Industry Analysis and Skills Foresight Appendix 1 Printing and Packaging Industry

Transcription

1 Industry Analysis and Skills Foresight Appendix 1 Printing and Packaging Industry INDUSTRY ANALYSIS Page 1 of 10

2 Introduction The printing and packaging companies in Trinidad and Tobago are involved in the manufacture of packaging materials and the printing on various substrates. The products produced by these industries are quite varied and companies utilize a diversity of equipment, processes, raw materials and technologies. Industry Sectors The printing and packaging companies can be broadly grouped into two main sectors, i.e., packaging and printing. The broad sectors can further be sub-divided into sub-sectors based on the products produced and the processes and equipment utilized. The sectors and main sub-sectors that comprise the industry are listed in Table 1. The sectors and sub-sectors are based on the Standard Industry Classification (SIC) defined by the Ministry of Labour and Small and Micro Enterprise Development and benchmarked internationally against the United Nations International Industry Classification (ISIC). Table 1. Standard Industry Classification 3 Relevant to the Printing and Packaging Industry of Trinidad and Tobago PACKAGING Manufacture of paper and paper packaging products -Manufacture of pulp, paper and paperboard -Paper bags and wrapping paper -Unprinted envelopes, cards and stationary -Paper cups and plates, sanitary food containers -Corrugated paper board products -Non-corrugated paper board products Manufacture of plastic packaging products -Plastic containers and cups (LDPE, HDPE, PP) -Polystyrene boxes and containers -Plastics packaging materials and unlaminted film sheet manufacturing (Plastic bags, sheets, etc.) -Plastic bottle and caps manufacturing (LDPE, HDPE, PP) Trinidad and Tobago Standard Industry Classification (SIC) 1 code United Nations (UN) International Standard Industry Classification (ISIC 3.1) 2 code Page 2 of 10

3 Manufacture of glass and glass packaging products -Manufacture of glass products (solely of glass) Manufacture of metal packaging products -Metal can, box and other metal container (light gauge) manufacturing Manufacture of wood packaging products -Wooden boxes, casks, barrels, cooperage, pallets Manufacture of textile packaging products -Textile bag and canvas mills PRINTING Printing Publishing and Allied Industries -Newspaper publishing -Magazines and other periodicals -Books and Binded Publications -Printing Flyers, brochures and other documents -Printing - Labels -Printing - Flexible packaging -Printing Point of purchase materials -Printing Digital -Printing - Silkscreen -Manufacture of printed cards, envelopes and stationery -Manufacture of loose-leaf devices and library binders -Graphic Arts -Printing Equipment and Supplies-Sales and Distribution / The Ministry of Labour and Small and Micro Enterprise Development makes available to the general public the Trinidad and Tobago Standard Industrial Classifications (SIC) The United Nations maintains a registry of International Standard Industry Classifications (ISIC). Page 3 of 10

4 3. The Trinidad and Tobago Standard Industrial Classifications are benchmarked internationally against the United Nations International Standard Industry Classification by the Ministry of Labour and Small and Micro Enterprise Development. A standard classification of economic activities arranged so that entities can be classified according to the activity they carry out. The categories of ISIC at the most detailed level (classes) are delineated according to what is, in most countries, the customary combination of activities described in statistical units. The groups and divisions, the successively broader levels of classification, combine the statistical units according to the character, technology, organization and financing of production. Wide use has been made of ISIC, both nationally and internationally, in classifying data according to kind of economic activity in the fields of population, production, employment, gross domestic product and other economic activities (Source: United Nations). ISIC is a basic tool for studying economic phenomena, fostering international comparability of data and for promoting the development of sound national statistical systems. Thus, despite the word "industrial" in its name, ISIC is not just a classification of industries. United Nations Products and Equipment PACKAGING Manufacturing Plastic Bags Cellophane bags, garbage bags, grocery bags, etc. Blown Film Extrusion Machine Molten plastic is formed into a cylinder and blown by compressed air. Thin-walled cylindrical rolls of plastic are produced. Sealing and Cutting Machines Thin-walled cylindrical plastic rolls are cut and sealed at the sides or bottom to form single bags. Flexographic Printing Machine Bags are printed with logos or other artwork. The printing machine is independent of the extrusion machine. Flexographic In-line Printing Machine The printing machine can be attached to the extrusion machine to simultaneously manufacture and print bags. Page 4 of 10

5 Manufacturing Plastic Packaging Bottles, caps, containers, cutlery, etc. Blow Molding Machine Molten plastic is blown into the shape of bottles and other cylindrical containers with compressed air. Injection Molding Machine Plastic is molten thorough heat and pressure and molded into various product Manufacture of Paper and Paperboard Products Vacuum Molding Polystyrene boxes and containers, especially used in the fast food industry, are manufactured by the vacuum forming process. Paper Bag Converters Paper is converted into pager bags Corrugated cardboard Converter Corrugated cardboard in converted in boxes Non-corrugated paperboard converter Non-corrugated paper board in converted to boxes (lunch boxes, shoe boxes, etc) Page 5 of 10

