U.S. manufacturers on average incur losses of around $1,174,000 per year due to production line shutdowns caused by label printing problems, according to a study released by NiceLabel.
The study found that on average more than two-thirds of manufacturers (67%) were having to shut down their production line for 30 minutes if there was a problem with label printing, with an additional 21% saying the line had to be shut down for more than 30 minutes. Recovery time was slightly faster. but still problematic for U.S. manufacturers, with just over half (51%) experiencing downtimes of 60 minutes or longer.
“Any business disruption or shutdown can significantly impact any manufacturer causing loss of revenues and ultimately even putting the business itself in jeopardy. The danger of that being caused by mislabeling becomes a growing concern as labeling becomes a key part of business and supply chain strategy,” says Ken Moir, VP marketing, NiceLabel.
- The study also revealed that manufacturers – both globally and in the United States – were having to pause production lines just under six times a year on average due to such problems, with nearly three-quarters (77% globally and 69% in the United States) saying their production line had to be paused four times or more in the past year as a consequence of labeling issues.
- 29% of the survey sample sees “reducing costs” and 22% sees productivity gains among the main benefits of modernizing/automating their manufacturing processes.
“Ultimately, the risks to production operations extend well beyond full shutdowns. Decentralized labeling for example, also adds risk to production operations,” Moir says.