2012 Winter

The Economy and Print in 2012-2013

February 1, 2012

by: Dr. Ronnie H. Davis, Printing Industries of America

How will the economy and print markets perform in 2012 and 2013? Here’s our outlook:

The 2012-2013 Economy
At the current time, the economy is forecast to continue the slow recovery from the recession. While a return to recession is always possible, especially since the recovery has been slow, the most likely scenario is for economic growth of more than three percent over the next two years. The largest unknown, of course, is the outcome of the national elections of 2012 and its impact on federal tax and spending policies, both over the short and long term.

2012-2013 Print Markets
If the economy trends as projected, print markets should continue to grow. The 2012 national elections will provide an additional boost. All in all, our projection is for three percent growth in 2012 and 3.3 percent growth in 2013 on a nominal or non-inflation adjusted basis.

In terms of print function, the national elections should give a particular boost to marketing/promotional print, which means that this function would grow at above average rates. In contrast, print intended to inform/communicate will likely grow at a less than average pace. Print logistics will likely be in between these two.

Strategy and Tactics for the Expected Economic Cycle
In designing strategies and tactics for the coming environment, keep in mind the key differences between print and the economy over a complete economic cycle:

Although we project overall printing shipments adjusted for inflation to continue to grow, on average, for the next decade, they will likely grow less than the economy – perhaps around 1-1.5 percent less. For comparison purposes, we project the economy growing by around 2.5 percent and print by 1.5 percent for our composite cycle.
Print generally leads recessions and lags recoveries, so that printing shipments turn down earlier as the recession begins and turn up slower once the economy recovers.
Print does best when the economy reaches a mature recovery phase. In this sweet spot, print actually can outgrow the economy for a few quarters.

While printers and suppliers can’t do anything about the business cycle and these overall macroeconomic trends, they can help themselves by understanding this pattern as they manage:

First, be aware of not only the current health of the economy and print markets, but also their respective positions in the cycle. Just as importantly, consider the emerging directions of both. Make sure that you take this into account before making any major business decisions, such as investment in new equipment or new business segment.
Second, many operational decisions must be adjusted concurrent with the cycle. In particular, a focus on reducing fixed cost and making more costs variable with the business cycle is imperative. Don’t get caught with high fixed cost just as the cycle turns down.
Third, print’s performance in bad economic times is in line with manufacturing as a whole and is actually not that bad compared to other manufacturing sectors. This does not make it any easier to cope, but at least there are plenty of industries and firms out there suffering as much or even more than print.
Finally, remember to manage forward and not backward. While you have to be aware of past trends and manage for today, always remember that the cycle pattern will continue and the next up phase is coming.

Dr. Ronnie H. Davis is senior vice president and chief economist for Printing Industries of America. He can be reached via phone at 434.591.0527 or via email at rdavis@printing.org.

Cautious Optimism Marks 2012 for Binders

February 1, 2012

by: Jen Clark

While the United States was in the grips of an economic meltdown, many in the binding industry saw business drop as customers sought to conserve resources and moved to digital publishing. The owners of three companies on the east coast that were able to withstand the recession are “cautiously optimistic” about what 2012 will bring. In the Midwest, though, the outlook could still be described simply as “cautious.”

“In New England, things are a little more positive than they have been in recent years,” said Frank Shear, president of Seaboard Bindery, which is located in the greater Boston, MA area. “The general economic outlook is getting better, and we’re feeling better about this year than we have the past few years,” he said.

But Shear’s optimism about the rebounding economy is guarded by technological change. “No matter how well the economy might rebound, there’s always the worry about the increase in electronic media,” he said. “Will that affect the things our customers do? With the emergence of digital – moving from off-set to digital – there are so many conflicting currents here. But bottom line, I’m cautiously optimistic that we’re not going anywhere.

Bruce Boyarsky, owner of Ocean State Bookbinding in Providence, RI, and Patty Traynor, owner of Finish on Demand in Lancaster, PA, share Shear’s cautious optimism. “The printing and binding industries are changing,” Boyarsky said. “There’s a certain amount of attrition with emerging media. I think that’s a permanent change.” He continued, “There’s a baseline economy that will continue to exist – a certain amount of printing that will go on no matter what. There are some things you can’t do through the internet.”

