Preserving Profitability in a Challenging Ecomony
Quality, service and sound strategic planning put these suppliers on top.
Rising from third place in last year's BFL&S Top 100 Manufacturers list, Ennis Business Forms, DeSoto, Texas, has achieved top honors this year. The successful company reported $240.8 million in sales for the latest fiscal year completed.
When asked about the company's formula for success, Keith Walters, president and CEO, said that a combination of tried-and-true principles coupled with new ideas and acquisitions have proven to be the winning ticket.
"Ennis continues to concentrate on basics, including customer service, cost control and e-commerce developments," Walters said. He also identified the integration of Calibrated Forms, Columbus, Kan., as a major factor in the company's success this year.
It goes without saying that a company is only as good as its employees, and Walters credits his employees' tireless efforts for the company's continued success. He said that Ennis' three business groups—Forms Solutions, Promotional Solutions and Financial Solutions Group—performed well and contributed to the company's overall profitability. Founded in 1905, Ennis Business Forms has 2,200 employees in 30 locations across the United States.
"Ennis is fortunate to have an experienced and talented sales/customer service staff," said Walters. "Our strategy of utilizing both national and regional selling has proven beneficial for our distributors and for Ennis."
Furthermore, Walters said that Ennis' strong distributor base remains an integral part of the company's continuing growth. "Without our successful business relationships with distributors, Ennis would not enjoy its record success," he said. "Many new and expanded partnerships are planned for the coming year that will allow new tools to be available to our customers."
For Walters, Ennis' future is bright, and he is confident that the company will continue to experience growth, even in shaky economic times. "While many manufacturers are facing uncertain futures, our financial stability and solid reputation will assure Ennis a meaningful role in the industry moving forward," he concluded.
By Cynthia T. Graham
PrintXcel continues to hold its own in the No. 2 position on the BFL&S Top 100 Manufacturers list, with an impressive $240 million reported in annual sales in fiscal year 2002. Founded in 1949, PrintXcel, Englewood, Colo., has 1,200 employees in 12 locations in the United States.
According to Allen Conway, executive vice president, labels division, PrintXcel continues to flourish because of its commitment to customers. "By listening to our customers and through the commitment of our employees, we have been able to deliver the print products and services that our distributors and their end-users want," he said.
With this commitment in mind, the company now offers its customers and distributors more than eight new products and services, including PressAbels Spirit Sheets, Cold Foil, HIPAA forms and an online store for distributors to order stock forms.
Of the role PrintXcel's employees play in the company's success, Conway commented, "Our team of 1,200 employees throughout our 12 customer service and manufacturing facilities is the key to our current successes and our long-term growth in the marketplace."
Another factor in the company's sustained success is its long-standing relationship with distributors. "PrintXcel understands that the company is successful only if our distributors are successful. Through our distributors, we have developed long-standing relationships with most of our key customers," said Ric Fisher, executive vice president, documents division.
Furthermore, PrintXcel recently implemented its Boot Camp program to support the company's cross-selling initiatives. The idea is to train one salesperson from each sales office as an expert in each product line, who will then teach team members how to implement the program's guidelines.
When it comes to innovative equipment, the company's New Albany, N.Y., plant created an 11-color press by joining three presses together. The new press now supports a large variety of ink, foil and lamination combinations. Its Toledo, Ohio, facility recently installed the Mueller Martini Concept NT press, which can provide up to 18-color printing and UV drying in a variety of formats.
With a $25 million drop in sales from the previous year, Fisher said that the company will focus much of its future efforts on less explored markets. "We will capitalize on growth areas, such as direct mail, fulfillment services, commercial printing, pressure-seal documents and label solutions," he said.
With the help of its distributors, Fisher sees a bright and prosperous future for PrintXcel. "We will identify and develop applications that solve business issues by staying connected with our distributors," he said. "We believe that the breadth of products and services we offer allows our distributors to be able to meet their customers' print needs."
By Cynthia T. Graham
It has been business as usual this past year for Champion Industries, Huntington, W. Va. When interviewed for BFL&S' Top 100 Manufacturers list in 2002, Vice President and CFO Todd Fry projected that Champion Industries would "continue its aggressive, yet prudent practice of looking at opportunities to purchase companies that make it more competitive." According to President and COO Kirby J. Taylor, Champion Industries has continued this strategy in 2003.
