Discussion

By Dr Joe Webb on Jun 22, 2009

Unfortunately, our industry has been "redlined" even in good times. Good printing firms, therefore, have to really stand out financially so they're not painted with the same brush as the industry-at-large.

By MichaelJ on Jun 22, 2009

The numbers help explain why selling new boxes to new customers is going to have pretty rough going for a while. Hopefully, the vendors will spend even more time and energy helping printers earn reasonable margins with the boxes they already have. Then selling them upgrades because they need more capacity, instead of "selling the dream." I think it also means that "after service" and paying for "training" is going to have to be a lot cheaper go forward.

By B. Smith on Jun 23, 2009

Sell all of you equipment, layoff your employees and order all your product online. Your customer will be none the wiser, and maybe, just maybe, you'll turn a profit for a little while. At least until you come to the realization that PRINTING (as a business) IS DEAD.

By Ed D. on Jun 23, 2009

Yes This Business is Dead . You Have supply businesses running all over trying to get new business and calling on the DEAD.

By Joe May on Jun 23, 2009

Mr. Smith, you are beating an already "dead" horse. You are absolutely, positively right. It(printing)has become a commodity, and that means any fool thinks he can do it. And, you're right about the web. Now, you don't just compete with the guy across town, it's the guy several states away, maybe a continent away. Oh well

By Bill K. Toronto on Jun 23, 2009

I think our industry does need the Chaff being blown away...and let the truly real ones stand out...It is time to shine. Skilled Workers and companies need to show how we can serve and be of an assistance in this tight economy. Find your niche...get good at it..Be smart for your Clients.

By MR. SMITH 2 on Jun 23, 2009

I was just informed that our customers for 20 years are going out of the country to bid printing. Are those people out of the country the customers coming into your stores to buy merchandise. We have soldiers fighting for our right for freedom every day, that we pay for every day. Why not send our money to foreign countries also and support their economy while we are all out of work. Great concept new CEO's!!! Maybe it will get you a raise next year with all the money your saving!!!

By Charles on Jun 23, 2009

With some 30,000 printers in the US alone, it is one of the most highly fragmented industries globally. Thus, you have aggressive (almost predatory) pricing as printers look to maximize utilization to offset sales in secular decline. This also speaks to a word many in the industry have their head in the sand about - OVERCAPACITY. There are TOO MANY PRINTERS and now there is no cheap financing to prop up the weak and sick this go around. The industry needs to rapidly contract/condense in my opinion and not by a token amount. With the larger printers operating at 50-70% utilization arguably 20+% of the industry capacity needs to be removed for good.

By Anne Stewart on Jun 23, 2009

Alright! Great positivity, gang! Hmm... Seems people like to do a lot of scoffing and eye-rolling around here, and we tend to forget that printing is, essentially, a helpful, supportive industry. We need to work on strategies for getting not just ourselves, but our customers (see bankruptcy-prone industries 1-9) off this stupid list, and although I know it's a contentious topic, more complete marketing service offerings can help us do this. Instead of looking at becoming a 'Marketing Service Provider' as an awkward, unwieldy step for printers, we should look at it as a way of analyzing the needs of our customer base, and providing for THEM. That's how my company stays strong. Dead horse-free for 10 years and counting!

By Gina Danner on Jun 23, 2009

Print is not dead... it is different. The days of spray and pray direct mail is dead. BUT, direct mail is still an exceptional value when used correctly. Highly targed multi-channel marketing efforts are very viable - many of our projects are receiving double digit response rates for our clients. Too many printers (and press manufactureres) have played the game as "me too, only I can do it cheaper". BFD... Even in recessionary times companies still grow -- even printers can still grow, but if you think you get to sit and live like you've always lived - fat and happy - go sell your equipment and buy your printing online - but don't be surprised when I come in and take your clients because I will offer your clients something beyond price, quality and service. They can have all three and MORE, because we give it to them every single day. Every industry is constantly being redefined. Unfortunatly the printing industry is full of owners who grew up in the industry and don't have a solid financial understanding of how to acquire equipment with a viable plan to generate a profit. It is almost as if the industry is full of a bunch of boys want bigger toys so instead of buying the new car... they buy the new press. The industry as a whole needs to decide that the old ways are gone and a new paradigm is needed.

