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JANUARY

2014

PRINTING IMPRESSIONS

ANNUAl hot mARkets foRecAst of keY veRticAls n pRodUctioN iNkJet stAtUs RepoRt n pRiNteRs’ 2014 iNvestmeNt plANs

n 2014 ‘Hot Markets’ Forecast

Top 25 Industries That Purchase the Most Printing

n Production Inkjet Adoption

Expert Insight on Growth, What Else to Consider

JANUARY 2014 PRINTING IMPRESSIONS ANNUAl hot mARkets foRecAst of keY veRticAls n pRodUctioN iNkJet stAtUs RepoRt

JANUARY 2014 / $10. 00

Edwards Brothers Malloy execs, standing (from left):

Laura Conlin, Jim Edwards, Joe Upton. Seated: John Edwards, Bill Upton.

in Enjoy thE intEractivE pagEs this issuE sEE pagE 8 for dEtails
in Enjoy
thE
intEractivE
pagEs
this issuE
sEE pagE 8
for dEtails
Catering to the Digital Revolution new book publishing paradigms haven’t deterred edwards brothers malloy. the venerable
Catering to the
Digital Revolution
new book publishing paradigms
haven’t deterred edwards
brothers malloy. the venerable
book manufacturer has embraced
on-demand digital printing to
supplement its offset capabilities.

Visit Piworld.com For Daily News UPDates

JANUARY 2014 PRINTING IMPRESSIONS ANNUAl hot mARkets foRecAst of keY veRticAls n pRodUctioN iNkJet stAtUs RepoRt

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PRINTING IMPRESSIONS®

Upfront

Visit

www.PIworld.com
www.PIworld.com

daily for the latest industry news

Harland Clarke Buys Valassis

SAN ANTONIO—Payment solutions specialist Harland Clarke Holdings (HCH) has agreed to acquire Livonia, MI-based Valassis, which specializes in free-standing inserts. HCH, a wholly owned subsidiary of MacAndrews & Forbes Holdings, will purchase all of the outstanding shares of Valassis for $34.04 per share in cash, representing a transaction value of approximately $1.84 billion.

NAPL, AMSP Merger OK’d

EAST RUTHERFORD, NJ—In an overwhelming vote of approval, by more than 97 percent of the votes cast, the memberships of the National Association for Printing Leadership (NAPL), based here, and the Associa- tion of Marketing Service Providers (AMSP) have agreed to merge into a single entity. The association hopes to provide an expanded slate of services to its respective members.

Bang Nets Victor Graphics

BRAINERD, MN—Bang Printing has entered into an agreement to buy certain intangible assets, goodwill and customer relationships of Baltimore- based Victor Graphics. The acquisition will allow Bang Printing to provide former Victor Graphics customers with a more diversified suite of prod- ucts and services.

IWCO Direct Adds Océ Press

CHANHASSEN, MN—IWCO Direct, a provider of direct marketing solu- tions, announced it has expanded the digital platform at its Hamburg, PA, facility with the installation of an Océ ColorStream 3900 inkjet press from Canon Solutions America. The instal- lation marks the next phase of IWCO Direct’s strategic investment in digital printing technology, which provides customers with additional resources to create high-volume direct mail campaigns.

Continued on page 6

Betty Ewens Quadracci, 75, Co-Founded Quad/Graphics

SUSSEX, WI—Quad/Graphics Inc.

announced that company co-founder

and long-time board member Betty

Ewens Quadracci died Dec. 9 at her

home in Wisconsin.

Recognized as the matriarch of

Quad/Graphics, Mrs. Quadracci co-

founded the company in 1971 with

her late husband, Harry V. Quadracci.

The company started operations in a

vacant factory in Pewaukee, WI, with

a single printing press and just 11 em-

ployees. Today, Quad/Graphics is a

global printer and multichannel me-

dia integrator with 25,000 employees

worldwide at 65-plus printing plants

and dozens of support facilities.

During Quad/Graphics’ early years,

Betty Quadracci held many roles. In

1985, she founded Quad/Creative,

a graphic design firm now known as

Quad/Graphics Creative Solutions.

She also served as the president of

the Windhover Foundation, a phil-

anthropic organization funded by

the Quadracci family.

In 1997, she and Harry

spearheaded a $10 million

matching donation from

Quad/Graphics to kick

off fundraising for a major

addition to the Milwau-

kee Art Museum—the

Quadracci Pavilion.

Mrs. Quadracci’s estate

planning was thought-

ful and thorough, with

the continuity of Quad/

Graphics a key focus. The

BETTy

qUAdrAccI

Quadracci family and

various family trusts will continue to

control the company through owner-

ship of all of the company’s high vote

class B stock, which constitutes more

than 80 percent of the company’s to-

tal voting power.

Betty Quadracci is survived by her

four children—Richard, Kathryn,

Joel and Elizabeth—10 grandchil-

dren and her five siblings.

Canada Post to Phase Out Home Delivery, Raise Postage

OTTAWA—Canada Post has un-

veiled a five-point action plan de-

signed to help the agency save as

much as C$900 million per year

and regain financial stability by

2019. As part of the plan, home

delivery will be phased out and the

cost of postage stamps will increase

at least 35 percent.

The overall plan will result in the

reduction of between 6,000 and

8,000 positions, mainly through at-

trition, Canada Post said in a release.

Only about one-third of all Ca-

nadians receive mail delivery to

their door, which covers about 5.1

million residents. The other two-

thirds retrieve it

via a central lo-

ructu
ructu

cation—commu-

nity or rural mail-

boxes or apartment

lobbies.

A tiered pricing structure will

see the cost of stamps, which are

mainly purchased by Canadians

in booklets or coils, increase to 85

cents per stamp, with discounts for

customers that use mail the most.

Customers who buy one stamp

at a time, which represents about

2 percent of stamp purchases,

will pay $1 per stamp. The price

changes take effect March 31.

PRINTING IMPRESSIONS ® Upfront Visit www.PIworld.com daily for the latest industry news Harland Clarke Buys Valassis

Upfront

Continued from page 5

RRD-CGX Clears Antitrust

CHICAGO—The waiting period un- der the Hart-Scott-Rodino Antitrust Improvements Act of 1976 has ex- pired, paving the way for RR Donnel- ley (RRD) to complete its previously announced acquisition of Houston- based Consolidated Graphics (CGX). The deal, which remains subject to approval by CGX shareholders and other customary closing conditions,

is expected to close during the first

quarter.

Worker Injured by Forklift

PORTLAND, OR—An employee of a commercial printing company here was taken to the hospital after

a forklift ran over his legs, KOIN-TV

6 reported. The unidentified man, an

employee of Journal Graphics, was freed from underneath the truck by the time emergency personnel arrived on the scene. The victim was treated for leg injuries at the hospital.

Alcom Acquires Macorp

HARLEYSVILLE, PA—Alcom Print-

ing Group has acquired Macorp Print Group of Souderton, PA. This deal will further expand Alcom’s commercial sheetfed printing, coldset web printing, digital printing, direct mail, packaging, warehousing, fulfillment, distribu- tion and integrated communication

solutions offerings. The firms have a

combined 85 years of experience in the graphic arts industry.

NAPCO Promotes Leskusky

PHILADELPHIA—North American Publishing Co. (NAPCO), parent com- pany of P rinting imPressions magazine, announced that David Leskusky has been named president. Leskusky, 41, succeeds Ned Borowsky, who has become vice chairman of NAPCO alongside his father, Chairman and Founder Irvin J. Borowsky. In his new role, Leskusky has assumed all day-to- day operations and reports directly to Ned Borowsky.

Imagine! Print Solutions Acquires Pair of NC Firms MINNEAPOLIS—Imagine! phy of providing Print Solutions has strengthened
Imagine! Print Solutions
Acquires Pair of NC Firms
MINNEAPOLIS—Imagine!
phy of providing
Print Solutions has strengthened
highly responsive
its holdings with the acquisition of
and flexible ser-
two Charlotte, NC-based providers
vice to our cli-
of print and marketing solutions,
ents, a passion for
including renown firm Classic
print and a belief
Graphics. All combined, Imagine!
in team work.
Print Solutions will approach $300
“Uniting the
million in annual sales.
two companies
bOb
The Classic Graphics transaction
creates a stronger
LOTHENbACH
was officially called a merger. Terms
entity. Blend-
of the deals were not released, but
ing the strengths and location of
Imagine! and Classic will maintain
our company with those of Clas-
their individual identities.
sic creates an optimal service and
In a separate deal, Imagine!
distribution model and leverages
picked up Creative Marketing So-
manufacturing and purchasing
lutions, a $20 million performer.
power for more competitive offer-
According to the Minneapolis Busi-
ings to clients. Most important,
ness Journal, Imagine! will com-
customers of both companies will
bine the offices and operations of
be served by one of the strongest
Creative Marketing Solutions into
graphics companies in the nation.”
Classic Graphics.
David Pitts, president of Classic
“The cultures and visions of
Graphics, noted that combining
our two companies are virtually
Classic with Imagine! provides cli-
identical,” said Bob Lothenbach,
ents access to wider and more so-
president and founder of Imagine!
phisticated service offerings. Pitts
Print Solutions, in describing Clas-
will remain as president of Classic
sic Graphics. “We share a philoso-
in the combined company.

RIT: Top Bidder for Historic Albion Hand Printing Press

ROCHESTER, NY—The Roch-

and printers,” Steven Galbraith, cura-

ester Institute of Technology (RIT)

tor of RIT’s Cary Collection—where

has added a historic piece of iron to

the press will be added—told the

its collection of antique printing ma-

newspaper.

chines after notching the winning bid

The antique press purchase was

of $233,000 at auction for a Kelm-

made possible by the support of 1974

scott/Goudy Albion iron hand press,

RIT graduate Brooks Bower, the

the Rochester Democrat & Chronicle

chairman and CEO of Louisville, KY-

reported.

based envelope manu-

RIT captured the Improved Albion

facturer Papercone

Press No. 6551, which was used by

Corp.

