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On the converting side, Bob Hakman, co-owner of Diversified Tape & Graphics, Buffalo Grove, Ill., predicted that many manufacturers will stop producing stock thermal-transfer labels as the margins are squeezed out of the products.
"The pricing for stock thermal-transfer labels has deteriorated rapidly over the past several years as the market matures," explained Hakman. "As a result, some converters who were producing stock thermal-transfer products have started to outsource those products to the larger converters. Ultimately, there will be fewer and fewer converters producing stock thermal-transfer products and selling them to distributors."
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