Traynor is, by nature, an optimistic person, she said. “The economy is showing signs of crawling back.” Her company, Finish on Demand, specializes in short- to medium-run perfect binding and is relatively new to the industry. “I started the company in November 2009 – a very bad time to start a company,” Traynor said. “Or, it could be a good time to start during a down economy because resources – such as employees and equipment – are more available. But the economy is taking longer to bounce back than I had hoped.”

Bob Windler, president of Diecrafters in Cicero, IL, agreed print and print finishing won’t totally go away, but said changes need to be made as profit margins continue to erode. “I don’t believe that things will ever be the same as they once were,” he said. “Whether that is a good or a bad thing remains to be seen. Like it or not, that is the reality right now.”

Alternative forms of media have become the focus of those who once sought a more traditional approach to marketing, he said. “The marketing folks that drive much of the graphic communications demand are focused on making alternate forms of media become more effective and are making great strides to that end,” Windler said. “I am not of the opinion that print and print finishing will go away; however, I have no illusion that we will once again control the same slice of the pie that our industry once did.”

The emerging technology offered by the internet is why Traynor decided to focus on short to medium runs when she opened up shop. Diecrafters, though, has reduced its traditional bindery services because Windler believes that “margins are insufficient and will continue to erode for the foreseeable future.”

“It is only a matter of time before a large percentage of standalone trade binderies will fold, as numerous ones did this past year, since the pricing will not support their overhead,” he said. Windler thinks more and more printers and finishers will turn to consolidation as a means for staying in business.

“Otherwise, I would imagine most printers will have to continue to expand their binderies as outside capacity dwindles since they can capture the overhead costs through other departments,” he said. “I would further expect that their margins will erode too, as a result.”

Because 2012 is an election year, Boyarsky expects many will perceive the economy as getting better. Next year is the litmus test, he said, for seeing how well things are really going. Traynor agreed that the final balance will tell a tale. “Some will continue to go out of business and others will pick up the slack,” she said. “While there might be fewer plants, the surviving ones will have increased sales. Whether the totals will be more than last year, I don’t know.”

Boyarsky said he will continue to be “fiscally conservative” in his business approach. His company, Ocean State Bookbinding, offers a wide variety of finishing services including, cutting, folding, stitching, perfect binding, wire-o binding, plastic spiral binding, mini-folding, diecutting, laminating, spot gluing, remoistenable gluing, double sided taping, high-speed shrink wrapping, kitting and handwork. “Last year I held the line,” he said, noting he bought a few pieces of used equipment. “I’m paying down debts and trying to be responsible. If there’s another down-turn, I’ll be in a position to ride it out.”

Shear said Seaboard’s strategy this year is to take an aggressive approach to sales. “We may add equipment based on customer needs, or we may stand pat. We offer a lot of basic kinds of service that we think will always be in demand. We dont do niche-type services,” he said. “We do mainstream work. We think thats the kind of work most companies are going to need.” For Seaboard’s staff of 17, the focus will be on productivity, Shear said.

Windler said Diecrafters has budgeted to add more equipment and is sorting through a “wish list” now. “The days of ‘build it and they will come’ are gone,” he said. “Every purchase is weighed carefully to insure that either new sales or labor savings provide sufficient return on investment.” He also said the company is looking to expand talent by adding two new positions. “Training is an investment we are making in staff as well,” he said, but there won’t be any changes to Diecrafters’ finishing services, “at least not in the first part of 2012,” Windler explained.

“We are promoting a line of underutilized techniques in one of our existing services,” he said. “More significantly, we are seeking out strategic alliances that will allow us and our allies to diversify into alternative markets and share synergy.”

Because Traynor’s business is so new to the market, she is planning on increasing some capabilities through staff additions and equipment purchases. “I’m a relatively new company, so those were in the plans anyway,” she said.

Neither Shear nor Boyarsky expect their company to make major changes in the services they offer. “We might make small changes based on customer requests,” Shear said. “We might do some upgrading, but nothing new.” Boyarsky said gauging consumer need is very important. “That will tell us if we need to add services and equipment,” he said.

Shear, like Boyarsky, expects printing and binding businesses to be around for a long time. “Are we in the best position to take advantage? I think we are,” he said. “We’re in a better position now because so many of our competitors have gone out of business. We’re one of the few remaining trade binders in New England.”

Said Boyarsky: “It’s a mature industry. It’s not something a lot of people are getting in to. The people who are here have been around for a very long time. But the next three to five years will be a challenge for everyone.

