12.08.21
Unique business conditions highlighted 2021, with a 70% increase in bookings year-over-year. Let’s look back at some of the important milestones that marked the year.
Bobst’s financial performance was strong in 2021, with a big increase of order entries compared to 2020. Taking into account the impact of the COVID-19 lockdowns and the resulting 2020 decline, the net growth since 2019 has been over 40%. In terms of geography, North America, Southern Europe (France, Italy, Spain, Portugal, Greece), Germany and Poland performed well. Bobst also saw good results across the South American market. Although Bobst is observing a slowdown in China, overall results from the country were still very positive. Southeast Asia remains a complex and fragmented region, but one with great opportunities for the future.
Despite the traveling constraints facing Bobst's field engineers, services have become even more critical and strategic than ever for people and for our supply chain. The company's skilled engineers have done an admirable job, assisting many customers remotely both for installations and troubleshooting, shaping a new service landscape. This illustrates the importance of machine connectivity but also that Bobst has the tools to analyze data, predict and solve issues before they arise, and that we are able to help customers learn and adapt to the latest technological solutions.
2021, however, also created upheaval within the entire packaging industry. The shortage of skilled labor in some regions, on top of unprecedented price rises in paper, board and flexible substrates, has created unexpected challenges and uncertainties for many of Bobst's clients.
The price increase of source materials was tremendous and impacted the company's own pricing conditions. For instance, raw material used for machine frames and components increased unexpectedly, as did hot rolled steel plate, which increased by 119% since January 2020. Cold rolled steel plate increased by 126%. Structural section and beams increased by 91%. Aluminum alloy by 75% and copper by 65%. Raw material usage for mechanical components (LLDPE Resins, nickel, polyurethan, etc.) increased by more than 40% since September 2020, and materials used for commercial parts (belt, chains, lubricants, rolls, etc.) increased on average by 9%. Freight also increased since August 2020 – sea by 216%, air by 200% and road by 5%.
Bobst did launch new products in 2021, which reflect its industry vision, shaping a new reality where connectivity, digitalization, automation and sustainability are the cornerstones of packaging production.
Bobst Days also took place, which was a showcase for the biggest virtual packaging industry event ever. It featured 28 webinars that have attracted 8,491 attendees.
Two words illustrate 2021 best for the labels and flexible packaging segment: Digitalization and Sustainability. Labels saw solid growth with All-in-One solutions combining flexographic and digital printing systems. Within digital, inkjet is making significant inroads with the highest growth rate as it delivers high quality combined with high productivity and low operating costs. However, the labels market remains a melting pot of different technologies, each of them best for specific applications. All converters are facing the rise in short runs and they all look for more automation, especially as manpower is more difficult to find. Substrates prices increased significantly, and some became more complex to source.
In flexible packaging, the entire market is facing the “plastic reinvention dilemma." Recyclability and food compatibility are high priority topics, with strong demand for new high barrier and mono-material solutions or even paper metalized solutions. There is a strong demand driven by e-commerce home deliveries and in-home prepared foods. The highest growth rates are in stand-up pouches, flow wraps, and single-serve packages. The industry is growing at a stable rate but cautious on how new regulations may impact plastic production.
In 2021, Bobst Digiflexo automation solutions accounted for over 40% of the deals signed, reflecting the digitalization and automation requirements for more flexible production lines. In July, Bobst acquired the remaining 49% of Mouvent, integrating this digital printing competence center for Bobst. The Master DM5 – first announced in 2020 – is ramping up, demonstrating the value of solutions integrating flexo and digital capabilities in modular All-in-One, All-in-Line solutions. The Italian customer IBE stated that this new class of press is addressing the market for 2,000 to 8,000 meter jobs, closing the gap between traditional digital presses handling short runs and the flexo technology better designed for very long runs. This statement reflects well on the Bobst oneLABEL portfolio combining different technologies, which will coexist, optimizing the entire production floor.
2021 saw another major milestone for Bobst with the opening of the Atlanta Label Competence Center, where the company hosted many clients and achieved repeat sales of its new digital printing solutions. Bobst also enjoyed a successful open house in Firenze in September, which hosted more than 100 label converters. While Bobst is a relatively recent player in the digital labels space, with more than 50 inkjet machines now installed, printing more than 21 million linear meters, it has demonstrated how it is possible to change the market dynamics in a short space of time.
In flexible packaging, the entire packaging industry is looking for a new “sustainable face." Bobst sees some folding carton and glass production moving toward plastic for a lower environmental and transportation impact. At the same time, it is seeing some flexible packaging moving toward paper-based packaging. But the biggest trend is the move from multi-material packaging to mono-material solutions, although waste collection and recycling capacities are not solved yet. Bio plastic material and recycle film usage needs to ramp up to be competitive.