William Morris to print the Works of

Geoffrey Chaucer in London during

the late 1890s. The nearly seven-foot

high, more than 2000-lb. press was

auctioned by Christie’s in New York

City.

“The Kelmscott/Goudy Press will

have an active life at RIT, not simply

as a museum artifact, but as a working

press accessible to students, scholars

WAS II

WAS

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RUNNING

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PRINTING

IMPRESSIONS®

JANUARY 2014

VoluME 56, nuMBEr 8

WWW. PIWorlD.coM

20
20

FEATURES

  • 20 EBM: Not An Old Dog Despite being a 120-year-old company, Edwards Brothers Malloy knows that changes in the marketplace equates to opportunity.

  • 22 What’s Hot, What’s Not Packaged foods and medical/pharmaceuticals head the list of the top print markets for 2014, with telecom and publishing not far behind.

  • 28 Printers’ Investment Plans What’s the next biggest thing? A study done in conjunction with InfoTrends looks at where printer investments are being focused in 2014.

  • 30 The Wide World of Inkjet Already strong for book, direct mail and transactional applications, commercial printers ponder production inkjet printing adoption.

  • 36 Farquharson/Tedesco on Business Development Voicemail may have lost its luster, but is it still relevant? And should salespeople leave

messages when reaching out to print buyers?
messages when reaching out to print buyers?

22

DEPARTMENTS

  • 12 Across the Nation

  • 14 Online @ PIworld

  • 16 Editor’s Notebook

  • 35 Digital Digest

  • 38 Bits and Pieces

  • 40 New Products

  • 42 Printer News

  • 43 Supplier News

  • 44 Calendar of Events

  • 44 Showcase

  • 45 Classified

  • 58 Advertiser Index

30
30
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Ark A ns As Jonesboro — Arkansas state Uni- versity Print services has acquired a four-color

Ark A ns As

JonesboroArkansas state Uni- versity Print services has acquired a four-color Heidelberg Speedmaster SX 74 press with aqueous coater and Easy Control closed-loop color control, along with a Suprasetter A52 platesetter.

Florid A

Fort LAUderdALenational Multiple Listing has purchased a Linoprint C901 digital printing system and high-capacity stacker from Heidelberg, including the Prinect Color Toolbox and Prinect Digital Print Manager. orLAndoFineline Printing has

installed a Ricoh Pro C901 Graphic Arts+ color production system and a black-and- white Ricoh Pro 907. A Ricoh Pro C651EX color machine has been relocated to the company’s Titusville location, and an additional Ricoh Pro 907 has also been installed there. Fineline plans to open a third location in Central Florida this year.

llinois

i

VALMeyerMAr Graphics is one of two U.S. companies to first purchase a Xerox Color 8250 production printer.

MA ine

scArboroUGh—Direct marketing com-

Impress/DC Media Celebrates Expansion With Open House

MIAMI—After experiencing tremendous

growth in 2013, Impress/DC Media need-

ed more space and greater capacity. To

accommodate this growth, the company

moved to a 10,000-square-foot facility and

purchased an HP Scitex FB700 Industrial

printer and HP Indigo 7600 digital press.

To celebrate its new location and ex-

panded offerings, the company recently

hosted an open house. At the event, local

photography was brought to life through a

20x80˝ wallcovering, printed on a textured

surface vinyl material with its HP Latex

During the open house, customers were

850 printer. Guests were also invited to

with demonstrations of live jobs. invited to watch demos of live jobs. A large, 20x80-ft. wallcovering
with demonstrations of live jobs.
invited to watch demos of live jobs.
A large, 20x80-ft. wallcovering served as an example of
Impress/DC Media’s expanded range of capabilities.
experience the printing process first-hand

pany dMM Inc. has also implemented a Xerox Color 8250 production printer.

MA ryl A nd

hUnt VALLey—UK-based Clays Ltd., a division of St. Ives, has joined the sheri- dan Group and The OPUS Group in the Content Delivery Alliance.

  • M ichig An

bAy cItythe F.P. horak co. has launched a Web-based, business-to- consumer product line. “ inspire me

to…” is a series of seven customizable children’s books.

MinnesotA

st. LoUIs PArkJaps-olson co. has acquired a pair of Linoprint C901 digital printing systems from Heidelberg. The installation includes Heidelberg’s Prinect Color Toolbox suite of color management tools.

n evAdA

LAs VeGAscreel Printing has achieved sustainability tri-certification:

the Forest Stewardship Council (FSC), the Sustainable Forestry Initiative (SFI) and the Programme for the Endorsement of Forest Certification Schemes (PEFC).

n ew Jersey

cLIFton—A new Heidelberg Speedmas- ter CX 102-6+L sheetfed press is now in operation at kM Media Group.

n ew y ork

scotIAVelocity Print solutions has centralized its manufacturing operation from Connecticut to its headquarters here. It includes the installation of a six-color, 28x40˝ press with aqueous coater.

o hio

cIncInnAtI—An HD digital printer has been acquired by Finn Graphics . coLUMbUshopkins Printing has purchased a five-color Speedmaster XL

GLS Completes New Digital Printing Studio

BRooklyn paRk, mn—GLS Cos. has installed an HP Indigo 10000 to com-

From the left,

Jayme Wisely,

president and COO;

and Gary Garner, CEO,

enjoy a ribbon-

cutting ceremony.

plete its digital studio. In addition to the new new press, the studio also oper-

ates an Indigo 7500 and an Indigo 5000, as well as several finishing stations.

“After months of research, planning and hard work by many committed in-

dividuals, it is with great pride that the GLS Digital Studio is open and running

smoothly at its full capacity,” said CEO Gary Garner. “We are thrilled to be able

to bring forth the latest technology in our industry and all the benefits it has to

offer our customers.”

106 featuring AutoPlate plate-changing, extended delivery and integrated Prinect Inpress Control.

South Dakota

Rapid CitySimpsons printing has installed a Fuji Acuity Advance Select wide-format flatbed UV printer with roll option and clear and white ink function, as well as an Esko Kongsberg i-xl24 with MultiCUT head and roll option. The new equipment has improved productivity and expanded their substrate possibilities.

Virginia

RiChmondpohlig packaging has ac- quired a Heidelberg Speedmaster XL 106

with extended delivery, Prinect Inpress Control and full logistics package.

Wi S con S in

manitowiSh wateRS—Rudy Valenta, 69, passed away in November. Most recently president of eltosch america, he also worked at manroland and its predecessor, Rockwell/miehle .

Please Don’t Keep It a Secret

Send information about new equipment

and software installations, plant expan-

sions and renovations, major printing

contracts won, the signing of acquisition

and marketing alliance agreements, as

well as other newsworthy items to:

Across the Nation Editor,

c/o Printing imPressions,

1500 Spring Garden St., 12th Floor

Philadelphia, PA 19130

E-mail: mmichelson@napco.com

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Online @

Join in on the Discussions

Printing imPressions encourages our readers to stay engaged

throughout the month by reading and replying to the blog postings

on a growing list of industry topics at http://PrintingsBestBlogs.com.

Members of the professional graphic arts community are also

invited to interact with the magazine’s staff and each other via the

PIconnects social media sites on Facebook, Twitter and LinkedIn.

Reconsider Your Approach to ‘Lazy Man LinkedIn’ Requests

By Ryan Sauers

WHAT IS Lazy Man LinkedIn? It goes something like this:

You do not really know people and yet they ask you to con-

nect with them via the social network LinkedIn.

You see, like all social networks, LinkedIn was created

to help people to connect with others they wanted to know

better. The original setup, although not used as much these

days, was to have a person who was a professional contact

of mine “introduce me” via LinkedIn to someone in his/

her professional network. So, just as business profession-

als have always introduced or connected people, LinkedIn

simply became a tool that, among other functions, helped

expedite this process. But what is going on now? You

guessed it—Lazy Man LinkedIn.

So what does the typical LinkedIn connection look like?

Here goes

...

“I’d

like to add you to my professional network

on LinkedIn.” Yes, that is right—this is the LinkedIn default.

Wow, that is truly personal, huh? Why don’t we take time

to customize this message? Why don’t we tell the other

person 1) how we know them, 2) why we want to connect,

3) who we both know in common, 4) if applicable, where

we have met before, and 5) anything else that is not LAZY.

If your first point of contact to another professional is Lazy

Man LinkedIn—reconsider your approach.

When someone sends me a Lazy Man LinkedIn request

and it requires my thinking of who they are, how I know

them, if I have ever met them and more, it’s likely that I

will not connect with that person. In contrast, let me know

where we met, who we know in common, the reason you

want to connect, along with the personal touch, and I will

most likely accept the invitation.

So make your communications memorable and, for

goodness sake, do not be Lazy Man LinkedIn.

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Smart phone
Scan with your Smart phone On-Demand Print Is Shifting to Inkjet ALtHoUGH tHe bULk of printed

On-Demand Print Is Shifting to Inkjet

ALtHoUGH tHe bULk of printed pages are still output

on offset presses, litho page output numbers are shrink-

ing overall, whereas short-run digital printing volumes are

rising. toner-based digital output devices have domi-

nated the industry landscape, but it doesn’t take a crystal

ball to see that inkjet-based digital print production will

proliferate in the coming months and years ahead.

And, it’s not just wide-format inkjet printers for signage,

displays, etc. High-speed, continuous-feed production

inkjet presses—like the InfoPrint 5000 recently installed

by edwards brothers Malloy, our January cover story pro-

file—are making strong inroads in the book, direct mail

and transactional printing markets. Over time, other markets will follow.

Granted, these high-speed inkjet presses are not suited for many

print shops. It takes a lot of short-run, often variable, and recurring jobs

in the pipeline to justify such a large investment. Some of the initial

roadblocks are being removed, though, as paper mills race to meet

market demands for a wider range of lower-cost stocks, weights and

sizes, and finishing equipment manufacturers work the kinks out of

automated solutions that enable high-speed postpress processing.