Quality Control in the Bindery

February 1, 2012

by: Dan Maurer, Rob Kuehl and Steven Calov, Heidelberg

It’s been said the cost to retain a customer is a lot less than the cost to get a customer back. As the print industry pushes into the era of lean manufacturing and quality control, both offset and digital presses have benefited from advances in integrated color management, inline image quality inspection and efficiency optimization. But quality is only good if the finished product shipped meets your customers’ expectations. Our hyper-competitive environment leaves little room for error, and the cost of a returned job may mean more than just the cost of a reprint – it may mean losing a customer.

Quality measures in the bindery are increasingly a focus for printers, accompanying the speed and efficiency gains of the latest automated equipment. Perhaps this is part of the reason why NAPL’s 2009 study of the top expected capital investments of commercial printers ranked finishing investments as the number two priority. Not only can these systems prevent job returns, but a sales team also can use this capability to sell jobs at higher profits. Print buyers’ marketing and procurement departments don’t want to risk the embarrassment of a defective product on their end and are willing to pay to make sure it doesn’t happen.

Invest in Quality Equipment

Quality inspection in finishing takes on several dimensions. Sensing technologies integrated into software systems on the latest machines can verify that every product is produced as expected. Before even checking the final quality output, the first and least expensive improvement is simply making sure that all of the high-quality finishing equipment is maintained to the best standards in order to produce consistent superior results. How many people thought they were getting a deal on a low-cost alternative, only to find that getting repeatable quality off the machine and getting the makeready set up to achieve good results proved too time consuming? The quality of the knife in a cutter, or a stitcher’s trimmer, or the fold roller condition can compromise a job’s profit potential. Even the accuracy of a cutter’s backgauge can have a profound affect on cutting quality, including the ability to tilt the back gauge for image-to-sheet skew. Implementing a quality control program with mandatory maintenance intervals also can yield major cost savings.

To illustrate the point, let’s take a closer look at guillotine cutters. Once upon a time, these were among the simplest machines to be found in a printing plant. Today, however, cutter manufacturers have reinvented cutting technology in light of automation and digital workflow. Examples would include quality control inspection with minimal paper waste through software programming, which enables jobs to be assembled automatically and added to the queue faster by storing instantly retrievable cutting programs. The operator not only saves considerable downtime by eliminating the need to enter job data manually to configure the cutter, but also avoids data-entry errors that could miscue the cut and spoil the product. A consistent cutting process minimizes errors, and builds confidence and coherence throughout the cutting and finishing process.

By the same token, fully automated cutters reduce the production time with fewer workers and turn the operator into a supervisor as the machine takes over most of the cutting functions. This eliminates bending or lifting, as well as reduces time and material waste, delivering top quality through mechanized routine sequences. Advanced software can tie into MIS systems to convey vital setup and job costing information to make sure profitability remains on track.

Simplify Makeready Processes

Another quality control improvement area can come from ensuring that makeready is done efficiently, keeping operators from using short cuts to get to production more quickly by sacrificing quality. Automation from prepress sent directly by JDF to a cutter, folder or stitcher helps reduce both makeready time and operator fatigue. While there’s always a risk of prepress making an error in the file, the time required to verify a job set up is often a lot less than starting from scratch.

The second part of automation is saving job parameters in the machine, so that a second or third shift operator can recall the job, making sure the output is consistent from first to last piece, as well as for repeat jobs. The condition of the equipment and its built-in design performance is also key. Lastly, consider how a relatively low-cost but high-gain improvement can be achieved by using the appropriate delivery system. Non-marking deliveries on folders are an example, and banding solutions can make sure that signatures are not damaged during material handling to a stitcher or binder.

Take Advantage of Technology

If these first two measures represent proactive quality improvements, what about closed-loop quality verification? The latest finishing equipment includes advanced sensing technologies that are integrated into the machine’s software to monitor each piece so that it’s produced as intended. These systems range from relatively simple to an extensive integration of technology. Examples include stitchers and perfect binders, and run the gamut from cameras and bar code readers to oblique and long book error monitoring, missing stitch detection and trimming quality monitoring.

Even better are systems that can identify a defective book, eject the defect and continue production without stopping. The very latest perfect binding technology includes glue thickness sensing so that each book achieves the best bind. Similarly, folding carton folder-gluers now have integrated carton ejection for eliminating cartons that are badly glued or with image defects. This capability is critical in both pharmaceutical and cosmetic box applications.

