Building a Stronger Tomorrow

A little over a week ago we had the opportunity to gather as an industry for the first time in nearly two years. Although it wasn’t the LabelExpo we have come to know, the Label Congress show in Rosemont, Illinois offered us the ability to connect — in person — with our customers and friends in the industry again. I’d like to share some highlights from last week and give an update on how we’re strengthening the foundations of our business to help our customers and brands grow in the years to come.?

Back in-person at the Label Congress

It has been almost two years since Avery Dennison’s label and packaging team has exhibited at an industry trade show or event in person. And while I think we all expect shows will look a little different for the time being, or perhaps forever, last week’s Label Congress gathering was a wonderful opportunity to see our customers, suppliers and industry friends in a safe manner. Through masks, we discussed the challenges that we’ve seen this year in terms of supply chain disruptions and freight delays, and record-high inflation. We were able to listen to the challenges our customers are facing and discuss them as well as the outlook for 2022 face-to-face. The next several months will be demanding, but together we will continue to work through it. I am optimistic that we will see things improve and confident that we have the right partnerships to help move forward.?

Strengthening Our Foundation

The past 18 months have certainly tested the resilience of many industries, including labeling and packaging. I am proud of our collective ability to continue providing label materials for pharmaceuticals, home and personal care, e-commerce, and other critical industries — as consumers and brands have needed them more than ever before.?

But the challenges related to demand and inflation have highlighted ways we need to strengthen our systems. We have learned that we must improve our ability to service our customers despite spikes in demand or disruption of our supply chains.

I am pleased, therefore, to share several improvements to and investments in our operations. Our objective is to strengthen our production and distribution foundations and provide a path to continued, solid growth for our customers and the labeling industry.?

We have invested in coating equipment in our Cleveland, Ohio, and Greenfield, Indiana plants. Read more about the exciting expansion of our Greenfield plant in this interview with plant manager Remi Osseni. We will also be able to offer our customers additional functional and sustainability advantages with the addition of adhesive capacity. Additionally, we are enhancing our specialty coating capabilities through a reallocation of existing resources and the addition of capacity. In order to improve delivery reliability and accommodate surges in demand, we are expanding and optimizing our finishing network. This will also allow us to support future growth and optimize freight and service.

Leading on innovation and sustainability?

We are also committed to protecting our industry by leading on innovation and sustainability. The past 18 months have been a challenging period for our economy and our society, which has further accelerated the importance of sustainability. Consumer awareness, FMCG/CPG brand commitments, and policy developments require a proactive approach to reduce the use of natural resources, enhance recycling and recyclability and minimize waste.?

Although the label is a small part of the overall packaging, it can have a critical impact and added value. The products in our Sustainable ADvantage portfolio are aimed at ensuring our customers and brands don’t have to compromise on performance or cost to meet their sustainability goals and requirements for labeling.?

A more resilient and reliable partner?

Despite recent challenges, I believe that together with our customers we are building a stronger tomorrow. We have recognized opportunities to improve our operations, and know we will be an even more resilient and reliable partner. I look forward to continuing to update you on our progress against the investments above and our sustainability efforts.?