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    PostPress

    Print Decorating, Binding and Finishing

    2014 Winter

    Speakers Slated for the 2014 BIA Annual Conference

    by The Binding Industries Association

    What’s the return on investment? Why should I take time out of the office? What will I get out of going to the conference?

    Have you been asking yourself these questions? If so, don’t fret. The BIA Board of Directors has been hard at work putting together an outstanding program. You will be able to take what you learn during the informational sessions and put it to work for you and your company.

    You don’t want to miss these scheduled presentations:

    • Monday Keynote – The Toyota Way to Continuous Improvement, Jeffery Liker, professor, University of Michigan
    • Tuesday Keynote – Taking It to the Next Level: Our Journey and Lessons Learned, Dale Crownover, president and CEO, Texas Nameplate Company
    • Capitol Hill Unplugged, Lisbeth Lyons, vice president of government affairs, Printing Industries of America
    • S.O.S.: Preparing for Natural and Manmade Disasters in the Workplace, Valerie Price, SPHR, MBA, MSM, director of business operations, Coyne Graphics Finishing, Inc.
    • Selling in the New Technology Economy, Kelly Mallozzi, rainmaker, Success.In.Print
    • Leading Like an NFL Coach, Anthony Griggs, former NFL Player and owner/president of AG Squared Networks, Inc.
    • Trends You Need to Know Before Making Business Decisions, Dr. Ron Davis, senior vice president and chief economist, Printing Industries of America

    Build strong bonds by networking, exchanging ideas and interacting with your peers at the 2014 BIA Annual Conference, March 30-April 2, at the Fairmont Hotel in Dallas, TX. For detailed information on the sessions and plant tours or to register, visit www.printing.org/biaconference.

    Related Story

    BIA Notebook

    by The Binding Industries Association

    A Message from the Chairman

    I hope that everyone has been well (and warm) over the past few months. As spring approaches, so does the BIA Annual Conference. The Binding Industries Association is all about providing you with the tools and resources to help you profitably grow your business. Through the combination of the experience, knowledge and participation of our members, your association is committed to making certain that our annual conference in Dallas will be a resource for your success. The conference will be held at the Fairmont Hotel in Dallas, TX, beginning March 31 and concluding April 2.

    In addition to the incredible networking opportunities, over 50 industry suppliers will be on hand to answer your questions about the latest materials, services and equipment. Whether your focus is binding, finishing or packaging, the resources will be available for your review. This year, we have a line-up of speakers and empowering sessions unlike any other. I urge you to visit the conference web page at www.printing.org/biaconference to take a look at the sessions. Finally – with what many consider to be the highlight of the event – the conference will conclude with plant tours of three spectacular Dallas-area companies.

    Again, I urge you to take a look at the conference brochure. I am certain that you will agree that the conference will be interesting, relevant and beneficial to all who attend.

    I am looking forward to seeing you in Dallas this March. Until then, all the best.

    Chris Eckhart, Chairman of the Board, BIA

    Membership is a Key Focus for 2014

    By joining the Binding Industries Association and Printing Industries of America, you belong to organizations dedicated to supporting and enhancing our industry. We are your advocates, increasing growth and profitability every day. BIA is the only advocate for trade binderies, graphic finishers and custom loose-leaf manufacturers. Joining BIA helps support the binding industry. The benefits to joining are immeasurable, and the results are ever-lasting. Members gain access to an abundance of resources that deliver results to enhance success today and in the future. Put the power of membership to work for you!

    BIA Members and Associate Members enjoy benefits such as a discount to the BIA Annual Conference; access to the BIA member-only listserv; discount on entries for the Product of Excellence Awards and the Premier Print Awards; being listed on www.findabindery.com for one year; monthly e-newsletter Bound for Excellence; discounts on books and publications; training curriculums; research and laboratory services; paper and ink testing and quality control devices. Other benefits include free Economic and Research Reports, Research and Technology Reports, white papers, economic updates and benchmark studies on www.printing.org, and much more!

    Not sure if you’re a member or want to become a member? Contact Mike Packard at 800.910.4283, ext 704 or mpackard@printing.org.

    Printers Need Excellent Partners. Get Listed on Findabindery.com.

    Is your company listed on www.findabindery.com? Why gamble with your success in 2014? Companies on this site will have the distinction of being recognized as “official binderies.” How do new companies get listed? It’s simple! Join the BIA or contact Mike Packard to join our coalition for binding excellence. Printers need excellent finishing partners, and there is only one place they turn when they need help.

    Related Story

    The Economy and Print Markets in 2014-2015

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

    Another year, another forecast and yet another year of economic and political uncertainty and intense competition in print markets. In this article, we gaze into our crystal ball to offer our projections for the economy, printing shipments, printers’ profits and other print market dynamics. Also, we offer an action plan for 2014.

    An economy stuck in second gear

    Figure 1: The outlook for 2014 and 2015 is, unfortunately, for more of the same tepid growth. Our view is that the negatives will slightly outweigh the positives over the next two years.

    So far, the pace of recovery from The Great Recession is the slowest of any recovery in the last half-century. The outlook for 2014 and 2015 is, unfortunately, for more of the same tepid growth. Our view is that the negatives will slightly outweigh the positives over the next two years, resulting in around 2.4 percent growth in 2014 and 2.6 percent growth in 2015. (Figure 1).