Today, Bobst is reporting it is ready with mono-material solutions – from the right barrier level to printing to lamination. The work done with partners like BASF, Dow, Sun Chemical, Elba, Hosokawa, Ilene, Michelman and UFlex and many more has enabled innovations that will shape the future of recyclable packaging.
On the topic of sustainability, Bobst received the ERA Gravure Award for Sustainable Packaging for its water-based printing rotogravure press.
Sustainability solutions have been deployed internationally. Sparsh Industries was the first company in India to deploy the new environmentally friendly solution AluBond on a wide web machine. Polibak in Turkey was the first to remotely install a Bobst K5 metalizer.
In Q4 2021, Bobst acquired the assets of the Italian gravure press manufacturer Officine Meccaniche Giovanni Cerutti SpA and Cerutti Packaging Equipment SpA, including the service and some R&D capabilities, which is in line with its strategic goal of further consolidating its technology and market leadership in the global gravure printing market.
Looking ahead to 2022, digitalization will be the main driver for labels, as converters will look for complete end-to-end digitalized solutions to optimize their production floor. All that can be digitalized, will be, enabling converters to deliver faster, with better quality and less waste, answering the growing demand for on-demand labels production.
In flexible packaging, Bobst expects the oneBARRIER solution to be available for a paper-based usage leading toward more sustainability. Extended Color Gamut management solution – oneECG – will continue to make inroads into production sites, replacing ink mixing and related waste. "Overall, we strongly believe that plastic packaging, well produced and well recycled, has a future and we are ready with commercially available solutions," the company says.
During the entire year, travel remained difficult and remote services were embraced as strategic options by Bobst's clients. They valued the fact that having their machines connected enabled more efficiency. In addition, the connectivity provides data to enable a range of new services.
Bobst's cloud-based solution strategy will provide new tools and new software helping converters deliver higher thruputs thanks to our fully connected and automated system. "We are not only developing OEE and job recipe solutions but as well predictive algorithms that will help users to get more output of their investments," says Bobst.
"We continue to develop upgrades and services supporting our customers in becoming more efficient. We launched a platen cleaner program and a oneECG upgrade is under development to support our customers’ sustainability efforts," the company adds.
Bobst’s financial performance was strong in 2021, with a big increase of order entries compared to 2020. Taking into account the impact of the COVID-19 lockdowns and the resulting 2020 decline, the net growth since 2019 has been over 40%. In terms of geography, North America, Southern Europe (France, Italy, Spain, Portugal, Greece), Germany and Poland performed well. Bobst also saw good results across the South American market. Although Bobst is observing a slowdown in China, overall results from the country were still very positive. Southeast Asia remains a complex and fragmented region, but one with great opportunities for the future.
Despite the traveling constraints facing Bobst's field engineers, services have become even more critical and strategic than ever for people and for our supply chain. The company's skilled engineers have done an admirable job, assisting many customers remotely both for installations and troubleshooting, shaping a new service landscape. This illustrates the importance of machine connectivity but also that Bobst has the tools to analyze data, predict and solve issues before they arise, and that we are able to help customers learn and adapt to the latest technological solutions.
2021, however, also created upheaval within the entire packaging industry. The shortage of skilled labor in some regions, on top of unprecedented price rises in paper, board and flexible substrates, has created unexpected challenges and uncertainties for many of Bobst's clients.
The price increase of source materials was tremendous and impacted the company's own pricing conditions. For instance, raw material used for machine frames and components increased unexpectedly, as did hot rolled steel plate, which increased by 119% since January 2020. Cold rolled steel plate increased by 126%. Structural section and beams increased by 91%. Aluminum alloy by 75% and copper by 65%. Raw material usage for mechanical components (LLDPE Resins, nickel, polyurethan, etc.) increased by more than 40% since September 2020, and materials used for commercial parts (belt, chains, lubricants, rolls, etc.) increased on average by 9%. Freight also increased since August 2020 – sea by 216%, air by 200% and road by 5%.
Bobst did launch new products in 2021, which reflect its industry vision, shaping a new reality where connectivity, digitalization, automation and sustainability are the cornerstones of packaging production.
Bobst Days also took place, which was a showcase for the biggest virtual packaging industry event ever. It featured 28 webinars that have attracted 8,491 attendees.
