As part of Print+Promo Marketing’s ongoing feature, Executive Perspectives, we get to know leading professionals in the print and promotional industry. This month, we interviewed Bill Johnstone, CEO of Diversified Labeling Solutions, Itasca, Illinois. Here, he shares his observations on supply chain interruptions, teases new capabilities, and talks plans for making the CEO role his own, while building on the company’s recent successes.
How did you get started in this industry, and what path did you take to land in your current role?
Bill Johnstone: I wish I could say I had a grand plan, but it was a job I was happy to get right out of college. During campus interviews, I was comfortable with the representatives from a printing company called Wallace Computer Services. When I described it to my dad, who was a longtime sales professional in the fine paper arena, he had great things to say about the company. I began my career with Wallace as a salesperson, but after two years I realized that while I loved the company, I felt a bit helpless after winning a new piece of business, then sending the order into the production plant and hoping all would go well. I believed I could make a bigger impact at the company on the manufacturing side of the business, especially because I could provide a different perspective with real experience in understanding customers’ needs. While in sales, I also realized that the top leadership of the company came from the manufacturing side of the business, and I had ambitions to run a company.
How does the economy continue to affect the industry?
BJ: Every business is subject to the effects of a slowing economy, and our industry is no different. However, in my experience, the products we make in our industry have proven to hold up better than most during economic downturns. We serve so many end-markets that when one ebbs, another flows. The key in managing through downturns is to continually manage your costs — even when not in a downturn. This way, when a downturn happens, you don’t have to reinvent how you run the business.
What do you expect to be some of the biggest changes or challenges the industry will face?
BJ: The biggest challenge of the last few years and into the near future is disruptions to the supply chain. Label material suppliers have had challenges keeping up with increasing demand. This has resulted in significant price inflation, as well as service disruption. This seems to have somewhat subsided with the current slowdown in the economy. It is unclear if the structural limitations with our supply base have been corrected or if the improvement is only temporary. One thing that does seem clear is the movement to bring manufacturing back to the U.S., and the related logistics and distribution requirements bode well for continued growth in our industry. I suspect that, ultimately, this will lead our existing supplier base or other prospective entrants to make investments in increasing capacity.
What keeps you up at night?
BJ: Who has time to sleep? All kidding aside, I worry about everything. I recognize our customers are depending on us to help them be successful. Our employees are relying on company leadership to make good decisions that protect and enhance their livelihood. Our suppliers rely on us to be good partners that can help facilitate their growth. Each of the stakeholder’s needs is important, and we must be intentional about serving the needs of each. I am fortunate to be leading a company that has worked hard and has consistently been successful at serving these needs. It is my intention to carry on this tradition.
What do you think is the most exciting, cutting-edge thing your company is doing right now?
BJ: Right now, we are playing a bit of catch-up in two product categories: RFID and linerless labels. These categories are not new to the industry, but they are relatively new to us. They are a natural extension of what we do, and demand for both is increasing for our customers. We are excited to be developing these capabilities and look forward to an attractive growth trajectory. Beyond that, we have several things we are working on that I am not willing to share yet. Stay tuned.
What would people be surprised to learn about you?
BJ: I play golf and tennis as much as I can, and I am a newly minted motor sports enthusiast.
Want to be considered for a future edition of Executive Perspectives? Contact Elise Hacking Carr at [email protected] for a list of questions and other details.
