Benchmark Your Firm’s Performance vs. Our Fourth Quarter Survey Panel
This article was contributed by Ed Gleeson, Director of Economic & Market Research, Printing Industries of America. In 2011 we started off the year with fears of a double-dip recession, but much of those fears have subsided as the U.S. economy gained some momentum ending with fourth-quarter growth of 3.0%. Real GDP increased by 1.7% in 2011, and the printing industry–like the U.S. economy– experienced growth, but at lower levels than 2010. According to our Fourth Quarter Print Market Survey of over 250 survey printers, sales increased by 3.9%. Taking into account the number of firms that went out of business during the year, we estimate that total industry sales increased by 0.35% in 2011 to $145.1 billion from $144.6 billion. According to the U.S. Census Bureau, 2011 print shipments declined 0.47%. Since the beginning of the year, both our survey panel and the U.S. Census Bureau reported print sales weakening. Most reported industry growth is from companies with more than 100 employees. On average their sales increased by 5.1%, while smaller firms reported sales declining. Digital toner-based and ancillary service sales were the main drivers of industry growth in 2011. Digital toner-based sales increased 8.5% and ancillary services increased 4.7%. Weighted average* conventional print sales increased by 1.4%, while non-weighted sales declined by 0.6%. Larger firms’ conventional print sales increased by 2.9% while smaller firms’ sales continued to decline. Since larger firms account for a larger percent of total industry sales, their answers receive a larger weight and pull up the industry average. In 2011 our panel reported prices declining slightly by 1.1%. According to the Bureau of Labor Statistics’ Producer Price Index for the printing industry, prices increase by 1.8% in 2011. Smaller firms with 1 to 19 employees were the only segment in our panel that reported increasing prices in 2011, an increase of 1.2%. How did your company perform compared to the industry average in terms of percent change in total firm sales, conventional print sales, digital print sales, and ancillary services sales? Were you able to pass along price increases to your customers or, like our panel, did average prices decline? In the Fourth Quarter Print Market Update, available soon at www.printing.org/store/38806, you can compare your firm’s performance to the competition. The following are some of the main benchmarks available for comparison in the report: Percent change in year-end sales Sales expectations for 2012 Printing prices, profitability Material and labor costs Employment and employment expectations Capital spending and access to credit. We further segment the results so you can compare your company to companies of a similar size, in the same region, and using the same primary printing process. We recommend you compare your year-end results to our survey panel. You can also track how your firm is performing compared to the competition on a quarterly basis, which can help you determine where your strengths and weaknesses are compared to the competition. For a full analysis of the year-end results, visit www.printing.org/store/38806 to get your copy of the Fourth Quarter Print Market Update. This report will be available for purchase the week of March 26, 2012. All participants in the Quarterly Print Market Survey receive a free copy of the Print Market Update. If you are interested in participating in this survey and...
