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GPO work to private sector increases from 1Q10 to 2Q10

Press release from the issuing company

Chambersburg, PA – Second quarter 2010 (2Q10) data on work flow from the U. S. Government Printing Office (GPO) to private sector printers indicates that work has picked up from April through June compared to 1Q10 activity.

The value of all GPO work awarded during 2Q10 was $90 million compared to $73 million awarded during 1Q10 and $106 million awarded during 2Q09.  Work done by the top 50 suppliers during 2Q10 was valued at $63 million compared to $45 million awarded during 1Q10 and $73 million awarded in 2Q09.

Of the more than 1,507 print suppliers that obtained GPO work during 2Q10, RR Donnelly of Chicago, Illinois, won the most work with $19,388,554 awarded to the firm.

"Private sector printers that have developed GPO as a secondary market are seeing the benefits of consistently winning GPO work, pricing it to win and scheduling  the work to fill their production gaps," said Deborah Snider, senior vice president of e-LYNXX Corporation and division president of Government Print Management.  "These results reverse for one quarter the trend that we have been seeing, which was a decline in GPO work to the private sector. That is evident when comparing 2Q10 numbers to 2Q09 numbers. The printing industry is still concerned about government work being done internally by GPO and by individual government agencies.  While GPO awards about $425 million a year to the private sector, it could be several times that amount if fewer waivers were granted to agencies to set up their own printing services and if GPO did not duplicate the capabilities of private sector printers."

Snider said that to develop GPO successfully as a secondary market, printers need to receive and analyze every GPO bid for which they are qualified.  GPO has five print quality levels, and suppliers can only do work at levels for which they have been approved by GPO.  Once a bid is received, it must be analyzed carefully considering all specification and delivery requirements and comparing the current job to historical data that is helpful with pricing.  Snider said scheduling GPO work is strategically important because more times than not winning bidders have the work slotted for times when they have no commercial work.  This allows them to bid with discount pricing to fill downtime to keep revenue flowing and staff and equipment busy.

Non-GPO printers average 2.5% profitability on 70% production utilization.  Snider said that with GPO work profitability can be increased from 2.5% to about 14%.

Top 50 GPO print suppliers list for the 2nd quarter of 2010

Rank  Company                        Location                   Winnings
1       RR Donnelley                   Chicago, IL              $19,388,554
2       Gateway Press                 Louisville, KY           $4,296,224
3       SourceLink                      Miamisburg, OH       $3,898,165
4       Cenveo                           Stamford, CT           $3,437,832
5       NPC                                Claysburg, PA          $3,434,561
6       Monarch Litho, Inc.          Montebello, CA         $2,444,973
7       Gray Graphics                 Capitol Heights, MD   $2,108,732
8       McDonald & Eudy, Inc.     Temple Hills, MD       $1,539,466
9       V. G. Reed & Sons            Louisville, KY           $1,345,409
10     P.A. Hutchison                  Mayfield, PA            $985,585
11     Mission Info Resources     Lancaster, NH           $950,000
12     V.N. Products                   Foot Hill Ranch, CA   $854,035
13     Colonial Press Int'l.          Miami, FL                 $831,490
14     Consolidated Graphics      Houston, TX             $803,683
15     Freedom Graphics            Milton, WI                $800,429
16     Opsec                             Lancaster, PA            $731,350
17     Art Litho Company           Baltimore, MD          $696,449
18     Quintessential Color Group Upper Marlboro, MD  $692,621
19     District Creative Printing   Upper Marlboro, MD   $686,749
20     Intelligencer Printing        Lancaster, PA            $608,068
21     Omaha Print                    Omaha, NE               $597,572
22     United Book Press            Baltimore, MD           $565,072
23     Fry Communications         Mechanicsburg, PA    $536,311
24     The Standard Register Co.  Dayton, OH             $498,674
25     Trend Offset                     Los Alamitos, CA       $491,000
26     American Multimedia         Burlington, NC          $483,271
27     BKR Printing                     Salt Lake City, UT      $462,313
28     Sir Speedy Printing           Mission Viejo, CA       $455,405
29     Universal Printing Co.        DeSoto, TX               $454,768
30     Consolidated Safety          Fairfax, VA                $444,607
31     Scantron                          Columbia, PA            $436,905
32     Production Press               Jacksonville, IL          $434,137
33     Envision                           Wichita, KS               $433,054
34     Data Integrators               Woodbridge, VA         $430,977
35     Las Vegas Color Graphics   Las Vegas, NV           $412,392
36     Phoenix Lithographing       Montgomery, PA        $411,079
37     Coverbind Corporation       Wilmington, NC         $407,582
38     Litho Press                       San Antonio, TX         $406,646
39     Bosworth Printing             Stoughton, MA           $400,342
40     Printing Resources            Cleveland, OH            $397,276
41     Cavanaugh Press              Baltimore, MD            $378,396
42     National Envelope             Nashville, TN             $371,575
43     Data Management Intn'l    New Castle, DE          $371,102
44     Graphic Visions & Assoc.   Gaithersburg, MD       $369,808
45     Digital Image Tri Cities     Richland, WA              $363,233
46     Clicks                             Washington, DC          $351,960
47     Todd Allan Printing           Beltsville, MD             $345,376
48     Thunderbird Press            Titusville, FL              $342,846
49     KD8 Enterprises              Centerville, UT            $342,640
50     Alcom Printing                 Harleysville, PA           $341,896