December 23, 2005

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Blue Jays FlexPack

HAPPY HOLIDAYS
 

Things I Hear
VistaPrint
Poll: Enviro results

Wide Format In Play
New reports and trade show cite more growth
Dr. Joe Visits Toronto
Musings from the Doctor
Supplier News
Heidelberg ...
Good Reading
Forecast 2006
Events

Get out there...


Things I Hear


VistaPrint

I've never done any Christmas shopping online, and I probably won't again this year—it's too late now for us last minute shoppers. But there are a growing number of consumers that are using the Internet as their preferred destination for shopping, and not just for seasonal gifts, but any and all products and services.

And why not? Technology makes it so easy to order online, and the easier it is, the more people will do it.

It's that very premise that drives arguably the most successful printing operation on Canadian soil today.

Earlier this month I was invited to an annual trade media event hosted by MAN Roland Inc., this year's destination: Detroit. After a sumptuous dinner in a refurbished downtown mansion, the group was shuttled to the Detroit Newspaper Partnership facility to witness the printing of the next day's Detroit Free Press on new MAN newspaper presses.

The next morning we crossed the border to visit what Yves Rogivue, CEO of MAN Roland Inc. refers to as, "a role model of how CIM [computer integrated manufacturing] applies to this industry."

"Welcome to the future," said Rogivue upon welcoming us to VistaPrint's Windsor, Ontario, printing plant.

Although the company may be MAN Roland's poster child for CIM, VistaPrint is much more than an automated pressroom. It's an intelligent online algorithmic software development company that carries out sophisticated online marketing and automates production to produce print at pennies an order, delivering profitability unheard of in the commercial printing business.

Robert Keane

Through online orders from around the world its software automatically gangs-up business card orders and other business stationery jobs on a 40-inch press sheet to optimize production through full-size sheetfed presses or smaller sheets through digital colour presses.

"I really think VistaPrint has the potential to be one of the biggest disruptions to the printing industry since the photocopier," says Robert Keane, founder/CEO of the company.

Keane states a key objective of the company's operations is to standardize, automate, and integrate every aspect of the value chain.

Through continual software development (they have some M.I.T. PhD's writing code, and to date they have six patents and 30 patents pending) the company is able to "impose standardization" on customer designs, allowing for basic layouts leading to simplicity for the customer.

Those customers are the small office/home office businesses, of which VistaPrint estimates there are 38 million in North America/Europe.

The company is already servicing business in 120 countries through two printing operations (Windsor and the Netherlands).

VistaPrint went public this past September 30th raising net proceeds of US$61.4 million. "Investors consider us to be a technology company more than a printing company," says Keane.

Some numbers:

  • Revenues of US$28.9 million Q1 fiscal 2006 (ended Sept. 30, 2005 ), a 62% increase over the same quarter last year.
  • Net income of 10%
  • between 12,000 to 15,000 orders every day (around 4 million orders a year)
  • around 142 orders ganged up on a sheet
  • run lengths as low as 100 sheets on the 40-inch presses.
  • Average order is US$30
  • Capital expenditures between US$10 - US$20 million a year
  • Marketing spend is about 32% of revenue (highly automated e-marketing, targeting customer acquisition and retention)
  • Hiring between 100 to 200 people a year (mostly software engineers)

The scary part is Keane believes the company is less than 10% of the way to reaching its potential. "I really believe technology can drive strong growth in this industry," he says.

Most of their labour is in post press, with about 70% of the labour cost involving putting orders in boxes. The next step is to automate that process.

Although its plant is in Windsor, the company's headquarters is Lexington, Massachusetts. When asked why they set up in Canada, Keane notes, "It's not a tax haven," but Windsor's proximity to the highly populated Great Lakes region, as well as a labour cost advantage, along with the services and solid infrastructure in the region played a role.

The Windsor plant operates 24 hours a day/five days a week, but ramps up to six or seven days during the holiday season.

