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PMMI Looks at Economics, Label Trends

 

RESTON, VA | News of note from “PMMI Reports,” July 2012, includes the Quarterly Economic Outlook, which indicates accelerated growth is expected through 2012. “As the economic recovery approaches two-and-a-half years, accelerated growth is returning, and will continue into 2013,” says the report, adding, “what’s supporting this growth and promoting investment in the US economy are an overall rising trend in the S&P 500, low interest rates, and a strong US dollar.

Other factors include:

• US industrial production is up 3.9% from the same period in 2011.

• Industrial production during this last quarter increased 4.6% from the same time period in 2011, indicating continued expansion.

• Nondefense Capital Goods New Orders (excluding aircraft) are at a record high, currently 9.1% over 2011.

• Retail sales (excluding automobiles) are up 2.3% over 2011, and growing at an accelerating rate.

• The Quarterly Economic Outlook is produced by PMMI in partnership with ITR Economics and is available as a free download to PMMI members.

PMMI also comments on its new industry segment report, “Trends in Labeling,” saying product marketers are finding new ways to use labels as a way to enhance shelf appeal. As a result, the market for labels is increasing year-over-year by as much as 5.2%.

The report predicts US label shipments will increase by 4.2% annually and 5.2% annually worldwide, reaching $20 billion and $110 billion, respectively, in 2015. P-s labels are the most popular, by far. The report also addresses rapid changes in labeling technologies.

According to Paula Feldman, PMMI’s director of business intelligence, “70 percent of the companies we interviewed for this report are making some sort of change to their labeling, marking, or coding processes. And what they want is for their suppliers and original equipment manufacturers to help them implement the changes seamlessly.”

The report lists six trends on the edge of changing labeling processes over the next three to five years:

• Reductions in label unit costs

• Thinner label stock

• Reduced label material waste

• Greater use of sustainable materials

• Implementation of anti-counterfeiting and tamper-evident tactics

• Improved tracking across the supply chain.

Versatility is in high demand, and product manufacturers have to accommodate a variety of label technologies and materials. Also in demand: intuitive controls, easy cleaning, and maintenance predictors. Feldman says 59% of respondents are saying they need to install new labeling equipment, or modify what they have. “With the volume of eco-conscious label materials on the increase,” says Feldman, “new materials including soy-based film, tree- and paper-free stocks made from stone, and post-consumer recycled materials, the need for versatility and help making a seamless transition is going to grow.”

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