2016 Nov/Dec

Evaluating Used Bindery Equipment

December 9, 2016

by Brad Emerson, general manager, fixyourownbindery.com

Buyers must compare specifications of potential used machines against current and future finishing product mix requirements to ensure return on investment.

The decision to purchase new or used bindery equipment often is driven by a desire to replace two machines with a single, higher performance machine. However, most high-performance machines have reduced flexibility or reduced size range in order to achieve a higher output. Many times, binderies then are forced to outsource perfect binding, saddlestitching or hardcover finishing work because the recently installed machine is unable to run the size or format required. Therefore, buyers must carefully evaluate and compare specifications of potential used machines against current and future finishing product mix requirements so as to ensure return on investment.

Evaluating used machinery

A big part of selecting a used machine involves understanding and planning for future sales. For example, the buyer might need to consider if the desired line – such as a perfect binder – is able to be economically expanded to produce PUR adhesive books. Can a perfect binder or saddlestitcher be upgraded with camera barcode matching systems between covers, text or personalized endsheets in hardcover books to produce personalized digital work, if applicable?

Other buyer considerations involve domestic OEM electrical parts availability. Does the buyer have a local or in-house machine shop that can economically make basic parts? What percentage of electrical parts is obsolete? Does the used machine have an electrical “black box” where only the seller’s local electrician, if still in business, can support or provide electrical service? Can a full-service bindery equipment dealer create a modern controller to eliminate the obsolete controls?

Furthermore, buyers should always, 100 percent, confirm the age of a perfect binding line, saddlestitcher, cutter, folder or hardcover line end-to-end. Unfortunately, it is a somewhat common marketing practice for dealers and brokers in the graphic arts industry to promote the age of the youngest piece of a line, while omitting the age of the older pieces, such as trimmers, stackers, add-on feeders, etc.

It also is important to understand how often the used machine being considered comes to market. This can save buyers the stress of weighing the risks of waiting for the next machine to come to market or giving in to an unknown seller’s pressure tactics and wiring a down payment before the machine can be properly evaluated.

Be sure the machinery has been inspected

In this age of camera phones and broadband, dealers and brokers will promote a “cream puff” piece of used equipment they have never personally inspected. A great slogan is: “You cannot expect what you do not inspect.” This is especially true when it comes to purchasing used machines. Buy the plane ticket and have a qualified person who is not affiliated with the seller or dealer evaluate the equipment. For buyers who do not regularly purchase used equipment, do the homework of validating the seller and transaction terms.

Often, investors will impulsively lock on to a hot deal or get caught up in the “auction adrenaline rush” and ignore basic investing steps. Old, time-tested rules like “if it is too good to be true, it probably is,” still hold true today.

Buyers should seek out dealers who deduct the inspection cost if they are provided a first/last right of refusal for the relocation. That way, as long as they provide full turnkey relocation services, including transportation, there is no finger-pointing with damages or other headaches, just one phone call to make.

Beware of unscrupulous dealers

Buyers should always inspect used machines. Evaluations performed by qualified inspectors will ensure fewer headaches in the end.

If a dealer or seller threatens for a down payment today or tomorrow or else the buyer is out: game on. Buyers should reduce their offers if the seller comes back around with “the other buyer fell through,” even if only by $1,000. Buyers owe this to all the straight shooters out there that these unscrupulous dealers and brokers prey on every day for cash.

Be cautious of online auctions; they are not all created equally. Unsellable, obsolete surplus equipment often is rounded up from multiple sources to look like a brand-new auction or company closure. Some auction dealers hide in the fine print that an auction is not an “absolute auction,” meaning they are just collecting potential buyers as leads for their buyer database. The shady auction dealer then gets busy offering unsuspecting buyers other equipment and negotiating them to a much higher price for what they originally bid on. They also might partner with other dealers who have what the buyer wanted, so that buyer then ends up paying two or three commissions instead of one.

Seek dealers who allow for purchases directly from sellers or end users if they do not already own the equipment. That way there is no middle man for title or lien transfer problems. Buyers also should request a sentence or two on the seller’s letterhead, invoice or sales contract indicating the seller fully owns and has the legal right to sell said equipment free of any liens, encumbrances or partner agreements. This simple verbiage significantly accelerates legal proceedings should problems arise.