And, as more B2-format, cutsheet production inkjet press models

enter the marketplace, inkjet technology will be a game changer for

short-run commercial and packaging work. Although a webfed inkjet

press is best suited for higher-volume shops, the eventual, widespread

availability of lower cost, sheetfed output devices will help hasten inkjet

adoption among small- and medium-sized printing establishments.

over time, they will also displace the dominance of toner-based digital

printers due to inkjet’s inherent cost and speed advantages.

Wondering whether inkjet printing capabilities make sense for your

business today, or perhaps further down the road? then be sure to

check out our production inkjet printing special report, which begins on

page 30 in this issue. there, several of today’s leading digital printing

thought leaders discuss the current state of the market and what a

printer should consider before taking the plunge into the inkjet pool.

Printing company execs who are really serious about all things inkjet

should also consider attending this year’s Inkjet Summit, held April 7-9

in Florida. The educational content and peer-to-peer networking are

invaluable. To see if you qualify for the all-expenses-paid trip, e-mail

David Pesko at dpesko@ngagevents.com and visit www.ijsummit.com.

Scan with your Smart phone On-Demand Print Is Shifting to Inkjet ALtHoUGH tHe bULk of printed
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edwards brothers malloy

making Change their Friend

By Erik Cagle, senior editor

n order to fully reap the benefits associated with change, it is

  • important to believe that a deviation from the status quo is both
    I for others, it may represent an opportunity to exceed, or merely

good and necessary. For some, change may be thrust upon them;

just survive.

And, for those printers that ply their craft in the book manufac-

turing industry, change has become a fact of life.

“our company is 120 years old, but we’ve probably seen more

changes in the last five years than we had in the previous 115,” ob-

serves John edwards, president and Ceo of edwards Brothers Mal-

loy, a book and journal printing specialist based in Ann Arbor, Mi.

instead of allowing change to dictate its future course, edwards

Brothers Malloy has ushered in an era of evolution. in early 2012,

then-separate entities edwards Brothers and Malloy inc. announced

that they were merging their family-owned businesses, creating a

mega book printer with $102.5 million in sales for fiscal year 2013.

The newly installed Ricoh InfoPrint

5000 expands four-color capacity for

digital press runs of up to 1,500 copies.

in addition to reaping each other’s equipment mix, edwards

Brothers Malloy has been highly aggressive in its most recent capex

campaign, bringing aboard its first sheetfed offset press, a 40˝ Hei-

delberg speedmaster. A ricoh infoPrint 5000 continuous-feed inkjet

press (its first), a Kodak nexPress (its fourth), two Konica Minolta

bizhubs (a C7000 and C8000), an HP wide-format digital printer

and two océ 6320 monochrome text printers from Canon solutions

America round out the unprecedented growth spurt.

in a sign of the growing trend toward short-run, digital book

production—where edwards Brothers Malloy is experiencing 20

percent annual growth—the company announced last summer that

it was consolidating its Jackson road and state street manufactur-

ing facilities in Ann Arbor, and relocating some of its gear to its

Lillington, nC, plant, in a yearlong process that underscores the

decline in long-run offset book printing.

the move toward digital printing is unmistakable. “our per-

spective is that the future of our business is being able to help pub-

lishers manage their supply chain and, to do that, we need to be

able to print anywhere from one to 100,000 copies—mainly one to

1,000—quickly and cost-effectively,” notes Joe Upton, vice president

of sales and marketing. “these equipment investments were made

with that in mind. Whether its print-on-demand (Pod) output or

an inventory replenishment model, it’s really targeted to working with

publishers as a partner and managing their supply chain.”

edwards Brothers Malloy is a short- to medium-run book man-

ufacturer that produces hard-bound, softcover and stitched product

runs under 10,000. Prior to obtaining the speedmaster,

edwards Brothers Malloy focused primarily on one- and

two-color production. the firm can handle components,

text and binding—all in-house.

offset and digital Powerhouse

With upwards of 800 employees working in eight

facilities across the United states, edwards Brothers Mal-

loy serves the educational (higher ed and K-12), trade,

self-publishing and professional (practicing doctor/law-

yer/accountant) sectors. it handles about 20,000 offset

orders per year, with runs ranging from 200 to 100,000,

and more than 200,000 digital printing orders annually,

from single copies to several hundred.

of the many changes taking place at edwards Broth-

ers Malloy, one of the most notable is the recent acquisi-

tion of the ricoh infoPrint 5000, which just went live

last november. it is being used to run one- to four-color

text in run lengths up to 1,500 copies and page counts

up to 1,200, depending on paper bulk. the new inkjet

web press also answers the call for quality that rivals digi-

tal toner and short-run offset printing.

“there was an area of demand that we were not able to serve

economically,” edwards observes. “this press enables us to jump

into the inkjet market with a significant bump in capacity. our

goal is to run four-color digital work on the infoPrint, but initially

it will constitute half black-and-white output as four-color demand

continues to grow.”

Joe Upton points out that edwards Brothers Malloy recently

took over an in-house digital printing facility in new Jersey oper-

ated by one of its major publishing customers. the sizable volume

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of four-color work that accompanied the agreement made it easier

for Edwards Borthers Malloy to justify its InfoPrint acquisition and

fits into the company’s ideal role of serving as an inventory man-

ager for its client base. That’s certainly reflected in further planned

acquisitions, many of which are concentrated on IT and creating

systems that drive cost out of the transaction process, while making

life easier for the customer.

of four-color work that accompanied the agreement made it easier for Edwards Borthers Malloy to justify

“Our COMpany iS 120 yearS Old, but we’ve prObably Seen MOre ChangeS in the laSt five yearS than we had in the previOuS 115.”

John Edwards

In all, Edwards Brothers Mal-

loy has eight digital printing centers

nationwide, with one in the United

Kingdom. Of the nine, five are

housed at customer locations. “We

did significant upgrades at most of

the centers in terms of equipment,

normal wear-and-tear replacement,

and picked up some additional ca-

pacity,” notes Donna Coleman, di-

rector of marketing.

The book printer and manufac-

turer has helped many of its longtime

offset customers transition smoothly

into POD production. One of its

larger clients posted 17,000 orders

in 2012 with an average print run

of just 2.2 copies. Edwards Broth-

ers Malloy has reduced many of the

human touch points that can com-

plicate the process by linking POD

customers with the printer via an

electronic data interchange (EDI)

connection. The EDI-driven orders

contain all the specifications that

are needed to process the short-run

jobs, which are sent directly to the

print engines without the need for

human intervention.

“This saves us significant time

(that comes with) having a human

being enter the order, prep it and

push it into the production system,”

Coleman notes. “It also saves on the

back end, since invoicing is also

done automatically, along with or-

der receipt acknowledgements and

shipment notifications.”

Clearly, the biggest change to

visit Edwards Brothers Malloy was the 2012 merger that brought

the two Michigan heavyweights together. John Edwards and Bill

Upton began talks in August of 2011, and soon realized the com-

panies had complementary aspects and little redundancy, including

in their customer lists. Edwards Brothers offered a significant digital

footprint, and Malloy Inc. countered with a solid fulfillment opera-

tion. Both firms were traditional family-owned businesses with vi-

sion statements that were essentially the same. The typical Edwards

Brothers print run was half as long as Malloy’s, but with twice the

page counts.

In the span of roughly six months, the marriage was finalized. It

has been an eye-opening experience from both perspectives, simpli-

fied by the existence of more commonality than difference between

the firms. But, as with any coming together of two cultures, the fear

of the unknown can still be gripping.

“Employees see that our differences, within the grand scheme of

things, are pretty minor,” Bill Upton observes. “But, anytime you

change one thing for one group of people, the impression they have

is ‘we’re becoming like the other company,’ when in reality we’re

becoming a different company. It’s two family-held businesses, and

our culture reflects that.”

Components of a Successful Merger

As part of the coupling process, John Edwards said the compa-

nies researched business mergers, why they fail and what charac-

teristics can generally be found in successful unions. They found

that the most successful ones involve companies that are close in

proximity, in the same line of work and where senior management

remains in place. This deal met all of that criteria.

“One of the toughest things is that you don’t shut off the lights

at one company on Friday and move into the other on Monday,”

Edwards points out. “A machine moves, and a crew moves with it.

A shift opens up and a crew moves over. It makes it a lot tougher

because we’re standing on both sides of the river.”

A transition committee, headed by the firm’s HR director and

containing employees from every department, shift and building,

meet on a weekly basis to discuss the difference in cultures and how

A technician works in front of a Kodak NexPress SE3600 press.
A technician works in front of
a Kodak NexPress SE3600 press.

to reconcile the differences in the daily activities. In addition to the

committee, teams from prepress, press and bindery deal with area-

specific issues to ensure a smooth transition, with employees from

all shifts at both plants participating.

“When you get people in a room together and they start to see

each other’s perspective, it helps to break down walls,” Edwards notes.

About five years ago, then-Edwards Brothers unveiled gps Global

Print Solutions, a distributive print and distribution model that was

ahead of its time. The idea was to form a solution—printing on “both

sides of the pond”—that could enable publishers to cost-effectively

manage their international printing needs by reducing time to market

and diminishing the costs associated with shipping and maintaining

inventory. Edwards had explored the possibility of partnering with a

United Kingdom print provider 10 years earlier.

“We couldn’t make the math work until about three years ago,”

A four-color, 40˝ Heidelberg Speedmaster sheetfed press, opera-

tional late 2012, was the company’s first offset color text press.

he says. “Files are now more portable and we’ve figured out how to

reduce the transaction cost. We’ve since added partners in Australia

and Singapore. This is going to grow significantly. I see more titles

coming to us from the UK than the other way around.”

