Following printed forms, labels and tags took second prize on Print Professional's top 100 manufacturers list as a top-earning product in 2009. Their sales figures have only climbed since the previous year's, from $567.6 million to $585.5 million, proving this is still a healthy market. Companies such as Tipp City, Ohio-based Repacorp and Omaha, Nebraska-based AmeriCAL are contributors to this gain.
With three other full-service manufacturing divisions in Milwaukee, Wisconsin and Phoenix, Repacorp's best seller is stock labels. The company's specialty, however, lies in custom labels which include scale labels, digital labels and RFID labels and tags.
On the other hand, AmeriCAL, a supplier of items including simple one-color stickers and complex full-color or four-color process labels, specializes in "finding economic label solutions for distributors while providing a dynamic-looking product," according to Tim Vogel, general manager. He added this generally means prime labels to enhance product visibility and create effective shelf appeal.
While labels and tags continue to show strong numbers, the economy has altered the way business is conducted. Tony Heinl, executive vice president of Repacorp, said the distributors he has talked to were extremely hurt by the recession. When asked what type of advice he had for skeptical distributors, Heinl responded, "They should research manufacturers, tour their plants and partner with companies that have invested in equipment that enables them to offer their customers the highest quality product at the lowest price."
Vogel encouraged distributors to learn the basics. In the case of labels, this means something about face sheets, adhesives and liners. "Always ask the key question: 'What is the label used for?,' which is paramount in providing the correct solution. Use a checkoff list/system both at the quote stage and the actual job stage," he said. "We as humans remember things in depths of three to five, yet details on a label print order can exceed that range. Since the end-user customer depends on us as experts, using a checklist ensures that we avoid missing details and keeps the customer satisfied. Pre-testing the label material in actual use conditions is good insurance to prevent redos."
Both AmeriCAL and Repacorp continue to fare well, although adjustments have been made. Vogel said AmeriCAL had a positive growth rate last year and the staff feels rather fortunate. He did, however, see an increase in quotations, which he believes was an attempt to recover some of the business lost through the "elevated attrition in the economy."
He continued, "'Survival' is staying in touch with what the market wants, what the customer wants and needs. As a truly wholesale- only, or distributor-only based company, we know we need to help our dealers make the sale or we don't pay the rent either."
Heinl said the recession has forced Repacorp to become a leaner manufacturer. For instance, the company has reduced its inventory and personnel to be as efficient as possible. Nevertheless, he stressed, "Repacorp stays on the forefront of innovation. We strive to possess the knowledge and technology that gives our distributors a competitive edge within the industry."
Knowledge of digital will be key to the future. Heinl noted digital equipment is continually getting faster, with wider Web widths and adding more features. He believes digital printing will soon be competing with traditional flexographic printing. "Digital is hot—especially because we have a tool-free cutting system. We are seeing a lot of companies enhancing label designs, artwork and shape, to make their brand stand out," he observed.
Due to the higher demands for more variation on shorter label runs, Repacorp purchased two digital presses with near photographic quality. "With no plate or die charges, our digital label short runs are inexpensive compared to flexographic printing," Heinl explained.
Vogel has seen a blossoming trend in repositionables and removables, both in papers and films, as well as in niche products. He went on to say that AmeriCAL has made its own investments in new equipment, although its purchases rival digital. "We recently installed a prepress system for making high-end flexographic printing plates that offers both the precision of digital plates along with the irreplaceable artisan mechanics of finishing with superb dots on plate. That synergy has resulted in dynamic flexo printing that rivals the short-run digital in the marketplace," he enthused.
Both suppliers did agree the Internet is proving to be a perfect complement to the printing industry and is allowing for cutting-edge technology to surface. "E-commerce has accelerated the exchange of information to a rate we wouldn't have believed 20 years ago. The simple e-mail, once a novelty, is now a daily staple in getting business done," Vogel said.
Heinl is excited about how the Internet is making workflow more convenient for his distributors. Repacorp offers a long list of services, including technology and software enhancements, that have been or are currently being developed. First, there is an online assisted information service. Using a standard Web browser, authenticated Repacorp distributors have real-time access to their account where they can request or review quotes, check inventory and check the status of their order.
In addition, the company offers a file upload capability which allows distributors to upload large art files to Repacorp's server (www.repacorp.com). Furthermore, Repacorp will also be utilizing webinars to introduce new products, services and technologies.
But Heinl expressed the most enthusiasm for Repacorp's new Distributor Quote Module. "With digital label short runs, we are currently working on a live quote module for our distributors' websites. (It might be available by the time this article goes to print.) For a small fee of $14.95 per month, Repacorp will provide code to distributors that links their website to an instant online quote module maintained and enhanced by Repacorp. The online pricing tool is easy to use and provides live, accurate pricing," he said.
This new system enables distributors to become even more competitive within the market, Heinl claimed. There are no plates or die charges, and without tooling, designers can make the label or tag any shape they desire. The Distributor Quote Module also offers distributor pricing and the ability for distributors to control their margins.
So, how does the module work? Well, it's quite simple. When distributors sign up for the module, link code is instantly e-mailed to them. Once distributors link the code to their web page, they are granted instant access to have online quotes for digital labels on their website.
"If the end-user wishes to purchase labels, the quote module sends an e-mail to the distributor, and a confirmation to the end-user, populated with the end-user's order information and pricing. All the distributor has to do is complete the sale," Heinl exclaimed. "Repacorp will be waiting to manufacture and ship the labels to our distributor's customer under the distributor's name and logo. It's everything the distributor needs to immediately place [its] company in a growing, profitable industry."
While the last couple of years may have been less than stellar, the future is poised for great things. Both participants are confident of that fact. And both are here to serve you, the distributors.
Vogel concluded, "AmeriCAL has a culture where employees feel good about what they do. Because we don't sell direct, nor do we have a sister company or separate arm that sells direct, we bring trust to the table. We know who we serve."
- People:
- Tim Vogel
- Tony Heinl