    |
By Kevin Keane, IAPHC CEO In Paddy's Time: "Codex was used originally to distinguish a book, as we know it today, from its ancestor the scroll. By Patrick's time the codex had almost universally displaced the scroll, because a codex was so much easier to dip into and peruse than a cumbersome scroll, which had the distinct disadvantage of snapping back into a roll the moment one became too absorbed in the text. The pages of most books were of mottled parchment, that is, dried sheepskin, which was universally available -- and nowhere more abundant than in Ireland, whose bright green fields still host each April an explosion of new white lambs. Vellum, or calfskin, which was more uniformly white when dried, was used more sparingly for the most honored texts. ... It is interesting to consider that the shape of the modern book, taller than wide, was determined by the dimensions of a sheepskin, which could most economically be cut into double pages that yield our modern book shape when folded." from the book 'How the Irish Saved Civilization" by Thomas Cahill, Doubleday, 1995. Ruminations 1) While driving one's offspring to work in the retail shop associated with the Titanic memorabilia display (ironically being exhibited in the long empty Union Depot train facility in St. Paul, Minnesota -- what business were the railroads in, railroading or transportation?) one spies a banner hanging on a building housing one of Deluxe Check's businesses, advertising job opportunities at Deluxe. The only mode offered if one wishes to apply, is to go to the firm's web site. 2) Several years back, when George Fisher was the CEO of Motorola, he sat on the Board of 3M Company at the very time the decisions were being made to spin off 3M's printing products division as part of the new Imation Corporation. Now he sits as CEO of Eastman Kodak at the very moment when decisions are being made as to whether Kodak will remain a participant on the supply side of the printing and publishing industry. Will history repeat? Read on for today's interesting digital developments at Kodak Park! 3) Our eldest offspring needed to write a paper this past weekend for her collegiate accounting class identifying a non-financial measure of a given company's health. We suggested that measuring a company's Internet savvy would be an appropriate tool -- is the company on the web, is the site current and topical, does the firm embrace e-commerce, etc. 4) A Digital Syllogism If it is true that the printing industry is becoming ever more digitally driven; and If it is true that the enterprise world of reprographics is more attuned to capturing digital data and manipulating that data over networks; then it follows that a critical competitive challenge for printers in the digital day and age comes from outside the traditional definition of the printing industry. Digital Printing Conference: The Enterprise of IT At the recent Pira/Miller Freeman Digital Printing Conference held in London, England, Martyn Brougham of Donnelley Pindar reminded: "We are not in the print business, we are in the communications industry, and we need to increase databases and systems to enable print to have a future." As we have pointed out to frequent readers of Tuesday Morning News (TMN) , it seems everyone agrees we aren't printers anymore. According to the promoters of Drupa 2000 we are 'media service providers.' According to one of North America's oldest printers, Bowne and Company, an apropos Mission Statement for a firm founded in 1775 and rounding the far turn into the new Millennium is: "Combining superior customer service with appropriate new technologies to manage, repurpose and distribute a client's information to any audience, through any medium, in any language, anywhere in the world." One might be struck by the absence of the word printing in that statement. The conference hosts Miller Freeman are part of the United News and Media Plc., conglomerate in Britain. Among their publications is Printing World which noted: "The question of who will control digital printing surfaced time and time again as it was clear to speakers and delegates that both the (printing) industry and the data processors can lay claim to digital printing." We have said many times in this space, that the manager of information systems, the head of Information Technology (IT) in a printing firm will rapidly become a key player in the growth prospects of said firm. Glen Manchester of Geneva Digital said at the Miller Freeman event: "The IT departments have experience of high speed document management of content and asset bases." A member of our Association has penned an article in which he comments on the head start the folks in the Enterprise world of digital printing have acquired on the traditional printing industry, in terms of being ready to handle digital documents over global networks in print-on-demand, just-in-time, short run lengths. We suggested that many printers are not familiar with the term 'Enterprise.' This same member, who was one of very, very few printers in attendance at the Xplor Conference in Nashville last fall, came away from that Conference talking about how Enterprise Printers work with 'dynamic documents' while traditional printers work with static documents. Now hear Mr. Manchester speaking in London: "These (IT printers) are producing dynamic documents at 1,000 pages a minute. The customer doesn't want generic information. Relevance is the key issue and this is one to one marketing..." Also at the Pira/Miller Freeman confab, Peter Vincent of Xerox's printing systems division in the United Kingdom said that of any investment in digital printing, 30 per cent will be spent on upgrading networks. Okay, you still aren't convinced. Or maybe you find this version of the future to be a mite hellish on the psyche. Unfortunately, we aren't done. Andrew Rae, who spearheads Heidelberg's digital printing forays in the UK echoed an