Cup-a-Joe

Just finished meeting with our Clean Air Committee to discuss the upcoming regulations which impact our industry in Dallas/Fort Worth and Houston next year.  The industry if facing some significant changes next year and I’m always amazed how much willingness there is for the industry to try to do the right thing.  The challenge is trying to get the regulators to understand that documentation for documentation’s sake is not the solution.

Our biggest issue is not the requirements to use chemistry that helps reduce ozone — which has a dramatic impact on a company’s productivity/profitability.  It’s the regulatory hoops which must be jumped so the regulating community can “document” that the “rules” were followed.   It’s one of the major frustrations between the regulated community and the regulators.  If it’s not documented, it didn’t happen.  Yet, if one makes the rules so onerous — businesses are less willing to comply.  It’s a fine balancing act.  It’s also an argument at the heart of the recent litigation between Texas and the EPA.  Ah, such a tangled weave.

If you’re a small business owner or manager in North Texas, I’m sure the recent Dallas/Fort Worth article in the Business Section titled, “9 North Texas Employers Unite to Collect Data for Health Plans,” intrigued you. I was intrigued – and quickly became upset.

For us insurance geeks, the article made it painfully obvious that large employers get to play in a different sandbox than the rest of us.  If these large employers can get together to determine “how they manage benefits and purchasing only the most needed health options to keep workers healthy and out of doctor offices,” which in turn will help them reduce their premiums – why can’t small businesses do the same?  The answer is yes we could (as an single Association or several associations), but the carriers really don’t want to deal with small business in that manner – and existing state and federal laws almost make it impossible.  The end result will be that large companies will be able to find ways to mitigate any cost increases in health care while small business will continue to see the double digit increases which have plagued us for the past decade – and the foreseeable future.

The recent legislation (Affordable Health Care) does NOT address the issue of costs for small business.  In fact when one really looks at the net effect, employers will find it much more economical to pay the penalties of not offering health insurance and forcing their employees to pay for their own insurance from the “pools.”  Given that mandated coverages will be “richer” than what many small employers presently offer, many are going to be rudely shocked at the personal costs of “Obamacare.” Many individuals have been led to believe that the legislation will make health care easier to obtain and much more affordable. This may be true for some individuals, but the folks in small business and their employees (who were supposedly the target of this legislation) may pay a very steep price.   I will close by quoting an old, and probably over used, axiom – “There is no free lunch.”

I just got back from vacation — a true no-business, no cell phone, no TV, and no radio trip.  That’s what happens when you travel to a national park in Wyoming — actually two.  Grand Teton and Yellowstone.  Although it was only for five days — I could have used another five — it’s amazing what a few days can do to clear your head.  Now, it’s time to get back to the “real” world. 

It seems that everyone is gearing up for November.  The Republicans are sharpening their knives over the NY Mosque issue.  The Dems are touting how Health Care is going to benefit everyone.  And the economy is still moving sideways.

On the health care front — here’s a “duh” moment for you reported in a recent Bloomburg Business Week online article, “Workers will pay more for their health care next year as U.S. companies prepare for provisions of the overhaul signed into law by President Barack Obama.”   This factoid was based on a survey of 72 companies employing more than 3.5 million.  46% plan to raise the maximum level of out-of-pocket costs (deductibles) to their employees.  The overall increase these companies expect?  Approximately 9 percent.  Needless to say proponents of the “Affordable Health Care” Act were not too thrilled, “Employers may be using the health-care law as cover for changes they already planned to make to their benefits,” said Igor Volsky, a health-care researcher at the Washington-based Center for American Progress, which supported the overhaul. “Costs are always increasing but they’re going to blame what they’re going to blame,” Volsky said yesterday before the survey’s results were released.  Too bad Mr. Volsky doesn’t run a small business.  He would then truly realize the challenges of providing health care insurance for individuals.

On Wednesday, I attended a Greater Dallas Postal Customer Council meeting featuring Susan Plonkey, USPS’ VP Sales.  She did a commendable job of explaining the challenges of the USPS and what they are trying to accomplish with proposed rate increases.  The convoluted regulations and legislation which USPS operates under leads one to believe that what is being attempted is beyond the ability of the USPS to control.  And that creates some very real challenges for the print and mail industry.  What I truly found of interest was Ms. Plonkey outlining a beta project the USPS is undertaking in Austin, Texas.

Per Plonkey, the USPS is making a concerted effort to educate small and mid-size businesses on the value of direct mail.  Yet, when that business owner says, “sign me up,” to the USPS representative, there is no solution.  Thus the USPS is planning to create a online “clearinghouse” in which the end user/small business person can access to find a direct mail provider.  The clearinghouse will be managed by a third party which will “vet” the firms and then creates a bidding process for the work. 