    Currently, there are three primary negatives.

    • There are continuing headwinds from weak global economic conditions.
    • Obamacare is creating uncertainties and increasing health care premiums, reducing consumer and business spending.
    • Political gridlock endures, preventing meaningful, permanent tax and entitlement reform.

    At the same time, there are two major positives.

    • The “sequester” will help reduce federal spending, thereby reducing the deficit and placing more resources in the private sector.
    • Low interest rates and inflation will continue.

    The biggest question mark is the direction of monetary policy from the Federal Reserve. What will be the timing and degree of the reversal of quantitative easing or purchasing of securities to increase the potential money supply and keep pressure off of interest rates? Inherent in this forecast is an assumption that the Federal Reserve can successfully temper its purchasing without a major disruption of asset markets and its wealth impact on consumer purchasing levels.

    The bottom line is a fairly pessimistic forecast of subdued annual growth of 2.4 percent in 2014 to 2.6 percent in 2015. Growth likely will escalate slightly over the period as the recovery matures and gains some strength and as consumers and businesses adjust to disruptions in the health care sector. While job creation might improve from 2013 levels, the likelihood is that the unemployment rate will remain around 7.0 percent in 2014 and 2015.

    Print’s 2014-2015 economic cycle

    Figure 2: Print generally follows nominal or non-inflation-adjusted GDP, so the most significant variable driving print – the economy – suggests modest growth at best for print markets.

    So, how will the economic scenario described here impact print markets? Print generally follows nominal or non-inflation-adjusted GDP, so the most significant variable driving print – the economy – suggests modest growth at best for print markets. However, printing shipments typically underperform the economy by 1.0–2.0 percent. Further, print usually leads in cyclical downturns, lags in upturns and does best in mature recoveries. While we may be in a mature recovery phase with the expansion now around four years old, it remains extremely weak (Figure 2).

    Table 1: Commercial print and related support activities likely will grow from around $82 billion in 2013 to $84 billion in 2014 and to $84.5 billion in 2015.

    All in all, this leads to a forecast of stable total printing shipments of $161 billion in 2014 and $159.9 billion in 2015. Within this total, commercial print and related support activities likely will grow from around $82 billion in 2013 to $84 billion in 2014 and to $84.5 billion in 2015. A major reason for growth in this portion of print is the Congressional election cycle and the pull of the economy on packaging and labels and wrappers. The increasing speed of the economy in 2015 also will add some boost to print, along with the economy moving into more of a mature (although weak) recovery (Table 1).

    The other major portion of print markets, print-related media (publishers of newspapers, periodicals, books, directories and greeting cards), likely will experience declining total shipments of around 2.0 percent in both 2014 and 2015. Total shipments in this sector still will be sizeable – $77 billion in 2014 and $75.4 billion in 2015.

    There are considerable dynamics within total print sales – by print process, print functions and specific print sectors or micro print markets.

    Figure 3: Digital print and ancillary services contribute 1.94 percent to industry growth, while traditional ink-on-paper sales contributed 2.24 percent.

    Print patterns by process. In terms of printing process, a look back at findings from a recent Printing Industries Print Market Survey demonstrates the diversity of sales growth by process. Digital toner-based print sales, digital inkjet print sales and ancillary service sales are the segments adding to industry growth. The following estimates do not add to the total change in nominal print sales in 2Q 2013 due to some respondents not offering each service at their establishments, but it helps provide a visual of what aspects of the industry are adding to or subtracting from growth. In total, digital print and ancillary services contribute 1.94 percent to industry growth, while traditional ink-on-paper sales contributed 2.24 percent (Figure 3).

    Figure 4: Growth is expected in the product logistics and market/promote function, while the inform/communicate sector will continue to decline.

    Print patterns by function. We also examine sales trends by print’s three functions—inform/communicate, product logistics and market/promote. The inform/communicate function is declining due to a shift to digital communication. The market/promote function is growing slightly, even as it faces intense competition from digital media, because print is a proven sales generator. The product logistics function is tied more directly to the economy as it faces virtually no digital competition (Figure 4).

    The bottom line is that over the next two years, we expect the highest relative growth in the product logistics sector, most likely matching real GDP growth of 2.0-3.2 percent in 2014 and 2015. Next highest in growth rate is the market/promote function, with an expected growth rate of around 1.0-2.0 percent in 2014 driven by the national election cycle before cooling to around 1.0 percent in 2015. The inform/communicate sector will continue to decline in the 2.0-3.0 percent range each year.

    Patterns by micro print markets

    Figure 5: The demand index is calculated by subtracting the proportion of printers indicating a market is declining from the percentage of printers indicating a market is increasing.

    We also track print micro markets in our surveys and sort them by hot, warm and cold segments. Here, we just report on projected hot markets for 2014 and 2015. Following is our latest tracking of the top 11 print micro markets – those with a demand index of 50-plus. Our demand index is calculated by subtracting the proportion of printers indicating a market is declining from the percentage of printers indicating a market is increasing (Figure 5).

    A projected profit plateau

    Figure 6: Profits are projected to hold up at their current rate of 2.7-2.8 percent during the next two years.