Equipment includes: Two HP Indigo 3050 presses and two HP Indigo 5000 presses (digital printing accounts for about 20% of orders); a Kodak (Creo) platesetter is dedicated to each press line; two five-colour MAN R700 presses with coaters; just bringing its third MAN R700 press into commission; has ordered its fourth full-size press, a MAN Roland 10-colour with inline foil, the first of its kind in North America!; automated Polar cutting systems.

The company owns enough land adjacent to its existing building to double the size of the current plant if and when necessary.

Leveraging technology to attract customers, make business easier for customers and automate production can lead to success, that was the take-away message behind this visit. In some way, this should be an inspirational story for those searching for good news in this industry. The dynamics of the printing business are changing, recognize the potential and make a difference in your company.

All the best to you in the New Year!

Doug Picklyk
Editor, Canadian Printer


Poll

Last time we asked printers to comment on the environmental priorities at their shops: 13 people responded, and of that group five indicated their companies exceed compliance issues, five voted that they try to meet all compliance issues; one acknowledged the company isn't up to date but does its best, while two respondents admitted that environmental compliance was a low priority around their shop. Statistically this represents a very small slice of the industry, but it bodes well with over 75% claiming to be doing their part to keep their processes clean.

Canadian Printer Webpoll


Are you seeing opportunity in wide format inkjet printing?

Rate your company's interest in wide-format digital inkjet graphics technology:

Considering a purchase

Already in the market

Not interested for now


(please add your comments - click "Start a new topic"
once you submit your vote)


Current Results

Wide Format In Play

Recent glowing reports from consultants combined with high activity levels at industry trade shows reveals wide format digital inkjet printing was the trend of 2005 and will continue to grow.
A new study from InfoTrends/CAP Ventures, based on end-user research from nearly 400 companies, suggests the retail value of wide format digital graphics in North America is US$9 billion. This number is expected to reach nearly US$13 billion by 2009, representing a compound annual growth rate of 10.2%. Survey participants expressed the highest levels of interest in UV-curable inkjet printers.
North American Wide Format Professional Digital Graphics Study http://store.infotrendsresearch.com/
ProductDetails.asp?ProductCode=65080&Click=464

A recent report from I.T. Strategies, consultants on the digital printing business, is bullish for vendors of inkjet technology and consumables. It suggests worldwide sales of wide format inkjet (24-inches and wider) and narrow format inkjet hardware (desktop), along with the media and chemistry, will show compound annual growth of 7% between now and 2009, revenues rising from US$42.1 billion in 2004 to US$58 billion by 2009. The largest contributor will be ink sales, making up over 50% of the total.

The newest wide format digital inkjet hardware and consumables were on display recently at the SGIA Digital Expo, held December 8–10 in Phoenix, Arizona. Attracting over 5,400 people to view exhibits from 147 companies, this event was developed following the cancellation of the annual SGIA event scheduled for earlier this year in New Orleans. Canadian attendance was strong at the Digital Expo with both vendors and visitors on hand to explore the latest in the rapidly changing world of wide format technology [Canadian Printer was there.]

DuPont officially launched its new CromaPrint 22UV flatbed/roll-to-roll 86-inch wide UV curable digital printer at Graphics Canada in November through its Canadian distributor Cascades Resources. The SGIA event marked its American debut, and DuPont displayed two sold signs on the CromaPrint stand, one to The Advocate in Pictou, Nova Scotia and another to the Emerson Group in Toronto.

Mississauga, Ontario-based equipment manufacturer Gandinnovations, attracted crowds to its line-up of Jeti wide format printing systems, particularly its flatbed UV Jeti 3150.

Other key exhibitors at the SGIA event featured in the following gallery include: Fujifilm Sericol, Xeikon, Vutek (a division of EFI), Mutoh, and ColorSpan.






