The Ugly Truth

There’s a fire storm in Chicago as Mayor Rahm Emanuel announced the proposed closing of 54 schools.  Per the Wall Street Journal, Karen Lewis, the head of the Chicago Teachers Union, said Mr. Emanuel is sending the district into “utter chaos,” and that closings are unnecessary, won’t save money and would expose students to academic and safety concerns. The “school-closing policies put our students at real, not imagined, risk,” she said.  Yet, Mr. Emanuel and his team are saying the closings would save the district $560 million over 10 years in capital costs and $43 million annually in operating costs.

So who’s right?

The ugly truth is that both are right – but when we start talking about education of children, especially inner-city children, it gets very emotional.  Yes, it behooves society to support educational efforts for the long-term betterment of society.  Yet, the uglier truth is how do we pay for it?  And I’m not going down that rabbit hole – but just think sequestration, or federal budget.  You get the idea.

And this morning the media woke up and declared that insurance carriers are privately telling brokers that rates could possibly double for small businesses and individuals in 2014.

Are we having fun yet?

Scattershooting in September

I am seeing signs that our industry is stabilizing, which is good.  We may not be back to where we were in ’08, but it is important for future growth for there to be balance between capacity and market demands.  Although this industry will probably always have excess capacity, we’ve had to re-structure to get to a point where we can have profitable growth.

I’m looking forward to seeing Linotype, The Film.  OK, I’m an old guy, and I actually knew how to run one of those Rube Goldberg devices and have a passion for cams, slides, quadders, and transports.  The film is be screened in Kansas City on October 25 and is the joint project of a variety of groups (creatives, marketing, and print).  What should be fun and interesting is that many of the folks who will attend probably never saw a Linotype – but are the recipients of its legacy.

September has become a wonderful time of the year in North Texas.  The days of 100 degree temperatures are gone; football season is here; and the Rangers are headed back to the playoffs – but those pesky Athletics aren’t making it easy.

The NAPL/PIA Unification talks hit a stone wall and collapsed this September.  But in my mind that’s not a bad thing.  Both organizations have legacies and visions which serve distinct groups of the industry, and they will continue to serve those groups.  As much as we’d like to think that we are all “printers,” that’s far from the truth. We have always been a very fragmented industry serving different markets (regions of country and types of businesses) with varying technologies.  Attempting to create one organization which would serve the “entire” industry and fulfill the vision of serving the leading edge of the industry may have been just one step too far —at this time.

Making The Connection

I attended a Meet & Greet event this past week sponsored by the DFW American Marketing Association, and its location was at one of our members Blanks Printing & Imaging.  Now we have all been to many an open house and this one was as good as any I’ve seen – but it was the audience which was key.

Marketing professionals are a different breed of cat from your typical print buyer – as many in our industry have discovered over the years.  They play in the world of brands and market strategy.  Which printer will be used or what type of paper is best for a project is not in their wheel house.  Thus, why did Blanks spend all the time and money to host this party?

I think I saw the reason while participating in a plant tour.  There were about eight of us and most of them had never been in a printing company – or it had been years.  Our tour guide was extremely well prepared (yes, I’m a bit biased since it was Jan Thornton, long-time friend and past co-worker), but as we walked through the plant they were able to see the power of print.  Point-of-purchase pieces; short-run collateral; wide-format projects; and in Blank’s sample room a variety of unique pieces including lenticular.  It wasn’t newspapers and magazines which everyone links with printers.  That was the eye opener for these folks.  From Blanks perspective, they hope it will translate into additional clients, but what I saw were individuals who will see print through a different perspective and begin to realize that print has a substantial role in marketing and communication.  Which is great for all of us!

Job well done, and my hat is off to the folks at Blanks and their marketing director Tom Dennis for their vision.

Political Ramblings

OK.  I don’t really think of myself as a political junkie – but compared to many of my friends and acquaintances – I am one!

What has my interest at this time is Romney’s selection of Paul Ryan as a running mate.  In many ways he’s what the Republican Party needs: young, Tea Party acceptable, a real tax wonk, and a Catholic (did I say that out loud?).  He’s also not what the party needs, he’s white, from the Midwest, and because of his economic proposals in the House, fodder for the Dems. And the real $64,000 question — will he help Mitt get elected?