Financing considerations

For buyers who are 100-percent financing new equipment, it is mathematically impossible to avoid being upside down on a loan or lease. However, careful investing in used equipment can help keep the balance sheets in the black. It is possible to purchase the right machine at the right price and still have it be worth something close to what was paid or more. This will further optimize the investment. Banks, leasing companies and equity partners will never agree with, “We don’t care about the resale value, because we’re not selling the machine.”

It can be difficult to assess the actual value of an 18-month-old “like new” piece of used equipment. When the auction excitement kicks in, there seems to be no time to develop a capex (capital expenditure), which in most cases, properly executed, protects buyers from purchasing mistakes. For example, the “like new” piece of used machinery: Brand new, the same machine’s purchase price would be $100,000 after whatever “best show customer” discounts are factored in. In an auction setting, the 18-month-old like new machine bids get up to $75,000. The buyer has lost money at this point. First, the buyer also must pay the auction premium of 15 to 18 percent ($13,500). Then, there is the unbudgeted removal plan where the buyers will probably have to use the auction company rigger. Keep in mind, the rigger is not responsible if the line ever runs again and there was no time to get a turnkey quote from a specialized bindery equipment professional. Everything must be out in a few days, and the auction rigger with the big forklift is not responsible for damage during transportation the buyer must arrange. The machine can arrive incomplete or missing original factory manuals or special machine tools, parts, etc. because the auction rigger did not know what to look for before transportation.

The buyer now has a machine that typically included some level of installation, training and warranty if purchased new, but these costs must be added on top of the auction premium for relocation. If the installers find parts broken or that need to be replaced, the 18-month-old machine is no longer under warranty or the warranty is void due to the rigger who did not know or care about OEM moving procedures. All of this adds up to money lost for the buyer.

When it comes to preparing a plant for machine utilities (electrical power, high pressure air, trim waste systems, relocating other existing equipment, pouring concrete pads, etc.), these costs can exceed the initial equipment investment, especially if rushed and the “OT floodgates” are opened. For those considering a used machine currently under power, try to negotiate for transformers or entire electrical panels off the seller’s wall if they are surplus for the seller and match the buyer’s needs. If a perfect binder or saddlestitcher has web press log feeders, maybe there is an overhead gantry crane system that would no longer be needed by the seller and could easily be negotiated into the purchase package?

Typically, surplus budget funds saved investing in pre-owned equipment vs. new equipment go toward additional equipment purchased; however, depending on the skill level of existing or new machine operators, strategic longer-term training programs can be tailored to ultimately achieve the highest production goals, including difficult-to-run gimmick products. During initial machine training immediately following equipment installation, it is impossible for operators to foresee the problems, including computer errors where applicable, that they will have after the initial training session ends.

Conclusion

The best advice I can give when investing in pre-owned equipment is that the investment does not have to be a complete leap of faith. Reputable, full-service bindery equipment companies exist, offering consultation, CAD layouts, full-time technicians, rigging crews, semi-truck transportation, rebuild centers with complete machine shops, experienced trainers and warranties for the work and services they perform. The more services purchased as a package from a single source provider, the less finger-pointing and responsibility loop-holes buyers will get caught up in when startup issues inevitably arise. If the idea of doing homework on used equipment is not necessary in the buyer’s mind, the buyer should buy new equipment as long as the cost is justified. The number of used sellers who do not care about the buyer’s long-term success on a piece of used bindery equipment far outnumbers the ones who do!

Brad Emerson is the general manager of fixyourownbindery.com, a company specializing in consultation, turnkey used equipment, automation, equipment fabrication and training. Emerson’s bindery background includes bindery supervision, as well as marketing and consultation with a global bindery equipment leader. For more information, comments, questions or criticism, email brad@fixyourownbindery.com.

“May I Have the Envelope Please?”

December 9, 2016

by Brittany Willes, editor, PostPress

Creative Coatings, San Diego, California, emulated a high-quality, leather and canvas gusset-style folder for a client.

“It’s not only about focusing on what the customer wants to buy,” remarked Steve Laethem, president of Creative Coatings, a postpress finishing company headquartered in San Diego, California. “It’s about focusing on what the customers need to have done. What are their end goals? What are they trying to achieve with their products?”

