30 CATEGORY UPDATE
The past 12 months have left the stamping sector reeling, but inherent resilience within the industry, coupled with some nimble footwork, sees the category expecting brighter days ahead – by David Holes
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he stamping manufacturers OPI spoke to for this feature all had one thing in common: they were badly hit by the COVID-19 pandemic, suffering declines in sales that could have been existential in normal times. However, the global nature of the crisis meant everyone found themselves in the same boat. In many instances, government interventions have softened the persistent blows and kept businesses afloat.
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SALES HIT As Franz Ratzenberger, Head of International Sales & Marketing at Austria-based COLOP, freely admits: “The pandemic had a big impact on our business. When it first hit, our order intake for traditional products decreased by 40% within days and remained at a low level for several months. We operate in more than 130 countries across the world, and in the worst-hit areas, sales dropped to practically zero. The priority was to survive. “We had to curtail production capacities accordingly, but thanks to swift help from the Austrian and Czech governments – where we have manufacturing facilities – we were able to offer our employees reduced working hours.” It was a similar story at fellow Austrian manufacturer Trodat. “COVID-19 hit the industry hard and put a stop to our long-standing success story, with lengthy lockdowns in many countries leading to a dramatic decline in stamp purchases,” says Global Marketing Director Stefan Cancik. “Thankfully, our international reach meant we were able to compensate for losses in some countries with successes in others. Also, disciplined crisis management has given us confidence that we will make it through these difficult times.”
German metal stamp vendor Reiner had a slightly different experience, according to Director of Sales & Marketing Gerolf Heldmaier. “It has not been a good time for anyone in the industry, with delayed and reduced demand affecting our large export share,” he reflects. “It was crucial we remained flexible and showed understanding with loyal, long-term partners. Fortunately, our core business of marking devices remained largely unaffected because food and industrial production continued in most markets.” Now that the pandemic is receding somewhat, both Reiner and COLOP are reporting knock-on effects on raw material costs and prices. “There’s currently an incredible price rally in commodities,” says Ratzenberger. “Some important materials are very scarce, plus transport and packaging costs have risen massively. Consequently, we’ve had to raise prices like many other companies in the office products sector, though hopefully, these bottlenecks will improve over the coming months.” Keith Betti, General Manager at US distributor Consolidated Marking, adds that the current global shipping backlog is creating the biggest challenge to its supply chain. Consequently, the company had to adjust its inventory so it’s better positioned to insulate its distribution partners from the disruptions. SHIFTING PATTERNS As in many product categories, the shift to homeworking is also affecting this specific sector, with the sourcing process for business supplies – to meet the needs of non-office based employees – undergoing a fundamental change. “The big winners will be companies that best address these new requirements,” remarks Ratzenberger. “Those showing a strong online presence have already benefitted from a huge boost. By offering