Dr. Joe Visits Toronto
It was a full house for December's Digital Imaging Association's annual Christmas Luncheon and AGM, which this year featured industry analyst Dr. Joe Webb http://www.sfminc.com/

Some of Dr. Joe's key musings:

  • Printing industry websites need to graduate from pictures of buildings.
  • Printers need to be interactive and responsive 24/7.
  • Company mission statements often miss the mark. Remember that you make your money through your relationship with your clients, not on the shop floor.
  • If you're going to be a low-cost provider, be a low-cost not a low price provider!
  • Don't just look at print jobs by their size and scope, consider the target audience and the whole campaign.
  • Thriving shops are excited and interested in the jobs of their clients. Their clients' goals are their goals.
  • The Internet is a tough business because you have to be in front of people all the time. Print is good at that, it's always on.
  • Cold calling is the worst expense of sales efforts – hire a salaried employee in the role of business development.
  • Maintain low debt, if any at all.
  • An executive's job is to lead, create change. True entrepreneurs are prone to act because they're close to the action of the marketplace—the message here is Get Out of the Plant!

Supplier News

  • Heidelberg CEO Bernhard Schreier has confirmed the company will be entering the large format sheetfed offset press category with units up to 63.8 inches (162 cm). Schreier first alluded to the developments at a press conference prior to PRINT 05 in Chicago back in September. The new press models, called the Speedmaster XL 142 and Speedmaster XL 162, will be unveiled at DRUPA 2008.
  • German-based ink manufacturer the Huber Group, known as Hostmann-Steinberg in North and South America, has acquired a controlling interest in India-based Micro Inks Ltd. In North America this adds a Chicago-based manufacturing plant.
    Paper Woes:
  • Cascades Fine Papers Group is closing its coated paper mill in Thunder Bay Ontario by the end of January and will be closing the smallest of the four paper machines at its Saint Jérôme, Quebec facility.
  • Domtar will be closing its Cornwall mill (effective March 31) and two machines in Ottawa (also effective March 31) and has made the decision to sell its Vancouver mill. "The strengthening of the Canadian dollar has pushed some of our Canadian mills to negative cash flow generation, and we must focus on our most efficient mills in order to return to profitability in the foreseeable future. We are sad to announce that this plan will translate into a permanent workforce reduction of approximately 1,800 positions across the Company," said Richard Garneau, Executive Vice-President, Operations.
  • Georgia-Pacific Corp. and Koch Industries, Inc., reached an agreement for Koch Forest Products, Inc. to acquire Georgia-Pacific for US$13.2 billion and a total enterprise value of US$21 billion, including all Georgia-Pacific debt. GP will be operated as a privately held wholly-owned subsidiary of Koch Industries.
  • MeadWestvaco Corporation is shutting down a paper machine at its Evadale, Texas, paperboard mill in the first quarter of 2006.
  • Weyerhaeuser Company recently announced the closure of a pulp and paper facility in Prince Albert, Saskatchewan, a paper machine in Ontario, and a market pulp mill and sawmill in Washington. In addition will be the permanent closure of a containerboard machine in Plymouth, North Carolina; corrugated packaging plants in Bedford Heights, Ohio; Elmira Heights, N.Y.; Little Rock, Arkansas; and Matthews, North Carolina; and corrugated sheet feeder plants in Pulaski, Tennessee, and Waco, Texas; as well as a retail paper bag plant in Kansas City, Missouri. The company has also placed three corrugated plants up for sale.
  • Agfa has launched the Amigo thermal plate, designed with its ThermoFuse imaging technology (used on its Azura chemistry-free plate), although this plate isn't process-free it's adaptable for long runs and greater on-press latitude.
  • Fujifilm's FinalProof GxT digital contract proofer has been accredited by MetalFX as an approved technology for proofing metallics.
  • KBA's Q3 showed a sales increase over last year of 17.2% (€1,107.3m), and the company has moved back into the black for the first time this year, with a pre-tax profit (EBT) of €10.1m. Net profit was €5.2m.
  • KBA North America has partnered with EFI to integrate its KBA Logotronic Management System with EFI's Logic MIS solution, future plans include all EFI's MIS solutions.
  • RISO, Inc., has introduced the RZ990, a 600 dpi, 11 x17-inch printer-duplicator with print speeds of 180 ppm. The company claims running costs as low as 1/3 of a cent per page.
  • Quark Inc. has acquired A Lowly Apprentice Production Inc. (ALAP), a developer of Xtentions for Quark including imposition and graphic imaging. ALAP also makes plug-ins for Adobe InDesign and Acrobat.
  • Unisource Canada has been named exclusive Canadian distributor for GMG Americas, the U.S. affiliate of Germany-based GMG, high-end colour management and proofing solution developers
  • MacDermid ColorSpan, Inc. introduced the DisplayMaker 98UVX, its third flatbed/roll-fed hybrid wide format UV inkjet printer, able to print on rigid sheets or flexible roll stock up to 98-1/2 inches wide.
  • Fuji Graphic Systems Canada Inc. will become the master distributor for all Fuji Hunt-manufactured pressroom chemical products in Canada (Anchor, Pressmax & Ecotek).