I don’t think Ryan changes the needle that much.  He plays to the party faithful (or most of them) and he will help bring some of the folks in the middle to the Grand Old Party – but it’s still the Other Guy’s race to lose.  President Obama continues to play the populist, and I for one think that there are too many folks out there who don’t trust business types and will vote for the guy who seems to protect the underdog.  Although I may have some issues which would make me a hippie, leftist, tree hugger to some, I still feel that a balanced form of capitalism (not free of all regulation) is best for economic growth and that Mr. Romney and Ryan can help us curtail many – but not all – the woes that have been set upon us.  The mess that we are presently living (economic, social, etc.) was years in the making and is not going to be fixed in one term by a new administration. That’s going to take Congress and a whole lot of their constituents to fix – and as a country, are we willing to do what’s right – rather than what is convenient?

Two For The Road

The printing community in Central Texas lost two special people in May.  Faye Edwards passed away from a prolonged bout with cancer several weeks ago, and San Antonio lost a real champion of print this past week when Bill Huddleston succumbed from the same disease.

Faye and Barkley Edwards were the long-time owners of Capital Printing in Austin and were extremely active in our Association.  Faye had served as a local chapter president and a member of the board of directors.  She was a gracious lady who was known for her heart of gold as well as her ability to handle tough business situations; thus the moniker “The Iron Duke” which she proudly wore. At a remembrance service held earlier in the month, it was obvious that she was well-loved by many in Austin, and her passion for the Longhorns was unsurpassed.

Bill Huddleston was the executive secretary for the Printing Industries of San Antonio, a chapter of PIA Texas, the predecessor of today’s PIA MidAmerica.  He was one of the “greatest generation” having served in the US Army during WWII and was in three major battle campaigns as a member of Patton’s 3rd Army.  Subsequently he joined the Civil Service with the Army Corp of Engineers and was also a member of the Texas State Guard ultimately reaching the rank of Brigadier General.

The “General” as I used to call him joined PIA as a “part-time” employee after he retired from the Civil Service.  That was in 1986 if I recall correctly.  He quickly became the champion of the printing industry and was constantly involved with shepherding “the printer’s outfit” as he referred to the San Antonio chapter.  He was always a source of energy and had a true “can do” attitude.  Any visiting dignitary or speaker always got a tour and a history lesson about the Alamo City from Bill. Although he “fully” retired in the late 1990’s from PIA MidAmerica, he still served on several graphic arts committees and was very involved with the high school programs teaching printing until 2010.

Although both Faye and Bill will be missed, their legacy and commitment to the industry, their community, and their families will always live on.  Vaya con Dios amigos.

Say Goodnight Al

This week EPA administrator for Region 6, Al Armendariz, resigned.  For many in the regulated community, seeing Mr. Armendariz leave is good news. Although that is not the opinion of the Sierra Club and other environmental groups in Texas, who saw Armendariz as a savior.  “He brought a breath of fresh air — literally and figuratively — to Texas in his vigorous enforcement of the federal Clean Air Act,” was a comment made by Ken Kramer, executive director of the Sierra Club.

Needless to say, those of us on the other side of the fence saw an individual who was extremely aggressive in attempting to interpret regulations which often did not have solid science behind them and often created solutions which were detrimental to the state’s economy and everyone involved with regulations – including the Texas Commission on Environmental Quality.

Armendariz grew up in El Paso in neighborhoods which were environmentally unprotected; thus his passion for the environment.  And if you’ve seen those neighborhoods (or parts of West Dallas), you can understand his passion.  Yet, as an appointed official he should have been finding ways to use that passion to make meaningful changes.  Issuing statements such as, “Find people who are not complying with the law and you hit them as hard as you can and make examples of them,” or making an analogy to how Romans once conquered villages, “They’d find the first five guys they saw, and they’d crucify them,” is not a way to build bridges.

