Following printed forms, labels and tags took second prize on Print Professional's top 100 manufacturers list as a top-earning product in 2009. Their sales figures have only climbed since the previous year's, from $567.6 million to $585.5 million, proving this is still a healthy market. Companies such as Tipp City, Ohio-based Repacorp and Omaha, Nebraska-based AmeriCAL are contributors to this gain.
With three other full-service manufacturing divisions in Milwaukee, Wisconsin and Phoenix, Repacorp's best seller is stock labels. The company's specialty, however, lies in custom labels which include scale labels, digital labels and RFID labels and tags.
On the other hand, AmeriCAL, a supplier of items including simple one-color stickers and complex full-color or four-color process labels, specializes in "finding economic label solutions for distributors while providing a dynamic-looking product," according to Tim Vogel, general manager. He added this generally means prime labels to enhance product visibility and create effective shelf appeal.
While labels and tags continue to show strong numbers, the economy has altered the way business is conducted. Tony Heinl, executive vice president of Repacorp, said the distributors he has talked to were extremely hurt by the recession. When asked what type of advice he had for skeptical distributors, Heinl responded, "They should research manufacturers, tour their plants and partner with companies that have invested in equipment that enables them to offer their customers the highest quality product at the lowest price."
Vogel encouraged distributors to learn the basics. In the case of labels, this means something about face sheets, adhesives and liners. "Always ask the key question: 'What is the label used for?,' which is paramount in providing the correct solution. Use a checkoff list/system both at the quote stage and the actual job stage," he said. "We as humans remember things in depths of three to five, yet details on a label print order can exceed that range. Since the end-user customer depends on us as experts, using a checklist ensures that we avoid missing details and keeps the customer satisfied. Pre-testing the label material in actual use conditions is good insurance to prevent redos."
Both AmeriCAL and Repacorp continue to fare well, although adjustments have been made. Vogel said AmeriCAL had a positive growth rate last year and the staff feels rather fortunate. He did, however, see an increase in quotations, which he believes was an attempt to recover some of the business lost through the "elevated attrition in the economy."