From there, we move into more complex camera inspection systems integrated into all areas of finishing. Label manufacturing now includes cutting systems that use cameras to make sure labels aren’t intermixed. We don’t want carrots labeled as peas, right? Folders can integrate cameras and vacuum mail tables to pick and place samples and variable products onto mail pieces, while also verifying the correct product matching and location quality of the glued product. For several years now, cameras have been used to provide the customer with verification that every piece in a given job was produced and labeled accurately.

Some people in our industry long for the “good old days” and bemoan how stressful the competition in our industry has become. That’s a shame, because it’s such an exciting time to embrace technology in all areas, from web-to- print to MIS to the integration of lean manufacturing practices, together with amazing finishing applications and quality measures. As an equipment manufacturer, we find that the opportunities these advances represent enable us to get closer to our customers, working with them on customized engineering projects that help solve problems and drive profitability. The key is to think outside of the box. Talk to your customers about the cost of quality, and think of your equipment provider not as the guy you call to replace that aging cutter or folder, but as a business partner you call on when youre scratching your head over a complex finishing job, a material flow bottleneck, lean Six Sigma implementation and the integration of tools to raise the level of your quality and profitability.

Heidelberg develops and manufactures precision printing presses, equipment for plate imaging and postpress finishing, as well as digital inkjet systems for packaging manufacturers. For more information, visit www.us.heidelberg.com.

Diverse Services Position Midwest Binder for Success

February 1, 2012

by Amy Bauer, The Binding Edge

Continual reinvestment and a commitment to educating customers have helped commercial binder and print finisher Wrap-Ups, Inc. remain at the top of its game.

Wrap-Ups, Inc. has established a reputation for its expertise and custom work in commercial binding, finishing and direct mail over 34 years in business in suburban St. Louis, Mo. Owner and President Jonathan Niezing attributes the success to a number of factors, including knowledgeable and hands-on management staff and continual reinvestment in the company. “Our customers come to us when they’re looking for something that they can’t get done somewhere else,” Niezing said, noting that about 30 percent of the company’s jobs are custom creations.

Wrap-Ups hasn’t taken this high regard for granted, working to build and maintain such esteem by regularly sending current and prospective customers sample kits containing some of its best work and tapping into its website to share monthly tips and articles about its technology and processes. The company primarily serves the printing trade, but also has clients in the promotional products and packaging industries and in advertising agencies.

Located in Fenton, Mo., a suburb of St. Louis, and at the intersection of main north-south and east-west arteries Interstates 270 and 44, Wrap-Ups has quick and easy access throughout the metro area and for distribution nationwide. “The location has been pretty critical for us over the years,” Niezing said.

Its facility consists of 27,000 square feet and an additional 7,500 square feet offsite for warehousing. Wrap-Ups runs two full shifts with its 32 full-time employees: five 8-hour day shifts and four 10-hour night shifts. Part-time and temporary labor sometimes helps fill in gaps. The company’s products are delivered coast to coast, but Niezing said most clients are within the Midwest.

Investing in Excellence

As the print industry has evolved, Wrap-Ups has kept pace. “We have added equipment either as a new service or improvement to existing operations every year in business,” Niezing said. “A guiding principal for me is ‘wise investments today ensure a place for us tomorrow.'”

For example, five years ago the company invested in a Combi-Unica-Vetta folding and gluing machine from Italian manufacturer Fidia. At the time, it was one of the first of its kind in the United States, allowing the company to perform bi-dimensional folding and gluing for folders, CD/DVD pockets, envelopes, film folders, table tent ads and other items with both hot-melt and cold gluing systems.

“This machine, with its versatility, provided us with the best platform to back up the versatility we market ourselves on,” Niezing said. He described it as similar to “a giant Erector® Set” in which components can be arranged in different configurations depending on the job’s needs. “It’s almost like assembling a new machine every time,” he said. It also allows for a number of operations to be performed inline. “We always try to focus on putting product in motion separately as few times as possible,” Niezing said. “The fewer times we touch a piece, the better we can control costs.”

In order to make these annual investments, Niezing said the company doesn’t necessarily budget a specific amount but looks every year at what opportunities exist in the marketplace and performs an ROI (return on investment) study to determine if the expense can be justified based on the number of hours a year the unit will be in use, among other factors. At times, the company has backed away after an ROI study, at other times taken a leap of faith, Niezing said. For example, Wrap-Ups purchased a Horizon BQ 270 single-clamp fully automated perfect binder for small-run books when it saw that a number of customers were installing digital print engines to create runs of five, 10 or 25 books. At the time, Wrap-Ups had only its 6,000-an-hour Kolbus perfect binder, which takes an hour to set up and wasn’t economical for such short runs.

