Artex Label & Graphics
740 Case Karsten Dr., Zeeland, MI, USA 49464
www.artexlabel.com

Though Artex Label was founded in 1999, its history dates back more than 50 years ago. Founded as the in-house printing division of Michigan-based Batts, one of the nation’s largest wooden clothing hanger manufacturers, the company had a single standalone label press – a robust workhorse with five color stations and print speeds exceeding 200 fpm – a remarkable feat at the time.

As the business grew, so too did its number of presses. A second, larger press was added that provided Batts with not only a competitive edge but also a means to break into other label markets.

In the late 1990s, Batts sold its wood hanger division to a competitor. Terry Gruppen, Batts’ multi-plant manager at the time, was given the opportunity to purchase the company’s printing assets. Driven by an entrepreneurial spirit and the desire to grow a business, Gruppen started Artex Label with the Batts equipment – most of the original Batts crew stayed on board. Right away, the newly-formed Artex Label expanded its offerings beyond hanger labels, moving into labels for markets such as food and beverage, cleaning products and industrial labels, educational and promotional stickers, pharmaceuticals and more.

Growth came slowly but surely, and Artex moved from its original location near downtown Zeeland, into its current 30,000 square foot facility, also In Zeeland. The move put the presses all on the same floor, streamlined production and nearly doubled the size of the company. Today, there are 35 employees working together to market and manufacture all kinds of labels, with Artex retaining nearly 95% of their clientele over the last 20 years.  Phil Treadway, Artex Label’s office and project manager, says, “True to our roots, you can still find boxes of clothes hanger labels going out with the rest of our shipments. After all, when you’ve built a reputation on something, people are going to expect it.”

‘Must haves’
Artex experienced a period of significant growth in the early 2000s, a time when the label industry was in the early stages of its shift toward digital printing.

“We saw digital printing as a ‘must have’ in an industry that was quickly changing,” recalls Treadway. “Dynamic growth with variable data, high SKU count and low quantities drove us to seek out options using this new technology. The first few machines were limited in their capabilities and the output was slow – but they launched us into many new playing fields.”

The company is now on its third digital press – an EFI Jetrion 4900 with inline laser finishing, a technology that Treadway describes as a “game-changer.” He adds, “Streamlining digital and flexo options and finding success with both wasn’t always easy, and it didn’t come quickly. Our reliance on software from our partners at LabelTraxx has been a huge asset. To be able to look back over 20-plus years of customer data is incredible, and we heavily rely on their robust tools to help us keep up with our competition. Label Traxx has been instrumental to our success.”

Artex Label has expanded into the private label food and nutraceutical sectors. Here, Treadway says, “We found ourselves not only providing direct to manufacturing sales, but also formed strategic alliances with other print partners, which have allowed us to expand our reach into horticultural, industrial badging and pharmaceuticals.”

An investment in a 13" Mark Andy Performance Series P5E press was another significant milestone for Artex. Treadway explains, “With the P5E, we moved into larger markets, offering both high quality print and value. With its high speeds, quick changeovers and auto registration, the press has propelled existing and new sales into a whole new level of output and profitability.”

According to Treadway, the Mark Andy P5E has been instrumental in achieving higher speeds and the superior quality print that customers require. “We all know that productivity and profitability are inherently tied to each other, and it’s not only about how many feet per hour a machine can run, but also how well it can maintain quality and reduce waste thru changeovers. The P5E has proven to be one of the best presses in its class and much of our success we can attribute to this flexo technology and the platform’s improvements. Furthermore, the speed and accuracy of this machine working in tandem with our digital press had created a knockout combination for jobs that once may have carried larger volumes and no longer do.”

The Artex Label pressroom has a total of five presses. In addition to the P5E and the EFI digital press, Artex also has three Mark Andy 4200s, two with 10" web widths and one 7" press. Along with laser diecutting, cold foil and embossing, finishing capabilities include counting, stacking, collating, shrink and pouch bagging and more.

Embracing Craft Culture
Located in central West Michigan, Artex Label finds itself surrounded by an abundance of people embodying the spirit of entrepreneurship – especially in the beverage market.

“We see it everyday with new craft breweries looking to grow their businesses beyond their city by reaching out to co-packers, as well as larger grocery store chains and distributors,” Treadway says, “This leads to private labeling and lots of small batches.

“Craft culture isn’t just beer, wine and liquor,” he adds. “It also touches things like cold brew coffee and kombucha. Brand owners are having success using terms like ‘hand crafted’ or ‘limited run’ as a means to drive sales and move product. And it goes beyond beverages. Bakeries and creameries are capitalizing on the trend. And for all of these brands, we’re adding value for them by providing attractive labels that boost product visibility.”