read moreVery Exciting Times
This article is written by Mark Bohan, Vice President, Technology and Research at Printing Industries of America. As has been true for some time, the printing industry is in the throes of changes. The business models are changing with transition of content between different media, while technology innovations are positively impacting the manner in which printed material is produced. It is critical to be aware of these technology changes and the ways in which they will impact your business. Here are my top picks on what technologies you need to be aware of: (watch for this year’s InterTechTM Technology Awards to highlight advances in these areas) Automated workflows Automated workflows are going through a new renaissance with the introduction of new specifications so files can handle complex variable data and then process them through the facility in the most efficient manner possible. This applies irrespective of the printing process. Increasingly, companies will try to “touch” a file as few times as possible. Production inkjet technology This technology is taking inkjet printing to a whole new marketplace, and we are seeing new capabilities monthly, if not weekly. Because this is so new, there will be many business and technical questions and challenges in its implementation. Wide format inkjet Wide format inkjet printing continues to expand in use, and is gradually eroding the use of screen printing for signage, point-of-purchase displays, and other uses. Single-pass ink jet is the most exciting development in this area, promising to revolutionize the speed and cost of producing wide-format graphics. Marketing metrics Marketing dollars are continually being challenged, and there is push to show value for the spend that occurs. To help with this there are many new technologies that can link print to other media, such as Web or mobile, including technologies such as QR codes and augmented reality. These can then be used to engage the consumer and provide hard analytics back about the effectiveness and touch points in campaigns. Paper and board packaging There will always be the need to have packaging material for the merchandise we buy! It continues to be a strong area in lithographic and flexo printing, both from the printer’s perspective, as well as those of the suppliers. There is also an increase in inkjet technologies for packaging. Color measurement and management Color science is continually developing to more accurately reflect what humans see. This is leading to the introduction of new color measurement instrumentation and management solutions to meet reproduction challenges. Solutions are continually made easier to use in order to broaden their application, and we are seeing the increased use of RGB workflows and Device Link Profiles to help with color management. Digital technologies The use of digital technologies is one of the growth areas of the printing industry, with higher margins available in these areas as it is not a commodity sale. These are producing more cost-effective solutions to the user with greater control and predictability of the print. The integration of different messaging and communication means is important, as is being able to provide metrics on the effectiveness of such campaigns. Non-print technologies There is an increase in the amount of information that is communicated in digital media, through tablets, computers, mobile devices, etc. New and innovative technologies are being developed to optimize the manner in...
read moreIs your company hungry for information about how to plan its financial future?
It is survival of the fittest in the tumultuous financial market today. Proper planning, current knowledge, and ability to make timely decisions are more important than ever. Printing Industries of America hosts the annual Printing Industry Financial Executives (PIFE) Conference April 1–3, 2012, in St. Louis, MO in conjunction with the Continuous Improvement Conference. The PIFE Conference is a roadmap that allows you to assess your priorities, create an effective plan for your future, and monitor your improvement. It also provides you the unique chance to network with your peers. As a V.P. of Finance, Controller, COO, or CFO, you will hear speakers from some of the top financial firms in the country provide you with the tools and resources to not only survive in today’s financial market, but to thrive. Here is a sampling of what these leaders will be presenting at the 2012 PIFE Conference: Learn new tax law and compliance so you can receive the benefits and credits available to make the best business decisions. (Amelia Beckmann, CPA, Principal, LarsonAllen LLP and Timothy O’Shaughnessy, Principal, Tax, LarsonAllen LLP) Execute initiatives with effective performance management and accountability standards using sound benchmarking and key economic metrics to improve the likelihood of success. (Mel Enger, President, Carlson Advisors) Gain an insight into your employer fiduciary responsibilities as they pertain to your 401(k) plan. (John J. Moynihan, President, Diversified Financial Advosors, LLC) One of the most beneficial aspects of the PIFE Conference is networking with other industry professionals. Past participants of the conference, like Gregory J. Dooley, Chief Financial Officer, HM Graphics, Inc., have not only learned many cost-saving strategies but also made valuable connections with their peers. “It is helpful to get to know people in similar financial situations. When you run into an issue in the future, you can call on them to see how they overcame it and apply [the same method] to your own business.” “By failing to prepare, you are preparing to fail.” Benjamin Franklin knew a lot about financial success. Plan now for tomorrow’s financial success. Seize the opportunity to learn from the experts and from your peers. Use this knowledge to achieve your own financial prosperit Leave a commen below or join the discussion on LinkedIn to start networking before the conference! PIA Blog Opt-Out: ...
