In a landscape where mid-market manufacturers are often caught between the scale of global giants and the agility of small startups, charting a course for sustainable growth requires more than just incremental improvements. It demands a fundamental reimagining of operations, strategy, and culture. The story of the Lauterbach Group, a family-owned company in Sussex, Wisconsin, offers a compelling case study in such a transformation. By aggressively pivoting from its traditional base in pressure-sensitive labels to the dynamic world of digital flexible packaging, the company is not just adapting to change but actively shaping its future. This strategic overhaul, built on pillars of advanced technology, integrated software, human-centric automation, and continuous learning, provides a powerful glimpse into a new operational paradigm for the modern industrial era.
A Proactive Strategy for a New Era
Anticipating the Future
The journey undertaken by the Lauterbach Group is a masterclass in proactive, rather than reactive, strategic planning within a rapidly evolving industrial sector. Spearheaded by CEO Shane Lauterbach, the company initiated its significant move into flexible packaging not as a response to falling demand or direct requests from existing clients, but as a deliberate anticipation of future market trends and untapped growth opportunities. This foresight became the catalyst for a comprehensive operational overhaul designed to harmonize the distinct but interconnected domains of technology, software, and human capital. The central thesis of this approach is that for a mid-market company to not only survive but also scale effectively in the digital age, it must cultivate a comprehensive and integrated ecosystem. This philosophy extends far beyond the simple procurement of new hardware. It necessitates the simultaneous development of a robust software infrastructure to unlock the full efficiency of that hardware and, crucially, the empowerment of the workforce to leverage these new tools for higher-value, strategic activities. This integrated model has proven to be the engine of the company’s success, enabling it to secure a significant competitive advantage in speed-to-market, forge deeper and more collaborative client relationships, and foster a more dynamic, engaging, and rewarding work environment for its team members.
The Decisive Pivot
The catalyst for this accelerated transformation occurred in 2022 when CEO Shane Lauterbach, returning from Labelexpo Americas, made the pivotal decision to invest in an HP Indigo 25K digital press. This was not an isolated equipment upgrade but the cornerstone of a meticulously orchestrated entry into the flexible packaging market. Recognizing the rapid pace of industry evolution, the leadership team understood that a swift and decisive execution was essential for success. They promptly developed a comprehensive business plan that included identifying ideal target clients and securing partnerships with suitable material suppliers. This focused approach allowed the company to scale the new press to full production capacity within an impressive six-month timeframe, a testament to their strategic clarity and operational agility. This pivot is quantified by the company’s ambitious revenue goals. For 2025, the business mix is projected to be 10% flexible packaging and 60% pressure-sensitive (PS) labels. However, their long-term vision reveals a profound shift: by 2028, the goal is for flexible packaging to constitute 30% of revenue, with PS labels reduced to 30%. This planned evolution underscores a fundamental reorientation of the business away from its historical core, a transformation so significant that it has prompted a re-evaluation of the company’s very identity. As Shane Lauterbach noted, with the most technically demanding work now centered on pouching, the company’s self-perception has evolved: “We manufacture. We’re not printers. I’m not even sure we’re converters anymore.” This statement reflects a critical transition from being a component supplier to a full-service product manufacturer.
The Four Pillars of Transformation
Pillar 1 A Modern Technology Fleet
The technological foundation of the Lauterbach Group’s transformation began its modern phase in 2017 with the acquisition of its first digital press, an HP Indigo 8K. This initial investment was followed by an HP 6K in 2022 and the pivotal HP Indigo 25K in 2023, a series of acquisitions highlighting a sustained and escalating commitment to cutting-edge digital printing technology. However, the company’s leadership also acknowledges the inherent challenges of this technological path. Unlike traditional flexographic presses, which can remain productive for decades, digital presses possess a much shorter operational lifecycle and are susceptible to becoming obsolete more quickly. This reality necessitates a business model that is financially and strategically prepared for more frequent and significant capital reinvestment every few years to maintain a competitive edge. To support its advanced digital printing capabilities, the company has concurrently invested in a comprehensive suite of finishing and converting machinery. A critical asset in this fleet is its in-house Karlville pouching machine, which provides a major competitive advantage by eliminating the need to outsource a key, value-added production step. This commitment to vertical integration is further bolstered by sophisticated finishing and laminating equipment from Delta ModTech, additional laminating machinery from Gonderflex, and high-performance rewinders from Grafotronic. While aggressively modernizing, the company still operates a number of older Mark Andy flexo presses, which it strategically anticipates replacing with newer, more automated machines, ensuring that its entire production floor evolves in unison toward greater efficiency and capability.
