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Print Solutions July 2005

M
anufacturing
Images

IN BRIEF: Discussions at the 2005 Manufacturer & Supplier Print Conference in Philadelphia centered on how to evolve printing companies into solution providers and problem-solvers.


Positioning Your Plant For the Future
BY DENNIS MCGARRY, CDC

A major theme underscored the 2005 Manufacturer & Supplier Print Conference: The printing plant of the future needs to be an information factory. Successful printers today are seen as solution providers and problem-solvers, not simply as manufacturers that put ink and toner on paper.

The event, held in Philadelphia in May, allowed more than 60 manufacturers and suppliers to attend On Demand Expo, then meet with their DMIA peers for two days of sharing and learning. The Print Education and Research Foundation sponsored the DMIA event.

The commodity position the printing industry faces as a whole is common. The challenge for manufacturers is to grow when their markets don’t. The conference program focused on emerging products, markets and distribution channels, and it considered how manufacturers should position their companies for the future.

The conference featured industry speakers and a panel of DMIA manufacturers who shared their experiences. The panel discussion gave attendees examples of how traditional manufacturers evolved their product mix and operations.

With each speaker, the message was loud and clear: Print buyers perceive printing as a commodity industry. Manufacturers must remove that impression by showing they do more than put ink on paper. They must show how they solve customer problems and deliver comprehensive document management and delivery systems.

Tomorrow’s Products and Markets
Industry consultant Noel Ward said many of the products that printers offer today may have one or more of the following components associated with the sale:
• Printed documents
• Document fulfillment
• Document delivery
• Electronic document delivery
• Variable data printing
• Web delivery
• Web collaboration
• Database and list management
• Warehousing
• Pick pack and ship

Gail Nickel Kailing, senior editor of Graphic Communications World, listed growing markets for the print industry as a whole. It’s no surprise that health care is on top of her list—distributors often cite the niche as their No. 1 growth segment. Other growing markets for document and print sales include the following:
• Banking
• Distribution/wholesale/transportation
• Financial services (other than banking)
• Manufacturing
• Security
• Higher education
• Leisure activity
• Travel/hospitality
• Entertainment

Pat Veverica, a distribution channel expert, looked at how other mature industries have developed new distribution channels to help them grow and satisfy their distributor customers. She used network software pioneer Novell as an example. Novell structures its dealer “levels” based on the amount of sales those dealers pass to Novell. Depending on the dealer commitment, Novell places the vendors in a hierarchical system of silver, gold, platinum and full “partner” statuses. Constructing status levels allows Novell to justify lower margins for dealers that don’t make major commitments to selling Novell products.

One channel message is evident with the advent of buyer/seller models such as eBay and warehouse clubs: New models will be driven by the way customers buy, not the way that vendors sell.

A Panel of Peers
DMIA members Dale Dembski, CEO of Data Management Center, Schaumburg, Ill.; Tim Dust, president and COO of The F.P. Horak Co., Bay City, Mich.; George Phillips, CEO of ProDocumentSolutions, Paso Robles, Calif; and Linda Poole-Bova, president of Primadata Inc., Green Bay, Wis., told attendees how their companies evolved while facing a challenging document market. Each poised their companies in different areas of specialization.

Dembski said documents and document fulfillment go hand in hand, but due to the ramp-up costs involved, document printers should partner with a mail-processing document fulfillment company. Dembski shared important criteria when choosing a document fulfillment center.

Dust explained how his company opened a digital printing facility to complement the work produced at The F.P. Horak’s traditional forms plant. Dust’s presentation focused on workflow issues surrounding the creation of the production facility.

Phillips explained how his company became a full-service security document provider. He described what’s involved in making a printing plant a “secure document facility,” and said the plant’s ability to commit to knowledge, training and involvement has yielded a secure plant environment customers can trust.

Linda Poole-Bova described how Primadata, a mailing facility in Green Bay, Wis., was purchased by Libman Business Forms, a traditional forms printer looking for ways to get into the complex world of variable data printing and document fulfillment. Poole-Bova announced that Libman Business Forms would soon become Primagraphics Inc.

Discussion facilitator Frank Romano, director and lead strategist for the Commercial Printing Strategies Service of InfoTrends/CAP Ventures, told the audience it was one of the best panel discussions he had ever heard. “It’s not often that you get such openness and sharing among competitors,” he said, “It’s obvious that these four companies have really tried to distinguish themselves in the forms market.”

Initial planning is underway for the May 2006 Manufacturer and Supplier Conference. It tentatively will be held in Philadelphia again, with the On Demand show as a precursor.

Dennis McGarry, CDC, is vice president of manufacturer and technical programs at DMIA. Email us your comments at editors@printsolutionsmag.com.

ManuDistr7.tif
Among the 2005 Manufacturer & Supplier Print Conference’s 60-plus attendees were three distributors, including (from left) Ivars Sarkans of Sarkans and Associates, Los Angeles; Ivan Verheye, president and CEO of Xeikon America, Itasca, Ill., and chairman of the PERF Board of Trustees; and Michael Galliher of Boyce Forms Systems, Muncie, Ind.
ManuLong7.tif
DMIA President Jeff Long (right) of Graphic Dimensions Inc., based in Atlanta, stands with Steve Brocker of Western States Envelope & Label, Milwaukee.
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