Working Hard in Hard Times

Well, 2008 closed with a whimper after being banged about by recession. This time last year we were all anxious but not frightened. Maybe things wouldn't turn out so bad. Maybe the economy would right itself. Maybe the dire warnings weren't really all that dire. Well, things did get bad, the economy went into a tailspin, and the warnings now seem almost understated.

While the economy was busy tanking, our segment of the printing industry kept chugging along. What were some of the major and minor events of 2008?

On the minor side, Xerox introduced a new logo, Man Roland became manroland, and PIA/GATF renamed itself Printing Industries of America. On the major side, FedEx killed off the Kinko's brand after once touting it as the most recognized brand in the quick printing industry. Other events, in no particular order:

• Staples opened new stand-alone printing centers in the New England area.
• Ricoh introduced two 90 ppm printers, bought IKON Office Solutions, and announced it wanted to become a leading force in production printing by 2010.
• Konica Minolta bought Danka Office Imaging and said it also was determined to be a premier player.
• DHL said it would cease U.S. operations, leaving the field to UPS and FedEx, both of which compete with some quick printers.
• At drupa, green was the color and inkjet was the buzz. Green is still where it's at, but inkjet is a couple of years off.
• The do-not-mail effort got lots of publicity, but no legislative traction.
• Despite the economy, the 2008 Quick Printing Top 100 set a new record with a $2.7 million cutoff. The group had sales growth of 7%. However, the listing was based on 2007 figures. The jury is still out on 2008.
• Attendees at most franchise conventions seemed fairly positive and upbeat, even in the face of economic woes. Of course, those who attend such events are usually the
  savvy ones who know how to run their businesses.
• Attendance was down 12% at Graph Expo, but the NAQP Owners Conference drew nearly 250 people, including 39 first timers.
• Oh, and we elected a new President.

Of course, a heck of a lot more happened in 2008 and those events, great and small, contributed to the industry being in the state it is in.

What State?

Ours is an industry under stress and stress has a way of accelerating changes. Over the years, we have seen the industry shrink steadily in numbers as those who could not compete fell by the wayside or merged with stronger companies. Meanwhile, industry-wide sales continued to grow.

Today, we are seeing an acceleration of attrition among those shops which had managed to survive in less trying times. However, most of those who continue to exist may have to work hard to keep sales steady—at least for a while. Of course, some printers will continue to prosper even in the worst of times, but it doesn't seem likely that significant industry-wide sales growth is on the immediate horizon.

There seem to be two different opinions on the best way to weather the trying times ahead. One is to hunker down, save your cash, and pull in your horns. That might be a viable option if you actually have the cash to survive. Unfortunately, many do not because they have not been following the basics of business and balance sheets.

The other approach is to look for opportunities that present themselves when competitors fold, customer demands change, or the business climate improves. It has been my experience that the latter group survives tough times much better than the former. That's not to say, however, that quick and small commercial printers shouldn't look inward.

There are any number of areas that quick and small commercial printers can look to maintain or build their sales in 2009. However, each requires more than just having the equipment to do a job. VDP requires some expertise with database management and learning how to sell the value of personalization. Wide-format requires learning how to sell, price, and finish the products. Upgrading production equipment demands a full grasp of the ROI and a solid plan on how to market and sell the output. No matter what areas printers choose to enter or expand, they are going to have to pay much more attention to their sales efforts and staff competency.