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Good Reading

Free Weekly Newsletters
PrintForecast.com, a new service announced by printing industry consultant Dr. Joseph Webb offers senior executives printing, publishing, and industry forecasts based on Webb's proprietary economic models, and enhanced by his interpretation of the changing print marketplace. A weekly PrintForecast Perspective newsletter is free to those who sign-up at the PrintForecast.com Website (http://printforecast.com/signup.html)


The Year Ahead
TrendWatch Graphic Arts has released its report titled "Printing Forecast 2006: The TrendWatch Graphic Arts Perspective on the Challenges and Opportunities for the Printing Industry in the Next 12 Months and Beyond." How has the explosion of new media affected the print markets? What can the industry do to effective cope with these trends? And what will 2006 bring?
The 172-page report is available for US$995 for online purchase in PDF format (http://www.trendwatchgraphicarts.com).


Costing Guide for Bindery
NAPL's new Budgeted Hourly Cost Studies for Bindery, Finishing & Mailing Operations 2005 edition offers data for pricing and comparing operating rates for 639 machines from 80 manufacturers in 29 equipment categories. The 672-page book is available on a CD-ROM or in a printed version and lists for US$179.95 on CD-ROM and US$199.95 in book form. NAPL corporate members receive one copy of the Blue Book on CD at no charge as a benefit of membership. For more information visit www.napl.org/store/.


Events

Momentum in Print 2006 is a new event being presented by Adobe and being held January 22 to 24 at the San Francisco Marriott, San Francisco, CA. The event is expected to draw up to 700 industry leaders and will include a keynote addresses, panel discussions, tutorials, debates, and demonstrations. Registration is US$395 before December 23, or US$495 after. Visit www.adobe.momentuminprint.com

The 31st annual Graphics of the Americas trade show is co-locating with Xplor International's Global Conference to be held February 3-5 at Miami Beach. www.graphicsoftheamericas.com.
In conjunction with Graphics of the Americas and Xplor is the PDF FORUM for Print Production, a world-class event on PDF developments for print. http://www.pdf-forum.info/.

The Toronto Club of Printing House Craftsmen is holding its annual Gala on February 18 to celebrate local International Gallery Award winners. For more information contact Gail Slater gail@queenstone.org

The 38th Goss Metro Users Group conference will be held at the Hilton Tucson El Conquistador Resort in Arizona, co-hosted by Tucson Newspapers and The Arizona Republic. The event will run from Saturday, February 25 through Wednesday, March 1. For more information visit: www.metrousers.com

NAPL's TOP MANAGEMENT CONFERENCE is being held March 1-5 at the Ritz-Carlton Grande Lakes, Orlando, Florida. This annual meeting is designed for CEO's, company owners and executives to focus on strategic leadership issues. http://www.napl.org

The next PIA/GATF Executive Leadership Conference will be March 12-16 in Oahu, Hawaii at the J.W. Marriott. www.gain.net

NEXPO 06, largest annual newspaper exhibition and conference, is being held April 1- 4 at McCormick Place in Chicago. http://www.nexpo.com

