Diversified Labeling Solutions (DLS) Company Profile

Background

Founded in 1985 by Bob Hakman, Diversified Labeling Solutions (DLS) has evolved from a modest 1,550 square foot facility into one of the largest trade-only label manufacturers in the United States. With over 35 years of experience, DLS specializes in producing high-quality, custom-printed pressure-sensitive labels exclusively for distributors and resellers. The company's mission is encapsulated in its motto: "We Only Succeed When You Do," emphasizing a commitment to supporting distributor partners without competing for end-user business.

Key Strategic Focus

DLS's strategic focus centers on delivering comprehensive labeling solutions through a trade-only model, ensuring that distributors receive unparalleled support without the risk of competition from the manufacturer. The company offers a diverse product portfolio, including blank stock labels, custom-printed prime labels, and specialized products like RFID labels. Utilizing advanced flexographic and digital printing technologies, DLS targets various industries, including manufacturing, warehousing, distribution, logistics, and retail.

Financials and Funding

In January 2019, DLS was acquired by TSC Auto ID Technology Co. Ltd., a global leader in the AIDC barcode printer industry. This acquisition allowed DLS to retain its name, brand, and executive leadership while benefiting from TSC's resources and market reach. The financial terms of the acquisition were not publicly disclosed.

Pipeline Development

DLS has been proactive in expanding its product offerings to meet evolving market demands. In 2024, the company enhanced its RFID label capabilities by introducing in-house RFID label conversion, ready-to-ship stock RFID labels, and service bureau RFID label encoding/printing services. This expansion was driven by increased demand from major retailers implementing RFID mandates.

Technological Platform and Innovation

DLS distinguishes itself through significant investments in technology and innovation:

Proprietary Technologies: The company operates over 50 presses, including flexographic, digital, HP Indigo, and hybrid equipment, enabling the production of label orders ranging from 100 to 100,000,000 units.

Significant Scientific Methods: DLS has integrated advanced printing technologies, such as UV digital inkjet and aqueous digital inkjet, to enhance print quality and efficiency.

Leadership Team

DLS's leadership team comprises experienced professionals dedicated to the company's growth and innovation:

Bill Johnstone, Chief Executive Officer: Appointed CEO in January 2023, Johnstone brings over 30 years of experience in the label and printing industries.

James Cirigliano, Vice President of Marketing: With over 15 years at DLS, Cirigliano has been instrumental in building strong customer relationships and driving marketing initiatives.

John Moberg, Vice President of Business Development: Moberg has played a key role in expanding DLS's market presence and developing strategic partnerships.

Leadership Changes

In December 2022, Jim Kersten retired as CEO after nearly 12 years of service, passing the leadership to Bill Johnstone. This transition was part of a detailed succession plan to ensure continuity and growth.

Competitor Profile

Market Insights and Dynamics

The pressure-sensitive label industry is experiencing steady growth, driven by increasing demand in sectors such as logistics, retail, and healthcare. Technological advancements and the adoption of RFID and sustainable labeling solutions are key trends shaping the market.

Competitor Analysis

Key competitors in the label manufacturing industry include:

Meyers: Specializes in high-quality labels and packaging solutions, focusing on innovation and sustainability.

Resource Label Group: Offers a wide range of labeling solutions with a strong emphasis on customer service and technological advancements.

Dion Label Printing: Known for its expertise in digital printing and commitment to quality and efficiency.

Innovative Labeling Solutions: Provides custom labeling solutions with a focus on creative design and advanced printing technologies.

Strategic Collaborations and Partnerships

DLS's acquisition by TSC Auto ID Technology Co. Ltd. in 2019 has strengthened its market position, allowing for competitive pricing and expanded product offerings. Additionally, DLS collaborates with major raw material suppliers to access a wide range of facestock and adhesive combinations, ensuring tailored solutions for customers.

Operational Insights

DLS's strategic placement of production facilities in Illinois, Georgia, Texas, Nevada, and California enables efficient manufacturing and distribution nationwide. The company's commitment to investing in new equipment and technologies ensures high-quality production and the ability to meet diverse customer needs.