AlphaGraphics franchisee from Milwaukee quoted in a long ago TMN who said: "If you control the digital file you control the customer." Mr. Rae said: "Whoever holds the data has the power." Richard Barham of Agfa was another speaker at the British conference: "The challenge is managing the data downstream to the press, its about multiple folders, multiple signatures, huge amounts of digital data. The key is workflow, workflow, workflow. It's not just Ripping, but the preparation, OPI, imposition, collation, combination and archiving." With that said, we would encourage TMN readers to consult our 100th issue (archived on CraftNet at www.iaphc.org) wherein we wrote about Scitex's Timna product and Impresse Corporation's PresseWare product -- both of which are software efforts seeking to automate the production workflow in a digital printing environment. DSI to carry a reddish cast Digitized X? The digital version of the Rochester, New York Democrat and Chronicle newspaper carried a story last Friday offering a bit more detail into the potential purchase of Danka Business Systems Plc's, division called Danka Services International (DSI) by Xerox Corporation. According to the article: "DSI operates in-house copy centers at big companies that generate thousands of documents, in direct competition with Xerox's fastest growing division, Xerox Business Services (XBS), also based here." In other words what you and I might have called a Facilities Management business. The article suggested that DSI did about $250 million in revenue last year. The article also cites sources who judge Xerox to be the clear market leader in Facilities Management followed by Pitney Bowes, Ikon Office Solutions and then Danka's DSI. It's important to acknowledge that it's a very tiny step from facilities management of thousands of documents, to enterprise printing of dynamic documents. And even though you are wee bit sick of this Leprechaun's digital diatribe, you could look up the article on the web at http://rochesternews.com/0312xerox.html Copier Wars Speaking of the digital edition of the Rochester Democrat and Chronicle, today's digital newspaper carries an even more intriguing story. The article indicates that Eastman Kodak will unveil its DocuSource 9110, a 110 copy a minute digital copier at the Cebit office technology show in Hamburg, Germany taking place this week. This is the machine that Danka Business Systems was paying millions of dollars to Kodak to underwrite the R & D for the copier. And in an ironic twist, despite the fact that Danka and Kodak have had a rather tenuous relationship in recent months, the machine will be displayed in the Danka booth at Cebit. And who else is exhibiting at Cebit? None other than Heidelberger Drucksmaschinen AG, which has been the oft-rumoured buyer for Kodak's Office Imaging division which makes the new DocuSource 9110! Kodak, according to the article is targeting copy-print shops like Kinko's as well as corporate copy centers. And it goes without saying that the competition for the DocuSource 9110 is Xerox's $2.3 billion dollar DocuTech line. Meanwhile in Lake Success, New York at Canon USA's headquarters, a different segment challenge to Xerox was unveiled today. Canon introduced its imageRunner 330 and 400 copier-printers, which are able to be connected to networks and copy at 33 and 40 pages per minute. These machines will compete against Xerox's Document Centre line. Keith Kmetz of International Data Corporation said that Xerox sold 80,000 digital copiers, Canon sold 38,500 and Ricoh sold 45,400 in 1998. While we appreciate the unease with which some of our readers may greet the deluge of digital data in this TMN, we'd like to note that other observers are picking up the same portents. In Bob Hall's Monday Morning Fax report for 15 March he notes that preliminary number crunching for the Top 100, a regular feature of Quick Printing magazine, indicated that the percentage of jobs received in digital form pressed ahead to more than 47 per cent for these top performing print shops. (For more information on Bob's always thought provoking newsletter, contact him at 304-744-7022 or via e-mail at BrownDawg@aol.com) Similarly, in Larry Hunt's March 1999 High Speed Copy News special Xerox DocuTech Survey, Larry notes that 43 per cent of 1999 survey participants said that Print on Demand is working very well, up from 10 per cent in 1994. (For more information about Larry's wonderful newsletters, please contact him at 813-781-7825 or via e-mail at larryhunt@aol.com) {By the way, a number of members have called to compliment us on the interview story about the IAPHC running in the March 1999 issues of Printing Journal on the West Coast of the US; and Print and Graphics on the East Coast of the US; and Printing Views in the Midwest. Bob Hall's gracious bride Karen Lowery Hall conducted that interview. Thanks again Karen for the good ink!} Consolidation Ceili, Cha-Cha-Cha Well the dance continues, as printers find new partners and new alliances and the consolidation craze shows no sign of abating. On 11 March, Master Graphics Inc., announced it was acquiring White Arts, Inc., in Indianapolis, Indiana. We have seen the quality of White Arts printing in past International Gallery of Superb Printing competitions and are not surprised to see the company join other world class firms in the Master Graphics family which has now grown to 18 divisions. Other firms in the Master Graphics stable including Woods Lithographics of Phoenix and The Printing Company of Indianapolis have also been very active entrants and winners in the International Gallery. Also on 11 March, Merrill Corporation acquired Boston based Daniels Printing which is said to be the fourth largest financial printer in the US. On 12 March, Cunningham Graphics International, based in New Jersey said it had acquired Griffin House Graphics Limited, a well known financial services printer in