In an uncertain economic landscape, there is a compelling argument for sitting tight with the assets one has. However, the market isn’t just uncertain, but it is also changing rapidly, and with these changes come opportunities. Focus Label Machinery discusses whether investing in a new label printing press, which requires a large capital investment, is worth the money.
The global label printing market is projected to reach over US$53 billion (about R900 billion) in value by the end of 2025, representing a compound annual growth rate of 4.09%. The businesses in the best position to take advantage of this growth are those that invest in the technology needed to meet evolving customer demands. Businesses that play it safe risk missing out on lucrative opportunities and on being sidelined by newer and more agile companies.
Unfortunately, failing to adopt new technologies in label printing quickly enough can harm a business financially by reducing its market share and agility in these ways:
Falling behind competitors: the greatest drivers of growth in the global labour market are in the Asia-Pacific and North American regions. If these competitors already use advanced printing methods and you’re not, their labels will likely be better designed, more sustainable, or more quickly and cheaply produced. This can make their products more attractive to customers and end users.
Higher long-term overheads: sticking to older equipment can result in longer lifetime cost of ownership than timely investments in new technology. This is because older equipment often requires more maintenance towards the end of its life-cycle, and higher levels of waste and energy use can drive up operational costs. Additionally, inefficient processes create longer production times, equating to money lost.
Reduced flexibility and efficiency: without the latest label printing technologies, a business might struggle to meet the growing demand for variable production runs, fast turnarounds, and hyper-personalisation. This can result in missed opportunities, as well as eroding trust and credibility among customers.
Sustainability issues: in its drive towards carbon net zero, the UK government (and international jurisdictions) are introducing stricter environmental regulations on an almost monthly basis. Businesses that stick to ‘outdated’ printing methods and older technologies might find themselves penalised for excess energy use or waste, or even harmful production practices in the future. Investing in the newest technologies helps to keep a business future-proof and one step ahead of potential regulation.
FOCUS LABEL MACHINERY
https://www.focuslabel.com