Personally, I don’t want to see an individual who is in the back pocket of the regulated community.  That is not good for us, or our children.  I hope that Mr. Armendariz’s replacement will have the same passion for the environment, but be willing to find ways to have the regulated community participate in improving the environment.  Crucifixion is not an option.

February Scattershooting

For many in the Dallas/Fort Worth area, the news of Williamson Printing Corporation being acquired by Quad was met with mixed feelings.  The Williamson family was a major force in Dallas – and the United States for many years.  Regardless it’s good news that the Williamson name, and much of what the Williamson boys did to create their company’s unique foot print in the market, will still be around.  Jerry Williamson will continue as QuadWilliamson’s president and Jesse Williamson will be involved with business development.

In various discussions with printing company owners and managers, they have shared that the 4th quarter of 2011 showed vast improvements in sales and profitability in comparison to 2010.  January and February have started slowly, but there seems to be an air of positive vibes for many sheetfed/digital printers.  Note – I did not say web printing.  The web printing community still seems to be in turmoil and the market continues to be soft.

Is strategic planning essential to one’s success over the next 5 years?  Many think that our industry is in need of serious planning to develop the business tactics which will garner success.  Yet, I think this aspect of management is a serious hurdle for many who grew up in an industry when strategic planning was focused on what type of press we were going to purchase.  Today’s planning has to entail potential shifts in one’s business which could take a company away from its core focus of print.  It’s a scary proposition, but one which truly needs serious consideration.

Speaking of making changes, the recent announcement from PIA and NAPL was a bit of surprise to many.  Yet, this topic has been discussed by various industry leaders for years.  Over the past two days, I’ve been asked by a variety of folks on my thoughts of whether this is good or bad, and my answer is an unqualified, it’s good!

The question I have, along with many who are involved with the organizations, is how do we put the organizations together so that it makes sense for the future.  PIA and NAPL have very different cultures and focuses.  NAPL is a direct member organization while PIA garners all of its members through 20 affiliates who operate independently of Pittsburgh.  The easy part of the consolidation is the economic one.  Get rid of the redundancies and focus on the organizations’ core strengths.  The tough question is what should a trade association for a very mature and fragmented industry look like?  Those decisions can not be made by looking into the rear-view mirror, but will take individuals who are willing to look to the future and do what’s necessary.

If you have strong feelings about the consolidation, please make your thoughts known.  As a member of PIA and/or NAPL it’s critical that you let our volunteer leaders know of the needs of the industry, not just what is best for the organizations.  Laura Lawton-Forsythe with Lawton Printing in Spokane is PIA’s Chairman and leading the efforts for PIA.  Darren Loken with Telepress located in Kent, Washington is NAPL’s chairman and working with Laura to make this effort come to fruition.  Reach out to them and let them know how you feel.

Memories

I have recollections of listening to conversations of my father, grandfather, and assorted “uncles,” reminiscing about the good ol’ days.  Well, it seems my siblings (there’s six of us) and I have reached that stage – but in a different forum.

Baby brother Phil (all of 46 years old) started a conversation about the Helms Man the other night.  For those of you who 1.) Didn’t grow up in So Cal, or 2.) Too young to remember (Helms went away in 1969), the Helms man was the guy who delivered bread and assorted pastries to your door.  Yes, to your door!  I’m sure you found similar companies throughout major metropolitan areas across the U.S. prior to major supermarket chains and discount stores changing the landscape.

Phil shared photos he had discovered, and we good natured (No blood, no foul) kidded each other for sibling transgressions as the conversation wrapped around grandparents and other fond memories.  When we couldn’t remember certain specifics, Norm (brother by marriage) and Phil provided background information.  Oh, did I mention that this entire conversation occurred online?  And that all of us are scattered throughout Southern California and Texas?

I’m sure we would have had a lot better time face-to-face.  The power of conversation is the ability to read tone of voice and body language.  This value of communication is too often over looked as we try to find ways to make our lives more “efficient.”  Yet, the power of technology has changed our way of life – for good and bad.  I think for the better.  Although I’m sure the folks who were employed by the Helms Bakery would disagree that change was a good thing.

Strategic Thinking

“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

December Scattershooting

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.