    Printing industry financial performance as measured by before tax profit as a percent of sales has steadily improved since hitting a recessionary low of -1.4 in 2010. We project that profits will hold up at their current rate of 2.7-2.8 percent during the next two years. Profit leaders, printers in the top 25 percent of profitability, will see a similar trend with profits plateauing at around 10.0 percent percent of sales (Figure 6).

    Action plan for 2014 and 2015

    So, what should your action plan for 2014-2015 contain? Your key focus should be on profits and not simply sales. Profitability is a function of three fundamentals: sales, cost and prices. Profits increase with higher sales, higher prices and lower cost; therefore, profit leaders must have higher sales, lower costs and higher prices. What follows are a few proven suggestions.

    To increase sales

    • Specialization. Printers specializing in particular segments, such as labels/wrappers or direct marketing, that focus on a vertical market generally achieve higher sales.
    • Diversification. Printing firms that provide more value-added ancillary services generally have higher profits than firms that only print.
    • Process Advantage. Digital toner-based print and inkjet are growing much faster than traditional ink-on-paper print. Hybrid printing which combines digital and inkjet with traditional processes in the same job is growing.
    • Printed Products and Services Offered. Particularly hot markets are not at all “print” as usually defined – web-to-print services, web development, signs/signage, integrated print, fulfillment and database management are hot, and printers offering these services gain margins.

    To reduce costs

    • Benchmark costs with industry metrics to determine where your costs are out of line.
    • Shift fixed to variable cost by reducing overhead – using part-time and temporary employees rather than full-time permanent employees. Further, reduce headcounts by benchmarking metrics like sales and value-added per employee and factory employee.
    • Substitute capital for labor. Profit-leading printers have higher investment per employee to “get better, not bigger.”

    Practice smart pricing

    Most printers compete on price. Profit-leading firms compete for price, charging higher prices by practicing smart pricing. Our research shows that a one-percent increase in price outscores similar percentage changes in sales or cost in terms of the profit impact by a multiple of three or more.

    Smart pricing tactics include the following:

    • Specialization, which reduces competition and allows pricing leverage
    • Deep and intimate knowledge of a customer’s needs
    • Diversification to value-added services within the specialization
    • Strong branding of the firm
    • Developing a sales compensation policy with incentives to sell at higher prices
    • Pricing that is more demand-driven and less cost-driven

    Be a learning organization

    There is only one expense category where profit leaders outspend others – education and training. Profit leaders spend more than twice the percentage of payroll on training and education as profit challengers. Further, they provide training and education to all employees – production, technical, administrative, sales and management.

    Dr. Ronnie H. Davis is senior vice president and chief economist for Printing Industries of America. For more information, contact rdavis@printing.org. This article has been reprinted with permission from PIA’s The Magazine 2014 Forecast issue.

    The Marriage of Board and Adhesives

    by Dave Senter, Eska Graphic Board USA B.V.

    One of the most popular questions I get now that I’m in the graphic board industry – and it’s a question I often received when I was in the adhesive industry, too – is, “What’s the proper amount of adhesive to use?” The answer is that it depends on a lot of factors.

    Factors Affecting the Adhesive/Board Bond

    There are different applications in the book industry, and adhesive requirements vary based on the application. During my time as a glue guy, my job was to sell glue; but my bigger job was to make sure my customers weren’t creating problems for themselves with the wrong adhesive or inadequate application. It’s best to follow the mantra “less is more,” and then adjust as needed.

    There is a fine line between what enough is and what is too much. In both casemaking and casing-in, operators will start out at a level that they believe is sufficient coverage for that substrate on a particular board, but they often don’t see or know the bigger picture. What issues are happening farther down the process? I always stress to operators the “less is better” rule.

    Another common adhesion issue actually is caused by the speed of the machine. An operator may have an adhesive that isn’t properly matched to the speed being run on the machine, which inhibits the application of the proper amount of adhesive.

    In addition, environmental factors can complicate the adhesion bond. When the weather is cold and the relative humidity is low, paper products and wood fibers react. As a result, the fibers in a particular board, when exposed to low humidity, become very dry; just as a piece of wood would react. In the summer, when the humidity is high, the fibers swell as they take on moisture. The amount of adhesive that is required varies based on the condition of the fibers.

    At the casing-in process, when applying a case to a book block using a casing-in paste, less is always better in the summer because there should be equilibrium on both sides of the board from the adhesive. So, if the casemaking process applies

    Solving Adhesion Issues

    If adhesion issues are experienced, what is the issue? Why is the glue not sticking? Is it setting up too fast? Is it setting up too slow? Is the glue on too thick? Is it on too thin? Is it the proper adhesive for the substrate? Not every adhesive works on every substrate.

    In the 35 years I have been in the industry, working with both adhesive and board, one thing has been consistently true. When there is a problem, it never seems to be recognized soon enough. Operators will work through a problem to get to the next operation; and then, further down the line, something happens. When the issue is back-tracked through production, the problem often is found to have started much earlier in the process. If there’s a problem, when should an adhesive or board supplier be consulted? The timing is easy: once all basics have been checked (temperatures, solids content, coverage and machine speed) and the problem still exist, then it’s time to make the call.

