Cup-a-Joe

I will be the first to admit that I did not watch the State Of The Union speech on the 24th.  I wasn’t up to hearing a bunch of posturing – and as an equal opportunist – it’s the same approach I’ve used for the gaggle of Republicans and their debates.

In reading the commentary and a variety of press releases this morning (PIA’s being one), this Administration (along with many in Fantasyland Along The Potomac) are not willing to make the serious changes necessary to help position this country for our children.  So, if I was running for Big Dog (never in a hundred years), here are some of the issues on the Polanco Platform:

1.) Give heed to the Simpson/Bowles Commission.  They got it right; 2.) Modify the tax structure by a.) increasing capital gains by 5%, but reduce that increase for companies/indiviudals which utilize their assets for producing services and products – they’re the backbone of commerce and in turn will create wealth for the investors; and b.) Everyone pays taxes – regardless of income level. We create a floor so that no one ends up with $0 tax liability.  If you’re not paying into the system, you can’t get anything out of it.  How’s that for democracy? 3.) This next one will probably go down like the proverbial dead fish in the punch bowl.  Entitlements MUST be reduced and controlled.  That goes for social security, Medicare, and government pensions – including the military.  I assure you that wouldn’t get me any votes from the Old F’s (that’s me now days) and the military.

OK, I now have that off my chest.  Just don’t ask me about gay marriages, right-to-life, privacy, immigration, gun control, or any other “social” issues.  I’ll probably ruin any chance of running for president.  LOLROF

InfoTrend’s Jeff Hays had a few comments about relavency in the publishing and marketing industry.  It’s worth checking out and considering what “long-term” affects these changes could have on print producers.

And You Too Apple?  As of this morning, Apple has joined the fray in the world of digitizing textbooks.  For the publishing industry, does this hasten the demise of the printed page, or is it just another company (is Apple “another” company?) trying to position itself for a piece of the pie?  Regardless, there is no ignoring this player who has historically been very much a part of the education community.  More importantly is that the world of print is being affected by sources who were once considered suppliers (Apple, Adobe, etc.) and are now both partners and competitors.

For those of us who make a living in the world of commercial printing and say, “but I don’t print books,” don’t forget that the quicker people get used to using digital tablets for communication, that the day-to-day uses of print become threatened.  And for many in our industry, that will create business opportunities.  Content may be king, but those who can format content sit at the right hand of the king.

I purchased an iPad2 over the Holidays.  Mea culpa.  Why did I do it?  Supposedly it was to better understand the competition — and make my mobile communication easier.  Or that’s what I told myself.

Getting set up was a bit tricky, but that’s what tekkie sons are for.  James had recently purchased  his iPad and helped his old man get setup and introduced to a variety of applications — and games — of course.

Although I’ve carried a laptop for years and a smart phone for the past two, this device takes it to a new level.  NO, it doesn’t replace the smart phone, but once I get the right apps setup it will replace the laptop.  More importantly I am starting to see why it’s a game changer for the publishing industry.  And in turn it will affect many of the ways print will be used in the future.

I challenge you to make the investment (it’s not small) because it’s important for us in the world of print to understand the different ways people use to visually communicate.  If we are going to succeed in our business, we need to understand this technology rather than condemn it.  It’s the old adage — “Keep your friends close, but keep your enemies closer.”  And while you’re thinking about that line, check out this recent WSJ article on Eastman Kodak.

OK, it’s now time to check out how my Angry Birds are doing.

I’ve been on vacation the past few weeks and enjoying family and the Holidays.  Now that that’s it’s time to get back in the saddle, I’m looking at 2012 through fresh eyes.  Although ’11 was pretty bleak for many, there were many lessons learned, and here are some of my thoughts as we begin a new year.

We can not continue to wait for things to get better – or clearer.  Although most folks in the industry have realized that the economy will slowly trend upward, many are waiting for the waters of communication technology to become less muddy.  It ain’t going to happen.  By the time we think we see where it’s going – it will change.  Thus, we can’t afford to sit on the banks of the stream – we have to jump in and swim.

We need to re-invest in our selves and our personnel.  When was the last time you went to a non-industry seminar/workshop?  How well versed are you with the new ways of communicating?  Do your employees have the skills to re-invent themselves – and if they don’t – where are you going to find new ones?

