Forms leaders speak out about the past, present and future of the industry
Transcontinental Printing, Newtown, Pa., keeping up with industry needs means paying close attention to industry trends and customers' needs.
"We make sure we are manufacturing the products that distributors are asking for," said Tracy Dennis, sales manager. She explained that company representatives continually talk to and meet with customers and ask where they see the industry headed.
This feedback, she noted, has shown that distributors are seeking fewer continuous forms and more value-added products such as direct mail, label forms, cut sheet products, security features and commercial pieces.
"We are also providing the full-package. We want to take a product from disk to press and then to the mail," said Dennis.
She also foresees a growth in the demand for inline variable imaging capabilities.
To this end, the company is utilizing its commercial web capabilities. "Rather than moving a product from one machine to another, we can personalize, perforate, add glue and seal inline," Dennis explained.
In addition, this year's equipment purchases include a sheeter for 14&Mac253; sheet work, an additional Labelair and another imagesetter with a digital proofer.
On the workflow side, the company is in the process of in-stalling new manufacturing software, Logic, in order to improve efficiencies.
As for the tight labor market, Dennis admitted that it can be tough for those companies looking for new people, but it hasn't been a concern for Transcontinental. She attributed much of the company's ability to hold on to its workers the fact that "We've always put people firstboth employees and customers. In good times and bad, our group really sticks together."
In order to ensure future growth, Dennis suggested that distributors continually look into new areas and explore new avenues. "Distributors should ask for the opportunity to be-come involved with everything their customers print."
We make sure we are manufacturing the products that distributors are asking for' espite an 8 percent to 10 percent total market drop in 2000 for traditional business documents, Dennis King, president of PrintXcel, said the Denver-based company is thriving.
"It's been a down year for the industry, but we've increased our market share and volumes," said King, crediting this success in great part to company growth initiatives that include expansion in process-color labels, short-run commercial print, warehousing capabilities and Internet-based tools for customers. "We're bullish on this industry and our position in it," he added.
PrintXcel, with revenues in ex-cess of $300 million, developed into one of the largest suppliers of printed products and services to the reseller market over the past three years through the integration of 11 world-class or-ganizations, according to King.
Because of its size, King said, PrintXcel has been able to better service the larger national distributor companies while continuing to be one of the best sources for responding to the needs of local and regional distributor groups.
"While we are building the company larger in scope and ca-pabilities, we are actually building closer bonds to our existing local customers," explained King.
PrintXcel has invested in ex-cess of $70 million in new technology, product capabilities and equipment this year, said King.
In addition to the acquisition of Discount Labels, state-of-the-art prepress systems, order tracking and fulfillment systems and Web technologies were developed that allow distributors to create their own Web sites.
"We've also developed our variable imaging capabilities and added to the capacity of our pressure-sensitive VersaSeal product," added King.
Finally, King predicted that the consolidation trend will continue, leaving those companies in place that are best able to serve the marketplace more efficiently and effectively. "We'll be one of those companies," he added.
Dennis King forces other than technology are exerting pressure on the traditional printed products industry.
According to Keith Walters, CEO and chairman of Ennis Business Forms, DeSoto, Texas, "Increases in paper prices and a soft forms market are forcing pricing to be reviewed," as manufacturers grapple with whether to pass on the increase or experience a decrease in the bottom line.
In addition, mergers and ac-quisitions are creating re-engineered business models and the competitive industry environment continues to intensify. The cumulative effect is causing many feel a bit unsettled.
In response, said Walters, "Ennis is seeking to reassure customers by providing more product op-tions and services through acquisitions."
The demand for labels, tags, commercial printing and specialized documents is growing, and the company "is implementing changes where it makes a difference to our customers," said Walters.
For example, Walters noted that the Northstar acquisition has offered new opportunities in the sale of negotiable and MICR documents as well as other internal bank forms.
In addition, Ennis is moving forward with technology, working on new customer service toolsorder entry and order tracking processes, for examplethat will be strongly influenced by the Internet. Upgrades to software and IT hardware and additional Internet spending are also part of the strategic plan.