For one of Creative Coating’s customers, the need was to emulate a high-quality, leather and canvas gusset-style folder. “The customer brought us a sample gusset folder made out of actual leather and canvas,” Laethem explained. “The customer needed to make several of these for approximately 1,000 high-end clients; however, each gussets cost around $100 each – too expensive to give out to all of its clients. The company decided to buy a limited amount of the original leather gussets made for the higher-ranking clients, but still wanted something nice for the rest of the clients that would emulate the real gusset at a much lower price. The customer asked us what we could do.”

For Creative Coatings, the first thing to be done was to work closely with the printer and duplicate the look of the actual leather used in the original gusset. The original leather was scanned, and artwork was created to resemble real leather. A canvas pattern was also selected, scanned and made into artwork for printing. Next, a film positive for the screen coating of the texture on the canvas was made. Looking closely at the envelope, it is possible to see that the canvas texture actually registers to the printing. “That is my OCD kicking in,” Laethem joked.

The printer printed the two-sided job – orange on the inside with the leather and canvas look on the outside. Creative Coatings then applied a soft-touch film lamination on one side of the press sheet to cover the entire outside of the gusset folder. Next, the texture was spot-UV coated over the canvas printed areas, reversing out and leaving exposed the leather areas to have the soft-touch feel not only on the top but also on the logo on the front. “During the manufacturing stages, we made some internal adjustments to ensure the product would hold up and last longer for the client,” explained Laethem. Creative Coatings reversed out the textured coating on the score lines, diecut areas and glue tabs where the envelope is folded and glued. This eliminated any coating from cracking during the diecutting and folding process, alleviating any wear-points and assuring good adhesion while gluing and assembling the product. “These minor adjustments assisted in ensuring the long-lasting wear and appearance of the final product,” he stated.

After the diecutting was finished, a silver eyelet was installed using a semiautomatic eyeleting machine. Creative Coatings then searched out the correct stretch-bead tie to attach to the flap. The gusset then was hand-folded and assembled before being poly-bagged and shipped to the customer. “Instead of the usual shrink wrapping for shipping, we decided to leave the actual gusset folder open and poly-bag the product for the client. That way, they could easily insert the collateral inside the gusset, fold it and reinsert it back into the poly-bag for the end client,” said Laethem. This type of user-friendly production is fairly typical for Creative Coatings. “We want to know what happens to the piece after it leaves us so that we can build something that will be user-friendly for the customer and the next person or vendor who touches it.”

“Price was the biggest challenge,” stated Laethem. “It became a question of how to come up with something that would hit the customer’s price point and still achieve the goals. Our goal was to not sacrifice performance or quality due to trying to match a price point.” Several meetings and prototypes of the product were necessary prior to the manufacturing stages. What size the finished gusset should be, thickness of paper to use, which textures to emulate the real leather and canvas, what kind of fasteners to keep the folder closed and what capacity was needed to hold the collateral were some of many decisions to be made when manufacturing the product. Without going over budget, a custom 10×7″ gusset folder on 18pt, C1S, with a 6¼” stretch bead-tie fastener was eventually produced with great success.

“On special projects like this, we try to start at the end and work our way back. What is the end goal?” said Laethem. “What has to happen at the end of the project?” Complementing the look of real leather and canvas on paper without the high price tag may have sounded like a tall order, but Creative Coatings managed to do so with resounding success. “Rather than have customers tell us what they want us to do, we try to determine what they need the project to achieve,” Laethem affirmed, “and then we build what it takes.”

Election Results Create Path for Tax Changes

December 9, 2016

by Michael J. Devereux II, CPA, CMP, partner, Mueller Prost

With Donald Trump winning the White House and Republicans maintaining majorities in both the US House of Representatives and US Senate, the prospect for tax reform and forthcoming changes to Treasury Regulations is significant. While both parties agree on the need for tax reform, their visions for the future tax code are significantly different. The Republicans’ sweep in November 2016 creates a unique environment that has enhanced the likelihood of major changes to come.

Going into 2017, tax provisions in three competing plans will vie for a spot in a potential tax reform bill.

President-elect Trump’s tax plan

Donald Trump modified his tax plan to align his proposed tax rates/brackets to that of the US House of Representatives’ plan, condensing the seven existing tax brackets to three, with tax rates ranging from 12 percent to 33 percent.

Trump’s plan will retain the existing capital gains rate, capped at 20 percent, while repealing the 3.8 percent Obamacare tax on investment and passive income. He proposed repealing the individual Alternative Minimum Tax (AMT), too.

