From the Desk of Steve Smith

Are sales of product labels a reliable economic barometer? While I’m certain that economists might debate that question forever (as they do with everything else) I suspect label sales may actually provide a useful indicator of economic activity.

For example, last November we were somewhat surprised by a sudden and substantial downturn in orders – and I admit we didn’t see it coming. Our November revenues dropped by 25% from the preceding month, which was quite an eye-opener – particularly for a company where consistent year-over-year increases of 50% and more had become a way of life. In December we saw a marginal up-tick which was closer to “normal”, but the first quarter of 2009 was definitely nothing to write home about.

However, just when we were philosophically accepting that 2009 was likely to be relatively flat, we set an all-time monthly record in April. It came out of the blue and served to remind us that in these difficult economic times, fiscal planning becomes something of a crap-shoot.

Hang in there!

Cheers,

Steve Smith
President