When was the last time you talked to your banker?  Yes, that’s probably not top on your list – but there’s a good possibility he thinks you’re a dead printer walking rather than a business owner looking to the future.  Sit down and let him/her know that you’re in it for the long haul – whichever way it takes you.

Why did many of those “well-established” companies go away or change hands.  Here’s my simplistic answer.  They made a decision to serve a specific market and committed their assets to that business.  In the 20^th century, that made perfect sense, but with today’s ebb and flow of technology and communication channels, the successful company will need to think less about print technology and more about serving communication channels.

“The printing industry is feeling the impact of change as much, or perhaps even more, than some other industries.  Our change is being driven by the digitalization of information.  This is not only dramatically changing the way we produce our products, but the demand for them, and in many instances their very form.

Historically successful companies in every industry – and our industry is no exception – are losing their way because they have failed to anticipate he impact of these forces on their business, and therefore have not made timely adjustments.  Even in this harsh environment there are companies which are growing and seized opportunities that others didn’t see. They too, however, are faced with the challenge of maintaining their success.”

Pretty interesting observations aren’t they?  What’s more interesting is when they were written — 1995.  So, when one thinks that things have just recently become topsy-turvy, we have to remember that our industry has been facing change for decades, and here’s the important message.  For us to win in a changing environment, we must think strategically.  And that my friends, was the message in Wallace Stettinius’ book, “Winning in a Changing Environment, Learning to Think Strategically.”  The quotation above is from Wally’s preface written over 16 years ago.

I never got to know Wally that well, but in my observation, he was one of our industry’s true management visionaries.  In the 80’s and 90’s, I was able to attend seminars he presented, and had the opportunity to sit and discuss ideas he presented.  He also published many of those thoughts.  “Running in the Black,” dealt with financial management in our industry.  It’s now out of print, but probably was the best book ever written about that subject for printers.

I’ve been re-reading “Winning” and I feel that it still holds numerous nuggets which apply today.  I know that many in our industry are working to re-shape their companies for the future.  Yet, we can no longer afford to build the bomber as we’re flying it.  There has to be some serious planning before we start making major changes in our business model or rethink the types of capital investments we make. Thus, I strongly recommend that you consider purchasing “Winning.  There are copies available on Amazon.com

An article in this morning’s WSJ lamented the fact that e-book pubs are being priced nearly the same, if not more, than the printed versions.  One of the major reasons is that major publishers have decided to set the pricing levels, which does not allow the retailers to discount.  The end result is creating more profits for the publishers.  Not a bad strategy when new technologies are being introduced, but should create opportunities for new entrants or small niche publishers down the road — and may help the book printers!

I just came back from spending a day in Kansas City, my home away from home the past few years.  The main purpose was to thank Jim Oldebeken for his many years of service to the industry.  Jim started with the Oklahoma PIA in the mid 80’s and went to Kansas City in the early ‘90s.  When PIA Heartland merged with PIA Texas/Oklahoma, Jim was a key part in making the transition work smoothly.  It’s been 10 years since that consolidation, and Jim is transitioning to another association — in another industry.  A small dinner was held at Grand Steet Café near the Plaza and many of Jim’s industry friends reminisced about past events, trips, and the “good ‘ol days.”  Although Jim will be missed, his replacement Loretta Nichols has jumped into the gap and will provide an outstanding resource for the print community in Western Missouri and Kansas.

OK, I’ve gotta talk a little baseball.  Can I say that I hate the Angels?  First, growing up in Southern California, I was a Dodger fan; thus, ensuring that the “other” team didn’t have a place in my baseball world.  The Angels have added to their team one of the best, if not the best, player in the league.  Although I wasn’t bothered by the Rangers losing C.J. (can’t win in the clutch) Wilson, he’s a good enough hurler to really make the Angels a better team.  Yuck.

Don’t think that there’s long term play for our industry?  Why is it that we’re seeing some serious players making acquisitions?  They see value.  One of the most recent was the Ginny’s/TouchPoint acquisition and we understand that a Fort Worth firm has been acquired.  And there’s more to come as the industry continues the inevitable consolidation and reshaping.

