Cup-a-Joe

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.

Print in all its forms is still the most prevalent way of communicating.  The web; smart phones; signage; and tablets (in all their forms) are all vehicles for distributing the written (visual) word.  If one was to think about it, print is more powerful than ever – it’s just the way it is delivered that has everyone disturbed.

Think of all the new careers which have been created because print is no longer in the realm of craftsman using archaic ways to reproduce the printed word.  Today anyone can be an author, publisher and printer.  No longer do we just listen to the opinions of a handful of individuals who control the newspaper publishing industry.  Anyone with a blog site has the power.  The genie has been released from its bottle.

Here’s one more point which provides additional food for thought.  Per Gartner, a leading IT research agency, there will be approximately 64 million tablets in use by the end of the year.  That number goes to over 900 million by 2016!

Yet, if one is to consider the opportunities which abound for entrepreneurs who can think beyond ink on paper, there are fortunes to be made.  Or at least a good living for the next few decades.

I’m in one of my favorite places for writing – seat 20A.  I’m headed to Kansas City on a typical fall day.  Or is it?

In Texas the talk is not about football, it’s about the Texas Rangers and the team just being one win away from their first-ever world championship.  While in Missouri the talk is split between Mizzou leaving the Big 12 and headed to the SEC and will the Birds from St. Louis be able to mount a come back.  Everything should be clear by the end of the week.

In Fort Worth rumors abound about one of the area’s iconic printing companies.  A recent Fort Worth Star Telegram article put Branch-Smith in foreclosure.  Yet, in a conversation I had with management, we shouldn’t be so quick to close the door.  The article was a bit premature and there seems to be some deals going on which will provide new life for the company and its employees.

Early this year the Post Office announced a trial program in Austin to help promote direct mail.  It drew a few raised eyebrows including yours truly.  I attempted to get the attention of the USPS as well as our national leadership in how this program could backfire and be detrimental to the industry as a whole.  Regardless (no surprise), the program rolled out and was titled Direct Mail Hub, and now that it is beginning to affect more firms has drawn commentary from PIA’s Mike Makin and others.

Kudos to KBA North America, headquartered in North Texas as they recently were recognized by the Patent Board’s Patent Scorecard for manufacturers of heavy industrial equipment in 2011. The Patent Board’s Patent Scorecard is based on the scale, quality, impact, and nearness to core science of a company’s patent-based intellectual property.

Henry Wurst in Kansas City has announced they are closing their North Carolina facility.  It’s another sign of the times and not an easy decision based on a conversation I had with HWI’s president Mark Hanf.  Yet, with much of the Carolina facility’s work re-locating to the company’s two other plants, the company has balanced their capabilities with the market.

Speaking of the turmoil in the web industry, Quad is closing their Stillwater, Oklahoma plant.  The plant, which was a former Quebecor World operation employed over 200 folks, and will have a sizable impact on that community.

PIA MidAmerica is not immune to changes.  Long-time and familiar industry face Jim Oldebeken is leaving our family to pursue another path.  Jim was willing to play a different role with our Association over the past 10 years, but realized his talents were not being utilized.  With our need to re-balance budgets (a continual process over the past 6 years), the time was right for all of us.  Jim is now working with another association in Kansas City  – in the biomedical field and with plenty of upside for his career.  His replacement will be a familiar face in Kansas City — Loretta Nichols. She started her new career this past week and with her long-time industry experience and entrepreneurial nature should do an outstanding job for the industry.  Best wishes to the Big Guy – but I expect we’ll be seeing him around every once and a while.

We have all heard the phrase that if you’re a leopard you can’t change your spots — and that might be a true for many in our industry.  The idea of becoming a marketing services provider or embracing internet solutions is not necessarily nirvana – no matter what all the industry gurus are saying.

First, let’s understand that not everyone can, or should be, a marketing services provider.  If you bleed PMS 200 and are a tech geek, you will NEVER become a marketing guru; regardless of what the sellers of equipment, or association types are declaring.

Second, you can not ignore the fact that there are more competitors than ever in the print landscape.  And I’m not talking about your former sales rep who moved down the street with “his” accounts and a “deal” from the press manufacturer.  Your competition is the Internet; print brokers (and firms like Innerworkings); big box stores (Staples, Office Depot) and your suppliers (UPS, FedEx Office, Xerox, Ikon/Ricoh, Apple, etc.).

Once you understand these two issues; you have two options.  The first option is find a customer base that does not need a high-tech touch, or needs a marketing expert.  They are out there – but are presently being served by other printers.  What is your strategy going to be to take their business?  And cheaper pricing is a losing proposition.  If you don’t have a strategy or are not willing to take the time to create AND execute the strategy, then look at option #2.  Get out of the business.  That does not mean liquidation – your company has customers and sales which should be of value to another company.  You may not get what you think your business is worth, but it will be more than if you were to just close the doors and walk away.  If you need information on valuation, or need to speak to a M&A expert, drop me an email.

For the individual who thinks they can become a tiger rather than a leopard, there are opportunities in this changing landscape.  For those who just like their spots, there are opportunities as well.

We’ve all heard the stories and anecdotal information about the dismal prospects of our industry.  Throw on top the economic and political climate and one is left to wonder – what future is there? read more »

Earlier this year, Dr. Joe Webb was our featured speaker in Dallas/Fort Worth and Kansas City.  His message was not an easy one to hear – the industry is never going to be what it used to be and we can not wait for “things to get better.”  His message at manroland’s 9^th annual Joe Webb briefing at Graph Expo was not gentle, but Webb was very forthcoming that there will be plenty of opportunities for those who are willing to break away from the herd.   In the past, the herd was comprised of wild mustangs, which had plenty of open range and opportunities.  Today’s herd is now comprised of lemmings headed towards a very un-timely end.  Which one are you? Lemming or Mustang?  I think the choice is easy – but the execution will be a bit more difficult.

A month or so ago, Joe Webb wrote an article where he covered all sorts of topics (when doesn’t he?), but here’s a tidbit that got my attention.  Especially in light of the industry’s trade associations working on “Value of Print” campaigns (including PIA MidAmerica). read more »