FLEXO INSIGHT: Raw materials cost crisis
7 April 2011by Debbie Waldron-Hoines, Executive Director, EFIA.
The European Flexographic Industry Association (EFIA), in talking with its members, views the current economic situation to be driving what can only be described as a crisis in the industry in terms of raw material cost escalation.
While many large print groups continue to announce successful annual results and healthy improvements in profits based on 2010 business performance, recent troubles in Libya, Egypt, Bahrain and Tunisia have escalated global energy prices, which are now filtering through to film substrate costs. Shortages in paper and board feedstocks continue to drive prices skywards and the adhesives, inks and coatings industries continue to announce price increases on an ongoing basis due to the general shortages and capacity issues in the speciality chemicals industry.
The difficulty of passing on such increases is well known in the print industry, where the brand owner and retailer are king, and the resulting margin squeeze may spell disaster for many printing companies.
David Galton, EFIA Chairman, comments: “I’m not sure where it all ends! No-one anticipated the impact of the Middle Eastern political situation being combined with weak economic recovery in Europe. In volatile economic conditions such as these, the flexo industry needs to come together more than ever, to share best practice in operational efficiency gains, leverage its collective knowledge on waste management and really look to EFIA, working at the heart of the industry, to provide support in new business development, best practice learning and innovation.”
EFIA provides a range of support mechanisms for flexo printers including modular online training programmes, 24-hour helplines and scientific research support through collaboration with the WCPC (Welsh Centre for Printing and Coating).
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