read moreCapitalize on your Premier Print Awards Win
Granted, it is an honor just to be nominated. But winning a coveted “Benny” Award at the Premier Print Awards is an undeniable accomplishment both professionally and personally. Not merely a statue to keep on your desk, the “Benny” can be a tool to propel your business, attract new clients, and motivate your employees. We have been bestowing this award for more than 60 years, and this year can be your year to take your place among the elite. We have a sneak peek at winners’ success stories where they share their proven ways to capitalize on winning a Premier Print Award. In addition to receiving the “Benny” statuette at the Premier Print Awards and InterTechTM Technology Awards Gala in Chicago, Printing Industries of America will: Provide winners with a self-promotion kit that include a press release template, Premier Print Awards image, and complimentary ticket to the Gala. Announce the winners to the trade press. Publish the winners list in the Premier Print Awards Annual and on our website, www.printing.org You may think the party ends here, but the key to prolonging the afterglow of winning a “Benny” is to utilize promotion and benefits. 2011 Premier Print Award winner, Jim Mayes, owner of ColorCraft of Virginia in Sterling, VA says his customers “are pleased when their piece wins an award.” Additionally, his team is, “proud of their work, and an award on something that they produced gives them a sense of pride.” Their win has enabled them to “promote ColorCraft as a high-end digital and ink jet printer.” Ms. Tonya Spiers of Knight Abby Printing and Direct Mail in Biloxi, MS, earned a “Benny” in the 2011 Premier Print Awards and has seen her sales grow as a direct result. She told us how she profited from her accomplishment: What has winning a “Benny” meant to you and your business? We are so proud and honored to be recognized as part of such an elite group. Our sales professionals have a photo of the “Benny” in with their brochures. It really opens up a dialog with customers. Has the way customers and your competitors view your business changed since your win? We have never been recognized like that before, and we are now able to have that level of conversation with our customers. We stand out among some of the best people in the U.S. and the world. In the suffering economy, we can still create great digital work and great pieces. How did you utilize the press kit from Printing Industries of America? The press kit was very helpful. We published the press release in articles we send out to companies and to customers. It was also seen by our local competitors. What is the most rewarding result of winning this award? Our company used this award to boost internal morale and for employee recognition more than anything. To be able to take this award back home and say to them, “You did this,” has been the greatest benefit. We have a great team and great customer service. It can be difficult, sometimes, in our industry, and they are proud to have earned this. Printing Industries of America hosts the Premier Print Awards to recognize the highest quality in printing. Companies of any size are encouraged to enter,...
read morePrint Goes Viral
You may have heard that QR Codes are dead. But, like print, QR codes must evolve to meet demands. Many companies are incorporating QR codes in their marketing mix (along with similar tools like Google Goggles, a “visual search application for Android phones”). They are a valuable use for direct mail because they integrate print with the Internet. Used effectively, they can be powerful tools that yield successful results in your marketing campaign and link your customers from printed material to the Web. What Is a QR Code? If you have not used QR codes, this Quick Response code is a URL that is converted into a specific matrix (or two-dimensional) barcode using QR code generators like Kawa or QR Stuff. Using a smart phone, customers download a barcode scanner application for Android, iPhone, or other smart phones, scan this barcode, and reach a website, a YouTube video, company home page, or a discount offer like USPS recently promoted. Are They Successful? QR codes can work in favor of the printing industry if they are used effectively. A recent promotion from USPS is a great example. To help boost direct mail marketing, they offered a 3% discount off bulk mail shipping in July and August of 2011 to companies that incorporated QR codes into their direct mail. This smart move was not only a momentous push for mainstream QR code use, but also an encouragement for businesses to send printed mail. The USPS plans on offering a similar discount program in the summer of 2012. In a recent study from comScore, 6.2% of all mobile phone users, or over 14,000 people, used QR code scanners. The highest users were males between the ages of 18–34 with an annual income over $100,000. Printed magazines and newspapers and product packages were the items most frequently scanned by these users. There are still some drawbacks, however, as many consumers are still not using QR codes because they are 1) unaware of how to use them or 2) do not have a smart phone or the application required to read them. Further issues with QR code usage include location of the code and the destination site. If a customer cannot access a code either because it is on the side of a moving bus or another inconvenient location, he or she is not very likely to scan it. Seventy-two percent of consumers say they have seen a QR code, but nearly 30% do not know what it is according to an October 2011 survey from strategic marketing firm Russell Herder (from Marketing Charts.com). Also, if a customer does scan the code but does not find the desired or useful information, the use is considered unsuccessful. Successful Uses QR codes can be great marketing tools, and they are also being used by printers in creative ways: In a discount offer like USPS As part of an interactive map like Town Graphics As interactive wrapping paper like QRAPPING PAPER™ On billboards and T-shirts to help clean up the Gulf of Mexico On business cards To offer free music downloads from Taco Bell and Mountain Dew Printing Industries of America uses QR codes throughout our campaigns to ensure messages stand out in an area where space is limited. Lisa Rawa, Vice President, Marketing, shares some important...
