While electronic delivery continues to replace some print jobs, other areas are ripe for growth this year. A recent Gaptrac survey of printers found that value-added products offer the most opportunities for the forms and business printing industry, including pressure seal cut sheet and continuous mailers, bar coded forms/label combinations, integrated card and label products, security features such as foil stamping, variable data and numbering, document management services, transactional document printing, and workflow and forms consulting.
Industry leaders who have added growth products and services during the past few years know it's important to avoid the perception of offering commodity products. Although printing is a made-to-order custom business, the perception exists. For all printers, a key ingredient to success this year is to be recognized as a communication provider.
Changing Product Mixes
The forms industry has challenges, but consider the commercial printing industry, which has been losing establishments at the rate of more than 10 percent per year since 1998. The National Association for Printing Leadership (NAPL) reports that more than 37,600 print establishments existed in 1998. By 2007, that number will drop to slightly more than 28,000, a 34 percent decrease. Commercial printers have been particularly affected by these trends:
* If long run books and publications can withstand a 6- to 8-week turnaround, many print buyers know how to source the jobs overseas.
* Short run color is giving way to digital print. Today's PC multifunction devices can print, scan, fax, download from memory cards and produce photo-quality prints at the same time. Think about the product mix of a typical print shop in 1997: A great deal of that work now can be accomplished on desktops.
* Black-and-white print on demand is migrating to digital print. Many small-business copy machines have been replaced by networked digital copiers that are on par with the capabilities of small production printers five years ago. Also, advanced finishing options in smaller machines make document jobs a possibility.
* 2- and 4-color newsletters have all but disappeared, as many publishers now use HTML-based internet newsletters. The obvious advantages are fast publishing and eliminated postage costs.
* Catalogs and directories are published on the web or on CDs. This category mostly affects large commercial printers, but it signals an ongoing trend. Niche printers that specialize in directories must have a survival strategy.
* Computer and software manuals are stored almost exclusively as PDF files on CDs that also include the application.
Commercial printers likely will continue to lose work in these areas and seek new products to keep their presses running. Two-color cut sheets, forms and letterhead are items any commercial printer can produce. Forms printers must be aware of this migration into their territory.
Here's a quick rundown of other important topics for manufacturers in 2005:
* Forms printers need to reduce costs to remain competitive. For short runs, commercial printers may compete more effectively using sheet-fed equipment. For long runs, the forms printer has an advantage, but the commercial printer may be more adept in producing finer screens and 4-color work. Commercial printers that have invested in sheet-fed digital imaging (DI) equipment understand that reducing prepress processing costs is crucial to earning higher margins. Digital imaging presses completely automate the front-end processes, including plate making and workflow. For this reason, forms manufacturers would be wise to add a sheet-fed digital imaging press so they could offer the full gamut of run lengths needed by end users. The addition of DI equipment also will expose the traditional printer to a digital workflow, which is critical for success.
* Most forms printers don't understand the opportunities they face in the world of transactional documents and print/mail services. The message from industry experts is that print companies can survive by evolving into communication providers. This is a major step for most printing companies because it's a radical shift from an analog process to a digital one.
A forms plant is closer to a communication provider than the average commercial printer. The capability for producing large quantities of high-quality business documents exists. Whether specializing in cut sheet or continuous, the forms printer has a big advantage. Visit any transactional document factory today and you'll see lots of preprinted offset shells, continuous or cut sheet, being processed on digital equipment. The big difference between a transactional document plant and a forms plant is the IT structure in place to handle digital data and the software required for variable data imaging.
While offset printed document shells are being challenged by full-color printers, current data supports the presence of both technologies for some time. In the fall of 2003, the Rochester Institute of Technology studied U.S. paper consumption during the next 15 years. The key indicator for document providers is that consumption of forms is down, and consumption of cut sheets, direct mail and packaging is up. By charting a course, forms printers can be on the positive side of the numbers. (See table above.)
* Education and networking matter. This year, DMIA offers an in-depth executive program for manufacturers and their suppliers. The 2005 Manufacturer/Supplier Print Conference is a 2-day event that will help owners and executives prepare their companies for the future by focusing on emerging products, emerging markets, emerging channels and positioning your company. The conference takes place in Philadelphia on May 18-20 and will be held in conjunction with the On Demand Expo so attendees can see digital printing in action. For more information, visit www.PSDA.org.
Dennis McGarry, CDC, is vice president of manufacturer and technical programs at DMIA. Email him your comments at dmcgarry@PSDA.org.
NEWS
Appleton, Appleton, Wis., introduced its "Upgrading Slide Brochure" to allow check distributors to quickly assess and calculate for their customers the number of checks at risk for fraud per year and the dollars at risk per year. Users also can calculate the risks at www.betyourcorp.com. Call (800) 533-9421.
Visit www.appleton.com.
MAN Roland, Westmont, Ill., held "Printing for Creatives" seminars in the United States and Canada. They included topics such as preparing files for press, press checks, ink and coating options, computer-to-plate technology and more. Call (800) 700-2344 or (630) 920-9146 (fax).
Nazdar, Shawnee, Kan., introduced VERSACon™ 1-part UV curable screen ink. VERSACon can be printed directly on a variety of plastic containers, treated HDPE, treated or untreated PET, polycarbonate and treated polypropylene, according to the company. Available in a range of colors, the high-gloss ink offers superior resistance to solvents, chemicals and other products packaged in cosmetic containers, it said. Call (800) 767-9942 or (913) 422-2296.
