The 2019 North American Top 20 Report

In speaking with ink industry executives for the 2019 North American Top 20 Report, there are a number of themes that are common among companies. Packaging remains a good market, digital technology is making further gains at the expense of conventional printing, and publication and commercial printing continue to decline. None of this is new to the ink industry, and industry leaders are well versed in ways to position their companies accordingly.

The volatile raw material situation is also not new to the ink industry. Supply of key ingredients is uncertain for a variety of reasons, most likely regulatory issues. As a result, costs for these materials are climbing. When these ingredients aren’t available, ink formulators are working to find suitable alternatives that can meet the guidelines of their customers.

Unlike printing trends, though, it is harder to prepare for raw material disruptions. When TPO and TPO-L photoinitiators were in short supply in spring 2018 after the supplier of a key precursor was closed, the energy curable ink and coatings market immediately felt the aftermath.

For ink companies, raising prices to printers is never an ideal solution, but many companies announced price increases, although these didn’t cover the higher costs. The real problem is finding supply as customers need their inks and coatings.

This is not only about photoinitiators: pigment manufacturers and their intermediate suppliers are constantly facing increased environmental scrutiny in China, as the government looks to combat pollution and is shutting down companies. Azo pigments are particularly a concern. Feedstocks and crude oil are continuing to be an issue. There are plenty of other ingredients of concern for ink manufacturers.

If that isn’t enough, higher transportation costs and tariffs are also challenges for ink companies to overcome.

In talking with industry leaders, there is a lot of uncertainty heading into the coming year. No one thinks that prices will come down, and most believe that the markets will remain volatile. The best they can do is work closely with suppliers and customers, keeping everyone up to date on what is happening, and fine-tuning their supply chains. If companies can do this, they will weather these storms.