SOI Commercial Print: Getting Back to Business
The recession leveled the playing field for commercial printers. Companies that sold on price alone closed their doors, leaving their competitors in a better position for the future. However, that doesn't mean the surviving companies have it easy. In today's print world, with customer demands changing rapidly, it's time to deliver or step down.
"In 2012 and beyond, print providers will need to get to market faster, increase automation and embrace color—all at market-competitive prices," said Gordon Klepec, vice president of sales and marketing for Portland, Oregon-based Wright Enterprises. "That's a tall order to be sure, but the companies that can keep pace with technology, deliver value and remain relevant to their customers will prosper."
Todd Eldridge, executive vice president of Strongsville, Ohio-based Dupli-Systems, agreed. "Don't be afraid of change. The industry is definitely changing, and you have to be willing to change with it," he said.
Richard Ghelerter, president of Jacksonville, Florida-based Apex Color, learned to embrace change years ago. In 1974, Apex Color was founded under the name Apex Business Forms. Ghelerter branched out into commercial printing in 1998, but things weren't taking off as he had hoped. Like any smart business owner would do, he made some modifications that would reflect what his company was all about.
"By 2000, I realized that we were struggling trying to launch our high-end contract color commercial print shop with the name Apex Business Forms. So in 2000, I branded a new logo and became Apex Color," Ghelerter recalled. "In the year 2000, most of our customers were business forms distributors and sold little-to-no commercial printing. Marketing/advertising and design companies were not taking us seriously."
The change paid off. In fact, Ghelerter's business forms background has proven to be a nice complement to the commercial print side of things.
"Coming from a background of business forms manufacturing, I've seen products emerge that complement our commercial printing division as well as our forms division," he mentioned.
Ghelerter pointed to security documents as an example. Apex Color is a licensed provider for prescription pads for the State of Florida and Georgia. This wouldn't have been possible if the company didn't invest in the necessary technology to create digital void backgrounds and pantographs. These security features provide opportunities to produce other secure products such as checks, transcripts and warranties.
Maybe Apex Color was ahead of the game since diversification has become a familiar theme across business sectors. To stay relevant, the recession forced Dupli-Systems to make some difficult decisions about its product offerings and services.
"Over the past three years, when the economy was at its worse, we made some tough decisions to add new products, like digital printing, a state-of-the-art online ordering system and upgraded perfect binding capabilities," Eldridge said.
He continued, "These decisions have helped us weather the storm, and given us the opportunity to service our customers better by being able to meet even more of their needs."
Klepec believes many of the companies that have been unwilling or unable to upkeep their equipment and technologies are losing their competitive edge.
Wright Enterprises is making significant investments to stand out.
"We are heavily investing in commercial printing equipment like the HP Indigo 7500, along with multiple pieces of litho sheetfed machines in many of our locations," Klepec commented. "We are also investing in the latest upgrades in software to drive our systems, along with acquiring industry certifications such as G7."
Companies would be wise to upgrade their equipment sooner rather than later. Customers now want their jobs completed in hours instead of days (with the expectation of litho quality). Klepec thinks requests for shorter turn times will be one of the of the biggest changes this year, and newer presses are being built to fulfill such requests.
"The next generation of digital presses, like the HP Indigo 7500, are getting closer to commercial litho and have the additional capability to make changes on demand," he noted. "The manufacturer that can deliver the end-user's expectation of 'fewer, faster, better' will set themselves apart from the crowd and continue to put pressure on the commercial printer with the 'traditional' deliverables to market."
Apex Color has made some hefty purchases. According to Ghelerter, Apex's commitment to growing commercial printing is in digital as well as offset.
"Last year, we invested in two Konica Minolta machines, C8000 for color and C1200 for black-and-white. I'm very pleased with this decision because the products that best fit these machines are in demand, and that demand appears to be growing," he said. "Both machines are equipped with in-line booklet makers, folders and punches. Last year, we also added a UV Coater to enhance digital and offset print."
Furthermore, for several years, Apex Color has offered what it refers to as "Webway," an automated RIP and proofing solution that allows customers to immediately receive proofs once PDF files are submitted.
"The proofs they instantly view are quite detailed and contain collaboration tools for checking color densities, lineal measuring, attaching notes, etc. before resubmitting with changes or approval," Ghelerter explained.
For now, Ghelerter's business strategies are working to his advantage. But sometimes the rate of change happens so fast that you're left to second-guess your decisions. For instance, a high-tech piece of machinery can become obsolete in a short window of time.
"Our biggest challenge will be to keep up with changes in technology because it's all happening so quickly that the decisions and investments you make today you could be second-guessing in a couple of years or less," Ghelerter admitted.
Internet purchasing is another area that has changed the game for commercial printers. Dupli-Systems has studied the growing number of people who prefer to buy online. In response, the company developed its online site, www.tradeprintnow.com, two years ago.
"Our site allows us to cater to those buyers who prefer buying online. We understand that buyers also need quality customer service that goes beyond ordering online," Eldridge said. "We have always strived to provide that high quality service, and that doesn't have to change just because you offer online buying."
Apex Color has a digital storefront and is currently upgrading to EFI's digital storefront—a much more robust system. Nevertheless, Ghelerter referred to Internet purchasing as a "double edged sword."
"Customers want the convenience and lower price, but many still say they need interaction with the plant. So I see customers who tried the 'low price but no help' Internet solutions coming back, willing to compromise on price for customer service," he stated.
Regardless of an unstable economy, challenges and changes, these companies feel they are in better shape than ever. About three years ago, Apex Color had to "right-size" like so many others in the industry. But since then, a few new employees were hired and Ghelerter said growth has been "slow, but steady."
In addition, Apex Color's relationship with Appleton has given the company access to various resources and the ability to participate in several of Appleton's Lean Manufacturing programs.
Lean manufacturing and careful capital investments also helped Wright Enterprises maintain a stable economic platform during the downturn. Looking ahead, the company will continue to devote time and resources to one of its most important investments: its distributor partnerships.
"We work hard to develop partnerships with our distributors and we are not afraid of taking chances," Klepec declared. "Some of our biggest 'wins' have occurred when we sat down with a partner, rolled up our sleeves and made strategic investments in unique or emerging markets."
According to Klepec, Wright's strategic approach to conducting business can be found in the company's "just say yes" attitude.
"I want Wright to be the first call distributors make when they're looking for new product information, sales material or support, or simply have questions," he said. "This 'just say yes' approach keeps us on our toes. ... The only way to stay on top of emerging trends and technologies is to be right in the middle of them."
Elise Hacking Carr is senior production editor for Print & Promo Marketing magazine, and managing editor for PRINTING United Journal.