Two words illustrate 2021 best for the labels and flexible packaging segment: Digitalization and Sustainability. Labels saw solid growth with All-in-One solutions combining flexographic and digital printing systems. Within digital, inkjet is making significant inroads with the highest growth rate as it delivers high quality combined with high productivity and low operating costs. However, the labels market remains a melting pot of different technologies, each of them best for specific applications. All converters are facing the rise in short runs and they all look for more automation, especially as manpower is more difficult to find. Substrates prices increased significantly, and some became more complex to source.
In flexible packaging, the entire market is facing the “plastic reinvention dilemma." Recyclability and food compatibility are high priority topics, with strong demand for new high barrier and mono-material solutions or even paper metalized solutions. There is a strong demand driven by e-commerce home deliveries and in-home prepared foods. The highest growth rates are in stand-up pouches, flow wraps, and single-serve packages. The industry is growing at a stable rate but cautious on how new regulations may impact plastic production.
In 2021, Bobst Digiflexo automation solutions accounted for over 40% of the deals signed, reflecting the digitalization and automation requirements for more flexible production lines. In July, Bobst acquired the remaining 49% of Mouvent, integrating this digital printing competence center for Bobst. The Master DM5 – first announced in 2020 – is ramping up, demonstrating the value of solutions integrating flexo and digital capabilities in modular All-in-One, All-in-Line solutions. The Italian customer IBE stated that this new class of press is addressing the market for 2,000 to 8,000 meter jobs, closing the gap between traditional digital presses handling short runs and the flexo technology better designed for very long runs. This statement reflects well on the Bobst oneLABEL portfolio combining different technologies, which will coexist, optimizing the entire production floor.
2021 saw another major milestone for Bobst with the opening of the Atlanta Label Competence Center, where the company hosted many clients and achieved repeat sales of its new digital printing solutions. Bobst also enjoyed a successful open house in Firenze in September, which hosted more than 100 label converters. While Bobst is a relatively recent player in the digital labels space, with more than 50 inkjet machines now installed, printing more than 21 million linear meters, it has demonstrated how it is possible to change the market dynamics in a short space of time.
In flexible packaging, the entire packaging industry is looking for a new “sustainable face." Bobst sees some folding carton and glass production moving toward plastic for a lower environmental and transportation impact. At the same time, it is seeing some flexible packaging moving toward paper-based packaging. But the biggest trend is the move from multi-material packaging to mono-material solutions, although waste collection and recycling capacities are not solved yet. Bio plastic material and recycle film usage needs to ramp up to be competitive.
Today, Bobst is reporting it is ready with mono-material solutions – from the right barrier level to printing to lamination. The work done with partners like BASF, Dow, Sun Chemical, Elba, Hosokawa, Ilene, Michelman and UFlex and many more has enabled innovations that will shape the future of recyclable packaging.
On the topic of sustainability, Bobst received the ERA Gravure Award for Sustainable Packaging for its water-based printing rotogravure press.
Sustainability solutions have been deployed internationally. Sparsh Industries was the first company in India to deploy the new environmentally friendly solution AluBond on a wide web machine. Polibak in Turkey was the first to remotely install a Bobst K5 metalizer.
In Q4 2021, Bobst acquired the assets of the Italian gravure press manufacturer Officine Meccaniche Giovanni Cerutti SpA and Cerutti Packaging Equipment SpA, including the service and some R&D capabilities, which is in line with its strategic goal of further consolidating its technology and market leadership in the global gravure printing market.
Looking ahead to 2022, digitalization will be the main driver for labels, as converters will look for complete end-to-end digitalized solutions to optimize their production floor. All that can be digitalized, will be, enabling converters to deliver faster, with better quality and less waste, answering the growing demand for on-demand labels production.
In flexible packaging, Bobst expects the oneBARRIER solution to be available for a paper-based usage leading toward more sustainability. Extended Color Gamut management solution – oneECG – will continue to make inroads into production sites, replacing ink mixing and related waste. "Overall, we strongly believe that plastic packaging, well produced and well recycled, has a future and we are ready with commercially available solutions," the company says.
During the entire year, travel remained difficult and remote services were embraced as strategic options by Bobst's clients. They valued the fact that having their machines connected enabled more efficiency. In addition, the connectivity provides data to enable a range of new services.
Bobst's cloud-based solution strategy will provide new tools and new software helping converters deliver higher thruputs thanks to our fully connected and automated system. "We are not only developing OEE and job recipe solutions but as well predictive algorithms that will help users to get more output of their investments," says Bobst.
"We continue to develop upgrades and services supporting our customers in becoming more efficient. We launched a platen cleaner program and a oneECG upgrade is under development to support our customers’ sustainability efforts," the company adds.