Finally, Ennis has realigned its business, marketing products through three groupsForms So-lutions, Promotional Solutions and Financial Solutionsand planning is underway to add products to all three groups by the second quarter of 2001.
Yet the company continues to remain committed to its core products, a factor which Walters says bolsters retention efforts among key employees and relieves anxieties in the workforce.
"Labor continues to be tight in most of our market areas," he said, "but the long profitable history of Ennis continues to be a benefit in recruiting and keeping good employees."
Walters stated that the company's primary objective for the remainder of the year is to integrate the new companies, and acknowledged that ongoing changes and uncertainties within the industry can have a negative impact on a salesperson's attitude.
"It's important to encourage distributors to continue knocking on doors. Manufacturers and distributors have to demonstrate a willingness to adapt to the end-users evolving needs," he said.
Marshall Reynolds, CEO of Huntington, West Virginia-based Champion Industries, said that although the industry is in flux, one thing remains constantcompanies grow by increasing and expanding sales.
And while there is an increasing demand for specialized products, Reynolds sees forms and commercial printing sales running just about equal.
For example, Reynolds noted that Champion does a good business in envelopes. "We have a lot of salespeople out there on the streets picking up a lot of little gimme orders which add up," he explained.
And while Reynolds believes it is important to stay on top of technology, integrating new tools to modify business operations re-quires a cautious approach, ensuring that the changes will be cost effective.
"We have blanket orders with customers and need to accommodate their e-commerce initiatives. The trick is to stay on the cutting edge of technology, but away from the bleeding edge," said Reynolds.
With an overall goal of achieving vertical-market integrity, Reynolds stated that Champion looks at at least two opportunities a week to acquire new business. "Obviously, we're interested in companies that produce things that we already buy outside, as well as any new opportunity that will allow us to grow," he said.
While Reynolds finds the labor market to be tighter than it was 10 years ago, he still believes there are a lot of good people out there and noted that skilled and dedicated employees are valued for their part in helping Champion enjoy its current level of success.
"We keep good workers by re-warding seniority," he said, "paying a greater percentage of their medical insurance each year while offering a very liberal vacation benefit for those who have been here a long time." The company also believes in training its people to allow for personal growth and promotions from within.
Acknowledging the major contribution of Champion's distributor customers, Reynolds gave them high praise for their loyalty and hard work. However if the industry is to remain healthy he encouraged distributors "to continue to show loyalty to the people making the products and getting them out in a timely fashionand not to be shopping around for the lowest price."
Marshall Reynolds avid Paulus, president and co-owner of Crabar Paper & Allied Products, credits much of the Dayton, Ohio-based company's success to its distributor channel, business strategy and customers' support. He foresees the continuation of the positive role that distributors play in servicing the company's accounts.
"It's not only what is asked of our distributors, but what we owe to them," explained Paulus. This includes providing a "very good product portfolio that is both quality- and cost-driven."
High on the company's list of priorities is the expansion of its role in cut sheets, as evidenced by the planned purchase of a new press and sheeter in the fourth quarter of this year.
"We are also further modifying and upgrading our presses and collators to achieve speed and productivity efficiences," said Paulus.
Crabar is also planning upgrades to existing software systems and, during the past year and a half, has implemented electronic data transfer.
A recent paper mill acquisitionDeferiet Paper Company in Deferiet, N.Y.has also helped the company keep pace with technology, according to Paulus.
"We are one of the few companies that has vertical integration with paper," he explained. "As a result, we've experienced a synergyfrom a raw material as well as customer base and technological standpoints."
The tight labor market has affected almost every industry and printing is no exception. Paulus noted that aggressive training and development programs have gone a long way in helping the company maintain its employees.
"We are all faced with being very creative with how we maintain our workforce," he explained. At Crabar, this has included training and development as well as cross-training among multiple pieces of equipment. He noted that this "broadens workers' horizons, keeps their interest and offers incentive."
Finally, Paulus stressed Crabar's intention to successfully acquire additional companies in the 2001 fiscal year. "We are extremely active in the marketplace," he said "and we are extremely aggressive."
It's not only what is asked of our distributors, but what we owe to them,'
David Paulus