6 PRINTING Desktop Publishing Artwork and text are designed for print on software programmes such as Adobe Photoshop, Illustrator, Quark Express, Microsoft Publisher, etc. Prepress-Imaging Positive, negative films and plates are created from graphic designs for printing presses. Computer to Plate (CTP) can be used instead of darkroom processes. Offset Printing An image on a plate is offset onto rubber blanket cylinders which, in turn, transfers the image to a sheet of paper or other substrate. The process can either be sheet fed or web (paper fed in rolls).this is the preferred method for printing of general publications, magazines, books, flyers, etc. Flexographic Raised images on rollers are ink coated and transferred to the rolls of paper or other substrate. This is the preferred method for printing labels, plastic bags and offers fast print rates with solid colors. Digital Printing -Wide Format Preferred method for wide-format prints for banners, billboards, vinyl, etc. Digital Printing Commercial Used for short runs and individual customized printed products such as datamerged publications Screen Printing Prints are achieved by spreading ink through a screen onto the substrate. This process is particularly important in the printing of textiles. It is also used in the printing of billboards and signs. Page 6 of 10

7 Post Press-Cutting Printing media is cut by guillotine to form books, brochures, etc. Post Press-Folding Printed product is folded. Post Press-Saddle Stitching Books and other binded publications are stitched. Distribution of Industries within the Sub-Sectors Company Size Distribution Medium 28% Small 43% Large 5% Micro 24% Company Size From the 100 companies that participated in the survey, 67% were micro and small companies. Entrepreneurial activity within this sector is high as many micro and small businesses play an active role in this sector. 28% of the companies surveyed were medium-sized and 5% accounted for large companies. Page 7 of 10

8 There is a significantly larger proportion of companies involved in printing activities (70%) than packaging (30%). Micro and Small companies predominate in the printing industry (80%). There is also a significant number of medium sized and large companies that comprise the printing sector (20%). The packaging industries are characterized by large and medium sized companies (64%) with small and micro industries accounting for 36% of the industries surveyed. Trends in the Sectors The printing and packaging sectors are characterized by fierce competition between both local and foreign companies. Large volume production is necessary for many companies to be successful, while small companies rely on its local community customer-base. Some companies have effectively positioned itself in niche markets and built a loyal customer-base to ensure their sustainability. The printing and packaging industry is characterized by high equipment acquisition costs and high cost of consumables such as resins and inks. The medium and large industries highlighted increased competition locally from foreign countries, especially China. The large companies identified the need for additional machines, cheaper raw materials and acquisition of newer technology in order to ensure greater volume production, lower unit prices and hence compete more effectively in the export markets. (a) Packaging The packaging industry is comprised of medium and large businesses that utilize various extrusion, blow molding, injection molding and paperboard converter machines. The machines are expensive to acquire and require further costs in the design of molds, in the case of plastics. The cost of resins is a factor with this industry since its price is based on the price of oil. Most of the companies interviewed commented that the items produced provide low unit-profit and therefore, production in large volumes is necessary. Some of the large companies have invested in automation by installing inline machines that increases output and reduces labor costs. However, the initial cost of automation is large and only the large companies can afford it. (a) Printing Unlike the packaging sector, the printing sector has quite a number of micro and small, as well as, medium and large companies. The most predominant method of printing is the offset method. Page 8 of 10

9 Offset The micro and small companies utilize simple offset presses (single or two color) and perform imaging by the traditional darkroom processes. The medium and large companies use much more expensive four and five color presses. Many have implemented CTP (computer to plate) which replaced the traditional darkroom imaging processes. A few of the large companies have invested in automated operations for prepress, press, collating, cutting and stitching. Most of the industries interviewed commented that offset printing will predominate in the future for general printing of calendars, brochures, cards, etc, however, the system will become increasingly automated and the CTP will replace the traditional method of imaging. Flexographic The flexographic presses are mainly used by companies involved in the printing of labels and plastic bags. This process predominates within the large companies that print a high volume of labels. The flexographic process is also utilized by the packaging companies that manufacture plastic bags. The large companies are investing in the in-line flexographic machines to integrate the bag manufacturing and printing processes. This would lead to larger volume production over a shorter period of time. Digital Printing Wide-Format digital printing has been increasing nationally. This process has found applicability in the printing of banners, billboards and vinyl for car bodies and other applications. Many micro and small industries are now emerging as a result of the increasing popularity of wide-format prints. The digital machines may be expensive but there is a market to sustain the profitability of micro and small companies; however this market is fiercely competitive. Wide-format printing is an alternative to screen printing of billboards. Commercial digital printing has found some applicability for general printing of cards, brochures, flyers, etc. However, the companies interviewed that utilize digital printing, have applied it mainly to short runs and rush orders. The offset method is more economical for longer runs. Digital printing is also applied to customized printed products such as individualized marketing materials and mail-merged applications. Screen Printing Screen printing is predominant in the printing of textiles. It is used by the micro, small, medium and large industries for the printing of textiles. The small industries utilize the manual process for screen printing. The large companies implement a combination of manual and automated machines. One company interviewed commented on the move towards ink jet printing for textiles. This method may become more prevalent in the future, however, the machines are quite expensive. Page 9 of 10

10 Conclusion The printing and packaging industry is comprised of micro, small, medium and large companies. The industry manufactures various products through an array of processes and equipment. The industry is characterized by high equipment acquisition and raw material costs. The industry is fiercely competitive, both in the local and foreign markets. Micro and small industries relies on local community-based markets for their sustainability. Most companies depend on niche markets and a loyal customer-base. The industry identified the need for additional machines, cheaper raw-materials and acquisition of newer technology in order for them to better compete locally and in global markets. Page 10 of 10