Packaging: An Opportunity for Commercial Printers?

If there is one major lesson print service providers (PSPs) have learnt from the novel coronavirus (Covid-19) pandemic, it is the importance of having a wider range of services.
Many companies have suffered as a result of being too focused on one sector, and with work having dried up in some areas during the Covid-19 crisis, they have been left thinking what could have been if they had a more diversified service offering.
As such, the need for PSPs to diversify into new markets is now more important than ever. By doing this, they can ensure a steady flow of work from a number of sectors, and be safe in the knowledge that if work is hit in one area, customers will still be calling from others.
However, how do you know which market is right for you? There are a number of realistic sectors for traditional PSPs to expand into, some of which require a huge amount of investment in new kit, while others offer a more gentle (and cheaper) transition.

Here, FESPA.com takes a close look at packaging, speaking with some of the key suppliers and manufacturers in this market to find out what sort of work could be available to PSPs that do expand into the sector, the type of kit available and what they need to do to successfully move into this growing segment.

What best suits your competencies?

One such brand is Durst, and Robert Stabler, managing director of Koenig and Bauer Durst, said that while packaging is indeed a realistic expansion option for traditional PSPs and commercial print companies, a lot of thought needs to go into any diversification effort before making the move.

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“Packaging is a growth segment but of course printers in other market segments need to be thoughtful about the applications that they want to print and also the customers they want to serve,” Stabler said.
In terms of the best way to expand into packaging, or indeed any other sector, Stabler said print companies should have in place existing relationships with brand-owners and be able to leverage those partnerships to make the move successfully.
“Clearly, it can be very difficult for a printer to expand into labels, flexible packaging, corrugated and folding carton,” Stabler said. “Indeed, no dedicated packaging company specialises in all these areas.
“All have their challenges and opportunities and it requires a printer looking to expand to have a vision about which segment best suits their competencies.”
Looking more closely at what sort of work commercial printers and PSPs should be looking to target if they are able to make the move, Stabler said that this will depend on where a company’s expertise lies.
For those businesses with a background in sheetfed commercial print work, then an adjacent technical step could be into folding carton work. However, for those active in the wide-format print segment, they Stabler said they would be well advised to invest in kit to allow them to produce small run folding carton and corrugated work.
Incidentally, Durst recently moved to enhance its own position in the packaging sector by acquiring a majority stake in Vanguard Digital Printing Systems, which is headquartered in Georgia in the US. Vanguard Digital is a manufacturer of printing systems for the sign, decoration, corporate, industrial and packaging sectors.

Standing out from the crowd

Printing packaging may be one thing, but when it comes to finishing products to ensure they look the part and meet safety criteria is another consideration for print companies looking to move into packaging production.

Investment in training and equipment

Another important consideration in packaging is the type of materials you are using, with market newcomers advised to work with specialist and experienced suppliers to ensure they achieve the desired results in printed packaging.
One such company is Antalis, which supplies a wide range of materials for use in a whole host of markets, including packaging. Steve Chappell, graphical board development manager at Antalis, said the growth rate for printed packaging continues to develop, and as such represents a good expansion option.

Packaging clearly offers significant growth opportunities to printing companies across the industry. Be it commercial print business or wide-format specialists, work is available, but it is down to the company to ensure they have the right level of demand for such work before making the move.

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