Describing the Horizon purchase, Niezing said, “It’s not a profit center but a service center for us.” It satisfies a customer need and keeps those same customers returning when they have larger-run requirements of 5,000 and 10,000 books, he said. While larger runs are the company’s ‘sweet spot,’ Niezing said, “Run lengths and the sizes of the runs have been continuously coming down. For us to be focused solely on large runs would be short-sighted.”

Another area in which Wrap-Ups has invested in recent years is its mechanical binding operations. It already had capabilities for fully automated inline collating or high-speed gathering on its perfect binder, as well as inline punching. Wrap-Ups added a Gateway automated machine that not only inserts the spiral coil but produces and forms it, automatically delivering it to two machines. Wrap-Ups now can run up to 1,000 books an hour with plastic spiral, Niezing said, far exceeding the alternative of hand insertion and cutting.

Direct Mail Opens Doors

Similarly, the company saw opportunity when it added direct mail services to its roster in 1998. Noticing that many customers were taking product after folding, stitching or cutting operations at Wrap-Ups to direct mail vendors for print addressing and sending, the company explored bringing this work in-house to reduce time and cost for its customers, while adding value to its operations.

At the time, Niezing said, he didn’t realize the markets that inkjet variable imaging capabilities – a different image or bit of information printed on each piece – would open up beyond addressing functions. Because of its finishing operations and its large-format capabilities, Wrap-Ups can process sheets from 28×40 inches to as small as 2×3.5 inches with multiple operations. The inkjet equipment can be tied in with other one-off processes, whether folding or stitching, or other inline operations.

“There are times when a printer may send a 28 by 40 sheet, and they have five or six images that need some variable data added. They may ask us to diecut some party hats, or cut into multiple sheets,” Niezing described. “We manufacture personalized calendars, greeting cards with matching envelopes, variable gaming pieces, unique discount promotions with bar code redemptions’ the list is endless.”

One such project was a promotion for Office Depot stores in which the company, opening multiple new locations, wanted 5,000 coupons to distribute at each store, with 13 different prize redemptions among each set of coupons. For a printer, that would mean 13 plate changes, Niezing said. Instead, Wrap-Ups and the printer came up with a solution in which the printer created static press sheets and Wrap-Ups printed the various game pieces on the sheets as it did the folding and cutting.

Marketing Strengths

When Wrap-Ups has innovative solutions, it has come up with ways to share these with current and prospective clients to market its capabilities. For instance, the company designed a remittance envelope for binding directly into books, saving the setup and longer run times normally involved with floating traditional envelopes. This envelope includes a trim, which slides all the way to the edge of the book and can be bound into a perfect bound or stitched book without piercing the envelope itself.

In addition to the envelopes needed for the original job, Wrap-Ups went to a small design agency and had them create a PDF template for Wrap-Ups to produce as samples. It also has produced samples of intricate diecut and folding jobs and has amassed a number of creative examples, some from campaigns where clients don’t mind Wrap-Ups sharing their work, others as blank samples and still others custom-designed by Wrap-Ups. “We’re going in to show prospects a pop-up, or something that’s very unique that grabs their attention,” Niezing said. “We’re going to show them something that not a lot of people can finish other than us.”

He and Rick Campbell, vice president of sales, assemble boxes of these samples, making notes on each about what was done and why. A cover letter describing Wrap-Ups offerings accompanies the packages. Niezing estimates the company sends out about five such sample boxes every month.

Similarly, Niezing has committed to customer education through Wrap-Ups’ website, www.wrapups.com. In addition to a detailed breakdown of the company’s capabilities and related equipment, it features a ‘tip of the month’ and a ‘how-to’ section with a dozen articles about binding methods and tips for the pre-binding production processes.

Niezing said that while a web service provider created the framework of the website, he writes most of the content; for example, a recent tip discussed the importance of the glue catch in perfect binding. “This is something we have to constantly discuss with customers and re-explain,” Niezing said. But with some marketing copy in hand, such instructions can serve a variety of functions: going out in a mass mailing to clients, being featured on the website and being referenced by Wrap-Ups customer service representatives who come across similar questions from clients in the future. “Not only was it an education once, but we constantly refer back to that from a customer service standpoint because it’s all very relevant,” Niezing said.

