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TMN 11 December 2001

Graphics Industry News with a Piquant Point of View

This is our 143rd issue, thanks for reading it!

TMN is an online newsletter 'dedicated to individuals in the printing and graphic arts industry for the purpose of their self development, their companies success, and the enhancement of the printing and graphic arts industry in society.  It does this through education, information and research.'*

* From the Mission Statement of the IAPHC

Industry News

As our readers around the globe log on to read this issue over the next few weeks, many will reflect upon the difficulties of the year 2001.  Whilst our readers have been changed by unspeakable acts, they remain unbowed.  It is too easy for the purveyors of doom to whisper their insidious bile that this is the end of the world, as we know it.

For our part, despite the challenges of our times, the graphics industry is still vital and alive with new possibilities and combinations.  And so, while we dedicate the year nearly past to the memory of heroes and innocents now gone, we turn our face to embrace a new year dawning, our heart full of zeal to not shrink from welcoming the rock and roll of change.

1) How do we ride The Waterfall of Pages?

We recently attended a session administered by worldwide security experts Kroll, Inc.
They provided the following recap, which you may find illuminating:

Pages of Test per Disk

3 1/2 floppy Disk -- 327

CD Rom (650 MB) -- 141,727

Laptop Hard Drive (4 GB)  -- 909,091

PC Hard Drive (16 GB) -- 3,636,363

Network Hard Disk -- 18,181,820

Server Cluster Network -- A LOT!



Paul Curlander is CEO of Lexmark International, Inc.  Speaking to a gathering in Lexington, Kentucky last month, he coined the phrase "Waterfall of Pages."

Curlander expects that ever increasing Web access and cheaper means of printing will shift the manner in which users acquire documents.

"The ultimate use of pages is by individuals either at the office or at home," said Curlander.  He included documents such as bills, as well as magazines and books in his definition of pages.

"As this information comes online and Internet access becomes pervasive, there can now be electronic transport of this content directly to the users, who can print or not print.

We do not expect that magazines, newspapers or books will disappear, but we do think that these things will be reduced so that many of these pages will be shifted down this waterfall and printed by or close to the user.

...we would predict that printing in a distributed way, in the home or office, will increase significantly."

While Mr. Curlander's definition of printing may differ from yours, still his message makes sense.  So how does a traditional printing person compete against the distributed printing trendline elucidated by the office or home desktop printer manufacturer?

We have to harness the digital data bucko!

Pitney Bowes is working to proselytize the benefits of digital document delivery.  They want to teach their high volume mailing clients how to electronically supplement hard copy distribution of documents including bills, invoices and statements.

Pitney markets a print stream conditioning software called Stream Weaver, which provides print suppression, bar coding and data stream parsing which allows a client to split the hard copy stream for simultaneous delivery in paper and electronic form.

Could this apply to the printing market?  Creo thinks so.

At the XPLOR Conference in Orlando that wound up early last month, Ronen Cohen, General Manager of Creo's Print On Demand Systems Group said:  "The addition of full color to digital printing is driving new applications for variable data printing by dynamic industries such as the financial and insurance markets.  These industries are starting to implement high value applications that originate from data driven communications."

In specific Mr. Cohen suggested that the new Xerox iGen3 digital colour press, will be used to provide color variable data printing by leveraging the Creo Spire color servers.

We note that in his vision, these new opportunities arise from 'data driven communications.'  That is key.

We also applaud Creo's recent announcement that the firm will create a consultative team to teach people how to use these new digital animals in a profitable enterprise.

Interestingly, the Graphic Arts Marketing Information Service (GAMIS) recently released a new study titled "Digital Printing Market Potential."  The study found that printers see digital printing as complementary to existing pressroom technologies (i.e. it won't displace conventional offset in the manner that lithography replaced much of letterpress.)  Additionally, printers reported that more than half the jobs printed on digital presses were brand new jobs, and not work that moved over from other conventional presses. 

And if one needs one more nudge to look more closely at variable printing applications -- the study found that print buyers expect that 29% of their black and white projects will use variable data printing within the next three years.

