David Savastano, Ink World Editor10.10.07
We all know well the impact of consolidation on the ink industry. In 2005, a major wave of merger and acquisition activity among ink manufacturers significantly changed the landscape of the industry, creating a few larger multinational companies.
We also know very well how consolidation of suppliers impacts the ink industry, as M&A activity throughout the supply chain has created a few larger manufacturers and narrowed down the number of potential suppliers.
Of course, the consolidation of printers, the ink industry’s customer base, is having a major impact on ink manufacturers. As I note in both The Packaging Ink Market, beginning on page 24, and The Publication Ink Market, which starts on page 32, ink industry leaders are carefully watching the recent consolidation activities among printers.
On the packaging side, the acquisition of Altivity by Graphic Packaging merges the two largest North American folding carton printers, who now combined have one-third of the $10 billion North American market. On the metal can side, the acquisition of Alcan by Rio Tinto potentially puts Alcan’s packaging business up for sale.
In the publication market, R.R. Donnelley & Sons has been extremely active, acquiring Banta, Perry-Judd’s Holdings and Von Hoffmann in the past year. Cenveo also has been busy, acquiring Cadmus and Color Graphics.
As is the case in all mergers, there are plenty of reasons to make these acquisitions, including creating more efficient organizations with broader market reach, as well as taking some overcapacity out of the market. Larger companies also have more leverage with their suppliers.
For ink manufacturers, coping with these large mergers among their customer base presents challenges as well as opportunities.The ink companies must again prove their value to their existing customers, while having the chance to expand their base.
Consolidation is a way of life in the world of printing. The ink manufacturers who can showcase and prove their value will be the companies that move ahead in the coming years.
David Savastano
We also know very well how consolidation of suppliers impacts the ink industry, as M&A activity throughout the supply chain has created a few larger manufacturers and narrowed down the number of potential suppliers.
Of course, the consolidation of printers, the ink industry’s customer base, is having a major impact on ink manufacturers. As I note in both The Packaging Ink Market, beginning on page 24, and The Publication Ink Market, which starts on page 32, ink industry leaders are carefully watching the recent consolidation activities among printers.
On the packaging side, the acquisition of Altivity by Graphic Packaging merges the two largest North American folding carton printers, who now combined have one-third of the $10 billion North American market. On the metal can side, the acquisition of Alcan by Rio Tinto potentially puts Alcan’s packaging business up for sale.
In the publication market, R.R. Donnelley & Sons has been extremely active, acquiring Banta, Perry-Judd’s Holdings and Von Hoffmann in the past year. Cenveo also has been busy, acquiring Cadmus and Color Graphics.
As is the case in all mergers, there are plenty of reasons to make these acquisitions, including creating more efficient organizations with broader market reach, as well as taking some overcapacity out of the market. Larger companies also have more leverage with their suppliers.
For ink manufacturers, coping with these large mergers among their customer base presents challenges as well as opportunities.The ink companies must again prove their value to their existing customers, while having the chance to expand their base.
Consolidation is a way of life in the world of printing. The ink manufacturers who can showcase and prove their value will be the companies that move ahead in the coming years.