Toronto, Canada. Revenues from Griffin House are expected to push Cunningham past the $80 million dollar sales mark, while Master Graphics expects to hit the $260 million dollar level this year. Today, Mail-Well, Inc. announced it was making an offer to purchase Porter Chadbourn Plc., based in London. Porter Chadbourn is a label manufacturing concern with 10 of its 13 plants based in the US and approximately 70 per cent of its sales deriving from the US. One of the better know US plants owned by Porter Chadbourn is Lancer Label in Omaha, Nebraska, where it was this writer's privilege to perform a marketing seminar at the Lancer Label offices for Omaha area printers several years ago. Mail-Well is projecting 1999 sales of $1.8 billion from its 100 printing plants. John Berthelsen of Suttle Press sent us an article about printing industry consolidation from the NAPL's Printing Manager publication. The author, Bill Vancelette wrote: "Because profitability is a key metric for a public company, lower costs will not result in lower prices for the short term. It is very unlikely that a public consolidator company will compete based on price, or engage in a price cutting strategy." To that extent, the business model that most resembles a fast growing consolidator, is that of a franchise -- multiple plants, costs savings based on volume purchasing and hopefully uniform pricing and quality. Paper -- thru the Looking Glass to Glockamorra It was wild week for news in the global paper industry. Last week the American Forest and Paper Association held their annual meeting in New York. Industry expert Martin Glass said: "World paper markets have entered a period of structural oversupply. With the psyche at zero inflation in the western world, there is little wonder that paper and pulp producers are finding it difficult, or impossible, to raise prices in a sustainable manner." Brian Dillon, of the Scottish paper firm Inveresk, said that the so-called Norscan countries (Canada, Sweden and the US) will account for 57 per cent of worldwide pulp supply by 2002, down from nearly 63 per cent in 1997. As David Christie of Spicers Paper told us last year, the future of the paper manufacturing industry is not in North America. However, on 11 March, the Canadian Pulp and Paper industry reported from Montreal that pulp shipments rose in February, especially to Asia and Africa. And on 10 March, Niklas Soderstrom of the Swedish paper association Assidoman said that he won't be surprised by declines in Norscan pulp inventories, one factor is that China is buying more pulp, another is the approaching millennium: "A lot of companies are printing more ahead of the millennium, and that could affect the market in a positive way in the second half," according to Bernt Stenberg. John Byford, of Litho Supplies in Derby, England is also expecting good things from the 'Millennium Effect', as he thinks that there will be increased promotional activity lifting all boats on a rising tide of print and collateral. Recently, the stock markets have taken a shine to paper companies in North America, and perhaps feeling better about the global economy explains why today, International Paper announced it will invest $35 million to boost production at its Russian pulp and paper mill, OAO Svetogorsk outside Leningrad. Industry Tidbits On 11 March Xerox introduced the ColorgragX 54e, a 54 inch wide digital color printer which comes with its own Graphical User Interface to improve machine operability. List price is $89,900 US plus $16,995 US for the ScanVec RIP and Print software. Today, Apple Computer is announcing an upgrade to its Macintosh operating system software. The new version of MacOS is targeted at the burgeoning server market and is based in part on the Rhapsody operating system developed by Next Computer, the firm Steve Jobs started when he abruptly left Apple some years ago. Big Flower Holdings announced a week ago that its digital premedia services group, Laser Tech Color (LTC) based in Dallas, was chosen by Imperial Sugar Company to provide graphic premedia services. Imperial sells sugar under numerous brand names including Imperial, Holly, and Spreckels. LTC will be "our one stop shop for graphic development to plate needs." according to an Imperial spokesperson. Larry Evans, a past president of the Charlotte, North Carolina Club is one of LTC's more than 2,000 employees in 30 locations. On 12 March, Iomega Corporation announced that it was cutting prices on its Zip 100MB drives for both the traditional scuzzy port version (new street price is $99.95 US) and for the newer Universal Serial Bus (USB) version used by Apple's iMac and other personal computers (new street price is $129.95 US). It's tough to hold your own in the graphic arts supply side today. Instead of selling tangible items like plates or presses, you now must be proficient in digital asset management strategies and workflow, workflow, workflow. On 11 March, Multigraphics, Inc., reported a loss for its second fiscal quarter and on 15 March, CEO Thomas Rooney, a very nice fellow whom we met last fall, resigned after 25 years with the company to accept a position with a different firm. Lehman Brothers opined on 11 March that things may be improving for digital color press maker Indigo NV. Among other things, Lehman expects a 27 per cent growth in consumables and service revenues and thinks that new press iterations and wider distribution in Europe and the US should help Indigo's fortunes.
|
||||||||||||
 |
|
Home |
Site Index |
About the IAPHC |
Member Services |
Club Directory |
Events Tuesday News | Gallery | Internet Tips | Industry Links | Membership Info |
Tuesday Morning News is made possible through the sponsorship of Heidelberg. Click on the Heidelberg logo to visit their website. Membership inquiries: membership@iaphc.org Head Office: headquarters@iaphc.org or toll free 800/466-4274 Website Administration: webmaster@iaphc.org |
 |
