Regulars / M&A | 35Top 5 issues that can change the trajectory of your businessby Bob Cronin, The Open Approachucceeding in the label business is as much about carving out your position as it is defending it. Certainly, we’re used to the typical challenges (for example competitors undercutting Sprices, turnover in client entities, subcontractor reliability, etc.). But “You may want to there are a few new issues that we need to get a handle on. While these may have seemed feeting just a few months ago, it now re-examine your purchasing looks like they’re here to stay. We need to be aware of these and work every day to minimize their impacts on our operations – and strategies, as the just-in-time model our industry – today, tomorrow and beyond.Let’s take a look at these escalating issues and how we can simply doesn’t work in the current address them:Supply chain shortages We continue to hear frustrations over marketplace”the supply chain. Stock availability, manufacturing shutdowns, freight problems and other elements are affecting our ability to We need to capture the innovation, excitement and opportunity serve our customers. We can’t expect customers to just put up with of labels and packaging in our recruiting efforts. Moreover, we need this, and we can’t expect their loyalty. Instead of getting beaten up to showcase our technologies. by the supply chain, we should be thinking about a ‘supply change.’ Market with video, partner with schools, run demos, provide And we should be doing this proactively. Customers won’t be happy work-study options, and broadcast our industry’s vibrancy on if you have to substitute material mid-production. But they won’t social media and the web. Remember also to show new candidates mind if you fnd solutions that help them save money, be greener, how we are sustainable and invite them to help lead the effort. or gain other benefts – in advance. Look at standard/repeat By speaking in younger workers’ terms and expectations, we’ll programs and fnd ways to improve or better navigate the current open their eyes to the opportunities to be part of the thriving supply chain. Doing this will put factors back in your control and label industry.shield your customer from the impact. Moreover, it will show that Changing Competition Ongoing consolidation is changing you are forward-thinking, innovative, and committed to customer the face of labels and packaging, and it will continue to create growth – the hallmarks of our great industry. new powerhouses and displace others. We need to develop a plan You may also want to re-examine your purchasing/warehousing that allows us to compete without impacting our customers. For strategies, as the just-in-time model simply doesn’t work in the some of us, we may need to acquire or sell to remain competitive. current marketplace. Repurpose existing space or create an alliance Consolidation will affect our customers only if they begin seeing with those who can provide the space. Having materials on hand gaps or better opportunities. Our customers have choices. Stay may make the difference in winning the order – and the continued cognizant of your position and your competitors, and do everything trust of your customer. possible to ensure your customers keep choosing you.Infation and recession impact Our current fnancial Covid-19, war in Ukraine, global pressures The things which environment has become tenuous, as we teeter between infation we have the least control over are the things we need to be and recession. Either way, we don’t win. What’s important is that most aware of. Follow the news and watch for events that have we shield ourselves from the impacts as much as possible, so we implications for your business, your customer’s business, and those don’t have to push these through to our customers. businesses that support both. Awareness gives you the chance to Take a look at vendor relationships, purchasing contracts, plan and prepare to mitigate potential problems – or capitalize on economies of scale, and even offce/human resources expenditures, changing dynamics. and see where you can get leaner. Consider collective buying groups When you look at these fve issues, it may seem overwhelming. where you can offset price increases. Review your sources, and ask Yet, our great industry has thrived because of our ability to combat long-time vendors about prices, options and terms. Maximize your obstacles or invent solutions to turn them around. We’ve all faced buying power better than your competitors to ensure you’ll stay diffcult times, and we’ll get through them. We just have a new set strong through these pressures. of adversaries. Manpower Every industry is struggling to get and keep great employees. People are what make a business, and relationships are Bob Cronin is managing partner of The Open what keep your customers connected. Manufacturing in general Approach, an M&A consultancy focused exclusively has had diffculty attracting new entrants into the feld as it may on the world of print. To learn more, visit www.appear stodgy. theopenapproach.net, email bobrcronin@aol.com, This effect is exacerbated by the educational system’s emphasis or call +1 630 323 9700on STEM (science, technology, engineering, and math) careers. Oct - Dec 2022