Abstract: A method and apparatus for manufacturing decals from a web of decal material, wherein core portions of waste material in the decals automatically can be removed from the decals. In one aspect of the invention, backing material is stripped from the decal material; the decal configurations are cut into the decal material; the waste exterior portion of the decal material is removed from the decals while the decals are retained in position on a vacuum wheel; and the core portions are removed by the vacuum in the wheel through enlarged openings opposite the core portions on the decals. In another aspect of the invention, the decal configurations are cut into the decal material while it remains on the backing material; the exterior waste portions are removed; and the core portions are removed by passing the backing material over the sharp edge of a peeling bar while pressing the decal portion downwardly on the backing material.