    The adhesion issue could be caused by a number of factors, such as incompatibility between adhesives and substrates. It could be caused by using a substrate that has been modified rather than the one typically used in a particular operation. It could be a change in a process or material that wasn’t adequately communicated.

    In this competitive environment, companies have to lower cost. Many times, raw materials are targeted as a way to reduce expenses. Once a vendor has supplied a solution to an operation, adequate testing must be performed. Results need to be documented and reviewed, and possible fail points should be identified before changes should be made. If this is not performed and different components are introduced to an operation, the possibility of an adhesion problem occurring is greater. At that moment, it’s time to raise a red flag and say, “Something has changed, and we’re not sure what.” Testing a new product before bringing it in can help to avoid potential adhesion problems.

    Dave Senter is sales account manager at Eska Graphic Board USA B.V. Eska Graphic Board is a producer and supplier of top quality graphic board for hardcover books, files, ring binders, diaries, albums, games, puzzles, displays, show cards and luxury packaging. The board is marketed under the brand name Eska and is well-known for its excellent and consistent lay-flat, stay-flat quality. All Eska products are made of recovered paper, and FSC certification has been acquired for all products. For more information, visit www.eskagraphicboard.com.

    Q&A: Preventing Transit Marking

    by Kevin Rickard, Rickard Bindery
    The Kraft surface of a corrugated carton is a very abrasive paper product. Separating unprotected finished product from Kraft surfaces is important whenever movement is possible.

    The most discouraging thing about transit marking is it happens after jobs have been beautifully produced. Transit marking is just as its name implies – unwanted marking that occurs during shipping. Unless preventative measures are undertaken, abrasive paper surfaces can rub against each other and cause markings as products are jostled around in trucks. The presence of microscopic grit, such as press powder or carton debris, can cause unattractive scratching in a paper’s surface.

    Product movement within a box during shipping is the major cause of transit marking and happens on many types of printed products, including brochures, saddlestitched projects and books. Although there is no way to predict with certainty which jobs will experience transit marking, preventative steps can and should be implemented to minimize the likelihood of problems.

    Question: How do you determine if a job is at risk for transit marking?
    Answer: If the outside sheets have moderate or heavy ink coverage and lack any paper coating (i.e., UV coating, varnish, aqueous or film lamination), extra care should be taken in packing the product. Before your bindery begins working on a job that may transit mark, check for wet ink by running your hand across sheets, searching for tackiness. Unfortunately, even if your ink is dry and the job has been flood varnished, there is still no guarantee that transit marking won’t happen – especially if dull varnish was used. Generally speaking, you’re less likely to have marking problems if gloss varnish is applied “dry trap” (a separate press run) instead of “wet trap” (the same press run as the ink).

    For saddlestitched books, consider the physical characteristics of the book itself. High gloss enamel stock reduces ink penetration and causes ink to rest high on the paper’s surface and can be easily scratched or chipped off. Heavy books with unvarnished enamel covers are highly susceptible to transit marking. If products have diecut areas, pockets, half-size sheets or any other uneven surface levels, marking may occur along raised edges after pressure is applied – much like a brass rubbing.

    Be careful of printed products with heavy dark ink coverage on one side and light coverage on the other. Any time heavy ink rests against light ink after packing, the chances of markings increase. If reflex blue ink is present, then the problem becomes worse because it dries so slowly. Other inks to be careful of include red, purple and metallics.

    General weather conditions also are a significant factor. High humidity is problematic because it can hinder the drying process of both ink and varnish. Also, high heat may moisten ink, increasing its tendency to scratch. Even if weather conditions are good in your area at the time of shipment, consider where the job is to be shipped. In the Midwest, the weather can change within hours. In general, as the distance of the final destination increases, so does the likelihood of transit marking.

    Question: Is there a means of testing printed materials to see if transit marking will be a problem?
    Answer: Unfortunately, there is no foolproof way to guarantee the prevention of transit marking. A simple test is to rub sheets together with moderate pressure by hand and look for ink either flaking off or transferring to the opposing sheet. If this happens, the odds are that there will be shipping problems, unless counteracted. For a better test, bind and pack enough books to completely fill a box and place it in a jogger for a while. Afterwards, if there isn’t any sign of transit marking, the job probably will be OK.

    Question: How can transit marking be prevented?
    Answer: Tightly packed, properly coated finished products that don’t slip when jostled should successfully ship without transit marking. The first step in avoiding unwanted marks is to choose the proper carton size and have product within the carton tightly bundled, whether it is via paper bands, shrink wrapping, poly-tying or rubber banding. Printed products should fit snugly without corners being damaged and filled to the top of the box. Loosely packed products will slide around in cartons and mark easily. If gaps within boxes are unavoidable, your bindery should add substantial packing or filler materials to remove the voids. Wadded paper at the top of an under-packed carton is next to useless. Fortunately, there are a lot of options to fight the war against transit marking including the following:

    • Shrinkwrapping. Shrinkwrapping is the best way to prevent marking, as well as dust, dirt and foreign contamination, but it’s expensive. It offers excellent protection because shrinkwrapped contents don’t shift. In addition, it allows removal of a portion of the contents.
    • Paper banding and poly-tying. Paper banding and poly-tying are among the best forms of bundle containment. Like shrinkwrapping, properly banded and poly-tied products don’t move during shipping. These are good, low cost methods that prevent many marking problems.
    • Rubber banding. Rubber banding is very useful for miniature products. However, this method has the tendency to cut at the point where it holds the sheet.
    • UV coating and film lamination. Both UV coating and film lamination seal ink behind a durable, scuff resistant coating.
    • Aqueous coating and dry trap varnish. Press-applied aqueous coating offers more protection than varnish, but less than UV coating and lamination. If you use varnish, apply it “dry trap” (separate pass) for better protection against scuffing.
    • Slip-sheeting books. Slip-sheets absorb excess friction and significantly help prevent marking. Unfortunately, slip-sheeting is expensive because additional packers are needed at the end of production lines. If slip-sheets are used, make sure that they are exactly the same size as the finished product.
    • Separate products and cartons. The Kraft surface of a corrugated carton is a very abrasive paper product. Separating unprotected finished product from Kraft surfaces is important whenever movement is possible. Laying a smooth sheet of paper on the bottom of a carton before inserting product will help prevent scratching. Laying another smooth sheet on top of product before sealing the carton is even more important because items at the top of cartons are more subject to slippage.
    • Skid wrapping. It’s important to keep cartons secure on skids during shipment. Transit marking shouldn’t occur if boxes are well packed and skids are stable as trucks start, stop and make sharp turns.

    The best way to prevent transit marking is to take the time to predict which jobs are the most likely to mark and then develop a plan to combat the problem once identified. Choose a binding partner knowledgeable about transit marking and work together to adopt preventative measures on a job-to-job basis. With a good game plan, your customers won’t be rubbed the wrong way.

    Rickard Bindery specializes in discovering solutions to challenging folding, saddlestitching, gluing and other bindery jobs. For more information, call 800.747.1389 or visit www.rickardbindery.com.

    Responding to Print Industry Changes

    by Si Nguyen, Duplo USA

    How is Duplo responding to a smaller base of potential customers? Has it curtailed equipment development in any way?

    When Xerox introduced the first iGen model, we realized big changes were coming to the printing industry. Fortunately, at that time, Duplo had already begun developing its finishing line to accommodate the future needs of the industry, which are for shorter runs, faster turnaround times and on demand digital print finishing. While print volumes are decreasing, print is not going away. Focus now is more on value-added finishing, and Duplo digital color finishers have fortunately fit the needs of these trends. While the number of commercial printers has decreased dramatically these past few years, we have interestingly seen an increase in companies from different sectors that are bringing their printing in-house. Much of this trend can be attributed to the more affordable costs of digital printing, along with more user-friendly and automated equipment for less experienced operators.

    Why is automation so important with the current state of the print industry?

    With the impact of electronic technologies on print volumes and challenges to the printing industry, productivity and workflow efficiency is even more crucial in order for companies to survive. Highly automated equipment increases productivity with shorter set-up times and changeovers, requires less manual labor and shortens turnaround times, thus increasing a company’s bottom line. With more affordable digital printing solutions and increased finishing equipment automation, companies are increasingly finding it easier and more profitable to bring their printing in-house. Highly automated and user-friendly finishing equipment requires minimal operator experience and enables businesses to finish jobs more quickly and profitably.

    With “threats from electronic technology alternatives” growing, what has Duplo done to position itself – and its customers – for shrinking print volumes?

    Electronic technologies have definitely impacted print, yet finishing opportunities still exist in areas such as high-quality, personalized applications. Our wide range of finishers (such as slitter/cutter/creasers, die cutters and UV coaters) add extra value to print and finish a wide range of specialty applications, such as VDP direct mailers, which integrate well into cross-media marketing campaigns.

    What advice do you have for binderies as they evaluate business models and equipment options in the next few years?

    One suggestion we can offer to binderies is to always consider automation when researching equipment. Look for devices that can offer more than one function. Compact devices with multiple functionalities can be operated in smaller spaces by a single operator and would be a better solution versus running several separate devices. Searching for equipment that produces less waste and offers higher productivity also is recommended. In addition, consider connecting the finishing device to the press. Automation is not just for changing paper sizes. For Duplo, automation also means being able to integrate with a printing device either via JDF or barcodes in a near-line capacity. Automation in today’s business model needs to be at an entirely different level. Binderies have to be able to connect the entire print production, from prepress to postpress, without any touch points and produce jobs automatically.

    Thank you to Si Nguyen, Duplo USA, for responding to these questions. Learn more about Duplo’s offerings at www.duplousa.com.

    Related Story

    New Ownership Takes Hold at Seattle Bindery & Finishing

    by Jen Clark, The Binding Edge
    Seattle Bindery & Finishing serves the greater Seattle area and has customers throughout Washington state.

    Tom Alvis always knew he wanted to be a business owner, but little did he know the opportunity would come knocking. Alvis, a long-time employee of Seattle Bindery, a Seattle, WA, postpress house specializing in custom tabs and presentation folders; folding and stitching; foil stamping, embossing and diecutting; plastic spiral, Wire-O®; perfect binding; and film laminating, recently purchased the trade bindery from Milt Vine, the longtime owner who had decided the time was right for retirement.