He estimates website content is updated every six to nine months, or more frequently if major announcements occur such as a new machinery installation. Niezing watches how other companies use their websites, and he said he sees value not only in driving customers to return to the Wrap-Ups website but also in maintaining the company’s image among current clients, potential customers and its own employees and new hires.

“When a new client calls you from out of town, they’ve heard you can do something. Once you’ve talked to them on the phone and you can refer them to the website, they can get some validity,” Niezing said. “And the same goes for new employees. When they look at the website, they know you’re up to date and invested in the business.”

Family Roots

Niezing’s father and mother, Carl and Freddy Niezing, founded Wrap-Ups in 1978. At the time, Carl Niezing had spent 20 years in the local printing industry, working his way into management within two local companies. There was talk among printers in St. Louis of the need for another bindery, and this, coupled with Carl Niezings interest in working for himself, led to the beginning of Wrap-Ups.

In 1991, he asked Jonathan, who had been working in product production planning for Hallmark Cards in Kansas City, Mo., to return to St. Louis and join the family business. “I’ll never forget my first day, when I asked, ‘What is it you want me to be doing?’ His response was, and I kid you not, ‘I need you to run the place. I am burned out,'” Jonathan Niezing said. “He remained instrumental in teaching me various aspects of the business, but in the end, making my own mistakes over the years has probably provided the best lessons of all.” Jonathan’s sister, Diana Niezing-King, worked in the business from 1983 to 1985. Freddy Niezing retired in 1998, and Carl Niezing retired in 2001. Jonathan bought the business from his parents in 2007.

Today, Jonathan Niezing is focused on positioning Wrap-Ups for the future. “I believe traditional lines of print and finishing will continue to see pressures from other forms of media in relation to marketing and distribution,” he said. “We are focusing our growth on more business-to-business opportunities where we can play a part in warehousing and intelligent distribution.”

Currently, he said, about 10 percent of Wrap-Ups business comes from outside the mainstream printing companies. But he sees that segment – promotional products companies and end users – growing.

“While print is not going away by any means, ad budgets have been sliced and diced and companies are looking to more ways to market their businesses. That puts pressure on printing companies, one of our largest sources of business.”

By utilizing the many aspects of Wrap-Ups toolkit – focusing on continuous capital improvements, operating more processes inline, marketing to current and potential customers with web presence and physical samples, and capitalizing on the company’s longtime expertise and easily accessible central location – Niezing foresees continued success in growing its markets to survive and thrive in the future.

The Importance of Stitching Wire

February 1, 2012

by: Harry Lewis, Dorstener Wire Tech

Saddlestitching has been successfully used as a binding process in print media for many years. The simple, low cost process is ideal for catalogs, brochures, calendars, annual reports and many more binding needs.

It’s important to the industry because saddlestitching offers a choice in the binding process, with benefits and characteristics that outperform other methods. Stitching is simple to lay out, fast to process and, with the third stitch application, offers long life expectancy that outlasts that of a product produced using perfect binding technology. Saddlestitching has better cross-over properties, enhances the center spread ad space and allows for a smaller chance of product failure due to its simple design.

The benefits to companies using stitching over perfect bound technology include low investment costs, low maintenance and lower capital equipment cost. In addition to cost factors, stitching provides a safe, predictable profit margin. Unlike perfect bound technology, stitching is safe for both equipment operators and the environment. Stitching is the answer for a low-cost, flexible solution for binding needs.

How Does Stitching Impact the Bottom Line?

With proper set up, a company is ensured profitability with stitching. This simple, straight forward application makes it easy to estimate jobs, unlike more complicated forms of binding. A company’s profitability is dependent upon reduced down time and maximum operating speeds. Operator experience, excessive downtime and low-quality wire all are factors which contribute to frustrations in the stitching department.

In order to achieve success and increase profitability, a company must recognize that trained and knowledgeable operators are essential to a companys output. The choice of high-quality wire and the proper set-up of the stitching line all contribute to a companys profits. Poor performance of stitching wire is one of the most costly issues in the bindery today. A wide range of issues can arise when running low quality wire, including operator frustration, unexpected down time, excessive head repair and slower production speeds just to name a few. Low quality wire can cost a company thousands of dollars per year. When a stitching line is down for just 10-15 minutes in an eight-hour shift, the cost can be more than $50 for one 15-minute stoppage. If a company has a three-shift operation running five days a week, the cost would add up to greater than $40,000 per year for just one line, all due to a 15 minute stoppage due to a lack of quality in a basic supply item. If a bindery has a low performing stitching line, upgrading to a premium wire could be the answer. The solution to many of the common saddle stitching issues can be overcome by utilizing a high quality wire. A high quality wire will not flake, is pre-lubricated and is spooled properly on a strong, reliable spool.