Hmmmm.  Sounds like we’ve been here before.  This was news to me; so, I’m doing a bit of research with our Austin printer/mailers and try to see what they think of this process.

On another note, it seems that the folks in Kansas (Department of Education) are bent on killing off the journalism/print/creative programs in high schools.  The decision is based on data provided by the government indicating that jobs for sterotypers, typesetters and commercial artists no longer exists or are in decline.  Well, that’s a surprise.  Yes, there may no longer be a career path (used to call it vocational education) for multilith operators, but there are still opportunities for young people who have a solid foundation in using premedia software and a solid understanding of print.  By the way, this issue is not just a Kansas problem.  Although it all has do with funding issues, it’s always interesting to see how the educational community loves to constantly find “new” ways to be creative.

Tell next time . . .

It has been several weeks since I ranted about health care “reform,” so I thought it was time to re-visit the topic.  I feel like a moth drawn to the flame.

Most of us sincerely feel this legislation will make road kill of many small businesses and their employees.  Providing employees affordable health care is an important issue for firms and this legislation will probably not deliver upon that promise.  An interesting article by the New York Times on this issue was posted this morning.  Regardless, as of yesterday, the water’s have gotten murkier.  A federal judge approved the State of Virginia’s lawsuit regarding the constitutionality of the legislation.  Let the games begin!

An article last week made mention that Wall Street’s banks had eased their credit terms to hedge funds and private-equity firms that borrow against securities and trade over-the-counter derivatives.  To quote the great Yogi — “It’s deja vu all over again.”  There is more cash sitting on the sidelines than there’s been in a long time, and these guys get more access to additional dollars so they can speculate.  Wow, what a country!

Elizabeth Warren, who leads the congressional panel overseeing the Troubled Asset Relief Program, said U.S. taxpayer bailouts helped Wall Street and not small banks.  TARP “worked really well for the Wall Street banks, but it didn’t work well for the rest of the banks in the system,” she recently said on Bloomberg Television’s “In the Loop with Betty Liu.”

I hate to say it, but I think that our financial system is out of sync.

Meanwhile, the folks who make this country great, our blue collar workers and small business men and women are getting the short end of the stick.   Our politicians are not willing to find creative ways to help businesses and people, get off the sidelines.  There’s talk of more money for education, job creation, and small business lending.  Why not just stop writing laws for a while and let the system move forward.  Get creative with finding ways to support small and medium size businesses to get the money they need to start producing and hiring — and don’t expect it to happen overnight!  Too many folks in our country don’t understand that business (and consumers) won’t start hiring/spending until they know what’s going to happen over the next 12-18 months.  As long as the Administration and Congress keep talking about more laws and more deficit spending, more the reason folks will stop, wait and see.  Not a good way to kick-start an economy.

If you are waiting for things to get better, it might be a long wait.  There are too many unknowns out there and the folks in Washington aren’t making many of us in small business feel better.  Thus, we wait for things to get better.  The folks with money wait for it to get better.  And we all sit and watch to see who’s going to blink first. read more »

I am continually amazed at the problems we run across in our industry because of unmet (or unrealistic) expectations.  Why do we continue to assume that everyone is a printing expert and they know as much as we think we know?  How often do we run across a job that is rejected because the four-color screen mix did not match a specific Pantone color?  Or the job that was printed on a non-heatset web press did not match a much shorter run job printed sheetfed, or our digital equipment? 

Is there a solution?  Sure.  Print providers must take the time to educate their existing and potential client base.  Not an easy answer, and one many individuals find difficult to accomplish, but what are your options?

I’ve been remiss in putting my thoughts down over the past week or so.  Is it due to being busy?  Summer doldrums (summer temperatures and haze is upon us)?  Or just lack of “thought?”  Probably the latter.  Regardless, here are some vague thoughts on the world of print and business . . .

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During the past decade, numerous pundits declared that the small printer (less than 15 employees) would rapidly go the way of the dodo bird.  Granted, over the years we have seen many go away but at the same time we’ve seen (and continue to see) major firms go bankrupt, liquidate or merge/consolidate (Vertis, Quebecor, Bowne, Narrowgate, Southwestern Colorgraphics, Buchanan, Townsend, Banta, etc.).

In our industry, no company is too big to fail – and that is one reason why many “small” companies will continue to thrive.  Regardless of what we call ourselves (printers, print providers, marketing service provider, visual communication company), we are still in the business of producing a custom product.  More often than not, that requires creativity and commitment along with the ability to be a truly committed partner – and that’s much easier to do when you’re small.

I recently sat in on a webinar produced by Mike Messemer with XMPie.  The gist of the presentation dealt with the complexity of variable data projects and that many sales reps (and their companies) are poorly prepared to deal with them.  He stressed the need for good planning and the need to communicate effectively with the client regarding expected results from these types of projects.  Boy, did he hit the nail on the head. read more »