IPEX 2006 is taking place from April 4-11th at the NEC in Birmingham, UK. It will mark the largest international print show for 2006. http://www.ipex.org

The annual Vue/Point Conference is being held this year between April 10 to 12, once again at the Hilton in the Walt Disney Resort, Orlando. This conference is a great opportunity to learn from other real-world experiences. http://www.gasc.org

Connect 2006, the 7th annual EFI users' conference takes place April 30th through May 3rd at the Venetian Resort, Las Vegas. The conference theme is "Expand Your Opportunities," offering sessions on topics ranging from MIS tools to growing a business with super-wide format digital inkjet printing. www.efi.com/connect06

The 48th Annual Binding, Finishing and Distribution Seminar, hosted by the NAPL, will be held May 2-4 at the Marriott O'Hare Hotel, Chicago. This event is developed for bindery managers, manufacturing/operations executives and warehouse supervisors. http://www.napl.org

ON DEMAND Expo 2006 will be held May 16-18 at the Pennsylvania Convention Center, Philadelphia. The trade show and conference about all things related to digital printing, is co-hosted with AIIM, an IT focused show about content management. For more information http://www.ondemandexpo.com

Don't miss the NAPL & PIA/GATF Sheetfed Pressroom Conference running from June 11-13 at the Marriott O'Hare Hotel, Chicago. These sessions cover numerous technical and managerial issues through seminars and general sessions. http://www.gain.net, http://www.napl.org

The All In Print China 2006 is scheduled for June 14-16 in Shanghai. Exhibit categories include printing equipment, pre-media equipment and software, electronic and database publishing equipment, computer to plate technology, book binding and print finishing equipment as well as paper converting equipment and package production technology. www.mdna.com

The five-day intensive NAPL & PIA/GATF Management and Leadership Institute is scheduled to run from June 19 to 23 at the Waukesha County Technical College in Pewaukee, Wisconsin. This program is designed for developing skills in financial management, production management, sales management, and graphic communications management. http://www.napl.org

The 2006 Canadian Printing Industries Association (CPIA) Convention will be held in Vancouver, BC, September 14-16. For more information contact www.cpia-aci.com

The 87th annual IAPHC Convention (International Association of Printing House Craftsmen) will be held August 18-23 at the Melia Turquesa all-inclusive resort in Cancun, Mexico . For more information visit www.iaphc.org

SGIA '06 will be held in Las Vegas (Las Vegas Convention Center) from September 26 to 29. www.sgia.org

The annual Graph Expo and Converting Expo, held at McCormick Place in Chicago will run from October 15 to 18. For more details visit http://www.gasc.org

Print World, formerly called Print Ontario, will happen November 18 to 20 at the National Trade Centre, Exhibition Place in Toronto . For information on the Web visit: http://www.printontario.com

2008

Drupa 2008 will be held from May 29 to June 11, 2008 at the fairgrounds in Düsseldorf Germany. There will be over 2,400,000 square feet of exhibition space with an expected attendance of over 300,000. www.drupa.com

For more events in your area, here are links to regional associations:

B.C. http://www.bcpia.org; http://www.vcphc.org/
Southern Alberta http://www.pgia.ca
Saskatchewan http://www.sgaia.org
Ontario http://www.opia.on.ca, www.digital-imaging-assoc.org
Quebec http://www.aagq.qc.ca
New Brunswick http://www.nbpia.org


Canadian Printer E-News

Keep up to date on the big picture of the printing industry in Canada with a voice you can trust in Canadian Printer magazine. The national business publication for printers since 1892, Canadian Printer is recognized for leadership on business issues and editorial integrity.
For more information get in touch with editor Doug Picklyk (phone: (416) 764-1530, email: doug.picklyk@printer.rogers.com).
For advertising and marketing opportunities, contact Susan Ritcey, publisher (phone: (416) 764-1509, email: susan.ritcey@printer.rogers.com).

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