Printer Friendly

At FINAT: little thanksgiving in Turkey.

When the Europe based label association FINAT celebrated its 50th birthday in Paris in June 2008, the economic storm clouds were menacing but the climate at the congress was one of guarded optimism. Announcing the 2009 event, Aydin Okay, president of the Turkish label association, went so far as to announce a target of more than 1,000 delegates for the 2009 event in Antalya on Turkey's Southern coast. Alas, the world economic crisis overtook everything, and the June 2009 congress drew just over 200 delegates, not counting partners, journalists and assorted camp followers.

Karl or Groucho?

Traditionally, FINAT always invites two or more keynote speakers from outside the industry. This year the slots were filled by Erkut Uludag, a senior management consultant with Roland Berger Strategy Group, and Michael Braungart of the Hamburg based Environmental Protection Agency. Uludag sketched the outlines of the Turkish packaging and label industry, and warned potential investors and vendors about the laws and local customs which foreign businessmen need to understand. Bureaucracy in Turkey is more labyrinthine than in France, he reckoned (amazing), and business transactions can never be hurried.

If Uludag was coherent but uncharismatic, Braungart was the opposite. His discussion of "ecologism" was punctuated with highly entertaining examples drawn from neckties, diapers, sex and elevators. He undoubtedly believes in a revolutionary approach to the environment but at times his Marxism seemed closer to Groucho than to Karl.

Health check-up for the European label industry

Every year at the annual FINAT congress, delegates wait to hear the "official" FINAT statistics on the growth rates of Europe's pressure sensitive label sector. The figures are amalgamated from the sales of the eight biggest European laminate manufacturers, and as such are a relatively reliable indicator.

This year as FINAT General Manager Jules Lejeune rose to give his report, delegates were expecting the worst, and they were not disappointed. Total PS label sales in Europe in 2008 fell by just 3 percent compared with 2007, but there was a much steeper decline in the fourth quarter. All grades of laminate suffered, and paper rolls (around 75 percent of the total) were particularly hard hit. First quarter 2009 figures just in showed falls for nearly all regions of Europe (see table above).
PS label market in Europe
Annualized first quarter results

Scandinavia +4%
UK & Ireland -6%
Germany/Switz/Austria/Benelux -4%
France/ltaly/Spain/Portugal -8%
Eastern Europe (ex-Soviet bloc) -16%

Source: FINAT


FINAT also carries out a quarterly "index of business confidence" by polling its members to gauge their optimism (+) or pessimism (-) regarding the future months. At the end of December 2008 this index hit a record-breaking-100 percent.

As the stunned delegates were recovering from this onslaught, they were hit by the normally cheerful Corey Reardon, CEO of research agency AWA. Over the years, label sector growth has diverged from GDP by two percentage points, Reardon said. Up until 2007 it had been 2 percent above GDP, but now, well ... you've guessed it. At least people are still eating, drinking and getting sick, said Reardon, ending on a (relatively) cheerful note, so food, beverage and pharmaceutical label sales are slowing down the retreat from prosperity.

Despite the succession of woeful tidings, over the past year membership of FINAT has increased substantially, from 462 in January 2007 to 591 today. Retiring FINAT president Jan-Frederik Vink pointed to the many new initiatives of FINAT, from its professional training programs through its interactive website to its label printer forums, to push home the message that even in a recession converters and suppliers are getting value for money from their membership. Vink most appropriately illustrated his presentation of what he called "FINAT - the essential European umbrella organization" with pictures of ships plowing through stormy seas. It would be mean-spirited to point out that in a storm umbrellas are of little use.

Young Managers' Club

One of the most successful of FINAT's initiatives is the Young Managers' Club. Noticing the large number of label converters whose owner-managers are set to retire over the next few years, FINAT set up this group two years ago "so that young managers can meet and exchange information and skills." It now has 54 members who meet regularly.

Next year in sunny Spain

The 2009 FINAT congress, which was co-hosted by the Turkish Label Association, was as usual attended by representatives of TLMI. In 2010, the event will be in Valencia, on Spain's Mediterranean coast, where the survivors of the economic storms, battered but unbowed, hopefully will be sailing on calmer seas.
COPYRIGHT 2009 Rodman Publishing
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2009 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:ASSOCIATION NEWS; Environmental Protection Agency; Roland Berger Strategy Consultants
Author:Penhallow, John
Publication:Label & Narrow Web
Article Type:Conference news
Geographic Code:4EUFR
Date:Jul 1, 2009
Words:755
Previous Article:Performance Series: all new from Mark Andy.
Next Article:Acquisitions, ownership and global pursuits.
Topics:


Related Articles
Intellectual property seen to be at risk in China.
How to reduce hours per vehicle.
The Russian Auto landscape.
Beyond "BRIC": what about Turkey? As costs begin to rise in new EU member states, nearby outsider Turkey looks to become an increasingly important...
FINAT celebrates its 50th in Paris.
Moroccan economy 'most interesting' in North Africa, FT.
Special FINAT session to address economic downturn.
Experts in to halt JLR loss; FINANCE: Tata appoints consultants to ease cash flow.

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters