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January 2016 – Mergers, Acquisitions & Restructuring in the Printing, Packaging & Related Industries
The unemployment improved to a level not seen since the recession began, but it doesn't feel that good. Have the statisticians been running their thermometers under running water until it gets to the number they want? Printing shipments beat GDP for the year for the first time since 1995. Where are the cheers? And then there's a beef with image campaigns. Yeah, it's Dr. Joe time again.
Commoditization has come creeping into wide-format and specialty graphics, but does it mean the end of profitability?
Since December 2007, the CPI is up by +12.6%. How have the PPI for commercial printing, ink, and paper changed? Commercial printing prices are lower, -0.8%. This means that a commercial printing business has to increase its productivity and profitability to reward its owners and employees to make up for the loss of purchasing power they have in their paychecks.
There are those who envision a future free or nearly free of packaging. Although it might seem unachievable, some tentative steps in that direction have been taken.
Major retailers like Lands’ End and J.C. Penney are bringing back their printed catalogs because they recognize the critical role that these catalogs play in driving business. This article cites recent InfoTrends research to highlight how catalogs remain an important marketing tool for reaching today’s consumers.
The monthly recovery indicators were uneven again. The NASDAQ fell almost -7% in the last month, and ISM non-manufacturing new orders and imports also declined.
Business meetings can be horribly ineffective, yet with a set of small hacks you can unleash the productivity and innovation your company desperately needs. Here’s the good news, all you need is some Post-It Notes and a phone.
Yesterday, IDEAlliance and Epicomm announced a proposed merger that, pending member approval, will combine the two organizations under the 50-year-old brand IDEAlliance. Senior Editor Cary Sherburne spoke with IDEAlliance’s David Steinhardt and Epicomm’s Ken Garner to get the inside story.
Look around the produce section of your supermarket. Notice how many colorfully printed flexible bags there are? Meet the company that put some of them there.
Real Gross Domestic Product (RGDP) for the US increased by an annual rate of +0.7% in the fourth quarter of 2015. On a year-to-year basis, RGDP was up +1.8%.
New OSHA workplace safety regulations and changes in reporting requirements and on-site inspections are on the horizon. Here’s what companies in the specialty graphics industry need to know to ensure they are compliant.
Today’s market holds a tremendous opportunity for direct mail printing. How can today’s service providers better meet marketers’ evolving needs, and what are the essential ingredients for success? This article explores three key areas of focus—data-driven personalization, multi-channel communication, and an agency approach.
The chart shows the percentage of US commercial printing establishments of all sizes and their responses to the question about the cloud-based services they use today. The question did not ask them their frequency or intensity of use, just whether or not they use it today. Some of the “non-users” may not even be aware that they are using cloud services, since some services run transparently in the background, such as backup services like Carbonite and others. Others may not be aware that they are using a VOIP phone system. Some cloud services such as Dropbox allow customers to brand their service so it looks like a company file sharing site. Generally, larger printers are using more cloud services than others, but the disparity is narrow.
As technology continues to change at a rapid rate, collaboration needs to extend into the functional areas of your business. Don’t stop at creating a peer group for print owners, encourage your accounting lead to get into a peer group, each functional area should have multiple sources of knowledge sharing.
In studying the Propago product, a consistent theme reverberated throughout the product; this product was built based on real-time feedback from live users in a large scale deployment. The approach to solving the business challenges of web-to-print are rooted in data-driven decisions rather than theoretical solutions to ill-defined challenges. Propago came out of a large commercial printing organization that consisted of twenty-five companies across the nation.
Gearing up for drupa yet? At WhatTheyThink, we are. In fact, our drupa page is already up, so be sure to follow the news as the show gets closer! One of the areas worth investigating when you go to drupa is the developing area of advanced materials, whether it is resins for 3D printing, conductive inks, or advanced inkjet ink formulas.
Profits are the focus of Dr. Joe this week. His data show two halves of the industry at the same size but the profits are not divided that way. It's not what you might expect.
As leaders in their respective fields, Guy Gecht and Steve Wynn share an exceptional ability to hold a stage and captivate an audience. Both played to a packed house as keynote speakers at EFI Connect 2016.
EFI is integrating hardware and software for specialty printing applications, as well as making the most of its many recent acquisitions. Here are some wide-format-related highlights.
Despite the surging popularity of digital marketing, direct mail will continue to play an integral role in savvy businesses’ marketing initiatives. This article cites data from recent InfoTrends research to explore the role that direct mail will likely play in the marketing initiatives of the future.
Here are data from our survey at the end of 2015 where we asked respondents to identify the status of their companies in terms of consolidation. Generally, formal consolidations are executed by the largest print businesses, and small businesses close their respective shops and reopen a new business with new partners.
It’s time to stop talking about what we should become (marketing services providers) and actually take the steps that move us in that direction. Think through a go-to-market strategy for offering digital products, execute on that plan on your print business’ marketing, enable your sales team, and start diversifying your revenue streams for the digital age.
Herewith a handful of recent new announcements that caught your Section Editor’s eye.
As 2015 drew to a close, Senior Editor Cary Sherburne had the opportunity to sit down with X-Rite Pantone CEO Ron Voigt to review the year and look ahead into 2016.
Paper currency has been part of the American mindset ever since Benjamin Franklin pamphleteered for it in 1729. But, folding money has to confront 21st-century trends that could displace it.
Our President, Eric Vessels, came across the Chatbooks service in Instagram and shared it with the team. Our own Frank Romano commented on it in a video last week, and today we have an interview with Chatbooks CEO Nate Quigley for a deeper look at the service and print’s value add.
While some forms of marketing are fleeting and forgotten, a postcard, brochure, or catalog can serve as a lasting reminder of a marketing message. Direct mail can compel recipients to act, attract new customers, increase customer loyalty, boost brand awareness, reactivate dormant accounts, and deliver profitable results. This article explores how businesses of all sizes are rethinking their strategies and incorporating more direct mail in their messaging.
The latest survey of NFIB shows their index bouncing along the level of the early 2000s recession low, and down from the high prior to the December 2007 recession. Passing that level on the way up would have indicated a completed recovery of this sector but it just couldn't make it that far and break through. Using this indicator that means that small business did not emerge from the recession yet. Big business and the stock markets dominate the headlines, but small business remains the front line of the economy, and its difficulties are often hidden from view as being un-newsworthy. Its breakout above the bottom of the early 2000s recession took some time, and the recent trend in the chart looks like it's getting ready to fall below that again. It dipped below that level briefly a few months ago and climbed back out. Will it climb out again? It's worth watching.
Just when we thought that the definition of “printing” had been pushed to the limit, along comes a new one that envisions morphing objects made of self-assembling materials.
In Print MIS implementations, your business data entered into the Print MIS database structure creates the data model of your business. Your attention to detail at this critical juncture of Print MIS implementations can set you up for success.
December 2015 – Mergers, Acquisitions & Restructuring in the Printing, Packaging & Related Industries
Now a committed developer of digital printing systems, Heidelberg knows where it wants to go in the digital equipment market and what it can do to get there.
Our annual rundown of the current flatbed wide-format printer landscape.
It is times like these that make one yearn for one-armed economists. What should we believe? The crazy gyrations of the stock market? The collapse of commodity prices? Or what might be a surge in employment? No wonder Dr. Joe's lost his hair. He adds his comments to the economic stew.
After the U.S. executive order in early 2015 that allowed more classes of U.S. citizens to travel to Cuba without seeking prior U.S. government approval, I decided I would like to visit the island to learn more about the culture and doing business there. In my role as a journalist covering the printing, packaging and publishing industries, the goal was to visit those types of companies.
Whether improving direct customers’ experiences or the experiences of clients’ customers with better communication products, a positive customer experience delivers bottom-line results. This article provides InfoTrends’ recommendations on areas that print service providers should focus on in the year ahead as they strive to improve the customer experience.
For about a decade, many print businesses have marketed themselves as “marketing services providers” with varying degrees of success. Our recent survey showed less than half of print businesses market themselves in this or a similar manner.
Cimpress (parent company of VistaPrint) is expanding into the core of the print market; “upload-and-print”. They are buying demand generators and no doubt investing in user experiences that will enable self-service online purchasing of print for the largest segment of the print industry (manufacturing of the customer’s design/file).
Are the recovery indicators becoming recession indicators There's enough negative news of late to be wary about the state of the economy, and a lengthening list of geopolitical issues, for sure.
US commercial printing industry shipments are up for 18 consecutive months in current dollars compared to the corresponding month of the prior year.
A special report ahead of drupa 2016 sees the event as the setting for a turning point in the adoption of digital printing for packaging production.
Our annual rundown of the current rollfed wide-format printer landscape.
In December, Cimpress, the parent company of Vistaprint, announced plans to acquire German web-to-print company WIRmachenDRUCK. Senior Editor Cary Sherburne talks to CEO Robert Keane to find out more about the company’s strategies and growth plans.
As the end of the year approaches, it becomes helpful to think about the trends that will likely impact our industry in the future. This article offers a top-level overview of three trends that are expected to impact commercial printers and in-plant printers in the coming year.
The third quarter of 2015 marked a huge divergence in the performance of the industry, according to the Department of Commerce Quarterly Financial Report. Printers with more than $25 million in assets wrote down assets amounting to nearly -15% of revenues. This sent the quarterly moving total of inflation-adjusted profits before taxes to +$1.46 billion.
Last week, we took a wide-format look back at 2015. Now let’s switch directions. What can we expect in 2016? Before we answer that, though, what is 2016 likely to hold for the printing industry in general?
We took a survey of printers and they told us they were really happy. We got data about ad agency revenues and their revenues is still heading up. A big consulting firm says digital content will be bigger than ever. The post office data tells us there's less and less of their work in our mailboxes. The world is full of contradictory trends, and Dr. Joe sorts them out.
These are the results of the Economics and Research Center’s (ERC) survey conducted in October and November 2015.
A promotional campaign for paper and packaging goes for the heartstrings with special boxes to be filled with gifts for kids spending the holidays in hospitals.
Albert Einstein’s general theory of relativity is 100 years old, but his appeal as a creative inspiration for graphic illustrators is 100 years young.
The print medium is returning as an important marketing and sales tool. This holiday season, firms like Bloomingdales, Nordstrom, and Saks Fifth Avenue are sending more targeted and specialized catalogs. This article cites InfoTrends’ recent research to explore how catalogs are cutting through the clutter in today’s digital world.
The recession started just before 2008 was beginning and the latest data from the County Business Patterns report shows how the business formats of the industry changed by 2013.
Last week I attended Singularity University’s Executive Program in Silicon Valley. The best way to describe what happened to me after a week of hearing some of the brightest people in tech talk about the future is that they dramatically changed my perspective. Come to find out, I had a very narrow lens through which I viewed the world; they replaced it with a wide angle lens that goes beyond our planet and looks far into the future.
A company called High Quality Printing Inventions, LLC, is using a patent initially granted to Moore (now R.R. Donnelley) to file patent infringement lawsuits in the U.S. District Courts in a litigation campaign against several printing companies using common web-to-print functionality.
2015 was a chock-full-of-news year on the technology front—but only a curtain-raiser for what lies ahead in 2016.
Santa Claus, who knows a thing or two about packaging, has a sackful of innovations for fans of the art form this year.
What were the top growth areas for wide-format in 2015? What applications are ascendant? What technologies are emerging and evolving?
Integrated direct marketing solutions provider SG360° made an exciting announcement the other day, and I wanted to make sure you didn’t miss it.
Saugatuck Capital bolts Plymouth Printing onto Pharmaceutic Litho & Label, Rondo-Pak adds Contemporary Graphics to US pharma printing platform, Firespring evolves into MSP, Circle Graphics corrals grand format printer Imagic, the Mittera Group continues traditional printing rollup.
Rather than face the reality that all print businesses need to evolve, many print owners default to staying “busy” running the business the way it’s been run for years. Don’t be tempted to “numb yourself” by keeping busy, the market conditions are indisputable, the past performance of your print business is not indicative of future results. We are operating in a different reality with very compelling digital alternatives to print communication.
For the holidays, “shop early and shop often” is still good advice—assuming that you know what “early” now is starting to mean in the retailing world.
Last week's unemployment report did it again, it was all wrapped up in a pretty package but it seemed empty when you looked inside. Contents must have settled during shipping. Speaking of content, employment in agencies and designers are up strongly compared to last year. The content creation business is doing well. Commercial printers are reconfiguring their businesses and produced an historic high in shipments per employee. Dr. Joe has the details.
Two technology leaders want to take digital printing for packaging to the next level—and to several levels after that—with a 110-inch-wide web inkjet press specifically for the corrugated market.
Digital wide-format printing is one of the most significant growth areas in the entire print industry. InfoTrends offers some of its data on the top-growing wide-format printing applications, and takes a look at how the supply chain for equipment, supplies, and consumables is changing.
After doing a multi-year stint managing the established imaging and printing businesses for HP, Steve Nigro is back doing what he loves – running a start-up business. His current role is President, 3D Printing, at HP, Inc., with worldwide responsibility for creating and scaling HP’s 3D business.
The recovery indicators turned in a mixed performance that warrants some caution, concern but not worry, yet. Some outside economic analysts starting to raise concerns about the economy in 2016. Citibank analysts peg the chances of recession in 2016 at 65%, the first such prognostication of a major investment firm that we have seen.
For 17 consecutive months the US commercial printing industry has scored increased shipments compared to the same month of the prior year. In current dollars, the Commerce Department reported that shipments were $7.729 billion. That meant that October 2016's shipments were +$204 million compared to 2015, a +2.7% performance. For the year through October, shipments are +3.3% on a current dollar basis.
The rise of mobile marketing has been long expected, and it looks like Black Friday 2015 is key milestone: mobile was more than half of web site traffic for e-commerce sites. Black Friday “brick-and-mortar” traffic was disappointing, but retailers were aggressively pushing sales online because it reduces the risks of riot-like runs for bargains as stores open. Target Stores had so much online traffic for CyberMonday its servers could not handle the volume. It wasn't the first time that Target misforecast demand for online sales. Some of Black Friday shopping may have been “window shopping” for mobile ordering. IBM, which still has a big business in systems for retailers issued a free download report about what was learned on Black Friday. In that report is the chart we highlight this week. If you sell to retailers or to businesses that sell to retailers, the report is worth reading.
Most printers are business to business (B2B), they do business with other businesses that they have a working relationship with. Business-to-consumer (B2C) is the term used for online businesses that serve anyone who shows up on the website (not necessarily just consumers). As printers consider B2C, they need to understand what it takes to build a successful online business.
Henrik Müller-Hansen, Gelato’s Founder and CEO, had a vision for democratizing the world of printing. This article provides an overview of the Gelato Group’s offerings and explores how these solutions can make a difference in today’s mobile world.
As the production inkjet market continues to gain traction, more choices are coming to market, many of which were first shown at drupa 2012. As we approach drupa 2016, there is no doubt that a growing number of production inkjet solutions will be making their way to commercial availability. Delphax elan is one of those.
As printing companies continue to transform their businesses by offering marketing and related services, establishing direct communication with the brand owner at client or prospect companies – the person who ultimately has responsibility for driving brand initiatives – can pay big dividends. Learn more about what these new services might look like.
From your own physical location—and website—to social media, to local business media, there is no shortage of options for showing off and promoting cool, creative projects you have completed.
The US economy was reported to be stronger in the third quarter than originally thought, but much of it was a rise in inventories. If retailers were stocking up for Black Friday, that might have been a mistake based on early reports. What's happened to the relationship of commercial printing and department stores? Dr. Joe has the history of that and also previews what's coming in this week's economic data.
Take another look at the tried-and-true stuff that shipping cartons are made of. Some top developers of packaging printing technology are.
If you been to Comic-Con in the last five years, you have seen Las Vegas based Off the Wall Signs & Graphics’ work. Its updated fleet of grand format printers have enabled bigger projects with shorter cycle times and are the basis for the company’s growth. Learn more in this story sponsored by HP.
Five years ago, Kodak CTO Terry Taber began building a technology pipeline that he hoped would lead the company into new businesses, including a key focus area for CEO Jeff Clarke, Functional Printing. He speaks with Senior Editor Cary Sherburne about the current state of the organization from a technology perspective.
Packaging isn’t everything at Island Pro Digital, a printing company with a highly diversified product base. But, it represents some of the most interesting work that the firm fabricates for its clients.
The scale of the program is modest, but when the young writers who take part in it see their words in print, its achievement seems far-reaching.