With book order volumes constantly shrinking, digital output

offers the best path to growth for Edwards Brothers Malloy. Cus-

tom publishing—a buzz area in higher education, with text con-

tent catered toward a specific professor’s curriculum—is one of the

faster-growing areas. The K-12 segment, which has disappointed

the book printing space the past few years, also offers optimism for

an uptick in 2014.

Self-publishing continues to be a fertile ground, but one market

where Edwards Brothers Malloy will not compete is photo books.

The challenge? The Christmas season is when photo book demand

is at its peak, but that is also the busy time when Edwards Brothers

Malloy is addressing the needs of its education clients.

“One of the areas where we excel is flexibility,” Bill Upton ob-

serves. “We run a wide gamut of products in offset plants and can

match those quite well with our digital offerings. From an inventory

management standpoint, that’s very important to our customers.

They don’t have to dramatically change specs when a title moves

out of the offset printing realm into the digital realm.”

Building Strong Partnerships

Moving forward, the short-term goals for Edwards Brothers Mal-

loy revolve around completing the Ann Arbor plant consolidation.

With the integration of their respective IT systems now in the rear-

view mirror, the company has even higher expectations for 2014.

In a world of change, the one constant factor for any business

is to become an indispensable provider to its customer base. “You

need to know what’s going on in the marketplace and understand

your customers, and offer value propositions that make them want

to partner with you,” Edwards remarks. “I say the same thing to

our vendor suppliers: Help us run our business more efficiently

and help us do a better job. That’s how you stay relevant, and that

is what we’ve focused on for the past couple of years.”

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2014 Hot markets

Packaging, Pharma Head List

By Vincent Mallardi, C.M.C.

T his year (2014) will bring our industry back to 2005, but

not sentimentally. Sales will decline 4 percent to the level

of nine years ago, but smart printers chasing hot markets

should experience positive growth. The losers will be lazy

competitors who wait for a recovery that will not occur.

Instead, and better, is a paradigm shift where all we thought we

knew is irrelevant and all we need to know is new. For at least some

of us, this means providing multi-channel content and distribution,

of course advocating print as a large and essential part of the mix.

The only other option will be to exit or merge with other legacy

printers; a well-underway loser strategy in the New Year.

Packaged Foods ($1.18T, +2 percent; with $17.0B

to print, -4 percent) will continue to be the No. 1 buyer of both

print packaging and advertising materials, but at a lesser total out-

lay. Because of higher costs of ingredients, the only place to save

is through de-packaging and cutting back allowances to retailers.

FSIs will be worst hit, followed by plastics packagers. New de-

signs in paperboard and thin films will utilize more cube space

on retail shelves; taller containers; and more square ones including

nested, stacked and printed-on-wrapper-only multi-packs. Litho

2014 Hot markets Packaging, Pharma Head List By Vincent Mallardi, C.M.C. T his year (2014) will

LitHo carton and roLL FLexo Providers wiLL PrevaiL, wHiLe LitHo jar LaBeLs, cLosures and metaL decorated cans wiLL recede—PermanentLy.

carton and roll flexo providers will prevail, while litho jar labels,

closures and metal decorated cans will recede—permanently.

Printed electronics on packages will replace “best before” notic-

es, and the first intelligent fridges may alert shoppers on their smart

phones what’s running low, going bad or is needed to complement

the meal possibilities on hand. Products that don’t ask for a plate,

spoon or a stove—mostly single-serve—will reduce food and en-

ergy waste. Multi-sensory elements on packages such as textures,

sound, articulated movement, scents and hidden images will ac-

company local personalization: the high school football team on

the Wheaties box, locally-grown tags on fresh foods, etc.

Supermarkets and other food retailers will commence the first

major redesign of facilities in decades, reducing footprints, but daz-

zling the consumer with info-tainment rivaling Las Vegas. Near-

pack, in-aisle, on-cart, end-aisle, on-shelf, dangle downs, near-field

QR codes and augmented reality will engage as never possible before

personal communication devices. Best performing segments will be

pet foods (soon to be FDA regulated with new labeling), ready-to-eat,

reusable-container single-packs and fresh foods minimally wrapped.

No. 6-ranked Beverages ($501B, 0 percent; with

$10.5B

to

print, -3

percent) and

No. 13-ranked

Food

service ($863B, +4 percent; with $6.2B to print, +5 percent)

will extensively re-package and re-brand to revive waning consumer

thirst. SAB Miller and Pepsi are changing their graphics and con-

tainer shapes; Sol’s new beer label glows like the sun; Budweiser will

be using digital location-based packaging; and a Japanese brewer is

peeling-out origami!

Coca-Cola is testing snap-away cans that offer two servings.

There are even “topless” beverage containers that double as cups.

With all this fizz, POP/POS will “pop,” as well as out-of-home print.

Nearly one million eat-in and take-out food service facilities are

catering to overworked, time-strapped diners. As the Top 100 chains

make up less than 20 percent, there’s a big plateful of local print,

especially if we combine print with social media engagement at the

store level, and Web-based print management at the enterprise level.

Food service products are tangible as is our medium. Print-intensive

are sanitary packaging, take-home menus, gift/frequent diner cards,

table tents/toppers, tray-liners, back-lits, coupons, and all forms of

wall, floor, ceiling, parking lot and window graphics.

In economic recovery mode and moving to No. 2 will be

medicaL/PHarma ($502B, +6 percent; with $15.0B

to print, +3 percent). Meanwhile No. 8-ranked HeaLtH

Providers ($3.4T, + 4 percent; with $9.5B to print, 0 per-

cent) remain on the operating table under the knife of the decep-

tively-named Affordable Care Act. Big pharma holds all the scrips

and will not yield pricing in 37 percent of its global market. Rather,

it will increase print-intensive, pull-through, patient-directed ad

spending to bring that share up to 50 percent.

Concurrently, health insurance providers are, and will be, fever-

ously heating up their digital in-plants as they notify, terminate and

re-direct the least healthy to German-style krankenkassen “exchang-

es.” VDP letter-format and carrier-mount cards will be on steroids.

PersonaL care ($406B, +4 percent; with $5.3B to

print, -11 percent) will slip to No. 18. Color cosmetics, hair and

skin care have long been at saturation, and big names like Estée

Lauder and Revlon are slashing ad budgets, but keeping in-store

displays beautifully made-up. Avon now sells its catalogs to its reps

while it will reduce the print spend by more than 1/3rd.

At retail, everyone is discounting and private labels are prolif-

erating; the latter a small opportunity for label and carton plants.

Pharmacies will be overwhelmed with prescriptions as a new, forc-

ibly insured not-healthy portion of the population crawls or wheels

its way through crowded aisles and around now-dangerous floor

displays. Traffic-builder in-store signage, FSIs and other promo

print will no longer be necessary; a killer prognosis for screen, large-

format sheetfed and heatset web printers.

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rankings oF DemanD secTor/caTegories bY 2014 PrinT PoTenTial

(in U.S.$ Billions)

Rank

Categories

Sectors/

Revenue

Forecast

Growth

Rate

Printing

Trend

Share-to-

Print

Print

Potential

Print %

Change

1

Packaged Foods

$1,175

 

2%

s s

1.4%

$17.033

-4%

2

Medical/Pharma

 

502

 

6

   

3.0

15.045

 

3

3

Telecommunications

1,506

 

2

s

 

0.8

12.040

 

5

4

Publishing/Non-Newspaper

 

75

 

-4

s

15.7

11.812

 

0

5

Banking/Insurance

4,192

 

5

t

<0.3

11.605

 

4

6

Beverages

 

501

 

0

t

 

2.1

10.505

 

-3

7

Real Estate

2,048

 

5

s s

 

0.5

10.366

 

-3

8

Health Providers

3,390

 

4

   

0.3

9.504

 

0

9

Automotive

2,089

 

6

t

 

0.4

8.358

 

-6

 
  • 10 Travel/Hospitality

 

880

 

1

s s

<0.9

7.478

 

-5

 
  • 11 Fashion

 

615

 

<3

   

1.2

7.109

 

1

 
  • 12 Gaming/Wagering

 

590

 

-10

t

 

1.0

6.318

-10

 
  • 13 Food Service

 

863

 

4

s

 

0.7

6.217

 

5

 
  • 14 Computer-ware

 

790

 

4

t

<0.1

6.155

-13

 
  • 15 Entertainment

 

909

 

-1

s

 

0.7

6.010

 

<2

 
  • 16 1,479

Discount Retail

   

<7

s

 

0.4

5.967

 

6

 
  • 17 Home Improvements

 

797

 

3

s s

 

0.7

5.579

 

10

 
  • 18 Personal Care

 

406

 

4

   

1.3

5.268

-11

 
  • 19 1,250

Investment/Brokerage

   

4

t

 

0.4

5,202

 

-6

 
  • 20 Electronics

 

761

 

-4

   

0.5

4.541

 

0

 
  • 21 Security/Protection

 

228

 

3

s s s

 

2.0

4.500

 

0

 
  • 22 Leisure Activity

 

195

 

0

   

2.0

3.944

 

-3

 
  • 23 Logistics/Freight

 

752

 

6

t

 

0.5

3.761

 

-4

 
  • 24 6,460

Government/Federal and State

   

6

t

<0.3

1.996

 

0

 
  • 25 Higher Education

 

184

 

5

s

 

0.9

1.620

 

5

 

TOTALS/AVERAGES – HM

$32,637

 

t

 

0.6

$187.993

 

-3

 

LESS: NET OVERLAP/OTHER

-16,509

 

 

5.431

 

 

TOTALS/AVERAGES -ALL

$16,128

 

1

t

 

1.2

$193.424

 

-4

All data are rounded.

Publishing/ n on- n ews PaP er

($75B, -4 percent; with $11.8B to print, 0 percent)

at No. 4 is self-destructing as incompetent executives

use new media as an excuse to scuttle print and pay

themselves while their balance sheets shred to goodwill

and intangibles. The Time Inc. spin-off and the sale

of Forbes Media will show how little investors regard

books and magazines even though global demand, es-

pecially for English-language print, is increasing. Only

in the United States are titles, page revenues and circu-

lation decreasing.