For C Corporations, Trumps tax plan lowers the top business tax rate from 35 percent to 15 percent and eliminates the corporate AMT. Most credits and incentives would be eliminated.

US House of Representatives: the Blueprint

Throughout 2016, the US House of Representatives released six plans to tackle various issues within our country, including poverty, national security, the economy, the Constitution, healthcare and tax reform. The Tax Reform “Blueprint,” as it’s identified in the document released by Speaker Paul Ryan’s office, aims at simplifying the code, while increasing jobs and fueling growth.

The Blueprint flattens and reduces the individual income tax brackets, condensing seven tax brackets to three. It proposes a maximum tax rate of 25 percent on small business income from sole proprietorships or pass-through entities (S Corporations, Partnerships and LLCs). The Blueprint repeals the individual AMT. Families and individuals would be able to deduct 50 percent of their net capital gains, dividends and interest income, leading to basic rates of 6 percent, 12.5 percent and 16.5 percent.

Under this new approach for taxing small businesses, sole proprietorships and pass-through businesses will pay or be treated as having paid reasonable compensation to their owner-operators. Such compensation will be deductible by the business and will be subject to tax at the graduated rates for families and individuals. The compensation that is taxed at the lowest individual tax bracket rate of 12 percent effectively will further reduce the total income tax burden on these small businesses and pass-through entities.

Moreover, the Blueprint lowers the corporate tax rate to a flat rate of 20 percent and repeals the corporate AMT. In addition, the Blueprint allows for the full and immediate expensing of the cost of investments, including tangible property (such as equipment and buildings) and intangible assets (such as intellectual property).

Senate Finance Committee: Corporate integration

The US Senate has taken a completely different approach to tax reform. The Senate Finance Committee (SFC) believes the first step to tax reform is to level the playing field between C Corporations and pass-through entities (S Corporations, Partnerships and LLCs). In doing so, the SFC proposes the following:

Allow C Corporations to deduct dividends paid;
Impose withholding (35 percent) on dividends and interest; and
Eliminate the preferential dividend rate.

The SFC believes that by enacting these provisions, more companies will be organized as C Corporations, thus allowing Congress to enact tax reform for business and individuals as separate endeavors.

While many believe the election results did not purport to provide a mandate to Congress and the future administration, one thing is for sure – changes are coming. Hopefully, these changes will help businesses as they compete in the US market and across the world.

Michael J. Devereux II, CPA, CMP, is a partner and director of Manufacturing, Distribution & Plastics Industry Services for Mueller Prost. Devereux’s primary focus is on tax incentives for the manufacturing sector. For more information, email mdevereux@muellerprost.com or call 314.862.2070.

Economic and Print Market Update and Outlook

December 9, 2016

by Dr. Ronnie Davis, senior vice president, Printing Industries of America

America’s printing industry has experienced healthy growth over the past couple of years with printers’ shipments, prices and profits trending up. Print generally has outperformed other manufacturing sectors in shipment growth, according to US Census of Manufacturing data.

The Institute for Supply Management (ISM) tracks US manufacturing activity in monthly surveys. Over the past few months, the printing industry has ranked near the top in three key metrics among the 18 manufacturing sectors tracked – shipment growth, new order growth and employment growth. Print has even scored well in export growth, although the industry is generally a domestic producer.

There are a number of factors responsible for print’s resurgence:

The US economy is in the seventh year of recovery from the Great Recession of 2007-2009. Although the recovery has been sluggish with fairly tepid growth, it has been a sure and steady climb without interruption.
Print typically takes a while to get on track after the economy recovers from a recession, but once print recovers, it does best in the mature recovery phase of the economy. Since we are in the seventh year of growth, print has hit the sweet spot.
Most of the severe displacement of print by digital media is now behind us, so print is back as an industry that will grow in normal economic times.
Print logistics – our term for labels, wrappers and packaging print – serves as an anchor on print sales as it generally tracks very closely with the overall economy.
Over the last few years, print marketing and promotion – in particular, direct mail – have demonstrated effectiveness as a premium marketing and promotional media.
The print sector most impacted by digital media – informational and editorial print (books, newspapers and magazines) – has been doing relatively well lately.
Lastly, printers themselves have adjusted their business models to take into account the new industry trends and realities. This is especially true for members of Printing Industries of America since they have access to programming from their local affiliate and their national organization.

Print sectors: What’s hot, warm and lagging?

