Regardless of the print segment you may be in, there’s no debating the impact that inkjet has had on the printing industry. In recent years, two of the most promising areas, both for revenue growth and value added service offering, have been large format and digital printing.
Some companies started small and grew, expanding as the demand came, others jumped in with significant investments hoping to capture market share. We also saw acquisitions with companies buying others in order to establish themselves in the market. Lines quickly began to blur, making it difficult to decide between partner and competitor. Some sign companies invested in digital or printing presses while traditional printing companies became one stop Media Service Providers and added both large format and digital print to their offerings. Each of these moves fueled an already fiercely competitive marketplace.
All this competition and new technology has led to vastly superior products and services highly tailored to client demands. Consumers have been the benefactors of all these changes. They can now receive highly targeted print communications, thanks to variable data and one-to-one marketing. Integrated cross-media communications using QR codes and other creative tactics allow customers to interact via a website or smartphone app, which further empowers the consumer. All of these new marketing channels have created significant challenges for the traditional print provider.
Shortened turnaround times and lower runs have brought tremendous pressure on the print provider. Sure these new areas generate more revenue but they come with a significant degree of complexity and challenge. On the large format side, there are many debates: roll fed or flatbed; Eco Solvent, Latex or UV; or whether or not to get into textiles. On the digital print side, a plethora of choices are available but which direction should you go – dry toner, liquid toner, UV or Nanography? And what about finishing offerings? Traditional processes are often not a good fit for this type of work.
Providers are under increased pressure to pay for capital equipment in shorter periods as the advent of new technology can make this year’s leader the bottom of the pack next year. I’m sure for many this must cause sleepless nights, pondering endlessly “Am I making the right investment? Will it keep me ahead of the competition? Do I have the right staff?”
You delay upgrading because you think there’s better technology on the way. There’s no time for R&D; the equipment needs to be production-ready from day one.
When I speak to company owners, I offer one piece of advice that I feel is the critical key to success regardless of the technology or people you have or the challenges you are currently experiencing—look in the mirror and commit yourself to become an ambassador of change. Change, is the only constant in the business and if history tells us anything, it is that there will be winners and losers. We have seen what happens to those that resist change: they are no more. Those that embrace change are rewarded for their courage with higher revenues and a brighter tomorrow.
To be successful, change must come from the top down. It will be the business owner that will have to make the investment in both people and equipment. If he or she is not a proponent of change, more than likely the business will fail. So, I challenge all business owners to evaluate the person in the mirror and ask the hardest question of all: Am I ready for constant change? (If you answer “yes” then the rest is semantics). Be bold and fearless and enjoy the ride! There are many more challenges ahead, but you have taken the most important step by aligning yourself with the key success factor for your business. This applies whether your strategy is to grow organically or through acquisition. Each will force change upon you and constantly cause you to have to re-invest in both equipment and people. Choose whether you are going to “lead, follow or get out of the way.”