Artex Label’s home state of Michigan, in December 2018, passed legislation approving the recreational use of cannabis, thus opening up a plethora of label and packaging opportunities. “We have found that those looking into this market are leveraging the same principles that the craft beverage market found success with – smaller runs, multiple varieties, frequent tweaks and changes to labels, and always coming up with new offerings,” says Treadway. “Along with this, however, often come the tough decisions in finding a balance between what their market will purchase, what they can produce, and the possibility of changes in ingredients.”

As a supplier to these markets, Artex is actively looking for ways to improve its processes in order to be more responsive and cost-effective. Treadway says, “The craft market heavily relies on sparking attention and re-engagement with its consumers, and that’s where we’re helping our clients find success. From special effects materials and varnishes, to labels with metallic, cold foil and reflective properties, every design element counts in gaining attention and selling the product to the first time buyer. Many of the labels we produce in this market are derivatives of, or are almost entirely based on, drawings/paintings and mixed media art. The label becomes an ever-changing canvas for their brand.”

The recent legislation that has opened up the CBD and recreational cannabis market aligns perfectly with Artex Label’s core capabilities in serving the craft sector. Although the market is in its infancy, Artex believes it will set some deep roots, and not just be a passing fad or a short-term trending topic.

“Some speculators have estimated that these markets will move from the millions to the billions in the next three to five years,” says Treadway. “We believe that private labeling will be a major part of that growth, as more and more companies see the potential. There will be a spillover from the beverage and pharmaceutical worlds, even beyond classic consumption in their usual forms. As consumers become willing to add to their purchase options, product lines will expand to include new products. The market will grow further with every positive media story, and new and different offerings will emerge as ‘the next big thing.’

“We’ve found that our client base has already begun to expand into these markets due to the collaborative nature of those who are involved,” Treadway says, adding, “Reliance on Artex quality, service and timely results has resulted in many direct referrals, and has been a significant part of our recent growth and expansion. These jobs are often take-ons or turnkey work, and one of the challenges that pop up is having to work with our clients in overcoming the start-up factor. Many are looking closely at their initial investments, and along with low volume buys, they are faced with some uncertainty when launching a product that may or may not take off. Making the product look good and making it affordable are often the intersection where we find success. We believe that also translates to increased profits for whoever we do work for.”

It’s All About Relationships
Artex Label serves customers primarily from the Midwest and Canada, however its reach extends coast-to-coast, and even overseas. Regardless of where the business is located, the sales team prides itself on being highly personal, accessible and quick-to-respond.

“Alongside every sales person is a customer service representative that makes sure that the detail and collaboration needed to take the job from concept to completion isn’t left to question, and that they fully understand the solutions that out clients need,” Treadway says. “Our sales personnel bring to their business relationships unique gifts, both from their extensive time at Artex and their experiences in the print industry. This truly makes us a resource that goes above and beyond simply taking an order. We tap a wide gamut of target markets, each with their own specific focus.”

Treadway emphasizes that at Artex Label, “It’s all about relationships.” He says, “We’ve simply found success in exceptional service and organic growth.”

As communication means, economies, markets and technologies have evolved, Artex Label has adopted a “listen, serve and take action” type of relationship with its customers. “We pride ourselves in constantly looking to go above and beyond – with every step of the process – and for our customers, nothing is cookie cutter anymore. What may have worked years ago may no longer work now, and we’re ready to engage that opportunity and find a solution,” Treadway says.

As far as the future goes, Artex envisions one that includes both digital and flexo processes, with both going to a larger scale with greater detail. “The optimal balance may rarely show up for a client’s order, however, being positioned to serve the small volume sales alongside the orders that are in the millions, while keeping lead times down, will be key. Currently we’re looking into further automation as we expand our digital presence, part of which will allow us to focus more time on providing quicker and a more complete range of solutions. The market is ever-changing, and we see that with stock offerings from manufacturers. Some things are design trends, and others spawn from a problem solved through creative label engineering – we feel like we’re positioned right in the middle of these two elements,” says Treadway.

Artex Label is a family-owned business. Its owner and president Terry Gruppen tells customers, “You’re more than a splash page and a web-submission – you’re a valued client who aught to be known, and know who you’re working with. We constantly search for new ways to create, produce and enhance the image of our customers’ products as we get to know them and their individual desires, each personally.

Gruppen continues, “We believe we help them to reach their objectives faster and more effectively than their competition, and when they are successful, we are successful. Our energies and talents are the driving force in finding innovative ways to push our technology forward. Our mission is to provide our customers with the highest quality custom labels, on time and on budget – with no excuses – in a world where customers and the competition are looking hard at the bottom line.”

Employees are the key to Artex’s success. The majority are long-tenured, more than tripling the industry average, which the company feels further affirms the collaborative success of the individual and the team. Gruppen concludes, “Together we learn and grow through open dialogue, mutual respect and decisive leadership. In all our activities, integrity drives our conduct with our employees, our customers and business partners. Our faith and guiding principals are essential and evident in every aspect of our work. We trust that the impact we make in others’ lives goes beyond the label on the surface.”