Early this year, PIA surveyed printers regarding 28 specific print sectors. Our analysis divided the sectors into hot, warm and lagging performers. There were 10 hot print markets with sales growing by more than 2.2 percent over the previous 12 months.

Another 10 sectors were classified as warm with sales increases from 1.9 to 2.2 percent over the past year. Even the eight lagging market sectors still grew – from 1.4 to 1.9 percent.

Profits holding steady

Printers’ profits have recovered from the devastation of the recession and finally returned to their historical highs. On average, printers typically earn around three percent on sales. Profit leaders (printers in the top 25 percent of profitability) do much better – earning an average of over 10 percent on sales and with some making much higher rates. Profit challengers (printers in the bottom 75 percent of profitability) basically break even.

PIA’s economic and print market outlook

The current economic expansion was seven years old in June, and the average post-World War II recovery has been around six to seven years, so this one is old. The expansion also is weak – averaging only around two percent growth over the duration. In fact, it is the weakest of 11 post-war recoveries.

PIA’s most likely economic outlook for 2017 is for a continuation of the weak recovery with economic growth of around two percent. But, there is a 20 percent likelihood of accelerated growth and a 30 percent likelihood of recession given the increasing age of the expansion. However, our analysis indicates that the chance of a recession is highest the second year after a presidential election – in this case, 2018.

PIA’s outlook for print markets, based on our most likely economic scenario, is for continued growth in print sales of around two percent in 2017. This sales rate will enable printer profits to remain at their present historically high level.

Print management issues

PIA’s new report, Effective Management Practices in the Printing Industry, demonstrates that successful printers use a variety of management practices that enable them to maintain higher profits in both good and bad economic times. Six key management practices associated with higher profits include:

Senior management focus on financial ratios – such as PIA’s Dynamic Ratios
Senior management focus on quality
An entrepreneurial focus throughout the organization
Goal-setting by senior management and communicated throughout the organization
Senior management strategic thinking and vision of organization purpose
Use of social networking to promote business

Another key to success is managing people. High profit printers have much lower people costs as a percent of sales.

PIA’s Center for Print Economics and Management provides members with many resources that help to improve performance. Two key programs include the new Dynamic Ratios and a Financial Performance Assessment performed by PIS staff. If you are interested in any of these programs, contact rdavis@printing.org.

Direct Mail: Seven Ways to Save in 2017

December 9, 2016

by Kim Mauch, Satori Software

We’re still waiting for notification of a 2017 price increase, but the USPS already has announced its plans for mailers to save money next year. With postal prices already a big cost center for mailings, any way to cut down on postage spending can make an impact on your company’s bottom line. That’s where the USPS mailing promotions can come in. While the list of promotions hasn’t changed much over the years, the 2017 promotions have had slight tweaks and adjustments. Let’s take a look at the proposals.

Earned value reply mail promotion

This promotion encourages mailers to use Business Reply Mail and Courtesy Reply Mail envelopes and cards. For each BRM or CRM piece returned to you, USPS will apply a credit to your permit. This has been a popular promotion in years past, and the only thing you need to do is sign up. Mailers of all mail classes are eligible. The changes for this year are significant – the promotion will run for six full months (up from three last year), the credit is five cents per piece and now the Alternate Postage program Share Mail also is eligible. Share Mail is a program where mailers can include a piece that the recipient can send to a friend, while the original mailer pays the postage. If you use BRM and CRM, it makes sense to sign up for this promotion, as you won’t need to change your processes or mail piece design to get this credit.

Tactile, sensory and interactive mailpiece engagement promotion

The interesting thing about this promotion is that the technologies required to qualify aren’t very new to the mailing industry. Almost anything that makes the paper itself interactive can qualify – from textured paper and finishing, scented paper or stickers to interactive folds or heat-sensitive ink. Standard Mail letters and flats that include any of these elements can gain a two percent postage discount. Designs do need to be approved in advance, but this is an easy way to save for the interactive elements you’re already using.

Emerging and advanced technology promotion

This program has been popular for users of digital technologies. It goes a bit beyond a standard QR code – to qualify, your mail piece will need to include a way for the recipient to engage with technology. This has meant augmented reality and digital print in years past. In 2017, mailers can use virtual reality or programmatic retargeting technology to qualify. If you really want to be on the cutting edge, you can get a tidy two percent postage discount.

