutters penetrate the stock from above and below, producing a cleaner cut at higher operating speed than the traditional “crush-cut” methodology.   All of this results in faster, higher-yield production of value-added packaging.

    Victor Gomez began his presentation was the historical tidbit that placed Wisconsin at the forefront of the digital revolution as well as the industrial revolution.  He pointed out that the Wisconsin Integrally Synchronized Computer (WISC) was an early digital computer designed and built at the University of Wisconsin–Madison.  Operational in 1954, it was the first digital computer in the state.  Pioneering computer designer Gene Amdahl  developed the WISC as his PhD thesis.  He went on to work for IBM Corp. where he was one of the original architects of the business mainframe computer.   Mainframe magazine Computerworld considered Amdahl one of the 25 people "who changed the world."
    Operating at a blistering pace of 60 operations per second, the WISC could perform four arithmetic operations at once.   The machine’s memory was a rotating magnetic drum, the rotation time of which determined the overall speed of the system. Operating with 1 K of memory, the device cost $50,000 and was portable enough to fit in a truck – an astonishing feat for the time. 



    Digital computing technology has obviously come a long way since then, having a dramatic impact on every process it was incorporated into.  In 1936, across the world from Wisconsin in a small town in the Alps, the Durst brothers formed a company to produce photo imaging equipment.  The addition of digital computing into the imaging process resulted in flatbed inkjet imaging technology that overnight rendered previous versions obsolete.   
    Just as Kempsmith looked to new technologies and markets to continue its growth, Durst developed a wide variety of printing and imaging technologies to serve growing specialty markets.  They produced narrow and wide format systems for printing onto ceramic tiles prior to curing and devised custom ink sets to provide visibility and durability for printing traffic signs.   To improve sustainability, they produced equipment that printed the surface of various flooring materials to simulate exotic and endangered wood. 

    Increased precision, reduced costs, enhanced features, increased productivity, greater versatility and faster speed to market were the goals driving the evolution of digital print technology.   Durst’s entry into digital label printing technology was predicated on predictable, consistent and repeatable results produced from a color management methodology that replaces the artisan mentality with a scientific approach to color.   Victor Gomez describes this as “the promise of digital”.   
    With a host of new features and improvements coming out at a blistering pace, digital printing is rapidly advancing in its ability to deliver the graphic and performance attributes that engage consumers and drive sales.  Digital ink jet presses are capable of running 8 colors for an expanded color gamut with liquid varnish.  Constantly circulating ink through filters removes impurities that can plug inkjet nozzles, vastly improving operating performance.  Isolated tensioning from stage to stage provides label to label registration accuracy far superior to web averaging.   The digital workflow accommodates variable data such as sequential numbering and personalization, and allows for rapid job change with minimal waste.  Through modular construction, label production can incorporate a variety of finishing processes in-line including hot foil, lamination, die-cutting, priming/pre-coating, matrix removal, slitting and more. 
    With all of this capability, where does digital go from here?  Victor sees greater adoption of UV curable ink-jet technology as a means to reduce VOC’s, allow for greater versatility in substrate selection and enhance graphic and end-use properties of the labels.   LED lights after each station “pins” or stabilizes the ink to prevent spreading.  UV lamps at the end complete the curing process.
    With technologies changing at such a fever pitch, how do printers/converters plan for their immediate and future business needs?  Label and Labeling Magazine conducted its annual North American Label Converter survey to determine the state of the industry and what forces are shaping its direction.   In her presentation, Danielle Jerschefske  sees printers facing rising costs for everything from equipment, consumables and insurance to labor and energy.  At the same time, they are being squeezed by downward price pressure for their products.  While printers see commoditization of label pricing, label buyers continue seeking more value-added features. 
    In order to increase efficiencies, reduce waste and incorporate the boutique design elements print buyers seek, 57% of respondents indicated that they are looking to invest in capital equipment in the next 12 months.  That number balloons to nearly 75% anticipating a capital purchase over the next 24 months.   With so many converters seeking a competitive advantage through capital equipment, the key for success is in realistically evaluating press decisions against existing and projected needs.
    Some of the intriguing trends coming from the survey are
o   packaging reduction
o   down-gauging
o   reduced run lengths
o   shorter product lifecycles
o   environmental challenges / sustainability
o   the rise of the private label
o   more product variations
o   end users becoming pure marketing and sales operations
o   reduced time-to-market
o   more mergers and acquisitions
    According to Danielle, what can go digital, will.  The survey indicated that printers recognize the value of digital for shorter run lengths and variable data. As a result, 15% of all roll label presses installed worldwide in 2009/2010 were digital.  Among the 35,000-40,000 label printers worldwide, 1600 digital presses have been installed to date with 300 additional expected before the end of the year.  This makes a strong case for digital as a continuing growth market moving forward.   Does that mean you should run out and purchase a digital press?  Not necessarily, especially when you consider that only 3% of label converters use digital.   With technology changing so rapidly, it tends to obsolete just as rapidly, which is why it is so important to carefully evaluate press decisions against existing and projected needs 
    Sustainability continues its march into the world of print.  Over 85% of respondents saw sustainability as important to their business, considering sustainability to be a means to reduce waste and waste-related costs, as well as to address growing customer demand for sustainability through the supply chain.  They see lean manufacturing as complimentary to “green” manufacturing. 
    Probably one of the most important trends is that of actively seeking to engage the consumer at the point of purchase.  I-Phone technology combines seamlessly with social media (Facebook fan pages, Twitter, Youtube and even Linkedin) to generate buzz, gather feedback, educate consumers, and initiate dedicated marketing promotions.    The application of UR codes for prize promotions and snap tags for information gathering (survey questions), fanfolded recipe inserts for consumer education, and thermo-chromatic ink on a beer can are just a few examples of interactive packaging geared to attract the 21-35 age group. 
    There was a time when a label was a label and a carton was  a carton.  That time has long past.  By incorporating and combining graphics with substrates, textures, colors, interactive features and functionalities,  marketing promotions, communication devices and social media platforms,  package printing has evolved from a stand-alone operation to a pivotal element of consumer engagement, successfully bridging the technology divide.
    It was another terrific FTA Great Lakes meeting.  As always, we appreciate our hosts (Kempsmith Machine) for providing use of their facilities, as well as our sponsors (FlexoWash)  for providing food and refreshments.  Finally, we would like to thank our speakers: Brett Burris, Victor Gomez and Danielle Jerschefske and our attendees.

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