Over 50 industry professionals gathered in Brea, California on May, 15-17, 1999 for an IBFI Regional Briefing focused entirely on label marketing, production technology and form supplier opportunities in labels. Meeting topics ranged from market projections and use of the Internet for label sales and order processing to flexo technology, digital printing in label plants and new production methods for integrating labels into forms. Tom Playford, President of IBFI, announced formation of an IBFI Label Council as a new service of the association for the growing number of members who produce or sell labels and need a communications and education forum dedicated to this product specialty.

For forms manufacturers, the Western Regional Briefing presentations contained a wealth of information on technologies that increase label press productivity, new label materials and how the product versatility of label presses can be used to access a wide variety of niche markets. Manufacturers who are considering adding labels to their product lines learned about options for building sales volume before making investments in equipment, new label press features that can provide a competitive advantage, high growth market segments and distributor expectations when choosing a label supplier. One of the Western Regional Briefing highlights was a plant tour, hosted by the United Ad Label subsidiary of Moore Corporation.

The meeting started with an overview of label market segments and projected demand growth rates through 2003 by Peter Voy, Western Regional Sales Manager for Comco International. Forms suppliers already control a significant portion of the pressure sensitive (PS) label market, estimated at $3.9 billion in 1998, with growth through 2000 expected to average 6.4% per year. The PS segment was 41.7% of the total $9.4 billion label market in 1998, and this estimate may not include some of the label volume produced by forms plants.

Peter Voy called attention to several significant trends in the PS label market. One of the current trends is a much higher demand growth rate for labels printed on various film stocks than paper-based labels. In terms of production processes, the proportion of labels printed by UV flexo can be expected to increase, while letterpress and gravure printing of PS labels is projected to decline. Offset and digital printing methods will continue to have small but expanding share of the PS label market. Another significant trend is the growing use of presses that combine several printing technologies to serve multiple segments of label, tag, ticket and flexible packaging markets.

Cal Laird, President of United Ad Label, discussed the Moore model for product development in their label business. The traditional industry approach has been to start with manufacturing capabilities, identify what products can be made, then seek applications for these products and match them with requirements of specific customers. The label product innovation framework at Moore focuses first on customer needs and solutions to customer business problems, rather than on manufacturing initiatives. In the Moore approach, identification of the process, systems and service solutions required by customers leads to the design of specific label applications, and then to selection or creation of the appropriate products. The last step in the Moore model is determination of internal manufacturing process and equipment requirements. This is the typical systems integrator approach of focusing first on solutions rather than products.

The Internet represents a major new distribution channel for printed products, and Bernie Pasquantino from Discount Labels® presented an overview of their new ClickPrint™ program for ordering labels over the Internet. The program demonstration showed a Moore web site label ordering section linked directly to the Discount Labels® plant. Customers entering orders see only the Moore name, and the link to route orders automatically to the Discount Labels® plant remains invisible. Any forms manufacturer or distributor can incorporate ClickPrint™ in a web site under their own name, with an invisible link to the label plant. Forms suppliers can use this program to add labels to their product lines with minimal initial investment and the advantages of automatic order processing.

The customer perspective was brought to the Western Regional Briefing by Rick Gerhard of Tri-Form Inc., a Southern California distributorship. When asked what are the important label products for distributors, his response was "form-label combinations that allow creative new systems solutions." Rick Gerhard discussed eight characteristics that distributors look for when selecting their long term label suppliers. It is a good reminder to manufacturers of customer expectations at all levels of the supply chain.

• Product capabilities
• Attitude - skilled and empowered employees who provide credible answers and meet their commitments.
• Knowledge of products, applications and common errors.
• Samples combined with application descriptions.
• Prompt access to customer service specialists by phone, fax and e-mail.
• Leadership in product innovation and service.
• Education programs for distributors.
• Stability of supplier.

The discussion of manufacturing issues was started by Dale Bunnell from Mark Andy Inc. with an update of flexo technology trends and new developments. He indicated that print quality and other process improvements are driving rapid growth in flexo printing. "Twenty years ago, flexography was limited to printing 85 line screens. Today, some plants are doing 200 line screen work and others are running 300 line screen print tests." This progress has been due partly to ceramic anilox rolls, which allow more precise ink distribution, chambered reverse-angle doctor blades, better plate materials and presses built to tighter tolerances. According to Dale Bunnell, "Flexo quality can now compete with offset in printing solids, halftones and vibrant colors. The only exception is printing of vignettes that require extremely fine highlight area dots." Dale Bunnell also pointed to the business opportunities that can be created by combining the vast market access through forms distribution channels with the capabilities of flexo presses to produce a multitude of label, tag and packaging products needed by existing forms industry customers.

David Paularena introduced the new name of his company - Chromas Technologies, a Didde Web Press subsidiary, which includes label press suppliers previously known as Aquaflex and Webtron. He described the quick makeready system for label presses unveiled by Aquaflex at the 1996 Label Expo show. This system combines special press features with an off-line station for preparing the next set of printing and die cylinders. Cylinder change for a press with six flexo printing and two die stations were completed in 6.5 to 10 minutes during the initial Label Expo demonstrations. Several other suppliers have introduced quick change systems which allow rapid reconfiguration of label presses for a wide range of materials and finished products.

A presentation on new label materials by Carter Scott from Avery Dennison focused on the end use technologies, cost pressures and market conditions that are driving changes and innovations in materials. In many applications, the industry is moving to lighter weight and uncalendered kraft liners. Europe is leading in greater use of less costly glassine liners. There is also a trend toward lower basis weight facestocks and thinner films. New applications are emerging for linerless labels, product authentication labels, security labels, radio-frequency readable labels, etc. The label market now has a large number of special application niches that require unique combinations of face stocks, liners and adhesives.

The growing use of foil stamping and holograms in label production and other security printing was addressed by Doug Schulz from Brandtjen & Kluge Inc. He presented the different choices in hot foil stamping processes, including high speed rotary stamping with incremental foil feeding provisions that minimize waste. He also explained the origination and application of holograms, including the new NovaVision© process that can be used to image and apply special holographic foil in a forms or label plant.

Carl Dunaway from Tamarack Products captured the attention of the audience with a presentation on new developments in form-label combination production methods. One of the significant developments is use of label presses with special attachments to produce cut sheet laser forms with integrated labels. These presses already have die cutting stations and printing can be done with regular or UV-flexo inks. Material costs are reduced because label presses do not require the aligner holes necessary for off-line integrated label machines. Carl Dunaway also reviewed the growing range of digital printing options to add variable information on either label presses or off-line equipment. Electron beam and ink jet are the two technologies most suitable for on-line variable imaging because they can operate at relatively high speeds and tolerate the normal speed changes of web printing and processing machines.

The visit to the modern Moore/United Ad Label (UAL) facility was a fitting finish to a successful and informative IBFI Regional Briefing. UAL supplies a vast variety of pressure sensitive labels in small lots, primarily to the hospital and health care industries. The operation combines catalog marketing, very short run manufacturing on 14 narrow-web flexo presses and finished product warehousing with efficient procedures to process a large volume of small orders for both stock and custom labels. The meeting attendees left clearly impressed with what they saw, and very appreciative of being able to tour such and outstanding Moore label plant.

THE FOLLOWING CHARTS ARE PART OF THE "MARKETING AND SALES TOPICS" SECTION