In professional/educational books (-6 percent) there’s

a tri-opoly (new word) that’s herding educators and stu-

dents into custom-content VSR and e-books by outra-

geously pricing static-bound versions or withdrawing

them altogether. Oppositely, adult/children’s trade titles

are not being printed in sufficient quantities to be avail-

able anywhere except online, thus discouraging demand.

Periodicals, trimmed in size, torn in page counts and cut

in circulation, will be dumbing down content.

There are pockets of excitement, as in interactive

publications, art books and prints, pop-ups, glow-in-

the-dark, deluxe commemorative special editions with

slipcases, 3D, faux paper fashion accessories and other

high-value enhancements. Self-publishing, sold online

and run digitally, provides high quality, very-short-run

production of literary works, greeting cards, calendars,

vanity wall coverings, photo books and most anything

else. The marketplaces for these are less than 5 percent

penetrated, so there’s time to get in.

Ringing up to No. 3 is Telecommunica-

Tions ($1.5T, +2 percent; with $12.0B to print, +5

percent). Sector growth is deceiving; some categories

like mobile, other wireless (+43 percent) will be on an

FSI, POP/POS and transit print binge while others,

like directories, will continue downward at -22 percent.

Cable/satellite could be technologically displaced

by 2016 as “cord-cutting” and migrations to streaming

PC2TV. The cable industry will fight back with its “TV

Everywhere” Wi-Fi for subscribers’ movement, so there

will be a lot of print in the fight for survival. Mobile

apps and QR codes are also a “must provide” by smart

printers (not an oxymoron), along with mobile site and

SMS (short message service) management as essential

complements in a cross-media interactive program.

Related, but crashing, are tech sectors, No. 14

comPuTer-ware ($790B, +4 percent; with

$6.2B to print, -13 percent) and No. 20 elecTron-

ics ($761B, -4 percent; with $4.5B to print, 0 per-

cent). Because most labeling and packaging are offshore,

U.S. print demand is out-of-home and at retail locations.

Apple will pursue lifestyles and loyalties while the other

entrants tout price. Best Buy and other major outlets will

maintain but not increase FSIs, bind-ins and in-store

print; on hold or pause.

banking/insurance ($4.2T, +5 per-

cent; with $11.6B to print, +4 percent) will withdraw

to No. 5, as its financial relation invesTmenT/

brokerage ($1.3T, +4 percent; with $5.2B to

print, -6 percent) crashes to No. 19. These “institutions” are going

where the big money is, and it’s not in commercial banking. Retail

branches will shrink into kiosks (screen and digital print-intensive),

and mobile banking (+30 percent) will be widely promoted via POP/

POS and out-of-home in cross-media campaigns.

Insurance and investment banking will intensely market both

risk and wealth management using production digital VDP and

PURLs for 1:1 direct stimulus-response delivery, bound instruc-

tional documents and hyper-personalized presentations. Conven-

tional static newsletters, offering-circulars and other narrow web

and sheetfed work, will remain flat as these sectors install in-plant

production digital capabilities for security and control.

Now to the three durable goods sectors: No. 7 Real

estate ($2.0T, +5 percent; with $10.4B to print, -3 percent)

is foreclosing on our medium even as it is recovering. Residential

new and resale housing is building with promotion principally to

the so-called “millennial” generation, which does not search using

reflective copy.

Only among renters and retirees are web-produced guides and

newspaper/magazine ROP and inserts cost-effective and, as these

demographics are declining in the housing marketplace, volumes

are falling—forever. In luxury estate residential, condominiums and

commercial real estate, digital view-books with personalization in

multiple languages is growing along with excess property for sale.

Signs are hanging in there, though now with QR codes hinged to

them.

automotive ($2.0T, +6 percent; with $8.4B to print, -6

percent) is No. 9 and shifting in two directions; in forward toward

a 16.5 million vehicle year, and in reverse to a drop of $0.6B in

print buys.

Total print ad spending will slip below online in the New Year

when the reduction of showroom print is included in the mix. ROP

and insert print tanked last year as labels, décor, packaging, manuals

and digital rollfed OEM (mostly in-plant) raced upward of $4.0B

on increased unit production. This trend will continue to 2016

when production levels subside.

The remaining spots into which a general printer can drive are

tHe time inc. spin-off and tHe sale of foRbes media will sHow How little investoRs RegaRd books and magazines even tHougH global demand, especially foR englisH- language pRint, is incReasing.

retail dealer groups (co-op sheetfed/web FSIs and wide-format digi-

tal POP), auto-traders (open-web classifieds) and auto aftermarket

parts/services (retail signs, packaging, POP/POS, FSIs, labels, etc.),

which will fill-up on $1.2B in ink-on-paper.

The third durables sector, No. 17 Home impRove-

ments ($797B, +3 percent; with $5.6B to print, +10 percent),

will hammer homeowners with direct mail, door-hangers and

anything else that nails both the “do-it-yourself” and remodeling

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buyers. The strongest growth since the housing boom, which

peaked in ownership (highly-leveraged you remember) at 69 per-

cent (2004), means print is building back.

Store signage/displays, how-to guides, FSIs, furniture catalogs,

contractor vehicle wraps, windshield-stuffers, blueprinting and

Made-in-USA labels/packaging; all will be there for the selling!

“Discretionary” is economics-speak for non-durable goods and

services; 19 percent of total demand and the third most “durable” at

a 90 percent retention rate. Travel/HospiTaliTy ($880B,

+1 percent; with $7.5B to print, -5 percent) takes off to No. 10, but

print will likely miss the flight. This largest of the six sub-sectors

will check in with fewer bound guides, maps, tri-folds and in-room

amenities. Hotels (+2 percent) will be up as average daily rates and

occupancies increase. Renovated and swapped properties will need

makeover print, as will the air/rail travel (+7 percent) and cruise

lines (+2 percent) segments, both recovering from mishaps and

consumer discontent.

Posters, displays and brochures at travel agencies, and travel loy-

alty program transpromo, could be turnarounds if put on our print

itinerary. Destination parks (+<2 percent) will be closing as real

estate developers and an aging population eschew past attractions.

FasHion ($615B, +<3 percent; with $7.1B to print, +1

buyers. The strongest growth since the housing boom, which peaked in ownership (highly-leveraged you remember) at

FolloWinG a year oF FlaT same-sTore sales, THe BiG Boxes Will invesT a recorD amounT in prinT.

percent) will change into a size No. 11, but with little more room

for print already at an XXL 60 percent share. A new fashion maga-

zine, Porter, will launch with a cross-media app by Richemont’s new

in-house publishing group. Print management est très en vogue,

as well as cross-branding by fashion publications GQ, Esquire and

others with specific stores like JCP, Men’s Wearhouse, etc. Inserts,

in-store, direct mail and catalog print will be best sold through the

fashionista media than to the brands.

GaminG/WaGerinG ($590B, -10 percent; with

$6.3B to print, -10 percent) is No. 12 in ’14, but with 100-to-0

odds that print will lose big at casinos/off- and on-track betting

parlors (-15 percent). Personalized loyalty direct mail, a former win-

ning hand, is folding, and new/renovated rich-in-print casinos are

on hold or on the block. Caesar’s, the industry leader, is losing more

dough than any of its players (more than $1B last year), and is clos-

ing/selling off casinos to bet on online/mobile gaming.

Recently OK’d in six states, online/mobile gaming could be

legal in all but a few by year-end 2014. Because the United States

represents 67 percent of the global market, and most states are des-

perate to tax “sins,” many chips are on the line for online. It will be

a winning hand for print with a cross-media flush of NFC pull and

SMS push. The state/province lotteries (+2 percent) are easier to

play as they deal the bids and are not open to suggestion.

Scratch-offs will continue to be the biggest game, but only a

few companies have all the work. Better to go after retail signage,

displays, billboards and FSIs. A 2014 event for print will be the

cross-state promotion of online lottery subscription.

enTerTainmenT ($909B, -1 percent; with $6.0B to

print, +<2 percent) is No. 15. It could be intermission in this sec-

tor because of rising ticket and download prices. Live concerts/

performances are coming off double digit growth as fewer pro-

ductions and smaller audiences are anticipated. Fewer printed pro-

grams, posters and other memorabilia will be impacted. Motion

pictures (+6 percent) will double 3D digital screens worldwide

by year-end 2016. In-theater displays will be more elaborate, and

cross-promotions with merchandise and dining venues could also

double this decade. The remaining categories will all be lower or

at zero growth.

As with No. 22 leisure acTiviTy ($195B, 0 percent;

with $3.9B to print, -3 percent), consumers lack time and money

for sports, recreation and hobbies, and most of these categories are

at saturation and in decline.

Oppositely, DiscounT reTail ($1.5T, +<7 percent; with

$6.0B to print, +6 percent) jumps to No. 16. Following a year of flat

same-store sales, the Big Boxes will invest a record amount in print.

FSIs, direct mail and in-store graphics will be intended to both emu-

late and displace mid and upscale retail categories. Sears, K-mart and

others plan to close hundreds of under-performing stores, opening

share gain opportunities for the other, healthier places.

At No. 21 is securiTy/proTecTion ($228B, +3

percent; with $4.5B to print, 0 percent). Imaging technology in

good hands can now prevent ID theft, product tampering, coun-

terfeiting, false documentation and all criminal intent. Most in our

industry won’t take the trouble to master the methods, though we’re

the ones who logically should be in front of it.