By Clint Bolte on Jun 23, 2009

The digital print engine manufacturers are clearly placing their primary marketing emphasis on corporate entities that are considering the near term cost advantages and longer term strategic value in the concepts of in house Managed Print Services and Electronic Content Management (ECM) and not the for profit printing services arena. The former can afford both the razor (capital equipment) and razor blade (expendables) financing while the later must take on more debt regardless of how creative the financing is presented. That segment of the printing industry with healthier balance sheets appear to be investing (as in on-going) in the IT application learning curve, distinctive apps software with economy of scale leveraging potential, and outsourcing relationships with vendors who have the heavy duty digital engines on their floor and lots of opportunity capacity. As volume builds these printers can then add the hardware.

By MR. SMITH 2 on Jun 23, 2009

Yea, great Idea. I pick you to go out. How does that sit with your bank!!!!

By Howie Fenton on Jun 25, 2009

Here is a post from my June 24, blog on GraphicArtsOnline In previous blogs we have been talking about fallen leaders – companies that lead for a decade but emerged from the last recession weaker – and the possible lessons learned that we could apply to our current recession. We suggested a relationship between investments, new products, leader status and then a decline related to excessive debt. As a result, we are starting to look for the common denominators that make up “sustainable leaders” and those that result in “fallen leaders.”

Impacting this fallen or short-lived leader status may be a combination of changes in the economy such as the impact of a recession and debt. John Hyde, NAPL Vice President and Senior Consultant sees this problem often in his merger and acquisition work. John works with clients on ownership strategy, debt restructuring, and mergers and acquisitions everyday.

According to John, “For the past several years, NAPL research and anecdotal experience among consultants indicated that leading companies comprised about 10% of the industry. However, it seems that some leaders have fallen into harder times in the last and current recession. As a result, I’d say that leaders are now 5% of the industry. What’s the common thread among the former leaders that have gotten into trouble or went out of business? The biggest two factors are owners facing distractions and too much debt.”



By Alan S on Jul 02, 2009

Well said Gina, this industry is full of complacency, negativity and people who can't or won't change their views on adapting to the new printing environment. Some of the comments here is that "print is dead!". I think to say print is dead is a bold statement considering the print industry has so many niches. If you were to say traditional offset litho is in the process of consolidation then you would be right, but to say digital printing is dead is a different matter. So many printing companies out there that have a business model entirely on print-on-demand and they are growing, its just a matter of abandoning the old traditional print business models and moving forward.

By Phillip Crum on Jul 05, 2009

MichaelJ is the kind of digital press sales rep I like to buy from. Wish they all thought like that! Bill K. Toronto and Charles fairly well summed it up. Too many printers/overcapacity and the weak ones need to be allowed to pursue something else. Those screaming that printing is a dead industry generally comprise that 20% who haven't kept up with the latest and don't offer anything that can't be had from...China! Pocket-book patriotism fares better in a healthy economy when it doesn't hurt. The print industry is not dead. 30,000 print shops still open attest to that. If dead means that a failure to keep up with technology and all that that means, and overcapacity have conspired to drive prices into the ground and put the 20%'ers out of business, then yes the biz is dead for that group of operators. Because one makes choices not to stay on the cutting edge of the industry, not to offer things that can't easily be had overseas, and offer the exact same thing 29,999 other shops are doing....doesn't mean an industry is dead. The real implication, the real problem, and the real blame is much, much closer to home. Gina Danner has an excellent comment! We used to have a graphics gal that told customers they could have two of the three: price, service, or quality. I think she's running a nudist colony in Austin, TX now. The printing industry is not dead. Some of the old print-biz models/paradigms are. A failure to recognize the difference or an inability to act on it is fueling the consolidation, not a poor economy! If that were the case, all printing businesses, or at least a much greater share of them, would be facing the axe.

By Michael J on Jul 09, 2009

There's good news and bad news when creative destruction moves through the economy. Winners and losers. The winners win. The losers cry deal. It's always been like that. Anyone who has been in this business for the last 30 years knows what it means for type houses and prep shops to disappear. Then it was the MAC and PDF. But consider an outfit like the Ace Group. They started in 70's as a type shop. They kept following their customers and trying to anticipate what they were going to do next. Just recently they executed the Time,Inc. "mine" magazine. The problem I have with marketing services provider is that it is too vague and covers a host of sins. Job one is to be a great printer. That means lowest cost provider. Google invented a way to "give away the product" and make a gezillion dollars in the process. That's a new business model. Usually when a printer says a "new business model" they really mean, "how do I get more customers to use more of what I make." That's not business development, that's more sales. A new business model might mean something like selling spreadsheets and using the print to get the data. But that means networking with experts. Data analysis is hard for us, easy for someone. On the other hand, printing is easy for us and hard for mostly everyone else. Easy for me, hard for you is always a good place to start.