Last fall, Enovation was formed in connection with Fujifilm's acquisition of PrimeSource, Heartland Imaging and Graphic Systems, Inc. Since that time, the company has not slowed down. Enovation has since acquired Taylor Impression of Nashville and Image Control Systems based in Seattle.
In a sign of deals to come, Enovation recently announced a comprehensive alliance with Flint Ink’s Sheetfed Commercial Inks & Coatings. The product line here includes Process colors, Hexachrome colors, Pantone colors, Specialty colors, Specialty inks, UV/EB curable inks, and Aqueous and UV coatable inks. More than a soft reseller agreement, the deal gives Enovation a unique selling advantage for Flint Ink products.
Enovation could sell more than $1 billion of products to printers by 2003. Most impressive is that the company is able to take a long-term view of market opportunities because of the strong financial backing from Japanese parent - FujiFilm. With this support, Enovation could acquire companies regardless of market conditions and use its vast resources to negotiate with manufacturers like Flint Ink.
Bringing all this to the printer’s loading dock is the job of Daniel C. Maffeo. He is a 30-year veteran of the graphic arts industry and Executive Vice President of Enovation. We caught up with Dan last week and asked him a few questions about their progress thus far.
WTT: Enovation got started last fall in one of the worst overall economic climates in years, but a particularly difficult period for the graphic arts industry. How has the company weathered the storm?
Dan Maffeo: Enovation is fortunate to be backed by the vast resources of FujiFilm. Those resources, combined with the sales, marketing and support expertise gained when the company was formed enables Enovation to provide a vast product offering from the best manufacturers in our industry.
WTT: Recently your company purchased Taylor Impression, a graphic communications dealer based in Nashville and Image Control Systems based in Seattle. How will purchasing Taylor and ICS benefit Enovation and will there be more acquisitions in the near future?
Dan Maffeo: Enovation is very pleased to have acquired Taylor Impression and ICS, both long-term market leaders in their regions. These acquisitions enhance Enovation’s presence in the Southeast and Pacific Northwest and strengthen our position as the nation’s leading distributor to our industry. Obviously I cannot comment on the possibility of other acquisitions.
WTT: We have received comments from Mr. James Mullan at Enovation, KPG and Agfa about the friction of FujiFilm entering the distribution channel. As time has passed, what is it like today? What are printers telling you?
Dan Maffeo: Jim Mullan’s previous response to your original question regarding "conflict among vendors like AGFA and Kodak Polychrome Graphics who compete with Fuji" stated clearly that "Enovation can not afford, nor does it have the desire to become a partner that conflicts with the companies we sell for.”
Agfa chose to terminate their relationship with Enovation. The relationship with Kodak Polychrome Graphics continues to be beneficial for both companies.
Our customers continue to tell us that they want a financially sound, long-term partner that provides them with great products, delivered when they need them and access to the value added services that helps them run a better business. This is Enovation’s mission.
WTT: Tell us about your partnership strategy and is Enovation open to distribute products from digital vendors like Xerox, HP Indigo, Xeikon or Nipson?
Dan Maffeo: Enovation is committed to providing the best in class products in the industry that add value to our customers’ business. We provide tremendous support and value on our key vendor lines. It is not our intent to carry as many vendors as possible. We are however; open to discuss relationships with potential long-term partners.
WTT: During the past year the graphic arts industry has had to cope with a number of challenges, including a drop in advertising revenue. From your perspective, what are the challenges that companies will have to cope with in the future?
Dan Maffeo: We believe the industry’s current economic conditions will not see any dramatic increase. Enovation and our customers will need to adapt, evaluate and possibly expand into new markets. Our responsibility as the nation’s leading distributor is to recommend and provide the products, systems, support and services that will help them through this transition.
WTT: Ordering supplies via the Internet - what is the status for Enovation customers here?
Dan Maffeo: When market direction and circumstances tell us the time is right to add this level of customer support we will examine our options and promptly implement suitable e-commerce services.
While we see the trend toward this type of commerce in many marketplaces we also see the vital need in our industry for face-to-face, personal relationships and the value added services provided by our sales professionals.
WTT: When cash flow is down and the economic future seems uncertain, companies often put off purchasing new equipment. Yet, in this industry companies need to keep up with new technologies. How can companies like yours help in terms of financial deals, incentives, etc?
Dan Maffeo: Many of our vendors are providing sales incentives to purchasers of equipment. Enovation’s mission is to keep our customers aware of these opportunities and provide the consultative services that help them make safe and sound decisions that will help them grow and prosper.
WTT: What are some of the most popular kinds of products selling today?
Dan Maffeo: The most popular products are pre-press consumables, electronic imaging equipment and pressroom supplies. Although Enovation represents many vendors nationwide, our greatest percentage of sales comes from film, plates, proofing and electronic imaging systems.
We are actively developing plans to expand our business in related graphic communication markets.
WTT: Tell us about the advantages a supplier has like FujiFilm by having more control of their channel?
Dan Maffeo: Enovation is one of several dealers for FujiFilm graphic arts products. Our intent and focus is on improvement to the distribution channel that is mutually beneficial for our customers, our vendors and our company.
WTT: We recently reported that Enovation and Flint Ink signed a nationwide strategic alliance. Tell us a little about that news.
Dan Maffeo: Our mission is to provide products and services that add value to our customer’s business and the Flint Ink product line does exactly that. Flint Ink is a name synonymous with quality and customer satisfaction. It covers Flint Ink’s Sheetfed Commercial Inks & Coatings product line including Process colors, Hexachrome® colors, Pantone® colors, Specialty colors, Specialty inks, UV/EB curable inks, and Aqueous and UV coatable inks.
Thank you Dan. We appreciate your time and look forward to future updates.
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