read moreTop Technical Leaders to Speak at TAGA
The following post was written by Chuck Gehman of Mimeo.com. It’s hard to say “there’s something for everything” about the TAGA Annual Technical Conference, the global graphics arts industries’ most elite technical conference. It’s specifically NOT for everyone—unless you are an academic, engineer, scientist, or technical practitioner of printing. But if that happens to be the case, you will certainly find things that you need to know being discussed at this year’s 64th annual event, to be held in Jacksonville, Florida, on March 18–21. If you are a CEO, COO, or owner of a printing company or industry equipment or software manufacturer, I would strongly advise that you send a couple of your key technical people. I’ll explain why. My personal involvement in the industry is in the creation of software for printing applications, and there are always a few great talks on this topic. But for me, what I find incredibly invigorating about TAGA is the fact that there are so many topics discussed that I am not directly engaged in as a professional. These topics are as far ranging as ink, paper, mechanical engineering, chemistry, physics, photography, light—but not limited to these. In fact, there are almost no limits. The result for me has been broadened horizons—I learn what I don’t know, and approach problems I face in my work with a new perspective. The keynotes this year include some of the most interesting leaders from some of the most exciting companies in the graphic communications business today. They start with Marc Olin of EFI, who has been travelling the world buying up printing-related software companies while other former industry leaders are suffering, and move on to Mike Puyot from Memjet, a company which is finally shipping product via OEMs and is poised to dramatically change everyone’s business, after existing as a virtual “urban legend” for almost 10 years! These are followed by the most complete, robust technical program available this year at any conference in the industry. One of the coolest things about TAGA is the questions from the audience after the presentations. As you can imagine with a group of this makeup, there are many opinions, and TAGA encourages an intellectually charged environment. There are no assumptions, and this is not a love-in where PR rules—people are often challenged on the statements they make from the dais. It’s exciting! Another really important aspect of the event is the student chapter participation, and the annual student competitions. To the printing company owner: here is the most important reason for you to send your top technical stakeholder or two to TAGA: recruiting. Plug your company into the top printing schools in the WORLD—Cal Poly SLO, Clemson, RIT, Western Michigan, as well as Ryerson in Canada, and leading global schools Grenoble Institute of Technology in France, and Linköping University in Sweden, to name just a few. They will be sending teams of their best students (usually Juniors and Seniors, who will soon be looking for a career position) to compete for awards in our annual technical competitions. The program includes talks from some of the recipients of the Printing Industries of America’s prestigious InterTech Awards, an opportunity to learn about some of the industry’s latest and most advanced, game-changing commercial product developments. Beyond all the important content, there...
