Diversified Labeling Solutions | 113DLS finds success in blank labelsAfter a record-breaking year, the US converter has greatly expanded its press feet. Luis Rodriguez reportshroughout the pandemic the label industry proved to be resilient, with many converters showing high proft margins. For US converter Diversifed Labeling Solutions (DLS), that Tproft margin was signifcantly higher than it had ever experienced.‘We’ve had a growth rate of about 24 percent over the past year,’ reports James Cirigliano, vice president of marketing at DLS. ‘On average, we’re typically looking at around a 6-8 percent year-over-year growth rate, so the past year was huge.’Because of this high growth rate, DLS has made a signifcant investment in equipment across its manufacturing and warehousing facilities in the United States. At its headquarters in Itasca, Illinois, the company has installed a 4-color 17in Mark Andy 2200XL and a 2-color 17in Mark Andy 2200XL, with Martin Automatic roll splicers and AB Graphic turrets installed on both. In Duluth, Georgia, an 8-color 17in Mark Andy This Mark Andy 4150 press at DLS’s Arlington, Texas facility, is one of fve new Mark Andy presses the converter has added across its facilities in the past yearLP300 press has been installed. At Arlington, Texas, a 1-color, 21.5in Mark Andy 4150 press has been added. And in Reno, Nevada, the company has brought in a 2-color 17in Mark Andy 2200 press. “We’ve had a growth rate of about DLS says it chose to install Mark Andy presses across the board due to the reliability of the machinery – the company is still using 24 percent over the past year. On presses it purchased some 25 years ago. But it’s also to ensure that average, we’re typically looking the converter has extra capacity across its factories. It wants to remain local for its customers and offer the exact capabilities no at around 6-8 percent, so the past matter where in the country someone is located. The multiple presses are just one portion of the investments year was huge”by DLS. Others include forklifts, scanners, compressors, tabletop rewinders, anilox roll cleaners, and expanded shelving for its warehouses to store materials. Growing painsAnd though this spending spree is much higher than what DLS There are necessary steps a company needs to take in order would typically make in a year, it’s not wholly out of its typical to successfully expand. Ensuring a company has the necessary modus operandi. capabilities within its current equipment portfolio is just one step, ‘We’ve always looked for places we can upgrade, make things another is making sure it has the staff to run said machines.easier, or increase effciencies across the board,’ says Cirigliano. DLS has grown its staff over the past few years from 130 to ‘But we’ve been on kind of a spending spree lately, buying new upwards of 200. However, as the company experiences more equipment and making sure that we’re covered on materials. It’s growth and expansion, it’s struggling – like many other converters – mostly just to keep up with all the work that’s been coming in.’ to fnd skilled operators to work on the new presses.According to the company, the work has been coming in partly ‘One of the biggest problems we have is fnding new employees. from existing customers, who are purchasing well ahead of time to Finding people to work has just been diffcult,’ says Cirigliano. compensate for the extended lead-times experienced throughout ‘We’ve placed job postings, gone to job fairs, we’ve put out the label industry due to ongoing supply chain issues. And it’s also advertisements – basically anything you can think of, but it’s been from an infux of new customers, which Cirigliano says has been so a challenge.’large that ‘we’re actually starting to dial back the number of new As a unique position, a skilled press operator is not the easiest job customers we’re taking in, because we want to be able to take care to fll. Many press operators are already employed and the number of the customers we have right now’. who are looking for work is relatively small. This exact problem is Though the growth has been seen across the converter’s range a common occurrence throughout the industry, and the clear-cut of end-user markets, there has been one area where revenue has answer to it is nowhere to be seen.grown more than any other: blank labels. However, DLS has seemingly found a solution within the ‘Right now, blank labels are driving a large part of the increased company itself. ‘What we have been doing is bring people up. We revenue we’ve been seeing,’ reveals Cirigliano. ‘Over the past year, promote a lot from within,’ says Cirigliano. ‘Often, we’ll have a press people have been ordering more things from home which means helper and after a few years if we think they’re ambitious enough more shipping labels. So, it makes sense that this is where we’re and have the skillset to operate a press, we’ll train them up to work seeing the most growth.’ the press on their own.’To put the growth into perspective, the company’s revenue hit around 89 million USD this past year, where just ten years ago it was at 34 million USD. The goal, according to DLS, is to make it to For more information about DLS, go to teamdls.com100 million USD – a target it is confdent of hitting.Jan - Mar 2022