Potential of die-cutting industry booming in 2022

As an amateur analyst on small cap company, many may say my opinion does not matter, but that is not a problem.

Let me explain about the die-cutting industry. Generally, die cutting is the process of using a die to shear webs of low-strength materials, such as rubber, fibre, foil, cloth, paper, corrugated fibreboard, chipboard, paperboard, plastics, pressure-sensitive adhesive tapes, foam, and sheet metal.

Die-cutting started as a process of cutting leather for the shoe industry in the mid-19th century, according to Wikipedia.

It is now sophisticated enough to cut through just one layer of a laminate, so it can be used for labels, postage stamps, and other stickers. This is known as kiss cutting.

In the metalworking and leather industries, the process is known as clicking and the machine may be referred to as a clicking machine. When a dinking die or dinking machine is used, the process is known as dinking. Commonly produced items using this process include gaskets, labels, tokens, corrugated boxes and envelopes.

People see this industry as not really a “money maker”. To be honest, die-cutting industry is actually already circling in our lives.

For example, the production of boxes, usually needs a specific cut which can produce the specific shape and size to accommodate the items inside.

As an example, the pizza box has an unusual shape that can form a box, which is later used to store pizzas for delivery.

Die-cutting can make a huge circuit board into smaller shapes and sizes. This circuit board is later used in the automotive and machinery industries.

The use of die-cutting on circuit boards is mainly because of its precision, stability, productivity and high ability to maintain shelf life.

During the pandemic, the production of die-cutting still looks good, one of the factors being an increase in online shopping.

To produce specific, high quality shapes, the die-cutting industry plays an extremely important role.

As die-cutting becomes more and more important, the production can become more complex. A complete custom die-cutting industry is sought after by big companies that require these cutting skills for optimal results.

Many of us do not see this as a good opportunity for die-cutting companies to shine, but in my humble opinion, as economic activities are reopening, the die-cutting industry will become more important next year.

Read more: Potential of die-cutting industry booming in 2022

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