High quality wire is a definite factor in the performance of the stitching process. Dorstener Wire Tech has implemented a system incorporating high-quality wire with newly designed de-spooling equipment, transport carts and the proper spool size to compliment the high-speed stitching lines. A company should consider each phase of the stitching process, but most importantly, the choice of wire.

What Factors Should be Considered When Purchasing Wire?

Wire is often thought of as a simple product that is just another commodity, when in fact it means the difference between making or losing money on many jobs. Is a high quality wire being used in the binding process? Does the vendor know where the wire is made? Does the vendor have control over the quality of the wire? Does the wire comply with consumer product safety concerns (for example, what is the lead content)?

There are three major factors to consider in the quality of wire:

Surface condition and tensile
Coating quality and lubrication
Wire cast (how well the wire flows off the spool)

Surface Condition & Tensile: The most common issue affecting wire surface condition and roundness of the wire is the quality of the drawing dies and how well the drawing process is maintained. The die is just like any other knife. When dull, it will scar the surface. Dull drawing dies also will heat up the wire, changing its properties and causing uneven tensile throughout the spool of wire.

Coating & Lubrication: Zinc-coated wire, also known as galvanized wire, is the most common type of wire used in saddlestitching today. There still are some companies using tin-coated wire, but it is expensive and does not provide any measurable benefits over a high-quality galvanized product. Stainless steel is another option. Stainless wire should be considered if the end product will be in an environment where the wire is exposed to extreme conditions or because of industry requirements. Medical, food, and pharmaceutical packaging are included in this area.

The corrosion resistance coating on wire is a critical component of wire performance. If the coating is too thick or and has an uneven thickness, it can cause flaking. This is a common problem with low-quality wire. This increases wear and tear on the stitching head components and leads to higher maintenance cost. In manufacturing electroplated wire, the zinc bath must be maintained and checked on every wire lot. If the zinc bath is out of its normal operation parameters, it must be adjusted to avoid poor coating conditions. If a binder is experiencing flaking issues or a buildup of zinc dust on the stitching heads, a premium wire product can eliminate these issues and save money.

A high quality wire will be pre-lubricated during the manufacturing process with a very light coating of oil on the surface. This lubrication is actually absorbed by the wire, giving it a super smooth surface. The application of this coating is critical and ensures performance of the wire as it de-spools and travels through the head. A high quality wire has a proper amount of lubrication to increase line speed and eliminate the adhesion of zinc dust to head parts. In many cases, a low quality wire will have too much or no oil. Too much oil can be as bad as not enough, causing the heads to gum up and slowing production reduce run speeds.

Wire Cast & Spooling: Wire cast refers to how smoothly and evenly the wire flows off the spool. When spooled properly, wire should have a large cast (more than 1.5 times the diameter of the spool) when the wire is allowed to run free on a flat surface. The wire also should lay flat and not tangle or twist.

Wire cast can vary greatly from each spool size. Five pound spools typically have smaller cast than a 35 pound spool. The advantages of a large spool are apparent in the wire cast, but some flexibility is lost with large spools. For medium (5000-9,000 per hour) speed applications, DWT recommends using a 35lb or 200lb spool. The 35 and 200 pound spools have a large inner core that provides a substantial de-spooling advantage over 40lb and 70lb spools.

Stitching wire issues are not always obvious. Sometimes, they appear to be mechanical issues or even operator issues. Before spending money on new stitching heads or reprimanding operators, it’s always a good idea to take a hard look at the stitching wire being used.

Will Spending a Little More on a High-Quality Wire Help My Process?

Using a premium stitching wire can dramatically help improve the throughput process (the number of product produced in eight hours divided by 8). As a gauge, the throughput should be 80 percent or higher of the mechanical speed of the stitching line. Once the machine is running, it should run non-stop until the operator shuts it off. The printed product is seldom the cause of a shut down. If a binder is experiencing low throughput on a stitching line, eliminate one very large variable – low-quality wire. A high-quality wire will reduce down time, reduce head maintenance, reduce operator frustration, increase throughput and increase the profitability of the binding operation.

