Up to the Challenge
Consolidation has proved challenging, but paperboard converters are still finding success as long as they find their niches.
August 2007 by Chris Mc Loone
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It seems every industry is affected by consolidation. In the industrial automation sector, blockbuster deals involving heavy hitters occurred almost weekly for a while with the big companies getting bigger and bigger, with fewer and fewer smaller players. The same thing occurred in the collision repair industry and fire service. Though on a more regional scale, larger collision repair facilities would purchase surrounding businesses and become the local major players. And, it’s the same with the fire service, with smaller local fire companies choosing to regionalize and become one department. And, so it goes with the paperboard market for packaging.
Consolidation in the package-printing arena isn’t new, but for users of paperboard, it is becoming more and more of an issue—on several fronts. Mills are closing down or consolidating, paperboard converters are consolidating, and larger mills are buying carton printers. While these factors are not a death knell by any stretch of the imagination, they do need to be addressed by paperboard converters.
Green operations, the quality of paperboard, and increases in paperboard pricing are other elements that impact how you do business.
State of the industry
In packagePRINTING’s annual State of the Industry Report: Folding Cartons, several issues prevailed for converters of paperboard, including sustainability, offshoring, the threat from plastics, and consolidation. According to the report, paper packaging is expected to post marginal advances or continue to decline in most competitive markets through 2010 due to inroads from plastic. Chinese paper production combined with mills closing in America means converters must start looking at foreign suppliers to stay competitive. Consolidation, a result of the cost of doing business, is occurring and will continue to occur.
So how do converters survive? According to the report, and Juan Roque, VP of sales and marketing for Vista Color, defining your niche is one key to surviving as a converter of paperboard.
Vista Color—Success in a shrinking pie
Founded in 1968 as a color separation company, Vista Color has evolved into a print communications company specializing in folding cartons with clients including Motorola, Bacardi, Del Monte, General Motors, and American Express. The company’s services include engineering, graphic design, printing, diecutting, folding/gluing, and finishing. “Our success [from] being part of the 10 fastest growing printers for a couple of years kept us sharp,” says Roque. “Now we are able to fine tune here and there to make it better.” He explains that the company’s success is based on feeding presses good, clean, first-line paper, “not recycled papers that are dirty to run, but good SBS, which is recyclable; we do our part to stay green.” Today, the business employs 85 people in one facility, operating two Heidelberg Speedmaster CD presses. Roque asserts that the pie is getting smaller. “We will continue to grow, maybe not at a fast pace, but certainly doing it at a real consistent pace,” he says. He believes the best way to compete is controlling your costs and keeping up with the latest technology.
Consolidation in the package-printing arena isn’t new, but for users of paperboard, it is becoming more and more of an issue—on several fronts. Mills are closing down or consolidating, paperboard converters are consolidating, and larger mills are buying carton printers. While these factors are not a death knell by any stretch of the imagination, they do need to be addressed by paperboard converters.
Green operations, the quality of paperboard, and increases in paperboard pricing are other elements that impact how you do business.
State of the industry
In packagePRINTING’s annual State of the Industry Report: Folding Cartons, several issues prevailed for converters of paperboard, including sustainability, offshoring, the threat from plastics, and consolidation. According to the report, paper packaging is expected to post marginal advances or continue to decline in most competitive markets through 2010 due to inroads from plastic. Chinese paper production combined with mills closing in America means converters must start looking at foreign suppliers to stay competitive. Consolidation, a result of the cost of doing business, is occurring and will continue to occur.
So how do converters survive? According to the report, and Juan Roque, VP of sales and marketing for Vista Color, defining your niche is one key to surviving as a converter of paperboard.
Vista Color—Success in a shrinking pie
Founded in 1968 as a color separation company, Vista Color has evolved into a print communications company specializing in folding cartons with clients including Motorola, Bacardi, Del Monte, General Motors, and American Express. The company’s services include engineering, graphic design, printing, diecutting, folding/gluing, and finishing. “Our success [from] being part of the 10 fastest growing printers for a couple of years kept us sharp,” says Roque. “Now we are able to fine tune here and there to make it better.” He explains that the company’s success is based on feeding presses good, clean, first-line paper, “not recycled papers that are dirty to run, but good SBS, which is recyclable; we do our part to stay green.” Today, the business employs 85 people in one facility, operating two Heidelberg Speedmaster CD presses. Roque asserts that the pie is getting smaller. “We will continue to grow, maybe not at a fast pace, but certainly doing it at a real consistent pace,” he says. He believes the best way to compete is controlling your costs and keeping up with the latest technology.
Companies Mentioned:
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