Diversified Labeling Solutions acquired by TSC.

Position:INDUSTRY News

TSC Auto ID Technology, a global presence in the AIDC bar code printer industry, has announced its acquisition of Diversified Labeling Solutions, Inc. (DLS).

Headquartered in Itasca, IL, USA, DLS was founded by Bob Hakman in 1985 and has since grown into one of the largest B2B label companies in the US. Today, DLS is a label manufacturer with over 200 team members and four locations in Illinois, Georgia, Texas and Nevada. The company also has 320,000 square feet of production space.

Under this acquisition, DLS will remain a separate entity, retain its name and brand, and maintain all of its current employees and executive leadership--including its current CEO, Jim Kersten. All four major locations will run and operate as usual, serving distributors and value-added resellers.

TSC's John Otott, the global general manager of the Consumable Products business unit, will oversee DLS operations from a TSC standpoint in partnership with Kersten.

"This is an extraordinary fit, and we're excited to bring the advantages and benefits of this union to our partner base," Otott says. "Bob has built a wonderful company based on a foundation of exceptional business integrity, best-in-class product quality, and a laser focus on customer needs. We will faithfully adhere to, and build upon, this excellent foundation as we continue to serve both our OEM and legacy DLS distributor partners."

The DLS acquisition will greatly benefit TSC's value-added reseller partners in several ways. TSC now has the ability to offer truly competitive pricing on a huge variety of labels and other media distributed from four strategic locations throughout the US.

"We are very excited about the new offerings we are going to be able to provide our partners, and we could not have found a better company to acquire than DLS," says TSC president Sam Wang. "They have a great reputation in the industry for quality and integrity."

Moreover, with this acquisition, TSC joins its largest competitors in the US market as a company with its own printer manufacturing and labeling converting facilities.


* Demand for digital printing in packaging was estimated to be valued at over $11 billion in 2016, and a new report by Future Market Insights (FMI) estimates it to grow at 15.3% to surpass $52 billion in revenues by 2027.

According to the report, the key factors fueling demand for digital printing in packaging include growing preference for conventional/analog plates and their application in printing jobs of shorter run lengths. Adoption of digital printing in packaging is also growing on account of its convenience over conventional presses. Digital printing allows packaging companies to reduce turnaround time, and this is a prime reason fueling demand for digital printing.

FMI projects these trends to positively influence digital printing in packaging market, with shifting preference from conventional printing to variable data and personalized printing. Leading packaging companies are adopting variable data printing, owing to its use in direct marketing.

Future Market Insights maintains a positive outlook on the global digital printing in packaging market, though it believes high variable costs and limited opportunities in indirect sales channels can impede widespread adoption.

Among these, labels is the largest segment, accounting for over $7.1 billion in revenue in 2016. Demand for labels is estimated to increase at 16.7% CAGR to reach $38.44 billion in revenue.

The food sector remains the largest end user of digital printing in packaging. Demand for digital printing in packaging was pegged at over $4.5 billion in 2016. This is expected to increase at a CAGR of 16.6% during the forecast period 2016-2026.

North America, APEJ (Asia Pacific Exluding Japan) and Western Europe are the three largest markets for digital printing in packaging. North America currently leads globally in terms of revenues. However, owing to robust adoption of digital printing in APEJ, it will be relegated to second position by the end of 2026, FMI says. APEJ will outpace North America to become the largest market, increasing its revenue share from 28% in 2016 to 40.7% by the end of 2026.


* I.D. Images, a pressure sensitive label converter in Brunswick, OH, has announced the expansion of its linerless label product line.

The existing general purpose permanent adhesive products are joined by new removable and all-temperature adhesive solutions. The new removable system allows the label to adhere to a substrate and later remove or reposition without leaving a residue. The all-temperature adhesive is designed for demanding cold temperatures. The system has a wide service temperature range that allows it to work well at room temperature, as well as in a greater selection of linerless capable printers.

The new adhesive options open linerless labels up to new applications, including temporary labeling, refrigerated and frozen foods, brewery and beverage, office and filing labels, retail products and coupons, pharmaceutical and laboratory sample labels, reusable containers and more.

Technological advancements in hnerless solutions offer users more viable alternatives for end-use applications and help reduce the amount of waste contributed to the environment. Removing the liner of the label decreases shipping and storage costs, makes room for 50% more labels per roll, adds to higher efficiencies with less downtime and reduces the amount of waste sent to landfills.


* Jet Label & Packaging, Western Canada's largest producer of labels and printed tape for a broad range of industries, has installed a single-pass RFID inserting system involving an existing Mark Andy flexographic press and an RFID application unit from Tamarack.

Engineers from Mark Andy retrofitted an existing press at Jet Label's manufacturing facility to allow room for the Tamarack components. The resulting single-pass RFID insertion sees labelstock briefly opened for an RFID inlay, then relaminated via finishing operations. The new system then verifies RFID function with a reader system after diecutting.

RFID labels are becoming increasingly popular in Canada and the US to streamline processing issues and reduce costs. Jet Label selected the Tamarack system for its proprietary "profiling" motion that smooths inlay feeding, allowing for insertion at increased speeds.

For Jet Label, a comprehensive line configuration eliminates the need for multiple production steps. "The new RFID inserting system will immediately impact our customers, chiefly through faster turnaround times," says Darrell Friesen, president and CEO of Jet Label & Packaging. "By combining various features and capabilities, the RFID equipment will streamline this labeling and printing niche in a precise and expedient fashion."


* ID Label Inc. is celebrating 25 years in business. Since its founding in 1994, the company has grown from a one-person startup operation to become a top manufacturer and installer of bar code labels and signs.

Household names like Amazon, Wal-Mart, Best Buy and Starbucks are among thousands of global companies that ID Label works with today.

"In 1994, I couldn't imagine we'd be as big as we are today," says Neil Johnston, ID Label's founder, CEO and president. "Did I hope for it? Yes. But in all honesty, I didn't know if I had it in me to run a multimillion-dollar company with several locations across the country."

After an early career in sales, Johnston started ID Label with a single label press. After a typical day of printing and shipping, he'd type up the day's invoices on a typewriter. "It was electric, at least," he jokes.

Over its history, ID Label has merged with or acquired several companies as it grew into...

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