2023 Predictions | 71for pharmaceutical applications (for micro text) and cosmetics, in 2023 as packaging companies look to technology to make health and beauty (for smooth gradients). However, for many it easier to connect their people and processes, access data, markets, 600 dpi is still a great choice. automate operations and drive the operational effciency Label material supply chain challenges and material shortages they need.showcase the importance of digital printing. Digital printing minimizes label material waste and maximizes effciency and Melissa Harton, marketing manager for North America, Fedrigoniproductivity. So, in a supply chain crisis with shortages and limited allocations of material, label converters can ‘get more We are fnally emerging from what was a delicate balancing act from less’ using digital printing. of supply and demand. In the second half of 2022, customers Also, it’s important to note that with label materials there may over-ordered to ensure they had products on the foor. As a be variations or deviations in quality, so it is important to work result, order entry started to level off in Q4. As we enter 2023, with a digital printing provider that can provide a priming station we anticipate order entry will increase. We also expect to see lead as part of the digital printing solution. This allows for the best times getting closer to pre-Covid.quality print regardless of substrate material quality. Raw material delays from flm suppliers will continue to soften, and some of the uncertainty surrounding transit will level off. For Paul Rason, managing director for the Middle East, how long? This can change quickly with additional plant closures, inclement weather, etc. Turkey and Africa, ePac Flexible PackagingWhat happened to 2022? It only feels like yesterday that we However, in general, the North American paper market were predicting what might happen in 2022! I am sure that many remains unstable, and further demand has us facing allocations, of my peers will talk about sustainability for 2023, and whilst I longer lead times, and potential cost increases. In addition, believe this represents a worthy mention and prediction (again!), labor shortages remain as we continue to see historically low we are very much a global organization, and we can see that each unemployment rates.region and market have its different opportunities, challenges Sustainability will remain a top priority for our industry. and trends. Perhaps a common thread that unites all markets is Converters will continue to seek sustainable alternatives from the rapid adoption of automated workfows and manufacturing raw material suppliers – thinner gauge, recycled content, technologies and e-commerce. Clearly, competition is driving alternate fbers, APR, FSC, compostable, etc. Corporate ESG goals this, but Covid may have played a role as well. We have seen this will be a key driver for many suppliers as our customers and their before when we had SARS in 2002, which acted as a catalyst for end users expect greener manufacturing methods and materials e-commerce at that time. that promote recycling and reuse and limit environmental impact.At ePac, we frmly believe in investing and deploying We also anticipate growth in premium wine and spirits technology to improve our service and offerings to our clients. (sustainable labeling will have an increased focus). We recently announced ePac ONE (One Network Everywhere) Premiumization will also continue as a superior shelf presence is where our global presses will be connected via cloud technology. required to earn the consumers’ attention.However, we must not forget to talk with our customers. We Robert Rae, managing director of sales, GEWneed to understand their business, their value chain, and their pain points to provide greater levels of convenience and agility. Our industry will see increasing focus from brands and private So, in 2023, I see greater levels of investment in technology equity on sustainability targets. On top of this, we expect Europe across our industry, but we will continue to engage actively with to see a continuing increase in electricity costs as unsustainable our customers. subsidy programs are scaled back, and fxed-rate contracts continue to expire. This will further accelerate the rate of UV LED retrofts of existing mercury vapor lamp technology. We Jan De Roeck, director of marketing, industry relations could see nearly 10 percent of the GEW installed base in Europe and strategy, EskoToday’s brands and their packaging suppliers are facing a catalog converted to LED by the end of the year. In the US big end-user of challenges, which technology and innovation will play a key groups are increasingly considering group-wide conversion role in overcoming. programs, too. GEW is very optimistic about the LED market next As we move into 2023, the macroeconomic and societal year. Arc lamp production will continue to decline after it peaked trends that we expect to shape the packaging industry include in 2018.everything from the growth in omni-channel shopping and Supply chain issues, especially on electronics will persist driven ever-changing consumer behavior through the pressures of by continuing political uncertainty in Asia and Covid issues margin compression and, of course, the urge to reduce the in China. This will continue to weigh on press lead times and impact of production operations on the environment we live remains the major production challenge amongst equipment in. Through all this, it is important businesses acknowledge manufacturers. Increasing interest rates and slowing economies and address how digital transformation is key to surviving and will soften some capital investment programs, but our biggest thriving in the future. concern is on personnel with recruitment persistently diffcult Simply put, it is now imperative that companies review their and costs increase in line with high infation rates. Finally, there is current business operations and identify areas where they can an overriding feeling of uncertainty: what will be next year’s ‘once make meaningful improvements, drive operational effciencies in a lifetime’ crisis?and reduce waste so that they not only survive but thrive.We are already working towards this with workfow innovation Eli Mahal, head of L&P marketing, HP Indigodesigned specifcally to make it easier for people and processes Overall, the print industry has witnessed continued growth to connect, automate operations and drive operational throughout 2022. Many markets have successfully returned to improvements. We are bringing to market new technological their pre-Covid levels, with some areas, such as commercial, developments that will advance the industry, helping businesses even surpassing these levels. However, as major supply chain mitigate risk and optimize opportunity while preparing for the constraints begin to settle and the global economy slows down predicted megatrends of the coming year. due to the looming recession, the industry growth rate has An ongoing digital transformation agenda will prove essential slowed down, mostly attributed to brands lowering inventories Jan - Mar 2023