history of the pressure-sensitive industry cost index bpif labels autumn technical seminar 31...

History of the pressure-sensitive industry cost index BPIF Labels Autumn Technical Seminar

31 October 2012

Dr. William Llewellyn Vice President/Senior Consultant

AWA Alexander Watson Associates

Contents

Introduction

Component Materials

Cost Indices Raw Materials

Label Constructions

Future Prospects

INTRODUCTION

Page 3

Introduction

Industry benchmarking and index analysis of European pressure-sensitive label materials.

Started as a project for the Swedish Label Association.

Expanded in Q2 2011 when other national label associations joined

Quarterly reporting of a set of indices based on a sample of ‘typical’ and ‘standard’ pressure-sensitive label constructions

First edition: July 2007, data that quarter plus historical development

Indices demonstrate cost progression for each material component based on a scale using a cost index of 100 as of January 2007

The indices reflect movement in raw material costs

Also estimate of the likely movement in pressure-sensitive label laminate costs as a consequence of the movements in raw material costs

Added feature: indices in local currencies

Introduction – Methodology

AWA Alexander Watson Associates: market research, advisory services, and events in the labeling and product decoration field since 1971

Key element: primary data collection

Telephone, personal and email interviews

Online survey

Target group: key suppliers (film manufacturers, paper producers, adhesive and silicone suppliers, etc) and label laminators

Data crosschecked against AWA data on the pressure-sensitive label market

All input combined and verified to reach a consensus on costs movement

COMPONENT MATERIALS

Page 6

Component Materials

85 Micron PE

60 Micron OPP (BOPP)

23 Micron PET

Thermal Paper

C1S

Acrylic Emulsion

Hot Melt

Silicone

Glassine Release

COST INDICES RAW MATERIALS

Page 8

85 Micron PE

Source: AWA

85 Micron PE - Currencies

Source: AWA

LABEL CONSTRUCTIONS

85 micron PE/Acrylic Emulsion/ Glassine Release

Raw Material Cost Index Movements, January 2007 – July 2012

Raw Material Cost Index Movements, July 2011 – July 2012

Source: AWA

85 micron PE/Acrylic Emulsion/ Glassine Release - Currencies

January 2007 – July 2012 July 2011 – July 2012

Source: AWA

FUTURE PROSPECTS

Page 14

Future Prospects

Feedback users on the cost index implemented

Add label laminate constructions to excel sheet (BPIF member feedback)

North American Pressure-sensitive Industry Cost Index

Page 15