A national ID smart-card is coming, and most everything

printed could have a security feature stamped, image-embedded or

otherwise included in the substrate or film; a big value-added for

the buyer (and for us, of course)!

loGisTics/FreiGHT ($752B, +6 percent; with $3.8B to

print, -4 percent) is No. 23 and dropping. Overall postal volumes

and multi-modal freight shipments are victims of technology, econ-

omy and politics. Any revenue growth will be from fuel surcharges

rather than demand. Multi-part shipping forms, envelopes, folding

cartons and POS print will remain flat. The online retail giants will

do everything in-house, including product labels.

GovernmenT/FeDeral anD sTaTe ($6.5T,

+6 percent; with $2.0B to print, 0 percent) will be No. 24. Federal

agencies with in-plants will continue to resist the GPO, while state

and local agencies shift most print to output or for local publishers/

printers to sell such as driver’s license manuals, fish and game, etc.

Last, at No. 25 is HiGHer eDucaTion ($184B, +5 per-

cent; with $1.6B to print, +5 percent). Enrollments are dropping,

costs are rising and the for-profit (+12 percent) companies posing as

universities are taking real market shares. Transit and other out-of-

home print, ROP/FSIs and direct mail will get good grades. Expect

school mergers and name changes as there are too many institu-

tions, and many are in financial collapse. Development spends are

not delivering alumni dollars and are being cut back. Athletics ac-

tivity should keep poster, program and related print at 2013 levels.

Inclusively, the HM-25 will account for 97 percent of total

print. Become an expert provider for a few verticals rather than be

a commodity bidder in a horizontal position. Market “hot” in 2014

and be around for the years after the paradigm shift!

pi
pi

About the Author

Now in its 35th year, Vincent Mallardi’s “Hot Markets for Print Media” is the

longest, continuous forecast of the printing industry, by sector, region and prod- uct. For more info on the complete report, e-mail the author at vince@pbba.org.

The Survey SayS ...

Next ‘Big Things’ in 2014

By Lisa Cross

A t the end of every year, industry pundits and prognos-

ticators attempt to predict the next “big thing” in the

printing industry and where firms will invest. Instead

of making guesses on where the industry is headed in

2014, Printing imPressions and InfoTrends surveyed print service

providers (PSPs) to find out what firms plan to invest in and the

rationale behind investment plans.

The survey is part of an ongoing partnership between InfoTrends

and North American Publishing Co. (the publisher of Printing im-

Pressions) to monitor emerging market trends. The latest survey, con-

ducted last September, focused on finding out the key equipment,

services and software investments on the agenda for the coming year.

Respondents’ investment plans for 2014 center mostly on sup-

porting print, however the addition of marketing services, digital

media products, and industrial printing applications are also on

the agenda, albeit on a smaller scale. Print service providers are also

expecting 2014 to be a year of double-digit revenue growth, as the

97 decision-makers responding to the survey anticipate revenues to

increase, on average, 10 percent compared to 2013. That’s up from

Print service providers plan to power growth on many fronts

(see Figure 1), including strengthening print through adding ancil-

lary support services (i.e., fulfillment, Web-to-print, personalized

print, mailing, marketing, data and content development) and

emerging technologies to make print interactive, such as mobile

codes, augmented reality and near field communication.

At first glance, respondents’ plans for 2014 look like firms are

sticking with the status quo and expanding more in service areas that

aren’t new. That’s partly true. The other half of the story is those com-

panies that are expanding by adding marketing-type services and pur-

suing methods for making print interactive. Those firms are evolving

services to differentiate from the competition, move up the customer

value chain, grow business and respond to new customer demands.

When asked to identify the specific reasons for new service in-

vestments, those services dominating business growth leaned more

to nontraditional services (see Figure 2). Respondents identified

content development, data services and digital media applications

as key services for growing business. Emerging technologies that

make print interactive, such as mobile codes, augmented real-

the 4.2 percent revenue growth reported last year. ity,, and near field communication,, are also viewed
the 4.2 percent revenue growth reported last year.
ity,, and near field communication,, are also viewed as services for
Figure 1:
Figure 2:
The 2014 Agenda for Expanding and Adding Services
Reasons for Investing in New Services
Q: What types of new services will you add or expand in 2014?
Q: Why are you investing in these new services?
n Add
n Expand
n Continue at same level
n Growing business
n Customer demand
n Plan to offer in next 24 months
n No plans to offer
n Differentiation
n Other
Web-to-print
Content development
Marketing services
Web-to-print
Social media marketing
Personalized, 1:1 print communications
Data services
Data services
Website services
Website services
Mobile marketing
Social media marketing
Mobile application development
Making print interactive via mobile barcodes
Fulfillment services
Making print interactive via augmented reality
Personalized, 1:1 print communications
Making print interactive via NFC
Mobile barcodes
Marketing services
Making print interactive via mobile barcodes
Mobile barcodes
Making print interactive via NFC
Mailing services
Mailing services
Mobile application development
Content development
Fulfillment services
Making print interactive via augmented reality
Mobile marketing
0%
20%
40%
60%
80%
100%
0%
20%
40%
60%
80%
100%
N=73 Print Service Providers
Source: InfoTrends Emerging Trends, 2013
N=Varies, based on 6-36 Print Services Providers
Source: InfoTrends Emerging Trends, 2013
28
28
Printing Impressions • www.piworld.com • JANUARY 2014
Printing Impressions • www.piworld.com • JANUARY 2014

growing business—signaling the industry’s move to bolster print’s

role in a new media world.

Print service providers also designated Web-to-print and per-

sonalized print services as key growth services. While these services

aren’t new, customer demand for them is picking up. Web-to-print

is a key means to address marketers’ increased demand for improv-

ing marketing supply chain management—the chain of suppliers

that an organization relies on to produce marketing materials. Web-

to-print systems provide marketers with an agile and scalable com-

munication ordering process to reduce costs from over-ordering of

materials, better control branding and provide real-time visibility

into print costs.

The ability to personalize a document is a key aspect of making

its content relevant. Personalizing printed documents to recipients

isn’t new, but marketers’ focus on personalized communication has

moved to the mainstream as they explore options to enhance com-

munication relevance.

Respondents identified wide-format graphics, high-speed ink-

jet, point-of-purchase displays, labels, textile printing and packag-

ing applications as top digital printing services marked for expan-

sion (see Figure 3). Emerging digital print applications, such as 3D

printing and industrial print applications (i.e., printing on textiles,

ceramics and laminate materials) will gain a toehold in 2014, as

firms embrace new applications, according to respondents. Func-

tional printing applications, such as pad printing and membrane

switches, are beginning to surface, as companies look for innova-

tive ways to expand printing services. 3D and industrial printing

applications offer establishments the ability to take advantage of

an emerging opportunity without pushing them too far outside

their comfort zone.

Backing Plans with Investment

When asked what specific actions firms will take in 2014, more

than half reported plans to invest in hardware (58 percent) and soft-

ware (52 percent). The overall sentiment for adding or expanding

services was to build them internally, as only 19 percent planned

to partner with another company to add services and 14 percent

planned to acquire another company.

The top investment category for respondents was hardware.

Investments in finishing and digital printing technology are the

top investment areas identified by respondents (see Figure 4). The

continued competition from online channels has many businesses

seeking to leverage and enhance printing’s tactile advantage through

innovative finishing techniques. Digital color and wide-format

printing also are top investment categories as they serve increas-

ing customer demands for short-run, on-demand production and

personalization. More than 50 percent of respondents reported that

business growth is driving investment in digital printing devices.

High-speed inkjet is also on the 2014 PSP investment agenda;

about half of respondents either plan to or are considering invest-

ing in it. More than a third of PSPs are considering or planning

to purchase a high-speed color inkjet device to grow business or

expand offerings.

Software investment plans focused primarily on print produc-

tion workflows. Creative, workflow, Web-to-print, MIS and VDP

software were the top software types budgeted for this year. Color

management software is the top software investment that PSPs are

considering.

As business plans for 2014 are put into action, the key challenge

Figure 3: The 2014 Agenda for Expanding and Adding Digital Printing Services Q: What types of
Figure 3:
The 2014 Agenda for Expanding
and Adding Digital Printing Services
Q: What types of digital printing services will you add/expand in 2014?
n Expand
n Add
n Continue to offer at same level
n Plan to offer in next 24 months
n No plans to offer
Wide-format graphics
High-speed inkjet
Corrugated boxes, POP signage, displays
Primary labels
Textile printing, soft signage, displays
“Retail ready” packaging, folding cartons
Laminate materials
Wide-format fabric printing of garments
Textile printing for décor
Pad printing
Ceramic materials
Membrane switches
Primary flexible packaging
3D printing/prototyping
0%
20%
40%
60%
80%
100%
N=73 Print Service Providers
Source: InfoTrends Emerging Trends, 2013
for print service providers will be to find the right combination of

“new” and traditional services to better serve customers and grow

business. Printing companies need to take action to find that bal-

ance and pursue new growth opportunities. 2014 promises to be a

year of innovation in core, ancillary and new services, as providers

look to harvest and profit from the “next big thing.”

PI
PI

About the Author

Lisa Cross serves as an associate director at InfoTrends. Figure 4: 2014 Hardware Investment Plans Q:
Lisa Cross serves as an associate director at InfoTrends.
Figure 4:
2014 Hardware Investment Plans
Q: What types of hardware are you planning on purchasing in 2014?
n Budgeted
n Considering
n No plans to purchase
42.6%
16.7%
Finishing equipment
42.6%
31.5%
Digital color printing
35.2%
38.9%
Digital wide-format printing
33.3%
50.0%
High-speed color inkjet technology
22.2%
74.1%
3D printing/prototyping device
33.3%
63.0%
Digital B&W printing
22.2%
74.1%
Offset press
0%
20%
40%
60%
80%
100%
N=54 Print Service Providers
Source: InfoTrends Emerging Trends, 2013
2929
JANUARY
JANUARY 2014
2014 •• www.piworld.com
www.piworld.com •• Printing
Printing Impressions
Impressions

production inkjet printing

don’t overlook paper, ink

By Erik Cagle, senior editor

T he current prevailing theory is that direct mail, books and

transactional work are the holy trinity of the production

inkjet digital printing church, and you won’t get any ar-

guments. those three sectors have been transformed by

production inkjet technology. But there are murmurs, rumblings

of a fertile ground beyond the big three that will open the door for

commercial printing, package printing and beyond.

some observers believe that time is near, others are a bit more

conservative in waving the production inkjet flag for commercial

and packaging applications. But, unlike the onset of the digital

printing revolution of the mid-1990s, when the market for such

machines was undeveloped, this current trend toward continuous-

feed and cutsheet inkjet press adoption is unmistakable. And, de-

pending on your vantage point, production inkjet has yet to peak;

were it a winter nor’easter, many would say the eye of the storm has

not yet arrived.

production inkjet printing don’t overlook paper, ink By Erik Cagle, senior editor T he current prevailing

the range of jetted materials and suBstrates is staggering. digital print technologies are commonly used on paper and to some extent plastics, But the use of inkjet for printing on foil, metal, ceramics, textiles, Wood and glass are all on the rise.”