It would behoove all IAPHC members to utilize the Knowledge resident in the expertise of fellow members.  If you want to know how the new Xerox (iGen3) Digital Colour Presses really work, Clint Davies of the Fraser Valley Club and Xerox Canada can offer you a thorough introduction.  If you want to gain more insight on the potential of variable printing we remind you of the powerhouse presentation provided by Helene Blanchette of Xerox Canada and the Montreal Club at the Toronto Convention.  Or perhaps you are the proud owner of a hot new digital technology and want to talk to a peer.  We had a nice chat this week with Mark Hagar of Indian Rock Imagesetting in Berkeley, California and the East Bay Club and learned more about his digital print journey.

If you would like to network with any of the above referenced individuals or many more just like them across the Association, please drop Lesley Addy our Director of Member Services an e-mail and she will hook you up.  laddy1069@aol.com

2) On Nostradamus and other Nattering Nabobs

As mentioned earlier, the negative Neanderthals are all around us muttering their dire conclusions that Print is Dead.  We think they are nuts.

Which is not to say the news can't be gloomy.

On October 29th, Lason, Inc., (a firm whose mission is to transform data into effective business communication, through capturing, transforming and activating critical documents) trumpeted its new enhanced Internet Procurement website
(http://www.lasonexchange.com/). Yet on December 5th, Lason, Inc. declared bankruptcy.


Which seems to prove that learning to harness the digital data stream ain't going to be easy bucko!

Meanwhile, on 20 November the Reuters news service headlined a story on a dip in the stock price of Creo:  "Creo falls on murky commercial printing outlook."

And in the past month both Random House and Time Warner have announced plans to exit the e-book business.

So that seals it.  Printing is dead.  Get thee to a nunnery.  It's all over.

Except maybe it's just beginning.

3) Print may be a tortoise, but it's got legs

From CIO Magazine 1 November 2001:

"Printing does have a future, limited in one way, but nearly boundless in another.  Printing has historically had three jobs: information storage, distribution and display.
At least in the business context, display has always been the poor sister; changes in printing technology were bought and sold on the promise of improvements in storage and distribution.

Today the huge improvements digital technology has made to information storage and distribution are obvious.  Yet no one has developed a display technology that can rival let alone improve on papers convenience and comfort level.  As a result, information display has become printing's core competence and responsibility."

Our wise and thoughtful friend, Thad McIlroy of Arcadia House in San Francisco spent a part of his Thanksgiving respite penning a provocative response to the last issue of TMN.  He writes about the apparent demise of the e-book phenomenon:

"I think that like many technologies birthed during the Internet gold rush, the venture capital vultures and other business 'leaders' rushed too quickly to the trough.  I continue to believe that as displays get better, and portable computers ever more portable, we'll be reading more and more content on digital devices.  The big problem with e-books is the name, with the implicit connotation that we should be reading lightweight paperbacks on heavy digital readers.

No, that doesn't make sense.

I now refer to 'e-content' rather than e-books, suggesting that there's a lot of digital information, much of it shorter than book-length, that makes more sense to be consumed digitally than it does to be printed before consumption.

And that's very important for printers to understand.  The trend is unmistakable and irreversible."

How do we reconcile two compelling observations, one that says putting ink on paper to display information is our core competence, and another voice which opines that there is a ton of digital content that no longer needs to be reduced to paper display for consumption?

Maybe the two viewpoints are parts of a larger tapestry.

Surely no same person would argue that there is more information spewing forth today than ever before.  Some of it is best saved on paper for later and more leisurely consumption.  Some of it no longer needs to be printed to still have commercial use.

We all know that many business forms have been reduced to bits and bytes.  Everyday, another formerly printed document migrates to the web because it simply makes sense.

The venerable Bill-of-Lading is the latest form to go digital.

On 28 November ocean container carrier APL announced that it no longer had need for paper Bills-of-Lading shipping documents.  By partnering with Electronics for Imaging, APL allows exporters to automatically transmit encrypted negotiable Bills-of-Lading.

The significance of digital Bills-of-Lading on global trading is likely to be large for reasons of speed of document transmission, security and because the exporter will get paid much faster.

And therein lies the parable for future success in the printing industry.

Accept that the old ways are going to change and will change faster than they ever have before.  Understand that the old ways includes not only print processes but also print products offered to clients.

Global traders won't sit still waiting for you to change, neither will your next door customers.

And by the way, there are lots of examples of increasing optimism about the future prospects for print.