The industry is losing another long-time Association leader.  Jim Tepper, PINE (PIA’s New England affiliate) has announced his retirement after 35 years with the Association.  He will be replaced by former PINE board member, Tad Parker.  Jim has been a very good friend and mentor to me over the years, and I’ll miss our regular conversations – but the transition doesn’t occur until spring of next year.  I don’t think Jim’s going to disappear, and that’s good for the New England industry.  Tad is going to have his hands full as he transitions from the world of print to the Association world, but he’s going to do just fine!

Marketing is changing and it’s affecting our industry.  One of the 2012 goals for PIA MidAmerica is to add a marketing specialist to the staff.  The person’s role will be to help the membership better understand the media integration and more effectively sell the value of being a print provider. More to come!

It’s that time of the year and wishing everyone a very Merry Christmas, Happy New Year, Happy Hanukkah, and a great holiday season!  Feliz Navidad.

So, what can we learn from the AMR bankruptcy?

First, bankruptcy is not a solution for firms in our industry.  In my 40 years in the industry, I have only seen one company ever come out of bankruptcy and survive.  Rather than spending a lot of time exploring the reasons why bankruptcy has not worked, let’s take a look at Southwest Airlines (hmm, another North Texas transportation company) and what they’ve done right.

American Airlines was about providing a broad range of services to everywhere, which required a diverse amount of equipment.  They also pursued the glamorous (and expensive to support) overseas markets.  In contrast Southwest flew only one plane (still does – Boeing 737) and focused on short hop flights which were under-served.

American was a legacy airline with legacy labor costs.  Extremely strong unions and management took an adversarial approach.  One of the biggest snafus was a recent one in which employees were asked to take serious cuts in wages and benefits.  When things got healthy management was rewarded with very large bonuses — and employees got nothing.  Southwest is known for its iconoclastic approach to labor management.  Flight attendants tell jokes, sing and dance (yes, they do!) and several times I’ve seen flight captains who were dead-heading home help out the flight attendants by passing out peanuts.  You won’t see that type of esprit de corps in any other airline.

Although Southwest gets flack for their boarding process, their gate turn is inordinately faster than the legacy airlines and that translates into less people and less aircraft.  Throw in their “no bag fee” approach, and it all translates into bottom line dollars.

So, which do you want to be? A Southwest Airlines or an American Airlines?

As a long-time resident of Dallas/Fort Worth, I remember when American Airlines announced they were relocating from New York to Dallas.  It was exciting times and that relocation was a key part of the economic boom of the past 30 years for North Texas.  Thus, the news this week of their bankruptcy was a bit of a downer, although it wasn’t a surprise.

When your company is in a struggling industry with high capital costs and price competition is rampant and you’re dealing with extremely high labor and material (fuel) costs and you are highly regulated, it’s never a pretty picture (ask anyone in the printing industry).  Given that many of AMR’s major competitors (US Air; United; Delta) had already gone through bankruptcy reorganization, it was just a matter of time until AMR faced the inevitable.

Although we’re dealing with issues on a totally different scale, I see lessons that our industry can learn from this debacle, but I’m saving that for next week.  Stay tuned.

The board of directors of Printing Industries of America (PIA) recently allocated a quarter of a million dollars to support a variety of activities which will continue to spread the word of why print still has value.  While to many of us that is significant money – in the land of mass media, it’s peanuts.  It’s a 30 second commercial during a national football game; it’s a series of weekend ads in a local market.  It’s chump change.

Yet, the question remains – is it worth doing?  Many take the position that for the industry to try to stop/change the perception of print being antiquated is not achievable, while others feel that something has to be done – if for any reason just to make us feel good.  Well, PIA has taken on the role of making us feel good – and more.

Over the next 6-12 months, an upgraded website will be developed focusing on best practices, along with continued support of “Print In The Mix,” “Print Grows Trees,” and “ChoosePrint.org.” Regardless, of ones feelings to the value of this type of campaign, it can not be ignored that information can influence.  If every print producing company in the U.S. can influence 3 – 5 buyers, the needle will move in the right direction, but it has to start at the grassroots level.  If we don’t influence those local buyers, tell the fat lady to start warming up (thanks Dandy Don!).