    Vine approached Alvis with the idea in 2011, but “things didn’t really get going until November 2012. We closed in August 2013, so it was a fairly long timeline,” Alvis explained, noting Vine told him he was ready for another challenge. “He said he was still young enough to do something else. He had done this for 20 years. He was ready to close this chapter and move on. By the time the sale closed, he was ready for some time off. I don’t think he’s made any official decisions yet, but I do think he is enjoying retirement.”

    While surprised at the offer, Alvis jumped at the chance to write the next chapter in Seattle Bindery’s 50-plus year history. “I had held many different positions with Seattle Bindery over the years; and when Milt approached me about purchasing the business, it caught me a little off guard,” he recalled. “I discussed the proposal with my wife, and we decided it would be a good move at this time.”

    Over the last seven or eight years, Alvis and his wife, Janice, had been contemplating the purchase of a small business. They had their eyes on a typical franchise-type restaurant or something similar, though. “There was a smaller bindery that I had looked at a few years ago, but we decided that wasn’t feasible,” he said. “At the time, I had mentioned to Milt what was going on, and he off-handedly asked if I’d be interested in buying Seattle Bindery. At that point, it wasn’t feasible, which is why I was so surprised when he approached me again,” Alvis explained. “I didn’t think it would be financially feasible (this time), but we investigated, and we were able to reach a deal. We managed to get it all financed and made it happen.”

    Looking back, Alvis said it made sense to purchase Seattle Bindery. “What better business to own than the one I had worked at for most of the last 25 years?” Alvis started his career there in 1990, but left a decade later. After a short stint with Safeco Insurance Company, he returned to Seattle Bindery in 2004. The economic downturn had an impact on the company, “and profits were not what they used to be, but the company was profitable,” Alvis said. “I felt that the timing was right, and that it was a good time to buy. I am counting on a recovering economy and my knowledge of both Seattle Bindery and the industry to keep the company on track and achieve success in the future.”

    Even though the economy hasn’t completely bounced back, Alvis started seeing some improvement beginning in 2011. “Some of that was through a better economy and some through attrition of the competition,” he said. “I see the market staying flat in the short term and am hopeful for small growth once the economy starts moving.”

    A look back

    Founded in 1960, the company was first known as Seattle Litho Bindery. Ed Wood spent 30 years at the helm before selling the operation in 1991 to Vine, who had previously worked as a certified public accountant. “When Milt bought the company, it was known as Seattle Bindery and Mailing and was located in the south Lake Union area of Seattle,” Alvis said. “The company did traditional bindery work, along with mailing. At that time, folding and stitching were the main revenue producers, and the company had about 20 employees.”

    For a little more than a decade, the company enjoyed steady growth and twice expanded its capabilities with the purchase of Ad Products in 1994 and Blake Letterpress in 1997. The first acquisition added custom index tabs and mechanical binding to the company’s capabilities, while the latter gave the company a full complement of postpress services, though it no longer handled mailing. To accommodate the update in services, the company changed its name to Seattle Bindery. In 1999, Seattle Bindery moved to its current location in Tukwila and grew to employ about 40 people. In 2004, the company added film laminating to its list of offerings.

    After two recessions, Seattle Bindery had downsized to less than 20 employees when Alvis purchased the company in August of last year. As part of the sale, the company was renamed to Seattle Bindery & Finishing and has added four new full-time employees. “I have spent the first few months tweaking things and trying to improve the bottom line with a series of small changes,” he said. “We are always looking to add new services, equipment and employees, but each decision is based on value.” Alvis said he hasn’t made any major changes to the way the bindery operates. As for the employees, he said their reaction has been positive. “I’ve worked here for most of the last 25 years, so everyone pretty much knew me. We have a lot of long-time employees. I have a lot of friends who work for me, which is different, but so far, so good.”

    Never a dull moment

    Now that he’s the owner, Alvis’ work varies from day-to-day. He manages the company’s finishing operations – diecutting, foil stamping and folding/gluing. He also provides customer service for difficult or special projects and has administrative responsibilities. “I help out where needed,” he said. “My days never seem to turn out how I plan.”

    Making the transition from employee to owner has been interesting, he said. A transition period helped Alvis ease into the role of owner. “Milt was on-site every day for 30 days. Then on an as-needed basis for another 30, and he’s still available to me now,” Alvis explained. “Every now and then, I send him an email for something I need to know. As the days go by, that’s happening less and less.”

    Since it took a little more than a year for the deal to finalize, Alvis said that gave him time to let everything sink in. “It’s a different set of challenges for sure,” he said. “A lot of day-to-day stuff hasn’t changed that much. Some is easier to do now, but it is difficult to find time to go out and do anything in the shop. But, I have run most of the equipment at one time or another, so occasionally I need to help out there. Other days, I may have to run out to visit a customer and consult on a complex job. And, unfortunately, some days are spent dealing with breakdowns or problem jobs.”

    Despite having a financial stake in the business, Alvis said his wife has remained hands-off. “Her job is to be the bread-winner,” he joked. “She has a good job outside the industry. We’ve talked about her coming to work here. Eventually, it may happen.”