Last month, Allegra Holdings said it would acquire the Insty-Prints franchise chain, suggesting that it sees opportunities in the small commercial print segment.

Last week, Check Technology Corporation acquired the assets of Delphax Systems, a Xerox company based in Toronto.  Check Technology pioneered a digital printing system for the check printing industry.  By acquiring Delphax, Check Technology hopes to increase its market penetration beyond the check and financial document printing arena.  Obviously, although one can argue that check printing is a flat growth market segment, a savvy firm may be able to take digital expertise and parlay it into other fields and segments, by metes and bounds.

And even those perennially bullish folks at Merrill Lynch have jumped on the bandwagon.

In early November, Merrill Lynch initiated coverage for the 'imaging sector.'  Analyst Shannon Cross said:  "....longer term, we anticipate secular shifts to color laser printing equipment will drive revenue improvement for EFII, Lexmark International, and Hewlett-Packard Co."

Funny how we keep referring to firms never before associated with the printing industry.  Maybe things really are changing?

On 26 November, Sir Speedy Inc., announced that 3 of its Dallas area franchisees are the first print providers in the United States to offer the PrintMe Networks solution from Electronics for Imaging.  Offering the PrintMe Networks service means that customers can instantly transmit print jobs to color or black and white printers via mobile devices or remotely via e-mail.

One supposes that these jobs are truly digital.

One could also surmise that they may be from hitherto unknown customers who may turn into a font of digitally driven revenue.

And that's not bad, bucko!

4)  The Legacy Lasso

One hard reality of becoming digitally driven is that many printers have way too many boat anchors cluttering up their shop floors.

But don't take our word for it, listen to two industry experts who urged a re-fitting and re-tooling of shops in September at Print 01.

"A significant portion of the installed base of printing production equipment is technologically and competitively obsolete.  This inhibits productivity improvements and the innovative creation of new products."  William Lamparter

"Keeping old equipment is costing printers more money than ever.  Printers must become more productive by replacing older less productive equipment with fewer models of newer, more productive equipment.  The industry must start using 'competitive life' and not 'productive life' more often."  Dr. Joseph Webb

Hopefully all printers have considered taking advantage of the current low price of new money to possibly upgrade to a more digitally productive work place.  We also hope that our vendor community friends will see the relatively low cost of money as an opportunity to follow Creo's lead and offer truly consultative suggestions to graphic arts practitioners who want to make an informed and ultimately profitable decision about adding any new pieces of gear.


5) Going Vertical or Getting Horizontal

Basketball freaks can relish going vertical, and in recent years it's been a frequent market strategy for printers -- find a niche and exploit that vertical market.  But what do you do in a changing landscape?

Maybe you need to horizontalize your strategy -- dig out the digital dough lying in the opportunity to assist clients manage and exploit their own digital data streams.

Bowne & Co said in early November that it was its non-transactional (i.e. non financial market related) printing revenues, which saved its bacon in the aftermath of the September 11 events.  Bowne has made a conscious effort to not be a vertical niche player and now enjoys 74% of its revenues from non-transactional printing sources.

Pitney Bowes inked a deal earlier this month to offer the Constant Contact e-mail marketing manager software package from Roving Software to Pitney's 750,000 customers, thereby giving Pitney Bowes customers a chance to stay in constant touch via e-mail with their own clients.  Smart move.

International Paper said that its Shorewood Packaging Group would be licensing the digital watermarking solutions available from Digimarc Corp based in Portland, Oregon.  IP's packaging customers will now be able obtain product packaging and other printed promotions with the Digimarc MediaBridge Technology.  When shown to a kiosk based or Web camera equipped with Digimarc software, a digitally watermarked package will instantly link to an online destination offering cross or up selling opportunities, special promotions, limited offers or product information.  Is that cool or what?

The point of all these examples is that sometimes the greatest opportunities lie beneath our noses.  If we seek innovative new ways to assist our existing clients to embrace the digital era, we can broaden our offerings across the entire customer lineup.

There is nothing wrong with a 'stick to your knitting' vertical niche approach which says we do one thing, but we do one thing really well.  However, if you have necessarily developed specific digital expertise that you can cross market to your clientele, then you may be able to sell the same expertise over and over to all your clients across the horizontal board.