Jim Hamilton

the production inkjet movement in commercial printing may

be closer than you think, notes infotrends Founder Charlie Pesko.

He has heard from general commercial printers who have found

applications outside of the book/direct mail/transactional range of

items, while other areas such as newspapers and packaging have also

reported some success.

the beauty of production inkjet in comparison to its toner-

based digital printing cousin is that it operates at much higher

speeds, notes Pesko. the upshot of this, though, is the resulting

printed output in need of finishing. setting up in-line or near-line

tools—cutters, folders, stitchers, etc.—in a configuration that keeps

operator intervention to a minimum, can enhance productivity

and, thus, shorten turnaround time and yield the lowest operating

costs, especially when compared to traditional offset printing.

“the feeding and finishing aspects cannot be overlooked,”

Pesko stresses.

the greatest change has come with the expansion of inkjet pa-

per weights and sizes, according to Pesko, which has really enhanced

the number of products and applications available in the produc-

tion inkjet environment. this, coupled with more automated on-

line or near-line output, is going to tremendously improve the print

provider’s return on investment.

“With the sheetfed products, they can start to handle the heavy

weights and some of the packaging elements,” Pesko adds. “We can

start to seriously look at packaging applications that exist now. With

the cutsheet ability, you’re going to be able to run much heavier

substrates and be able to start displacing some of the traditional

products in the packaging area, as well.”

As to how inkjet digital printing will impact the commercial

printing marketplace, Jim Hamilton—who as group director for

infotrends, is responsible for production consulting—feels that

inkjet technology really stepped out into the spotlight during 2013.

All the major worldwide shows—Print 13, FesPA, PrintPack

india, China Print, Labelexpo, Pack expo and sGiA—boasted a

prominent inkjet flavor.

Beyond the World of documents

“the range of jetted materials and substrates is staggering,” Ham-

ilton notes. “digital print technologies are commonly used on paper

and to some extent plastics, but the use of inkjet for printing on foil,

metal, ceramics, textiles, wood and glass are all on the rise. it’s no sur-

prise, then, that many of the production digital print announcements

of 2013 focused on non-document applications like ceramics, labels,

flexible packaging, folding cartons and corrugated boxes. in fact, one

of the most exciting 3d print applications is in creating prototypes

for use in package design. this helps manufacturers get products to

market sooner and drives economic opportunity.”

Hamilton also points out that inkjet printing has made “huge

inroads” in indoor and outdoor wide-format graphics, label print-

ing and color document printing. He is especially excited about

wide-format inkjet, which offers commercial printers the chance

to capture more of the client’s marketing budget with numerous

applications and a range of different product capabilities.

on the package printing end, Hamilton sees potential in up-

and-coming B2-format cutsheet inkjet solutions, though other

technologies (such as liquid toner) could also challenge inkjet for

high coverage work.

While there are challenges to consider on the road to wide-

spread production inkjet adoption, a large percentage of capital

imvestments during the last year to 18 months have centered

around digital devices, and inkjet in particular. Noel Ward, manag-

ing director of Brimstone Hill Associates and newly named editor-

in-chief of Package Printing magazine, feels there are a few mea-

sures that must be met in order to justify purchasing a high-speed

inkjet system: Being able to fill at least 50 percent of the machine’s

monthly duty cycle on day one, paired with the ability to reach 75

percent capacity within six to nine months.

“Given the monthly nut attached to the investment a big inkjet

press requires, the jobs have to be lined up ahead of time, ready to

go or the press can become an enormous drag on cash flow,” he says.

look clean when the ink is introduced. A paper with a more yellow

tint, then, will impact the inkjet colorant. On untreated paper it

will become magnified, as there’s nothing to keep the colorant on

the surface.

• Paper porosity. Paper porosity is a concern in the offset process,

but is a larger, critical factor in inkjet printing. Excess porosity in a

sheet will cause the ink to dive down and through the paper, thus

allowing the print to “show through” the paper.

• Paper weight. This correlates with the graphics being printed.

When printing heavy coverage (30 percent and up for inkjet), a

thin sheet is not going to accommodate as much ink. The ink will

Questions Answered

Uncertainty also plays a role in keeping some

printers from taking the leap into production ink-

jet—concerns about areas such as image quality,

operating costs, inkjet head replacements and paper,

Ward remarks. These are valid issues that any printer

should be asking about during the due diligence pro-

cess. Ward makes the following observations:

• Image quality is at least adequate for most applica-

tions that will run on an inkjet press.

• Operating costs can vary widely. Rather than rely-

ing on vendors’ claims, he recommends talking with

other printers who have machines similar to the one

you’re considering in order to learn about true operat-

ing costs.

• The technology is generally solid, works well and is

reliable. But, as with any press, thorough training and

ongoing learning is required to get the best results.

• Head replacement is usually a top-of-mind con-

cern, but in fact heads seem to be outlasting even

vendor expectations. Again, tap other printers to get

a real-world read on head life. And don’t be afraid to

see what kind of agreement can be crafted with the

vendor. Heads aren’t cheap, so you must have a clear

understanding of costs and service requirements.

• Paper is abolutely critical with inkjet presses (more

on that shortly). Testing is urgently required here.

But while the current print markets that are fa-

vorable to production inkjet press output represent a

critical consideration in the “why to” decision making

process, the bread-and-butter of production consid-

erations, namely paper, ink, feeding and finishing,

represent a lion’s share of the questions that begin-

ner entrants into the space are (or should be) asking.

Many improvements in the inks and papers used, in

fact, have driven the quality improvements and made it

possible for production inkjet to make serious inroads

into commercial work.

Mary Schilling, vice president of technical opera-

tions at Schilling InkJet Consulting, sees a number

of paper-related issues that should be analyzed in the

production inkjet arena. They include:

• Whiteness and brightness. Aqueous fluid dries by

absorption, so the colorant, pigment or dye—wheth-

er using a coated or uncoated sheet—is entering the

paper fibers and taking on the paper color. A whiter,

brighter sheet is going to make the colors pop and

Is Now the tIme to INvest?

It’s a simple question that lacks an easy answer. For a printer that has the volumes

to justify laying out $2 million to $3 million for a production inkjet workflow, the

process to move forward can be slow and methodical.

“All inkjet is not the same; there are significant differences in many of the tech-

nologies,” notes Charlie Pesko, founder of InfoTrends. “Talk to other printers—folks

who have had various products installed and have been successful with them—and

find out when, where, why and how they’ve been successful.

“I don’t think the decision-making process is an easy one. But remember: the

sales cycle here is much longer than some of the traditional lower speed, toner-

based products, because of the cost and commitment you’re making to this new

technology. It’s a different type of sales process. It’s a major, strategic move for many

companies.”

Marco Boer, vice president of I.T. Strategies, believes the decision to buy now or

wait for some of the pending technologies bound for the market is best viewed

from the standpoint of tackling the learning curve involved with production inkjet.

“Sure, in two or three years, there will be better devices that are less expensive

and more productive,” he says. “But, unless you buy now and come up to that

learning curve—figure out how to sell the output and build the volumes—all your

competitors who started earlier will have a huge competitive advantage. If you’re

interested in this space and you have enough volume, you’re better off investing

today because of the learning curve than you would be by waiting for the next,

cheaper generation product.”

Waiting around to see what’s behind ‘door number two’ is not the best approach

to take, agrees Noel Ward, managing director of Brimstone Hill Associates. Trying

to get in on the ground floor of another technology, while it could be lucrative

down the road, does little to help print service providers avail themselves of today’s

opportunities.

“We’ve seen over and over how companies that adopted earlier digital printing

technologies have found success and positioned themselves to better compete in

their markets,” he says, “Printing has become very much technology-based and

adopting a new technology such as high-speed inkjet printing—assuming you have

the volume to justify it—can be a strategic decision for business success.

“By waiting, a printer will just be further behind the curve, and competitors can

gain a real advantage. Still, these machines have a very definite learning curve and

they are not for the timid. But that’s true for any new technology. Factor that into

your purchase decision.”

Meanwhile, other technologies are in the wings. “One question we’re hearing

from printers is whether Landa’s ‘nanographic’ technology or Xeikon’s Trillium are

going to be better? Both of these use liquid toner rather than inkjet. They may well

be, but neither is ready for prime time, and if you’re hesitating to take the plunge

on inkjet, you’ll be waiting another three to five years to pull the trigger on one of

those while you wait for the bugs to be worked out. Can your business run that

long without some high-speed digital technology on hand?”

dive and the user will fail to garner the necessary build required for

image and color quality.

“It boggles my mind that people invest $2 million to $6 mil-

lion on a piece of high-speed aqueous inkjet equipment, and then

choose the cheapest paper they can find,” Schilling observes. “It’s

like using low-grade gasoline in a Lamborghini; you’re not going to

get the performance you’re looking for. In aqueous inkjet, a poor,

uncoated, opaque or offset paper will not provide the surface re-

quired for good image and color quality.

