The print industry has undergone a profound transformation over the
past two decades. What was once dominated by long production series has now
shifted towards shorter runs of customized products, tailored to meet the
diverse needs and preferences of modern consumers. The demand for customization
and variety continues to soar, yet with this surge in diversity comes a
heightened level of complexity for the Labels & Packaging industry.
In an era where consumer habits evolve rapidly, regulatory requirements
fluctuate, and e-commerce reshapes distribution channels, the ability to adapt
quickly is key. Flexibility is the key to navigating this dynamic landscape,
and digital technologies have emerged as a crucial enabler of agility.
Today, nearly one in two presses sold in the sector is digital. Within
the next decade, we can anticipate this will increase to two in three. HP
Indigo has been a pioneer, introducing liquid electrophotography (LEP) in the
1990s, which sparked this revolution and the results are evident today. The
transition from conventional to digital printing has allowed for unprecedented
flexibility in meeting client demands, with digital presses paving the way for
swift adaptation to varying orders at no additional cost. However, all of this
is ultimately just history.
As we look ahead, the real question is: What does the future hold for
the Labels & Packaging industry? How will professionals in this sector
operate in the coming years, and what transformations lie on the horizon? While
no crystal ball can predict with certainty, several trends and developments
offer insights into the path forward.
Digitalization will define the entire process
Digitalization is set to permeate every aspect of the production
process, especially downstream. While we continue to see new entrants’
breakthrough and some finishers go 100% digital, there is still a way to go
when compared to the 2000 HP Indigo machines operating in Labels &
Packaging.
We know that by embracing digital processes across the production
chain, from printing to the finished product, the industry stands to gain
significant advantages in terms of productivity, waste reduction, and sustainability.
Orders would be executed more quickly and the entire system would move towards
zero stock and zero waste, less warehousing across the supply chain and
ultimately greater efficiency and reduced environmental impact for both
converters and their clients. A 100% digital process would lead to a decrease
in quality defects, errors that result in waste, and value destruction.
Intelligent production lines are on the rise. We’re looking at a future
where a job can be completed in just a few hours and ready to be delivered just
a few later. But achieving this vision of a fully digitalized production
ecosystem requires overcoming two critical challenges: standardization of file
formats and seamless communication between machines. The ability to work from unified
digital files containing both technical specifications and commercial data will
streamline order management and facilitate rapid response to client needs.
Similarly, enhanced connectivity between machines will enable real-time
monitoring and optimization of production processes, driving efficiency and
performance. These two challenges are by no means insurmountable and drupa 2024
will certainly be a moment where we’ll hear and see more.
In the packaging industry, information flows at the machine level
transferring data across the production flow and to Human-Machine Interfaces
(HMIs) so that the operators can control the machine and monitor its
performance. This data also feeds into ERP systems and into a cloud infrastructure
where it’s used to understand if a machine, a line, or even entire factories
are operating well or not. The calculation of profitability relies on this
today. Major corporations beyond printing, with dozens of factories worldwide,
operating hundreds of production lines use this information to compare the
performance of their sites. Very soon we could anticipate converters will
operate in a similar manner - measuring the performance of their production
lines, the idle rate of their presses, the number and type of breakdowns they
experience, consumables consumption, job execution time, and production costs.
Robotics and intelligent systems will manage the flowsIn an era where product differentiation and on-demand has become king,
the number of substrates, films, primers, inks, and other coatings to be
purchased, stored, and used is ever-increasing, efficient production cannot
overlook more optimal management of all the flows of materials and supplies. As
we look towards the future, the role of automation and robotics in managing
material flows within factories will also become increasingly prominent.
Accurate and real-time records of everything entering and leaving the
production floor are critical, and as we look forward, we can expect the ERPs
of printing companies will increasingly integrate traceability of these
elements and finished products more efficiently, from the moment they leave the
machines to the warehouse or the reconciliation area for swift shipping.
Logistics within printing production floors will also evolve to
accommodate transport vehicles. Automated Guided Vehicles (AGVs) and Autonomous
Mobile Robots (AMRs) are poised to revolutionize logistics within printing
facilities, offering benefits such as improved inventory management, enhanced
productivity and reduced reliance on human labor. By integrating these
technologies into production workflows, manufacturers can achieve greater
efficiency and responsiveness to changing demands. The automotive industry is
already at the forefront of using these systems, while the printing &
packaging industry is just beginning to adopt them. In the next five to ten
years, we expect to see our industry follow suit.
And the ultimate layer?
After the flows between converters and packers, the last stage of this
evolution will involve the retailers and the consumers. In about a decade we
can expect entire production flows to be managed automatically by machines and
robots, with a minimum of human intervention. Traceability will be complete.
Both digital and physical exchanges between consumer’s order to retailers and
to factories and warehouses will be seamless.
It's indeed only a matter of time that it will be the consumer who
triggers the order at the very moment they purchase the product in the store or
on-line. The financial transaction will initiate a series of reverse orders to
go up the chain the moment a product sells, from the retailer to the producer,
up to the ERP of the converter, which will instruct the press to manufacture
the appropriate type of packaging and label. In a matter of days, the converter
can manufacture all the required packaging and labels for the sold products and
ship them to the packager who will have manufactured the products and sent them
to the retailer, allowing him to almost replenish his stocks instantly. With
these digital flows and operating a zero-stock model, printers will be able to
better manage resource, embrace sustainability and ultimately, embrace higher
profitability. Is it possible to do better?
AI will play a prominent role
Finally, the future of printing cannot overlook Artificial Intelligence
(AI). The integration of AI promises to further enhance operational efficiency
and quality control - detecting errors and correcting the work of printing,
embellishment, or cutting systems on its own. AI-driven algorithms can also
optimize machine performance, predict maintenance needs, and even assist in
decision-making processes. From quality control to predictive maintenance and
supply chain optimization, AI holds the potential to revolutionize every aspect
of the printing and packaging industry.
Label converters are on the front line
In this rapidly evolving landscape, label and packaging is at the
forefront of innovation. As the first sector to undergo its digital revolution
thirty years ago, the industry is well-positioned to embrace emerging
technologies. The next twenty years promise a paradigm shift in the way
printing and packaging are conceptualized and executed. With digitalization,
automation, and AI-driven optimization at the forefront, the industry is poised
to enter a new era of quality, versatility, productivity, sustainability, and
profitability. As we navigate this intelligent revolution, one thing is clear:
the future of printing and packaging is bright, and the possibilities are
limitless.
By Haim Levit: SVP & Division President, HP Industrial Print
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