Mark Andy sees noticeable uptick in H2 of 2020

PJ Desai – Global label industry is resilient and accelerating

Banner thanking Mark Andy's employees was placed in the manufacturing building in Missouri, United States. Photo Mark Andy
Banner thanking Mark Andy's employees was placed in the manufacturing building in Missouri, United States. Photo Mark Andy

Mark Andy says its recent orders coupled with widespread, ongoing converter activities paint a positive outlook going forward as the entire label and packaging industry has adapted to meet the unique challenges presented by the continuing Covid-19 pandemic.

PJ Desai, chief executive officer, Mark Andy, states, “The first half of 2020 was extremely challenging due to the pandemic’s impact, and none of our businesses were untouched by it. However, our business and industry continued to adapt, and business activity in many segments has returned to pre-Covid levels.” Mark Andy’s Chief business officer, Tom Schelmbauer, also notes, “The bulk of Mark Andy’s install base is running strong despite the pandemic. Many of our customers tell us they are at capacity and now need more production assets. New press orders have accelerated for flexographic platforms, and across all segments, entry-level and up.”

Reflecting on the last few months, Desai acknowledges the numerous changes and adaptations necessary to continue manufacturing operations at multiple facilities across the globe during a pandemic. Temperature checks, PPE, social distancing, work cell modifications, and other adaptations were quickly implemented.

Out of Labelexpo Americas – focus on drupa and Brussels

Desai relays that virus-related safety concerns have forced a drastic curtailment in the OEM’s industry event participation. One such unexpected change for Mark Andy is that it will not exhibit in the Chicago Labelexpo Americas event in March 2021. It will participate in Labelexpo Europe in September 2021. The manufacturer also expects to participate in drupa 2021. Desai explains, “with Covid-19 delays, the show schedule for 2021 is too tightly packed. To better serve our customers and global partners, we will focus our efforts on Brussels and drupa. Both events operate on timelines that align with more normalized travel policies and a higher probability of safety.”

Desai also notes, “Covid-19 forced us to re-think how we interact with our customers, how we sell our products and services, and how we support our customers post-sale. Our team is committed to working with our customers even more closely than we did pre-Covid, even if that means virtually, over the phone, or using some other electronic technology. Today at Mark Andy, digital communication technology is increasingly utilized to conduct sales calls, demos, training, troubleshooting, and even press installations.”

In the age of Covid-19, Mark Andy’s customers have similarly adapted to this ‘new norm’ and often prefer these methods. Desai concludes that “While nothing beats in-person demonstrations, connecting at trade shows, and welcoming suppliers and customers into our facility, we are all advancing and growing together to keep this industry lively and vibrant to meet customer needs as we move into Q4 and beyond.”

Sanitizers, digital and refurbished presses

Another interesting pivot of the company is its supplies business. Mark Andy Print Products (MAPP), the supply arm of Mark Andy, operates a distribution center in Des Plaines, IL, that is outfitted with chemical blending abilities. The MAPP team has increased the blending of alcohol-based hand and surface sanitizers in response to Covid-19. According to Stuart Gallup, VP Commercial of Mark Andy, “Many In-plant operations we work with have pivoted to produce sanitizers for their states, and we were able to supply them many raw materials to aid in this when supply was scarce.”

“Across all platforms, Digital Pro to HD, Mark Andy’s digital business continues to meet expectations. Even more exciting is that the fuel for this growth checks all the boxes – new presses to new clients and additional presses and upgrades to current clients. Consumables sales growth from new press installs and higher utilization rates of existing equipment demonstrate that our customers are adapting successfully during these challenging times. In fact, demand for refurbished presses exceeds what we have in inventory,” notes David Medlar, vice president, Digital, Mark Andy.

Packaging South Asia — resilient, growing and impactful — daily, monthly — always responsive

The multi-channel B2B in print and digital 17-year-old platform matches the industry’s growth trajectory. The Indian, South Asian, Southeast Asian, and Middle East packaging industries are looking beyond the resilience of the past three years. They are resuming capacity expansion and diversification, with high technology and automation in new plants and projects.

As we present our 2024 publishing plan, India’s real GDP growth for the financial year ending 31 March 2024 will exceed 6%. The packaging industry growth will match the GDP growth in volume terms and surpass it by at least 3% in terms of nominal growth allowing for price inflation in energy, raw materials, consumables, and capital equipment.

The capacity for flexible film manufacturing in India increased by 45% over the past four years. With orders in place, we expect another 20% capacity addition in 2024 and 2025. Capacities in monocartons, corrugation, aseptic liquid packaging, and labels are grown similarly. As the consumption story returns over the next six months, we expect demand to return and exceed the growth trajectory of previous years. The numbers are positive for most of the economies in the region – and as shown by our analytics, our platform increasingly reaches and influences these.

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