“That’s why offset printers are still hesitant with aqueous inkjet.

Traditional offset is accustomed to the paper costs and print quality

that they currently have today. They wish to use the offset paper

currently on of the floor in their shop. High-speed aqueous inkjet

requires a paper designed for the inkjet fluid, which is a higher cost

sheet than they currently use. Using regular offset paper does not

produce the image quality needed to compete with offset. But it

can be if they use the proper paper.”

• Color profile. Schilling sees the most important factor being ink/

fluid control. Use a thin paper with poor porosity, and the ink will dive

in and saturate the paper. Then, when it’s dried quickly, it will resemble

dive and the user will fail to garner the necessary build required for image and color

It boggles my mInd that people Invest $2 mIllIon to $6 mIllIon on a pIeCe of hIgh-speed aqueous Inkjet equIpment, and then Choose the Cheapest paper they Can fInd. It’s lIke usIng low- grade gasolIne In a lamborghInI; you’re not goIng to get the performanCe you’re lookIng for.”

Mary Schilling

“a sweater that came out of the dryer,” riddled with paper cockle, show

through and possibly some offsetting if the paper is not drying.

Among other considerations, Schilling sees the importance of

designing the artwork to the type of ink and paper that’s being used.

Often times, she notes, the designer will develop a project without

having any input into what type of paper is used. A modified paper

profile may be necessary for jobs requiring higher coverage and large

image areas and color blocks used for full bleeds.

“Designers need to fully understand the high-speed inkjet pro-

cess, the impact of ink and paper, as well as how it is being finished

before the creative process starts. If designers understand the pro-

cess, they will be able to manipulate the elements to achieve the

creative look required. The designers have to be involved in the

whole process.”

The world of color inks can be a daunting one for those print-

ers whose experience in this area is scant, which can be especially

true for transactional printers. Much of their experience is traced

to continuous-feed, black-and-white toner machines. It can be

an education for these printers to capitalize on the operational

opportunities offered by inkjet color, notes Elizabeth Gooding,

president of Gooding Communications Group.

“They have to become part of a color culture and that means

not only understanding the technical and operational aspects of

color—the color management, the color workflow, understanding

the impact of paper—but also dealing with people other than those

they’ve traditionally dealt with,” Gooding says. “With transactional

printing, they’re mostly dealing with IT and data folks.

Creative Considerations

“You’re going to start working with the creative world when

working in a dynamic, full-color environment with marketing

statement messaging in full-color. You’ll need to give them param-

eters; they can’t have real high TAC (total area coverage) on the

page. They can’t change paper stock each run. Designers who have

been working on marketing brochures, etc., have to be welcomed

to the world of transaction printing and educated accordingly.”

Transactional color printing virgins definitely require hand-

holding for the color indoctrination, Gooding says. Defining the

workflow, testing papers and optimizing the environment requires a

degree of hand-holding. While it won’t take long to get operators up to

speed once the press is up and running, setting the standards is critical.

Also, Gooding cautions, color management expertise with a

Xerox iGen, for example, is not the same beast as an inkjet device.

“It really is so different that it needs to be handled as its own spe-

cies,” she adds. “For an ongoing basis, the internal staff can defi-

nitely be trained to take it forward.”

Among the primary tripping points for transactional (and other

types of) printers using inkjet:

• Inexperienced color users need to understand ink/paper

interaction.

• Understand the difference between other types of digital color

and inkjet color.

• Pricing for inkjet. It’s not just about cutting prices. Understand the

value-adds that inkjet brings to the client, then price appropriately.

Similar to the transpromo space, the direct mail sector is still

embarking upon an ongoing quest to better leverage data and craft

content that is more relevant to the recipient of the piece, notes

Marco Boer, vice president of I.T. Strategies, and conference chair of

the 2014 Inkjet Summit (see sidebar on page 34). Much success is

being realized in areas including retail-related accounts via customer

loyalty cards and the finance industry with credit cards.

After a printer has expended $2 million on an inkjet press, the

investments are only just the beginning, according to Boer. “You

probably have to sink another million or two into setting up a good

workflow/software system, to be able to harness that nicely relevant

data,” he says. “Then, you have to change the sales process; gain

more trust from your customers because you’re handling their most

sensitive data. It’s really a journey where all the players in the eco-

system, ranging from the printer vendor to the guy that supplies

relevant data, have to become more trusting with each other and

experiment on some things.”

Production inkjet has fast become the book printing sector’s

best friend. The popular notion, a misconception, is that the print-

ing of books is attritioning due to the emergence of e-books, when

in reality the electronic tome only accounts for 20 percent to 30

percent of publisher revenue. It is the long-run offset jobs that are

actually taking a beating. Many of the larger U.S. book printers

have invested heavily in high-speed inkjet presses.

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Digital Inkjet Papers

Dyemond is a trademark of International Paper Company. ColorPRO is a registered trademark of Hewlett Packard Company.

Self-publishing is a driver of the short-run market, fueled by the retiring baby boomer

generation, Boer says. Their hard copy run lengths number in the 200 to 300 range, which is

in the production inkjet wheelhouse. It has also spawned a small group of non-traditional book

manufacturers addressing the short-run needs of self-publishers. Sheetfed inkjet is the prime

candidate to take care of a print run of a scant few copies.

Volume is the name of the game, and I.T. Strategies’ research indicates that five million

pages per month is the tipping point for production inkjet justification. From the book perspec-

tive, filling capacity can be hit and miss for seasonal work like educational printing, which goes

dry during the first quarter of the calendar year.

What about quality? Well, a coffee-table book may require offset printing but, on the whole,

Boer notes there is a greater level of acceptance than we might have witnessed 10, 20 years ago.

“The delta between having the best in class and the average

...

that

gap is really not as big as

it used to be,” he contends. “I’m not saying that the quality of printing will go down, but we

don’t need it to be at the highest levels that we’ve always assumed we had to be at, either.” PI

ReachIng the Inkjet SummIt

Given the overwhelming success of its inaugural performance, the Inkjet

Summit is returning in 2014 with an expanded market segment focus and a

larger pool of invitees.

The second annual Inkjet Summit will take place April 7-9 at the Ponte

Vedra Inn & Club in Ponte Vedra Beach, FL. The invitation-only event is aimed

at senior managers and business executives from printing companies who

are looking to develop strategies, understand their options and make major

investment decisions in the production inkjet digital printing space.

Attendees at this second Summit will hear from the industry’s leading

experts/consultants in the inkjet printing space during a tightly-crafted

conference program that mixes unbiased market information, education and

peer-to-peer networking opportunities through keynote sessions, workshops

and user panels featuring printers who have already invested in production

inkjet printers. In addition, market segment-focused breakout sessions will

cover book, direct mail, commercial and transactional printing applications.

Printing company executives who attend will also have the opportunity to

meet one-on-one with leading inkjet providers, to help them evaluate where

they stand and identify opportunities to serve their customers with inkjet

solutions.

Qualified attendees will be treated to an all-expenses-paid experience at

the Inkjet Summit—airfare, hotel, airport transfers, and all meals and activi-

ties. A qualification form is available on the Inkjet Summit Website at www.

ijsummit.com. Simply click on the “Why Attend” tab and fill out the short

“Executive Inquiry Form” to begin the qualification

process. Space is limited, so don’t delay.

For more information about attending, visit

www.ijsummit.com or contact David Pesko at

dpesko@ngagevents.com.

Digital Digest

Konica Minolta Helps Shape The Future at Dealer Event

LAS VEGAS—With the tagline “Shape

the Future. Strategy. Passion. Leader-

ship,” Konica Minolta hosted roughly

1,100 attendees representing 334

dealerships at its 2013 Konica Minolta

Business Conference and Product Expo,

which was held at the posh Venetian/

Palazzo Resort here from Nov. 17-20.

The 2013 event also happened to co-

incide with the 10th anniversary of the

merger bewteen Konica and Minolta.

Rick Taylor, Konica Minolta president

and COO, led off by noting positive fiscal year 2012 (ended

in March) results. Total revenues were up 6 percent; hard-

ware revenues, 8 percent; and units sold, 9 percent. More

impressively, software solutions were up 44 percent and IT

services increased by 59 percent. Noting that fiscal year

2013 was on track for similar success, Taylor added that

dealers accounted for 52 percent of Konica Minolta Business

Solutions U.S.A.’s sales, surpassing the 48 percent direct

business amount written through Konica Minolta branches.

The organization has also transformed from a hardware-

oriented business to a services and solutions model, he said.

For the production printing market, Kevin Kern, senior

vice president of marketing, provided an update on the new

23x29.5˝ KM-1 digital inkjet press. Employing Komori press

technology and Konica Minolta inkjet heads, the six-up UV

digital press will be available in a six-color version. Follow-

ing a beta installation during the first half of 2014, the first

production units will begin shipping in about 14 months.

The new 85/100 ppm bizhub PRESS C1100 will be avail-

able by early summer. It features new Simitri (EP) toner

technology, extended service intervals, increased duty

cycles, no need for a second fuser unit and the ability to

handle a wider media range with less paper curl.

The new bizhub PRESS 2250P is a mid-range device for

transactional, books and on-demand applications. Also of

interest was the announcement that Konica Minolta and its

dealers will begin selling 3D printers from 3D Systems.

In addition, Konica Minolta has expanded the IT services

offerings available to its dealer network. Incorporating the

IT Services program from Konica Minolta’s All Covered divi-

sion, dealers will now be able to offer their customers cloud

services, enhanced backup and security solutions, as well

as application development resources.

Likewise, Konica Minolta’s EnvisionIT vertical solutions

have been expanded to include software, hardware and IT

services designed specifically for the Government, Financial

and Manufacturing industries.

The conference program also featured some house-

hold names. Sportscaster Jim Nantz, lead anchor for CBS

Above, the product expo

area featured Konica

Minolta and partner

innovations. Left, sports-</