Indeed, the entire Industry News segment of this issue of TMN is replete with examples of firms seeking to do just that.  We hope you'll find an idea or two to implement in your back yard.


Club and IAPHC News


Y'KNOW Requests


Your Knowledge Network Obviously Works (Y'KNOW?)

1) From Luda Paul of the Calgary Club: 

"Do you know who I can contact to get a letter quoting the worth of a Linotype RIP 50 (preferably located in Canada).  The unit is connected to a Linotronic 300 and is being donated to our program here at the Southern Alberta Institute of Technology.  We would like to give the donor a charitable receipt, but need an official quote from a recognized company."  You can contact Luda via e-mail at luda.paul@sait.ab.ca

2) From Jim Doremus of the New Jersey Club: 

"We printed a job for a client and shipped flat sheets out to Ireland, Indiana.  It seems there was a very small but very important bullet left off the sheet.  This bullet needs to be imprinted on the sheet and I'd like to find someone in the area of Ireland, Indiana who has a 40" press that can do this for us.  The job was printed on 41,000 sheets of 80# Garda Silk Cover 28 x 40.  The sheets will need to be imprinted with a PMS Color over a dull varnish.  If anyone can help, please contact me at jdoremus@imtechgraphics.com, or phone at 201/933/8002, ext 23.  If I am not available please speak to Phil Pope."

3) From Arthur Mole of the Vancouver Club:

" I am trying to help someone who requires information about the production of hanging air fresheners much like you would hang from your rear-view mirror in an auto.  These are like beer coasters, usually printed 1 side with the added fragrance.  The fragrance is added later I believe.  Any help from our Association experts would be much appreciated."  You can reach Arthur via e-mail at moleman@myexcel.ca

4) From Dean Wolter of the Greater Milwaukee Graphic Arts Association:

I need help locating a printer in Europe for a customer of my company.  Our customer has a need for a printer in Eastern Europe, possibly the Czech Republic or surrounding countries.  Currently they are unhappy with the quality of production with a printer they are working with in Minsk.

The publication is bi-monthly, and requires 95,000 36 page self cover magazines.  4/C throughout, gloss varnish overall.  There are 6 language versions that are all 4/C changes.  New plates would be required for each version, it is not a text only change.  The language versions break down as follows:

Russian - 30,000; Ukrainian - 20,000; Latvian - 5,000; Lithuanian - 5,000; Estonian - 5,000; and Swahili - 30,000 -- equals 95,000 total.

Size of magazine is 8 1/2 x 10 7/8"

Artwork would be furnished as a PC formatted disk, with the document created using QuarkXpress v4.1, all supporting graphics would be included.

The reason my customer wants to work with a printer in Europe is because of distribution costs of producing it here and then shipping to the various countries."

You can reach Dean via e-mail at dean.wolter@masgraphics.com

5) From Mike Handlin of the East Bay Club:

"Do you know of anyone in the western US that can copy dot scan 25 x 37"? I have a client that has a LOT of film he wants to digitize.  Price is of course the largest obstacle."  You can reach Mike at mikehandli@aol.com or at mikeh@wallerpress.com

6) From David Wieggel of Graphix LLC:

I am a print broker in the New York City area and am searching for a source to print:
225,000 Catalogs
8 3/8 x 8 3/8" square (alternates down to 7" would be considered)
40# coated -paper furnished
4/4 process - fashion content
Saddle Stitched
Bulk ship to Midwest
Ideally the printer would have an 8 unit miniweb that can do 24 pp signature forms.

You can contact David via e-mail at dw@graphixllc.com

7) From Tim Trachtenberg of the Portland Club:

"I need a resource who packs vegetable seeds into the package.  We would provide press ready sheets per their specifications.  They would then convert the sheets, insert the seeds, and seal the packets (in-line perhaps?)  We would prefer someone on the West Coast if possible."  You can contact Tim via e-mail at tim@adprintcompany.com

8) From Al Zowada of the New Jersey Club:

"I'm looking for a large volume frame company that can supply frames to accommodate 20 x 24" and 28 x 40" posters.  Also, the insertion/fulfillment of the posters into the frames."  You can contact Al via e-mail at azowada@appliedprinting.com

9) From James Shehen of the Yosemite Area Club:

"We are trying to track down the names of any Roll Fed Label Manufacturers in North America and abroad.  Do you have any contacts that might know of several manufacturers?"  You can contact James via e-mail at spinlbl@pacbell.net


Platinum Grows Again

Our thanks to the Sierra Nevada Club for their most recent donation to the Platinum Reserve Fund, which keeps on building thanks to the generosity of so many IAPHC members and Clubs and Districts.