    Alvis noted he finds the customer service angle much easier now that he’s in charge. “I’ve always enjoyed the customer service part of the job,” he said. “Getting to discuss projects and determining how we can help the customer out is very rewarding. It’s a situation where we can be creative to make things work. If we do a good job on something, the customer’s happy and their customer is happy too. There are good days and there are bad days. Sometimes people aren’t happy with you,” he said. “But, hopefully there are more good days than bad.”

    Customer response to the change in ownership has been positive, too. “I’ve tracked the customer base,” Alvis said. “All of our customers are sticking with us; we’ve had a few that have wanted to review and renew their contracts – for the most part, that’s been positive. Doors are opening. That’s an area where things have improved a little bit. Sometimes customers see that things are changing and it gives them a chance to review things.”

    Trends shape business

    Alvis holds a folded piece that his company worked on for a client in the pharmaceutical industry.

    Alvis said Seattle Bindery & Finishing serves the greater Seattle area and has customers throughout Washington State. “But we don’t have a typical job,” he noted. “Our biggest niche is that we do more under one roof than our competitors.” As an example, Alvis described a project that might entail 1,500 plastic coil books that consist of 92 pages and five Mylar index tabs that require foil-stamped front covers and a back covers with a glue-folded pocket. And customers are expecting their projects completed faster than ever. “That’s the main trend I see,” he said. “Fast turnaround time; more and more digital printing and short-run jobs. This has been the trend for the last decade. We actually downsized our perfect binding so we could be competitive on short-run jobs and decided to get out of the large-run market.”

    Eyeletting is one of the more recent additions to the bindery’s list of services. Alvis said some customers use them for decoration rather than function: “They’ll put an eyelet on a business card just for the industrial look.”

    Alvis said people are willing to spend money on print because they want a great or unusual look. “Our bindery can be a big part of that. Customers want less bulk mailers and more “designer” brochures, business cards or presentation folders. We have responded to this over the years by adding many services, such as eyeleting, which can be used to achieve an “industrial” look,” he said. “That has turned out to be a great little machine. Some customers use them as decoration rather than functionality. We’ve done jobs for people where they’ll put an eyelet on a business card just for the industrial look.”

    At this point, Alvis hasn’t added any new services to the shop. The decision to add anything new will depend on customer feedback, he said. Current bindery services include folding, presentation folder gluing, stitching, trimming, rotary perforation and scoring, gathering and collating, perfect binding, Wire-O, plastic spiral, transfer tap, drilling, round cornering, shrink wrapping, eyeleting, film laminating and UV coating. Its tabbing operation includes custom index tabs, copier tabs, tab reinforcing, spine reinforcing, patch edge reinforcing and five-hole drilling. Finishing capabilities include autoplaten diecutting, diecutting up to 41″, scoring and perforating; embossing, foiling and numbering.

    Focused on the future

    With a renewed energy, Alvis and his staff are working out of the same 30,000 square foot building Vine leased and relocated the company to in 1999. At the time, Vine reported the new space provided “an open work area” that allowed “production managers … to see the entire floor.” The move allowed Seattle Bindery to finish jobs more quickly, which helped customer service. It also provided room to grow.

    Seattle Bindery & Finishing’s equipment includes a Heidelberg Quickbinder, two Scott 10000 tabbers, a Bobst autoplaten diecutter, three MBO folders, two McCain stitchers, a Kluge Omni folder/gluer, three Heidelberg cylinder letterpresses, three Heidelberg platen letterpresses, a 20×28″ platen foil press, a Kluge EHD foil/diecut platen press, a Stahl pharmaceutical folder and two cutters. The company also operates both single- and double-sided film laminating machines. “A new piece of equipment that I have my eye on is rather expensive,” he said. “Every now and then a rebuilt one comes on the market. They’re still not cheap, but are more affordable. That’s what we’re saving for… so when it comes along we can jump on it. Hopefully I’ll have it sooner rather than later.” While he declined to name what equipment he’d like to purchase, he did say “it would allow us to offer another “unique” service.”

    Alvis has another area he’d like to see Seattle Bindery & Finishing expand into, although he considers it more of a “long-term” project. “I’d like to explore more packaging work, such as paperboard cartons,” he said. “That would mean adding a straight-line gluer to our operation.”

    In the meantime, Alvis said he’s focusing on the task at hand – making Seattle Bindery & Finishing a success. “We are currently negotiating a new seven-year lease, so we plan on being around and doing trade bindery in this region for a long time,” he said. “We are working on improving what we already do in the short-term. We want it to be easy for our customers to do business with us.”

    Sizing Up Postpress: The Impact of Electronic Technologies on Postpress Manufacturers

    by NPES

    As bindery owners and employees, it’s easy to get caught up in the day-to-day running of the business. Keeping production orders on track, soliciting new business and watching the bottom line consume the majority of work hours. However, it’s important to keep an eye on the industry to better understand the forces and factors that will affect the future of binding and finishing. This article, reprinted with permission from NPES, provides valuable insight into the challenges facing postpress equipment manufacturers. As equipment manufacturers react to these challenges, the binderies will have to react as well.

    Figure 1: Trillions of Letter-Size, Simplex Production Pages, North America. Source: PRIMIR “Impact of Electronic Technologies on Print” Study, 2011 by I.T. Strategies, Inc.