Four-and-a-half years ago, Bob Kelleher of East Syracuse’s SpeedPro Imaging of Central New York made the transition from software sales to wide-format printing and has never looked back.
Even the usual industry dynamics are dynamic. The latest commercial printing industry birth-death data comparing 2012 to 2011 show a rising birth rate and a declining death rate. The +1608 births and -2262 deaths in 2012 were recent lows, as was the net change of only -654 establishments.
That old hippie mood ring you’d die of embarrassment to be seen wearing now? It was the cutting edge of an important decorative technology for labels and packaging.
The news story reporting that James Eby, a 25-year veteran of Wunderman, joined Tukaiz as Chief Creative Office caught my eye. Tukaiz, which recently started an in-house agency, agenz, has long been an innovator and thought leader in the industry. Now they have taken that to a whole new level with Eby leading agenz.
Integration projects span a wide spectrum, from cheap and easy to complex and very expensive. Focus all your attention about print software integration from one place – your business objectives.
Allison Payment Systems was founded in 1888 by Noah Allison, who is credited with the invention of the coupon payment book. The focal point for Allison Payment Systems is personalized customer communications through electronic delivery and first class mail … and lots of it.
The choice of a digital front end (DFE) is perhaps one of the most overlooked decisions in the purchasing process. In some cases, there is only one choice. But for a wide range of toner-based digital presses, two (or even more) options are available. Senior Editor Cary Sherburne spoke with a number of printing professionals to better understand how they are approaching this decision and what criteria they use. Read more for advice from the front lines.
A growth forecast of half a percentage point per year may not sound like much, but it indicates undeniable post-recession momentum for the folding carton market.
Building the world’s first “print shop in a box” was a watershed achievement for Xerox. So was marketing and selling it—a story that “DocuFrank” knows from the inside.
It’s hard to believe that the Xerox DocuTech Production Publisher was launched 25 years ago last month. This was truly a breakthrough product that is credited with launching the print-on-demand market and ultimately generated billions of dollars of revenue for Xerox and its customers.
What could be an important product for local retailers to make their baby steps into direct mail, keeps declining as the USPS raises prices on the Every Door Direct Mail (EDDM) service.
Following on the success of their 2012 book entitled The Challenger Sale: Taking Control of the Customer Conversation, authors Matthew Dixon and Brent Adamson have published a new book entitled The Challenger Customer: Selling to the Hidden Influencer Who Can Multiply Your Results. This article outlines ideas from the new book and explores how winning the right types of customers can enable salespeople to do their jobs more effectively.
Printers working with UV curing have a new technology to learn about, if they are not already acquainted with it: UV LED
Your Print MIS or Print ERP is the most important print software in your business. The process for purchasing a Print MIS is dysfunctional; avoid these five common mistakes in your Print MIS sales process.
The recovery indicators had a better month than last. Five of the six indicators increased and one fell below the level of the start of the recession. New orders for manufacturing and non-manufacturing were impressive in their increases, in stark contrast to government reports about September's durable goods and factory orders.
We wrap up our coverage of last week’s SGIA Expo 2015 with a look at a handful of the major new product announcements that were made at the show.
The Box is in – paperboard, corrugated, decorated, foil-stamped, bar-coded, laminated, textured, embossed, pearlized, diecut, folded, glued, large and small. Folks in the business of printing love the box. Unlike the box’s troubled cousin, commercial printing, the box is reordered on a regular basis and is far less subject to disruption by online internet-based technologies.
The economic pundits were out in full force about the unemployment rate falling to 5%. Was it meaningful? Is this the sign of a bullish economic rebound? Then there's the 16 month rise in printing shipments. You'd think there'd be cheers from the audience that Dr. Doom is dead, and long live Dr. Boom! Instead, we hear nighttime crickets. What's behind the rise in shipments, is it real and will it last?
The Atlanta skyline may have been shrouded in fog, but inside the Georgia World Congress Center, all was clear on Wednesday as the SGIA Expo 2015 officially opened.
A recent academic paper published in the Journal of Economic Perspectives (Volume 29, Number 4, Fall 2015), “Household Surveys in Crisis,” illustrates the problems of government surveys that are used to make multibillion dollar and multiyear decisions of government and business.
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