International Printing Week Nears

Just a reminder that the Holidays aren't over until you celebrate International Printing Week (IPW), which will take place January 13-19, 2002.  If you need promotional materials please contact our International Printing Week Chair, Dr. John Leininger at Clemson University via e-mail at ljohn@clemson.edu.  Also our few remaining IPW key chains are wanting to go home to a good pocket near you, only $1.00 each. They would be a nice stocking stuffer for employees or clients.  Please let us know if you want to pillage our remaining inventory.

Celebrate the Power of Print!

IAPHC Mid-Year Meeting Deadlines

If you are planning to attend the IAPHC Mid-Year meeting in Las Vegas in February (8 & 9) 2002 at the Excalibur Casino we need to hear from you soon.  We need to finalize catering requirements and to do that means we need to get all our attendees registered and invoiced for the $40 registration fee.  Also, the hotel deadline for room reservations is January 8, 2002.  Everyone is cordially invited to join us, all we ask is that you let us know that we can expect to see your smiling face come February.
If you are planning to attend, or have any questions please e-mail Lesley Addy at laddy1069@aol.com

International Gallery News

Our thanks to Joe Shanahan of Toppan Printing and the New Jersey Club for batting lead-off once again this year.  Joe's entries were the first to arrive in 2001, and now he has submitted the first 9 entries for 2002, the 28th annual International Gallery of Superb Printing.

More and more firms are ordering Duplicate International Gallery awards for their 2001 winners.  In truth, what better way can one say to a client -- "Thank you for your past business and let's do some more!"  If you need a duplicate order form faxed or e-mailed to you please just ask this writer.

Similarly, many of the winners in the 2001 International Gallery are asking for the Gallery Logo digital artwork which they can put on their company websites, or stationery or business cards or use for News Releases to local media.  If you would like the artwork (the bugs!) please e-mail Lesley Addy at laddy1069@aol.com

The 2002 International Gallery Call for Entries is now available in digital form.  Please e-mail International Gallery Chairman Dan Marantz at dmarantz@aol.com if you would like the e-mail version.  The printed versions will go on press shortly.

Soon we will have available a new CD which contains the 2001 International Gallery Best of the Best Show; hotlinks to all our highly valued International Gallery sponsors websites; the Call for Entries for the 2002 International Gallery; the Toronto Convention memories show, and other tools for building the IAPHC's premier program. 

New Student Chapter

Kudos to Steve Storkamp of the Central Minnesota Club of Printing Professionals for having been godfather to the CMPP Student Chapter which was duly acknowledged and recognized by St. Cloud Technical College. We wish the students the very best as they embrace this wacky and wonderful graphic arts universe and applaud Steve for making the extra efforts necessary to bring the Student Chapter into existence.  If you want to touch base with Steve his e-mail is sms@cloud.tec.mn.us

and Finally --- Retailer of the Year

As was mentioned at the outset of this issue of TMN, 2001 has been a troubling year for so many of our families and friends.  As the holiday festivities of many traditions begin in earnest over the coming weeks, we hope all our readers will take time to bask in the embrace of family and friends alike, now more than ever.

It is fitting to close this issue with recognition to a good friend.  Walt Gutowski, Jr. of the Grand Rapids Club who along with his father Walt Sr. and the family firm Swift Printing were accorded Michigan Retailer of the Year honors in the small shop category at a November ceremony.

Swift Printing partnered with Genesis Nonprofit Housing Corp to turn the upper floors of its two historic buildings into 27 apartments for low income individuals with physical and mental disabilities, people with AIDS and victims of domestic violence. The company also renovated a third run down building nearby that is now home to a physical therapy clinic.

Our regards to the Gutowski family, and a warm salute for their display of the best kind of goodwill towards all.

Happy Holidays to You and Yours gentle reader, and may 2002 bless you.

Kevin Keane
IAPHC
7042 Brooklyn Blvd
Minneapolis MN 55429-1370 USA
800/466/4274
http://www.iaphc.org/