read more6 Managerial Keys to Improvement Success
Register for the Continuous Improvement Conference April 1- April 4, 2012. The success that printing companies have in using Lean manufacturing concepts depends, largely, on the effectiveness of their managers. Here are six steps your managers can take to speed the pace of your company’s improvement: Key 1. Understand what is meant by improvement. Most managers seek competitive advantage through operational improvement when the better approach is to seek Lean improvement. Lean improvement is not about the work, but, rather, about eliminating wastes—things that get in the way of efficient work. These wastes—such as waiting—add time and cost and no customer value. You should become familiar with the eight common wastes. Over 95% of the elapsed time between paying and getting paid is attributable to these wastes. Unless managers are trained in what to look for, these wastes may be invisible. Managers should first visit the work area with an open mind to identify improvement opportunities. It is also a good idea to visit a few organizations that have well-developed improvement systems, speak to your peers, and learn from their experiences. Key 2. Demonstrate Passionate Commitment. Passion for your work will not only drive you forward, but it is also conveyed to your employees. For managers who see and understand the opportunity for improvement, it’s easy to be passionate. Employees respond to your example of passionate commitment. Remember—your passion can’t be delegated. If you are a no-show on the floor, don’t expect a commitment from employees. Key 3. Learn the Tools. When both managers and employees understand the meaning of improvement, it creates an opportunity to apply the “how-to” or the tools of Lean Manufacturing. These are the means to improvement that will work in any organization. Before attempting the know-how, be sure you know and can articulate why these tools are needed. An employee may initially respond to a tool like 5S with objections. Most objections are just cautionary—that is, employees need to know more before accepting a new idea. As management is learning the tools, they are creating a favorable environment for learning and practice and keeping everyone practiced. Provide training at the point of need and allocate time as part of the training for practice with a real, if small, project. Don’t penalize for mistakes but do praise small victories. Lean is learned by doing—and, the best learning occurs in small increments; twenty minutes per day is better than a day once per month. Key 4. Make the job easier, better, faster and then cheaper. Use the above order for successful improvement. Open the issue by addressing job strain as the main reason for change, which shows respect for employees while generating initial buy-in. The most important tacit learning for employees in the early stages of an improvement program should be, “This is a good thing. It made my job easier. I’ll keep an open mind.” Unfortunately most organizations implement in reverse order, aiming first for cost reduction. Cost reduction is an important objective in a price competitive industry like printing, but creating employee engagement will lead to cost savings. Key 5. Start small and expand from a solid core. The technical part of Lean—the tools—are difficult to implement without careful nurturing. This is because everyone needs to un-learn old...
read moreMy Interest in Pinterest Started Decades Ago with a Band Aid Box!
A childhood friend, Janie, and I exchanged metal bandage boxes when we were six years old. What does that have to do with Pinterest? Stay with me, please. We exchanged the metal boxes filled with “goodies” that we liked to share. My box might contain glittered fabric, a Cracker Jack toy, a picture of a pretty doll from the Sears Toy Catalog etc. (Yes, I am dating myself.) Janie’s box might contain a plastic purse for Barbie, a picture of a Lego set etc. The boxes evolved into scrapbooks, then charm bracelets and as adults—magazine clippings, photo albums, and scrapbooks. Get it? Kids, aging kids and I like to show “mine” if you show “yours.” So now we have a very sophisticated “show me” tool called Pinterest. When 11 million unique visitors visit a site, you know that it is meeting some basic need…the “show me” need. People have a lot of time on their hands since Business Insider reported that nearly 100 minutes is the average on the site versus just 19 minutes on LinkedIn. The numbers are staggering. On the Business Insider comment section, people questioned the number of recent articles about Pinterest. The comments suggested that Pinterest and the magazine have a mutual financial investment. BI stated emphatically “no.” The Pinterest articles are everywhere so, this social media dabbler, checked it out. Through Tweetdeck I mentioned that I was interested and received several invites (needed to use Pinterest). When questioned about its value, the comments were mixed. I jumped into Pinterest enthusiastically. Conclusion: It was fun! Really fun….my childhood memories and “show me” need resurfaced immediately. I spent time….not 100 minutes….but more time than normal, checking it out. OK, so I slipped into the bath pics since that is one of my top-of-mind home projects. Wait, wait! What about work and business and my role to find profitable revenue activities and streams for our members? OK, from a work- related point of view, I say “monitor” this site. I have seen and heard of clever ideas for Pinterest’s use such as: designers’ projects and special printing campaigns uploaded for browsing; job seekers portfolios; photographers’ pictures. Other issues related to copyright and use are also cropping up such as from for-sale stock photo companies claiming “foul.” There are no businesses that are immune to the impact of new upstarts on the Internet! Are they making money? The Wall Street Journal article says it all, “The Rite of Web Passage—Huge Traffic, No Revenue.” Wait and see on revenue—the referrals to products from the Pins have increased tremendously. Advertisers are claiming more from Pinterest than other social media sites. Outsiders value the upstart at $200 million now. Targeted advertising is all the rage. So, if I start getting bathtub ads as a result of viewing Pinterest “pins,” we will have further evidence of how the revenue stream to advertisers will emerge. Don’t check out my pins, though–just don’t have the 100 minutes time to develop boards for review–yet. My “show me” need is not as strong as “get it done” need for work, family, and life. Check out the Wall Street Journal article: http://prnt.in/ZgH Or the over 70 million entries about Pinterest. http://pinterest.com/ Here is one of the Business Insider articles: http://prnt.in/ZgV about the growth of Pinterest. Let me know...