"Champion's strategy is two-pronged," Taylor said. "Yes, one prong is to continue its aggressive practice of acquiring companies. The second prong is to continue its strategy of reducing costs, including consolidating operations and closing manufacturing plants."
The summer of 2003 was a busy time for Champion Industries. On June 18, it purchased certain assets of Wheeling, West Virginia-based Contract Business Interiors; on July 1, it secured assets and the customer list from Pittsburgh-based Integrated Marketing Solutions; and on September 18, it purchased assets and the customer list from Cox Printing, Lexington, Ky.
Lending to the second prong of Champion Industries' strategy was the August 1 consolidation of U.S. Tag's plant with an existing facility. However, according to Taylor, U.S. Tag, Huntington, W. Va., will still operate as an autonomous tag supplier.
Did plant consolidation prove successful for Champion Industries in 2002? "Many of our plants have shown improvement over the last year. We are working diligently with the others," said Taylor, who noted that two of Champion's plants successfully sell to distributors.
In addition to working to streamline operations, what else does Champion Industries hope to achieve next year?
"Our major goals for 2004 are to continue positioning ourselves for an economic turn-around and improve profitability," answered Taylor. "We believe this can occur as a result of actions discussed above. We already have a 'fortress' balance sheet."
By Jennifer Hans
Even though TST/Impreso, Coppell, Texas, was able to maintain $121 million in sales this past fiscal year, President and CEO Marshall Sorokwasz describes 2003 as "tough."
"The continuous forms market continues its double-digit decline," said Sorokwasz. "The decline of paper prices coupled with the overall market decline has made it difficult to maintain last year's levels of sales and earnings."
TST/Impreso's fiscal sales numbers are $2 million shy of its total figure this time last year. But, that hasn't stopped the company from expanding.
"We are expanding our wide-format ink jet and engineering roll business, as well as our small point-of-purchase roll business," noted Sorokwasz. "Small rolls lead our growth."
Another road that TST/Impreso is exploring, which Sorokwasz mentioned last year, is going private. "We feel it may be in our best interest," he explained. "We signed an engagement letter with Matrix Capitol—a division of the Money Group—to find a strategic investor to take us private."
Noting that resellers were "vital" to TST/Impreso's efforts in 2003, Sorokwasz remains somewhat optimistic for what lies ahead. "We expect paper prices to recover, and that will put pressure on prices to rise," he said. "We also expect the economy to improve, which will help the overall business forms industry, but electronic data availability will offset possible gains. I foresee increased industry sales in 2004 if the economy continues to improve."
By Jennifer Hans
By partnering with distributors to help turn visions into realities, GBS Filing Solutions (formerly GBS Filing Systems) has achieved its goal of becoming a leader in marketing, communication and information management services—a goal that earned the Malvern, Ohio-based supplier a fifth-place ranking (a three-way tie).
"We believe our high-quality, value-added products and services are key ingredients to our success," said John Dragoiu, chairman of the board. "Being able to adapt and customize our products to meet specific client needs is what enables us to sustain our growth and profitability."
Established in 1974, the company's name was changed at the beginning of 2003 to better reflect its evolving product line, which satisfies changing market needs through the dedication of more than 500 employees staffing 25 locations.
Not surprisingly, the company professes "a passion for filing" and offers a wide range of folders, organizational devices, Internet-based label printing software and an Internet-based tracking and imaging solution. Two of the newest additions include NetLabels, an Internet-based label printing system that was introduced in 2000, and NetFileManager, a tool launched in 2002 to facilitate Internet-based file tracing and imaging. "Both NetLabels and NetFileManager are doing very well," reported Dragoiu.
GBS Filing Solutions also provides print management services, as well as hardware and software solutions. As a software developer, GBS delivers cutting-edge technology through state-of-the-art, industry-specific software—including government systems, health-care information management and credit union systems—quality hardware, advanced network solutions and technical services that include implementation, configuration, training, and systems support.
Of course, providing high-tech solutions requires the company to invest itself heavily in distributor education. "Our company representatives go out frequently and consistently to visit dealers to conduct training and provide sales assistance," said Dragoiu. "Overall, we feel we have positioned ourselves well to provide our dealers with both paper-based filing solutions and technology-based solutions for now and well into the future."