    Postpress manufacturers are highly dependent upon new press equipment sales for new business. The bad news is that fewer new presses are being purchased as print volumes continue to decline (see Figure 1); hence, fewer opportunities are arising to sell new postpress or finishing equipment. The good news is that with continuing market consolidation among print service providers, those that are purchasing are buying highly sophisticated and automated presses – along with highly sophisticated and higher-value finishing equipment.

    The implication for postpress manufacturers is an urgent need to “right-size,” which involves downsizing to produce fewer units, while “up-sizing” to meet the demand for more sophisticated finishing equipment.

    The printing press industry is in the classic downward slope of a life cycle. The potential customer base is consolidating and shrinking, and a used equipment market, along with a knowledgeable base of maintenance personnel, is keeping the installed base alive longer than anticipated. However, not all is lost for finishing equipment manufacturers.

    As the financially weaker print shops disappear, those remaining should, in theory, become stronger. Those stronger print shops will be in a race to establish the most efficient and the highest volume businesses. To achieve this, they will need to have the lowest price, the greatest flexibility and the most highly automated equipment.

    Opportunity for finishing manufacturers

    The opportunity for finishing equipment manufacturers is in addressing the needs of this upcoming, financially stronger base of remaining print shops. This means more productive, more automated presses. Fewer units will be sold than previously, but the top-line revenues and profit margins will be attractive for manufacturers.

    Figure 2: Impact of Electronic Technologies on Print Volumes: A Comparative Look North America, 2011-2024. Source: PRIMIR

    The application/market focus of those presses will need to be on marketing collateral and direct mail – applications still in a growth mode and less likely to be impacted by electronic technologies in the near term. Those applications likely require more frequent paper changes than long-run periodical and publishing applications, which continue to be more severely impacted by electronic technologies (see Figure 2).

    A focus on marketing collateral and direct mail applications by press manufacturers, in combination with advanced nesting software, will open up web-to-print opportunities that until recently have been profitably accessible to only the very large print providers. Web-to-print business infrastructure will be critical in driving up print volumes for the remaining financially strong print shops; it will open business from a regional to a broader national and even international customer base. To make web-to-print a profitable business, it has to become nearly labor-free. Automated finishing is an absolute requirement of web-to-print. The goal of a highly automated web-to-print operation is for most of its labor effort to be concentrated on packaging and shipping the final print job.

    Threats to finishing equipment manufacturers

    As mentioned earlier, the threats to finishing equipment manufacturers from electronic technology alternatives will get stronger in years ahead as at least 25 percent of page volume disappears. Finishing equipment manufacturers must “right-size,” staying two steps ahead of the industry’s print volume declines to remain profitable.

    Simultaneously, with smaller R&D budgets, they must invest in creating more automated finishing equipment, in order to provide print shop customers with the types of new equipment they will need.

    How do NPES postpress manufacturer members respond?

    NPES postpress manufacturer members are very cognizant of the looming challenges. Demand for presses from emerging markets is somewhat mitigating the decline in demand in Western markets, but ultimately, overall demand for presses and associated finishing equipment will continue to decline.

    Since we are still in the early stages of digital press market development – particularly ink jet production printing – automated finishing of digital production printing output remains under-served and is an area of opportunity. Some finishing equipment manufacturers are trying to apply their products designed for analog printing presses to production inkjet printing presses, sometimes with misguided energy. For example, some are showing their automated finishing equipment with inkjet production printers for newspaper applications. Unfortunately, for reasons too numerous to mention here, newsprint printing with inkjet technology is unlikely to become broadly popular; hence the resources that have gone into adapting newspaper finishing equipment to work with high-speed production inkjet printers are unlikely to pay large financial dividends.

    Concurrently, the equipment demands for finishing digitally printed books remains in need of further investment to more effectively match the finishing equipment requirements with digital book printing production printers.

    Conclusion

    Printed page volumes are in irrevocable decline. Electronic technologies are freeing content, allowing more rapid dissemination than ever before. Print doesn’t become obsolete, but the low-value pages that previously were created to attain the lowest possible cost per page, and then stored in inventory, are no longer tolerable in new business models.

    Ironically, electronic technologies are enabling printing to become more efficient – allowing offset presses to print very short runs, just in time – closing the gap between digital and analog production printing. This will require a re-balancing of NPES finishing member firms’ workforces, a process that must be matched in scale just in advance of sales trends. More software and electrical engineers will be required than mechanical engineers; and on the whole, there will be fewer manufacturing staff required as the unit volumes of finishing equipment continue to decline. The value of each finishing unit sold will be higher, keeping top-line revenues relatively stable, but the transition to a new business model will be required. Those finishing equipment suppliers that transition their infrastructures to a “fewer unit, higher-value” business model will prosper. Those that lag in adapting their business models and infrastructure will fall behind.

    Reprinted with permission from the October/November 2013 issue of NPES News. NPES is a trade association of over 400 companies which manufacture and distribute equipment, systems, software and supplies used in printing, publishing and converting. NPES News featured a series of special reports based on the 2011 PRIMIR “Impact of Electronic Technologies on Print” study by I.T. Strategies, Inc. For more information, visit www.npes.org.

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