Where’s the Money—International Business

More often than not, U.S. printers bitterly complain about overseas competitors taking their work and producing it for less money. But there is a niche grabbing international jobs to help grow their own profits. Some are attracting business to their own facilities in the U.S.; others are supplanting themselves in a foreign country using their expertise to expand their business.

But printing for international clients is still a niche specialty. “Printing is produced for a predominantly domestic market,” said Ron Davis, vice president and chief economist for Printing Industries of America. According to his most recent figures from a PIA Quarterly Print Market Survey in the first quarter of 2007, large printing firms with 100 or more employees responded that 44.4 percent had performed a print job for a customer outside of the U.S. Shops with 50 to 99 employees were the next most likely, with 39.53 percent responding in the affirmative, whereas shops with one to 49 employees only had 7-21 percent produced work for an international customer.

Later, in a follow-up, in Q4 of 2007, PIA Quarterly Print Market Survey, printing firms were asked if over the last half of the year did they experience any increased sales to foreign customers; 10.10 percent responded in the affirmative, saying that their total sales increased by 5.13 percent because of the increase in foreign sales for 2007.

While it may seem to be an interesting growth market, there are barriers that must be overcome to achieve international customers. Language is the most obvious; however, there are different time zones, shipping charges, and foreign companies have different cultural expectations. And then there are governmental rules that may apply. Once a U.S. printer has brokered a strong relationship with foreign customers, they may decline to advertise that achievement for fear of inviting competition.

The key to finding and maintaining international business is forming close relationships with the customers. Many U.S. printers hire representatives to visit their customers or have on-site staff with bilingual abilities. George Ryan, president and CEO of Printing Association of Florida (PAF) and former executive vice president and COO of PIA/GATF, has introduced a number of U.S. printers to their counterparts in other countries. “It’s all relationship selling,” said Ryan. “If I can find a U.S. printer that can help a printer in another country, I try to facilitate that relationship.”

EarthColor, one of the fastest-growing, most comprehensive digital prepress, printing and finishing organizations in the country with headquarters in Parsippany, N.J., has been serving the Latin American market from its facility in Houston for more than a decade. Relationship building has been key to its international growth and Earth-Houston has maintained its presence with an experienced rep in Monterey, Mexico.

“Our representative has over 30 years experience,” explained Jeff Wright, Earth-Houston’s vice president of sales and business development. “He does an excellent job representing our company in Mexico. As for us, we can exceed their press capabilities; in Mexico there is no printer with UV press capability, and many only have four- to six-unit presses without coaters of any kind. We also pair well with Mexico City corporations who are seeking ways to show off their sustainability efforts. Mexico’s capitol has such a European influence and they are light years ahead in sustainability recognition, as we are. We also make our Latin American customers comfortable by offering a multi-lingual staff. There are very few printers who have this capability. We do have other U.S. printers who would like to take away our business but Latin American customers are loyal. They are also very price conscious.”