read morePrinting Consistent Color
Printing Consistent Color More and more printers are implementing the G7® specification and color management while profiling their monitors, proofing devices, and printing presses. There is no doubt that this process works, providing accurate, predictable color from proof to press. What should not be overlooked, however, is the notion of maintaining consistent color balance throughout the pressrun. Have you ever had a customer fan out a job, revealing that the colors don’t match from sheet to sheet (as close as possible) to the last sheet of a pressrun? Maintaining consistent color throughout a pressrun is a difficult task. The press operator must maintain a multitude of print variables at any given time; things like ink density, dot gain, gray balance, and print contrast, to name just a few. More often than not, these jobs are being printed on less-than-desirable paper stock, further complicating the process. The ability to maintain consistent color of images during the pressrun begins with the color separation process. Image conversion, that is, changing images from an RGB of LAB to a CMYK color space, is not as simple as a mode change in Photoshop. Considerations must be made for ink, paper, and the condition of the press, to name just a few. To read the complete Tech Talk Paper, download the PDF by clicking on the following link: DPC Tech Talk/February 2012. You can also learn more about achieving consistent color through Printing Industries of America’s Training Programs. Click on the links below to learn more. G7 Digital Operator Training ProgramApril 17–18, 2012 in Pittsburgh, PAPresented by Printing Industries of America, a training program endorsed by IDEAlliance Optimizing Color from Your Digital PressApril 24–25, 2012 in Pittsburgh, PAPresented by Printing Industries of America G7 Offset Operator Training ProgramJune 14–15, 2012 in Pittsburgh, PAPresented by Printing Industries of America, a training program endorsed by IDEAlliance G7 Expert/Professional TrainingJune 11–13 in Pittsburgh, PAHosted by Printing Industries of America and Presented by IDEAlliancePlease call 800-910-4283, ext. 731 for more information and to register for this program. PIA Blog Opt-Out: ...
read moreIt’s All About the Experience
The LPIA Technical Institute has one mission—to provide a world-class experience that surpasses any other like it in the label converting, packaging, top-sheet, and product decoration industry. This year, we will feature two state-of-the art venues that will expertly cover the latest technological advances and end-to-end production and workflow solutions. This is not your typical “stand and deliver” program, but a mixture of industry-related experts who will deliver content that is then supported by application showcases and innovative technology demonstrations firsthand. The HP Experience Center is “your center, your success!” This center is tailored to ensure a truly world-class experience that’s all about you. The HP Experience Center is focused on providing valuable insight on digital printing technologies and workflows that provide higher-impact solutions for their customer needs. The Heidelberg North American Print and Packaging Technology Center will delve into traditional methods from prepress through finishing, as well as new technology and tactics. Andy Thomas, Editor, Label & Labeling magazine, will give a global perspective on the market and give insight on the new technology that will be featured in the first-ever packaging printer zone at Labelexpo America. Join us and experience the LPIA Technical Institute for yourself! For more information, visit...
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