If you live in the north eastern portion of the United States, you're probably pretty sick of winter at this point. As the snow slowly melts away, thoughts turn to making the most of the summer—perhaps building a new deck for enjoying cookouts with friends and family. All it takes is some lumber, nails and tools. Oh, and plenty of permits.
Form printers have long been busy putting the "paper" in "paperwork." An extremely wide variety of end-users utilize printed forms, such as contractors, police departments, doctor's offices and various agencies such as the IRS. Few industries boast the vast sea of potential customers that forms printers entertain.
In recent years, however, electronic forms have grown more and more common. President Obama has famously set the goal that "all of America's medical records [be] computerized" within five years, which implies that a large portion of the healthcare industry may shift to electronic forms. Add to this the economic crisis of the last few years, and the result would seem to equal a tough time for forms printers.
But that's not entirely the case. Printed forms remain the top-performing sector of printed products. In 2009, annual sales figures for business forms totaled $901.2 million, up from 2008's $813.4 million, according to Print Professional's top 100 manufacturers issue. "We are weathering the storm well," remarked Paul Willard, sales manager for Grand Rapids, Michigan-based Broker Forms. "Although the average sale [is] down compared to last year, we are serving more distributors than ever, which means they like what we're offering, but their clients are ordering less quantity this year."
Broker Forms is an "employee owned and operated" on-demand printer that considers itself a "specialty provider." The company continues to focus on its core offerings, 1099s, W-2s and checks. According to Willard, this focus "allows us to guide distributors and their customers to the right product choices."
"It allows us," he continued, "and, in turn, our distributors to give small businesses confidence they are producing the right forms, in compliance with regulations, as efficiently as possible."
Unfortunately, not all forms printers have been as lucky as Broker Forms. Phoenix Data, located in Montgomery, Pa., is a "forms manufacturer running web presses." Rita Fry, marketing/sales coordinator, discussed the difficulties her company has faced. "This past year has been a tough one," she said. "We had some layoffs and had to cut back on our hours for several months." She mentioned that sales were down by 18 percent, but despite this fact the company continued to remain profitable.
Fry explained that Phoenix Data took steps such as restructuring workflow to cut back on labor "by reducing or [eliminating] additional manpower requirements and internal production procedures." In addition, the company conducted analysis of its equipment needs and made an effort to improve communication in order to "reduce delays in production time."
While many companies across many industries could share similar tales of woe as a result of the recession, there is a larger trend at work in the form printing space. "The growth of electronic forms has been affecting us for years," said Fry. "Order sizes continue to be downsized and some forms are becoming obsolete."
"With regards to 1099 and W-2 forms," Willard agreed, "we've seen a definite shift to e-filing of information to the government."
Broker's response to this trend has been to develop technology offerings that "process data that used to be delivered on paper" and that assist small businesses in e-filing tax forms. Going forward, the company "will continue to add technology options to help our distributors deliver technology to their clients as solutions to create more efficiency."
Phoenix Data, on the other hand, has sought to diversify its production, turning out "other commercial type forms/products versus printing 'traditional business forms.'" Fry also noted, "There are still forms that are needed in the market and we will continue to be challenged to differentiate ourselves from our competitors."
Willard suggested that his company's approach would benefit form distributors as well. "They will need to become more comfortable selling technology products," he said, "and act more as a consultant to retain customers, build relationships and grow sales." Similarly, Fry offered that distributors should "continue to educate [themselves] and [their] customers by keeping up with technology."
Aside from increasing focus on technology and services, Willard said distributors should "put some focus on selling core business products that small businesses will always need, like checks, tax forms and presentation folders; these items don't get cut from budget like promotional items." While orders for these items may decrease during tough times, they will not cease completely. "If you gain a business' trust and confidence now when times are hard," Willard said, "your business will naturally increase when the economy improves."
But while distributors are waiting for a major upswing in the economy, what are the most popular types of forms for them to focus on right now? "Businesses are switching to forms that help them be more efficient and productive," according to Willard. "For instance, the company that used to order continuous tax forms is switching to preprinted laser forms, and the company who used preprinted laser forms in the past is now using blank laser forms."
Fry mentioned laser cut sheets and jumbo rolls used for direct mail are hot items. She also noted "there is still a strong demand for unit sets."
Willard again emphasized the shifting market when he highlighted the current popularity of e-filing and fulfillment services "to eliminate using forms altogether."
"This will help distributors retain customers who demand technology," he said. "Even though they may have a bit less margin, offering technology will keep their customer happy, therefore retaining the business, with a chance to grow it in the future with other product lines."
Retaining business and keeping customers happy is something that all companies strive for at all times, but most especially during tumultuous times like these. As Fry noted, between the general decline of print, ongoing mergers and acquisitions, and the constant pressure of competitive pricing, "Business will continue to change." A simple sentiment, perhaps, but an important truth nonetheless. What can printers, distributors, and everyone else do to prepare for the inevitable changes the future will bring? Try following Willard's lead and "laying a strong foundation with the products and services we offer now."
- Companies:
- Broker Forms
- Phoenix Data
- People:
- Paul Willard
- Rita Fry