By Maggie DeWitt
Nurturing the desire to succeed and problem-solving abilities in others is a key factor in Roger Brown's personal success. The president of Dayton, Ohio-based Crabar/GBF is also a savvy businessman with an eye toward aggressive acquisitions who—together with his management team—has budgeted $100 million to acquiring additional manufacturing operations over the next 19 months, thus providing even more products and services to an ever-expanding customer base.
Brown is one of four partners at Centrum Equities, the privately held Chicago-based investment group that in 2002 purchased Crabar/Witt and Edison Business Forms. In January 2003, Crabar/Witt continued its acquisition strategy when it merged with GBF Graphics, Inc., Arrow Business Forms & Labels and Genforms & Labels, forming Crabar/GBF. The resulting combined revenues of more than $100 million ranks Crabar/GBF fifth (a three-way tie) on BFL&S' Top 100 list.
But, what the resulting combination of products and services is doing for Crabar/GBF's distributors is perhaps the bigger story.
With expanded offerings throughout the entire organization, distributors can partner with Crabar/GBF for a single-source supplier that helps them save time, reduce costs and compete against the major directs.
"Crabar/GBF understands that this industry has an over-supply problem," commented Brown. "Some industry experts believe that overcapacity will cause prices to decrease as much as 10 percent each year over the next two years. Our employees are focusing on competing in that environment, and their efforts will drive our continued success."
Established in 1951, GBF Graphics, Inc., included four production facilities that specialized in direct mail production, as well as a vast array of complex business forms solutions. Today, the Skokie facility includes process color perfecting presses, high-speed Scitex 3600 imaging systems, finishing equipment and a full-service lettershop. In addition, GBF Graphics, Inc., invested more than $6 million in new equipment, including the latest in computer-to-plate pre-press systems.
Crabar Business Systems began supplying distributors with printed products—including custom continuous forms and unit sets—in 1893. Since then, it has expanded to include four manufacturing plants, as well as the Dayton, Ohio, corporate office. The product mix also expanded to include laser cut sheets, unit sets and integrated products. Today, with eight plant locations nationwide and a new name, Crabar/GBF is positioned to provide short, medium and long runs—one of the few manufacturers efficiently specializing in all three order sizes.
Brown firmly believes that Crabar/GBF adds value by being a low-cost producer offering just-in-time deliveries, with an emphasis on exceptional service. And, he carefully cultivates a "can do" attitude among his employees to make it all happen.
By Maggie DeWitt
Western States Envelope & Label, Butler, Wisconsin, has tied for fifth place on BFL&S' list at $100 million. Established in 1908, the company is considered one of the largest envelope manufacturers in the United States, with five full-service facilities located throughout Wisconsin, Kentucky, Ohio and Minnesota.
Now, the envelope leader is flexing its label-producing muscles. "Labels are projected to grow at twice the rate of print sales," explained president Mark Lemberger.
One factor Lemberger attributes to his company's continued success is that technology has always been at the forefront of his strategic plan, which includes investments in the latest equipment, innovative design approaches and exceptional in-house engineering capabilities.
"We are an active test site for new machinery and have a mix of equipment that's not found anywhere else in the world," said Lemberger. For instance, the company was chosen by F.L. Smithe to preview its new SR Servo-Rotamatic envelope press, which replaces manual set-up with an automated, servo-adjustable system for quick set-up times. He noted that there is only one other Smithe SR machine currently operating.
"Equipment manufacturers know that we are an innovative organization with the resources to help them through final development," he said. "They also know that we have a state-of-the-art facility that will showcase their machines to full advantage."
But, perhaps Western States Envelope & Label's greatest coup was being chosen as the beta test site for the Mark Andy D.T.—a digitally engineered conventional flexo press featuring four-color ink jet printing, capable of producing up to 150-line screens. In addition, the press features inline laser die cutting and requires no plates or set-up, so jobs can be completed virtually in minutes.
The first company in the label industry to have this technology, Western States Envelope & Label is benefiting from reduced cycle times and lower labor costs, which translate into competitive pricing and the best possible service. Lemberger has been running jobs on the equipment since May, and although 50 percent of the work is still beta testing, the rest is actual job orders.
"Our success is due to a continued responsiveness to customers' needs and a willingness to adopt new technology and process to help them grow and prosper," said Lemberger. "It is through the success of our customers that Western States Envelope & Label nurtures its own growth and development. Going forward, we will continue to offer value-added products, while providing the very best in customer service."
By Maggie DeWitt