History of the pressure-sensitive industry cost index

1
History of the pressure-sensitive industry cost
index
Dr. William Llewellyn Vice President/Senior
Consultant AWA Alexander Watson Associates

• BPIF Labels Autumn Technical Seminar
• 31 October 2012

2
Contents

• Introduction
• Component Materials
• Cost Indices Raw Materials
• Label Constructions
• Future Prospects

3
Introduction
4
Introduction

• Industry benchmarking and index analysis of
  European pressure-sensitive label materials.
• Started as a project for the Swedish Label
  Association.
• Expanded in Q2 2011 when other national label
  associations joined
• Quarterly reporting of a set of indices based on
  a sample of typical and standard
  pressure-sensitive label constructions
• First edition July 2007, data that quarter plus
  historical development
• Indices demonstrate cost progression for each
  material component based on a scale using a cost
  index of 100 as of January 2007
• The indices reflect movement in raw material
  costs
• Also estimate of the likely movement in
  pressure-sensitive label laminate costs as a
  consequence of the movements in raw material
  costs
• Added feature indices in local currencies

5
Introduction Methodology

• AWA Alexander Watson Associates market research,
  advisory services, and events in the labeling and
  product decoration field since 1971
• Key element primary data collection
• Telephone, personal and email interviews
• Online survey
• Target group key suppliers (film manufacturers,
  paper producers, adhesive and silicone suppliers,
  etc) and label laminators
• Data crosschecked against AWA data on the
  pressure-sensitive label market
• All input combined and verified to reach a
  consensus on costs movement

6
Component materials
7
Component Materials

• 85 Micron PE
• 60 Micron OPP (BOPP)
• 23 Micron PET
• Thermal Paper
• C1S
• Acrylic Emulsion
• Hot Melt
• Silicone
• Glassine Release

8
Cost Indices Raw Materials
9
85 Micron PE
Source AWA
10
85 Micron PE - Currencies
Source AWA
11
Label Constructions
12
85 micron PE/Acrylic Emulsion/ Glassine Release

• Raw Material Cost Index Movements, January 2007
  July 2012

Raw Material Cost Index Movements, July 2011
July 2012
Source AWA
13
85 micron PE/Acrylic Emulsion/ Glassine Release
- Currencies

• January 2007 July 2012

• July 2011 July 2012

Source AWA
14
Future prospects
15
Future Prospects

• Feedback users on the cost index implemented
• Add label laminate constructions to excel sheet
  (BPIF member feedback)
• North American Pressure-sensitive Industry Cost
  Index