1. Sneak Preview. Results from PIA’s 2002 Print Ratio study are still underway, but preliminary numbers already suggest weak profits for 2001. So far, printers’ pretax profits (as a percent of sales) have fallen to around 1.5%, down from 3.1% just a year ago. That’s worse than the 1.95% rate from the last recession in 1990-1991. Even profit leaders have taken a hit, with profitability rates dropping from 10.5% in 2000 to 8.4% last year. If the final numbers remain the same, it will be the first time since 1993 that profit leaders have fallen below the 9% mark. PIA Chief Economist Ron Davis is also predicting "industry profits may total less than $2.5 billion in 2001, a fall to less than 50% of their normal amount."

2. TrendWatching. TrendWatch Graphic Arts released its latest commercial printing survey, revealing expected growth for digital variable data printing ("an opportunity for 10% of commercial printing shops and 26% of quick printers"), DTP software ("expected investment in desktop publishing software is up to 15%"), and CTP ("the top item that print shops plan to start using is platesetter/digital plates at 21%, and another 28% of firms plan to use more platesetter/digital plates").

3. Tip of the Week. When a piece requires permanent gluing, knock coatings and heavy ink coverage out of the glue areas, if possible. Glues form the strongest bond only when you allow direct paper to paper contact. In some cases, ink and coating left in the glue area may even compromise the bond, requiring double-sided tape application. That, of course, adds to your time and expense. As always, check with your bindery early in your projects to spot any potential problems.

4. IM What IM? I recently came across a 5/10/02 article in Business Week titled "Timeless Truths About Instant Messaging", and it got me thinking about ways we can use electronic tools to speed up response times during the estimating process. One of the issues we face is the time it takes to get questions answered while trying to turn a fast quote (actually, ARE there any slow quotes anymore?). To skip the phone tag frustration, I’m wondering if anyone would be interested in using instant messaging to communicate with our estimators. If the interest is there, I’ll look into setting something up here at Seattle Bindery. Give me some feedback and maybe we can step things up a notch in our quest for ever-faster service.

5. Mission Statements. Here’s something I found at the Pacific Printing & Imaging Association Web Site (www.ppi-assoc.org), which I’ve also posted on our homepage. Although print industry guru Dick Gorelick sees very little value in mission statements, if you absolutely must have one, make sure it’s about your customer. It has to focus on credible benefits to customers and it can NOT be reused by competitors by simply substituting their name in the statement. Case in point: "We treat our employees well and deliver high quality jobs on time" will not fly because the first point does not confer value for the customer, and everyone else is doing (or promising) the second.


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Services

Bindery
Folding
 
Stitching      
Trimming
Glue Folding        
Micro Folding       
Map Folding
Gate Folding         
Rotary Perf & Score  
Gathering & Collating Perfect Binding         
Wire-o
Plastic Spiral         Kleensticking         
Drilling
Round Cornering         Shrink Wrapping

Tabbing        
Custom Index Tabs     Copier Tabs
 
Tab Reinforcing         
Spine Reinforcing         Patch edge Reinforcing

Letterpress   
Diecutting
Scoring & Perfing         Embossing

Foiling
Numbering

 


Issue No. 67 June 7, 2002