Companies using high-quality wire on well maintained stitching lines will win more orders. Investing in high-quality wire reduces the cost per stitch, allows the binder to produce a more accurate quote and puts more money on the bottom line.

Harry Lewis is product manager, stitching wire for Dorstener Wire Tech, located in Spring, TX. For more information, call 281-651-6226 or visit www.dwt-inc.com.

Understanding Business Strategic Planning

February 1, 2012

by Kenneth B. Lerman

The following current and often-expressed description of our 2011 US business economy suggests business erosion: “there are fewer opportunities to pursue and most of those have lower margins.” Like it or not, U.S. business opportunity is not what it used to be. So what?

During 2008-2010, the lethargic response of many US business owners to uncertainty, fear, lack and disappointment was moping and self-pity. In 2012, business owners need not fear, be threatened by, nor be held hostage to micro or macro economic trends. Owners, at all levels and throughout all categories, should strategically plan to effectively outperform their competition. Successful business owners in 2012 will attract new clients who value and will pay more for superior business solutions – superior solutions that are intelligently and skillfully presented to clients (current and new) – within an evident, demonstrated and merchandised value-added relationship.

US Business: Re-learn How to Sell!

Sell strategically that which is current and relevant to your customer’s 2012 wants and needs – not what you want to sell. 2012 business strategic planning should directly link to 2012 revenue-generating selling strategies and your selling process. If not, you’ve just contemplated your navel. Today’s global, competitive and vacillating business economies require sound strategic business thought and assertive strategic movement (implementation). Get it going, intelligently and strategically! No one said it would be easy and it isn’t.

History of Business Strategic Planning

The Marshall Plan to reorganize and rebuild Europe following World War II is considered by historians to be the foundation and beginning of contemporary strategic business planning. The Marshall Plan focused on European reconstruction with “Peace” as its objective. Its corresponding strategy was the theory that “Economic Stability” would provide “Political Stability” in Europe. A costly lesson was learned following WWI when harsh monetary reparations were levied to punish Germany.

A specific, exact objective and strategy, carried out in the most effective and efficient manner is the cardinal rule of strategic planning and thinking.

Effective: meaning most productive manner to reach and hold the objective.

Efficient: with the least amount of business resources invested or spent.

The first public seminar on business or corporate strategic planning was held for a week at the American Management Association in New York City, presented by Rob Allio of the North American Society for Corporate Planning (NASCP). Approximately 40 participants attended from aerospace (Martin Marietta and Morton-Thiokol), banking (Citibank) and consumer products (Johnson & Johnson and Proctor & Gamble). In addition, several Wall Street brokerage firms (Goldman Sachs, Merrill Lynch) also attended. Every participating business embraced and successfully applied strategic business planning.

In a nutshell, strategic business planning is the identification of a specific objective and strategy and the planned allocation of business resources to achieve the specific business objective and fund the strategy. The three business resources which all businesses have to invest in their strategic plan are time, talent and dollars. The better and deeper the resources, the better the plan and its outcome (one would hope). Which of the three business resources do you think is the most critical to successful implementation of a business strategy (i.e. the most effective and efficient implementation of strategy) time, talent or dollars? To me, talent is the most critical business resource, for talent spends your time and talent spends your money.

Strategic Tactical Implementation

Out on the horizon is your defined, measurable, affordable and doable business objective. To reach and hold the objective effectively – not just reach the objective, but hold it – you must control the area between where your business is today and where you want it to be tomorrow. The area has seven hills. You don’t have the time, talent or dollars to take and hold all seven hills. With the business resources you have, you might be able to take and hold three hills over the next two years. Which of the three hills will you take and control? How will you take them and hold or control them over time? Each hill is different and requires different amounts and deployment of resources.

Business “hills” might be acquisition of a northeast production facility or a new distribution channel, perhaps an upgrade of field sales talent or installation and use of plant preventive maintenance protocols versus reactive maintenance to equipment downtime. Taking a hill requires resources. If you take a hill and then lose it, you are back at the bottom of the hill with depleted business resources.

Ken Lerman is a national business growth consultant, national speaker, management trainer and author for US business across a diverse range of industries. He can be reached at www.kenlerman.com, via email at lermank@kenlerman.com or call 316.733.5800.