A growth target of two or three installations per year has long been established and is proving to be the norm. The present installations generate a strong upgrade business with the two equipment manufacturers. Advertisers have increased their exposure with flexo newspapers due to the perceived impact on readers. The Newspaper and Publications Flexo Users Group along with the Flexo Vendors Alliance work toward resolving problems in a very effective manner. Accepting that 3 percent constitutes an excellent year, the factors that support the economy are similar to 1999.
Consumer spending is high, particularly in the purchase of luxury items.
Inflation is under control, fostering the expectation of sustained economic strength in 2001. Productivity increases will offset higher labor rates. Equipment investments in the packaging industry are above average, with particular emphasis in the converting functions. Automation, changeover and speed are necessary to stay competitive. This is due mainly to the 4.7 percent productivity increases posted every year since 1996.