Page 11 - BOSS Today Issue 19
P. 11

Special Report - Binding and laminating










         Narrowing price differentials   Heading for the top  double digit growth currently.”  “Real margin
       - and the wider availability of   As for the future, Brunt is   Indeed, the key requirement
       A3 inkjet printers - have fuelled   optimistic: “This is still a   that leads to product selection   opportunities
       a trend towards A3 laminators   reasonably-sized market, and   by users remains punch and
       in the consumer channels. As   Fellowes are putting investment   bind capacity, and it is reported   remain
       a result, the market is now split   into the higher end, where the   that around half of the UK
       50% A3 and 50% A4 in value   added value opportunities lie for   binders market is now at the   for dealers
       terms, but in unit terms the   both vendors and dealers. For   premium end (commercial
       share is 30% A3 and 70% A4.    those dealers that do it properly   machines with a punch        selling
                                  there’s some good margins to   capability of 20+ pages), with   machines at
       Fast & safe                be made on machine sales, plus   most of the remainder being
       In addition to the initiatives   there’s an ongoing consumables   mid-range product (12-17   the higher
       aimed at inspiring end-users   market to serve.”       pages).  The rest is accounted for
       to use lamination more widely,   However, Brunt emphasises   by entry level products, with a   end of the
       machine manufacturers      that, for resellers, the effective   punch capability of 4-8 pages.
       have invested significantly   selling of laminators requires a   Furthermore, this trend    market.”
       in innovation in recent years,   thorough understanding of both   upmarket has tended to choke
       focussing especially on    the customer and the product:   off any penetration by private
       improving speed/productivity   “It is important that OP resellers   label products, which reportedly
       and quality, such as:      establish how their customers   have an insignificant share, even
                                  are using laminators (eg if   at the low end.
       n  A move to four roller    they are laminating frequently,
          and six roller machines, which    investing in a product which is   No shift in technology
          provide a smoother finish.  quick and can handle multiple   The dominant technology used
       n  ‘AutoLam’: a unique     sheets is more prudent, as a   by binding machines in the
          Automatic system (eg    cheaper laminator will not stand   UK remains the comb method,
          Fellowes’ ‘AutoLam’) that     up to this level of usage). When   which accounts for c60-70% of
          detects the pouch thickness    competing against unbranded   the market, followed by wire
          and automatically adjusts    or private label products, they   binding, which is regarded as
          everything. All the user has to    need to stress the speed, quality,   more durable, but still only has a
          do is insert the pouch and let    finish and warranty protection   share of about 20%.  Most of the
          the laminator do the rest!  offered by branded machines”.  rest of the market is accounted
       n  A reduction in warm up times,                       for by thermal and coil binding
          even in automatic mode.  BINDERS                    machines.  It’s no surprise that
       n  ‘HeatGuard’: Fellowes’                              nearly all binding machines are
          revolutionary patented     Small but potent         A4 size.
          heat protection system   While these two product sectors   In terms of innovation, there
          that reduces the surface   are often considered in tandem,   have been some efforts to find a
          temperature by up to 50%,    the UK market for binders is very   way of clearing punch holes so
          ensuring that the laminator    different to that of laminators.    they do not jam the machines,
          is always safe to touch.    For a start, it’s much smaller,   since manufacturers report that
          Some private label products    at around £1.6m at UBP, with   the consumer’s prime focus for
          have been known to      sales of binder consumables   these products continues to
          catch fire!             accounting for another one and   be on simplicity, reliability and
                                  a half to two times this value   productivity.
       These developments give    (some £2.4-3.2m).             Overall, Brunt expects the best
       consumers the confidence     Market value is reported to   future prospects for the market to
       to use laminating creatively   be growing slightly, assisted by   lie at the added value premium
       without the worry of jamming,   a shift towards larger, higher   commercial sector: “Real margin
       an issue which was previously a   capacity machines, as Brunt   opportunities remain for dealers
       key inhibitor to market growth.    explains: “Companies are more   selling machines at the higher
       In addition, improved machine   likely to want to bind quite large   end of the market.”
       reliability and durability means   documents nowadays, and as a
       that the machines are in place   result, at least 50% of the market   Martin Wilde is Managing Director
       and functioning for longer   is now products that are priced   of OP market research specialists
       - maintaining demand for   at more than £150, and these   Martin Wilde Associates Ltd
       consumables.               more expensive items are seeing   (www.martinwildeassociates.com)


                                                                                               October 2013 | BOSS TODAY  11


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