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TWGA Reports Compares and Contrasts CPCs and Converters

Press release from the issuing company

NEW YORK -- March 18, 2004 -- With printing and prepress service companies in a constant search for new revenue streams, the packaging market has become an increasing focal point. Today, TrendWatch Graphic Arts released a new special report which offers crossover service firms and product suppliers a tool that helps them better understand this growing, yet complex marketplace. The report, called "Packaging in a Nutshell: Comparisons and Contrasts of CPCs and Converters," examines how these two critical segments compare and contrast in their viewpoints and business approaches. The report is available for online purchase at the TWGA eStore in PDF format. For more information, please go to the TWGA website (www.trendwatchgraphicarts.com). Researcher's Quote... According to Vince Naselli, Director, TrendWatch Graphic Arts, "When trying to summarize the relationship and trends between CPCs and converters, perhaps an image of the stagecoaches from the Old West is most appropriate. In the front seat are the drivers (CPCs) holding the reins, directing where and how fast they want the carriage to go. In front of them is the team of workhorses (converters), responding to the directions they are given." "From a business viewpoint, it clearly starts with the business conditions, where consumer product companies show a noticeably higher level of optimism in their business conditions than converters do. [32% of CPCs said that business was "excellent, better than the last 12 months," compared to only 24% of converters]. This is because they are in the driver's seat. They know what they want, and the price they want to pay, and are less concerned about how to get it done. It is left to the converters to implement whatever is necessary, including making the necessary investments under difficult ROI conditions, to make sure these needs are met. Suppliers have to ask themselves which side they would rather be on." According to the Report... -- TOP PLANNED INVESTMENTS: CPCs' top planned investment was a digital camera with 48% planning to make this investment in the next 12 months. For converters, it was computer-to-plate - 36%. This reflects CPCs' focus on design and workflow vs. converters' emphasis on production and implementation; -- GROWING SUB-SEGMENTS: "Self-adhesive labels" and "Folding cartons" are seen as exhibiting the most growth (28% of CPCs tabbed self-adhesive labels as an area of growth while 25% look to folding cartons for growth). The numbers were almost identical for converters - 24% and 23%, respectively; -- PRODUCING PROTOTYPES: According to CPCs, digital printing and offset are the most common print processes used to create prototypes (17%). Converters, on the other hand, are more likely to use flexo (41%) compared to only 18% using digital workflows. This shows a disconnect in perception regarding how this process is done. The Report Offers... Suppliers and Service Providers can use this report to compare and contrast CPC's and Converters in the following topics: -- Business conditions; -- Business challenges; -- Sales opportunities; -- Planned investments; -- Packaging types used; -- Change in use of packaging types; -- Print processes used; -- Change in use of print processes; -- Sourcing of packaging design; -- Sourcing of structural design; -- Sourcing of prepress production; -- Production of prototypes; -- Typical run lengths for test samples; -- Proof cycles used; -- Use of PDFs. Methodology... This report is based on the TWGA's 2003 Packaging Directional Trends: Converters and 2003 Directional Trends: Consumer Product Companies surveys of the packaging industry that samples the attitudes of consumer product companies and packaging converters. Analysis is provided by TWGA analysts and market interviews.