Pillar 2 The Integrated Digital Ecosystem
A crucial and perhaps inimitable component of the company’s success is its proprietary integrated software system, referred to internally as the OmniMark platform or the “digital ecosystem.” Developed in collaboration with external consultants, this system is built upon a robust foundation of Label Traxx and Hybrid Software, which is then augmented with custom-developed, client-facing portals and middleware. This powerful ecosystem functions as the central nervous system for the entire business, seamlessly connecting and synchronizing sales, customer service, production, and direct client interaction into a single, cohesive workflow. The platform provides clients with an unprecedented level of flexibility and control over their projects. Through a secure online portal accessible 24/7, they can independently submit new orders, upload complex artwork files, review and approve digital proofs, and monitor the real-time production progress of their jobs from anywhere in the world. Internally, the system automates the entire production workflow, from job intake to final shipping, and intelligently manages complex job scheduling to optimize machine uptime and resource allocation. As articulated by Shane Lauterbach, the primary goal of this system is to “eliminate redundant activities and transactions” and streamline processes for both customers and employees. One of the most significant and tangible outcomes of implementing the OmniMark system is the dramatic improvement in “speed to market.” This efficiency allows the company to turn around complex pouch orders in an average of just one week, a timeline that places them far ahead of most competitors and serves as a powerful market differentiator.
Pillar 3 Human Centric Automation
The Lauterbach Group leverages automation extensively, primarily through its OmniMark system, which adeptly handles order intake, intricate pre-press tasks, and end-to-end workflow management. Contrary to the prevalent fears that automation invariably leads to job losses, the experience at Lauterbach has demonstrated the opposite effect. The significant increases in revenue and productivity driven by their automated systems have directly necessitated the hiring of more employees, particularly in roles that require nuanced human interaction and strategic thinking, such as sales, client services, and process flow management. Furthermore, the substantial efficiency gains have enabled the company to offer higher, more competitive compensation to its employees, whom it refers to as “group members,” reinforcing a culture of shared success. The very nature of work on the front lines has been transformed. As Kaia Peterson, Director of Core Business Development and Client Services, explained, automation has effectively eliminated the most routine, task-based work, such as manual order entry and repetitive data verification. This liberation of employee time allows team members to focus on more complex, uniquely human-oriented responsibilities. Instead of managing data, they are now empowered to build deeper, more consultative relationships with clients, provide strategic guidance on complex projects, and proactively solve intricate problems. In this model, time, a valuable asset for both the company and its clients, is now invested in delivering a higher level of service, fostering greater client loyalty and satisfaction in the process.
Pillar 4 A Culture of Continuous Learning
The company’s leadership astutely recognizes that technological and strategic transformations can only achieve their full potential if the workforce is equipped, empowered, and motivated to adapt. Consequently, the Lauterbach Group has fostered a deeply ingrained organizational culture rooted in constant learning and professional development. To facilitate the ambitious expansion into flexible packaging, the company provided extensive, specialized training for its sales staff on the complex nuances of the new market, from material properties to application-specific requirements. Simultaneously, it educated its technical staff on the precise operation and maintenance of new, sophisticated equipment like the in-house pouching machinery. This commitment to education extends to proactively leveraging external expertise. The company engaged WMEP, a nonprofit organization focused on developing Wisconsin’s manufacturing sector, for a year-long project aimed at creating “transformational change” within the organization. They also brought in a specialist from materials supplier Nobelus to educate employees on the science and application of various flexible packaging materials. Chief Operating Officer Heath Lauterbach emphasized the immense value of these outside perspectives, noting that they help drive grassroots change by offering fresh insights and challenging established thought processes in a way that internal leadership often cannot. This open-minded approach, championed from the top down, ensures the entire organization remains agile, informed, and prepared for the continuous evolution of the industry.
A Model for Modern Manufacturing
The Lauterbach Group’s successful pivot was not merely the result of purchasing new machines or software; it was the product of a holistic vision that integrated every facet of the business. The company’s leadership understood that true transformation required a synergistic relationship between technology and people. By automating routine tasks, they did not diminish the role of their employees but elevated it, freeing them to focus on strategic client engagement and complex problem-solving. Their commitment to continuous learning ensured that the workforce could not only operate the new technology but also innovate with it. The deliberate construction of the OmniMark digital ecosystem created a transparent and efficient workflow that became a powerful competitive advantage, drastically reducing time-to-market. Ultimately, the strategy that unfolded was a calculated departure from traditional manufacturing paradigms. It was a forward-looking approach that anticipated market shifts, invested in a comprehensive technological and software infrastructure, and placed its trust in a well-trained and empowered workforce. This synthesis of foresight, investment, and culture provided a robust framework that positioned the company not just to compete, but to lead in a new industrial era.