Direct mail starter promotion

As the only new promotion this year, the Direct Mail Starter program is a way for smaller mailers to achieve postal discounts. While the program is specifically targeted to small mailers, anyone can get the five percent discount for their first 10,000 pieces of Standard Mail. To qualify, you’ll need to sign up, use a QR code or other mobile-print technology to point to a mobile-optimized website, and submit your documentation electronically. The promotion will run from May to July, some of the lightest volume mail months.

Personalized color transpromo promotion

If you send First-Class Mail bills or statements, this program promises a two percent postage discount for including dynamic/variable color print for marketing and informational purposes on the statement or bill. For those who have used this promotion in the past, the transpromo area must include personalized messaging, but new participants only need to include the color component. This promotion will run the last six months of 2017, giving mailers plenty of time to design and implement their mail pieces.

Mobile shopping promotion

By far, the Mobile Shopping promotion has been the most popular in previous years. The fall season is already the busiest part of the mailing calendar, and the growth of online shopping, especially on mobile phones, has been staggering. In 2017, mailers have a full six months to include technology that directs to a mobile shopping experience, even through social media platforms. The upfront two percent postage discount, in addition to the increased interest in the mobile site, makes this promotion appealing.

Third ounce free

While this offering isn’t technically a promotion, as no signup will be required, Postmaster General Megan Brennan indicated that with the next price increase, USPS will start offering the third ounce for free for First-Class Mail. USPS started offering the second ounce for free a few years ago, and it has been popular. First-Class mailers have been able to experiment with more flexibility in the envelope, adding marketing messages and the like. With the third ounce free, mailers won’t need to separately measure and account for these pieces in their mailing.

In the best good-news-first fashion, USPS has given us a very early preview of 2017. We’ll likely know the bad news, also known as the price and sortation changes, this fall. Which promotion are you most excited for?

Kim Mauch is a subject matter expert in mailing preparation and submission at Satori Software. This article originally appeared in Mailing Systems Technology. To subscribe, visit www.MailingSystemsTechnology.com/subscribe.

Conference Postcard Utilizes Raised 3D Coating and Receives Postage Discount

To help promote its 2016 Topical Conference, the SPE Decorating & Assembly Division utilized a special raised and textured digital UV varnish on its promotional postcard to attract attention when potential attendees received it in the mail. The digital spot UV coating was applied over the 4-color printing by PostPress Specialties (Kansas City, Missouri) on a MGI JETvarnish 3D digital press.

With the use of this special process, the division was able to obtain a two-percent postage discount from the USPS under its Tactile, Sensory and Interactive Mailpiece Engagement Promotion. The combination of the visual attraction of the postcard and the postage discount created a very successful campaign for the conference.

Coil Binding for Thick Books

December 9, 2016

by Anna Massey, director of marketing, Gateway Bookbinding Systems

Large punch holes make inserting coil much easier.

Plastic spiral binding is a common and popular binding choice for all types of printed projects. In addition to being the binding of choice for reports, school agendas and cookbooks, spiral binding often is determined to be the best choice for thicker projects with 250 or more sheets. Coil binding allows these thicker projects to be open cover-to-cover while lying flat. For something that thick, this is a particularly nice feature.

There are, however, some unique challenges involved when coil binding a book that measures one inch or thicker. One of the most important variables that can – and often does – affect the ability to insert coil into a book of that size is the size of the punch hole being used. It is not uncommon for customers to have smaller, 4mm round 4:1 pitch (four holes per one inch) punch dies. Then, they attempt to insert a 45 or 50mm diameter coil through those smaller holes.

When it comes to binding thicker books, consider changing to a wider punch pitch with a larger oval-shaped hole. For instance, a 3:1 or 2.5:1 spacing would best fit a 6.5×5.5mm oval hole. It’s a simple equation – the larger the punch hole, the easier the coil will be able to find its way through.

As the coil is inserted into the thick block of paper that will become the book, the book will start to curve as it follows the curve of the coil. As a result, the “window” that is the punch hole begins to reduce. The smaller the punch hole, the quicker that window closes. With a large oval hole and wider pitch, the additional height of the hole provides a larger window for the coil to find its way.

Working with a wider pitch and a larger oval punch hole on thicker books is recommended for all types of coil inserters. Whether working with tabletop roller inserters, wheel drive machines or an automated system, utilizing these suggestions can improve productivity as much as 50 percent.

A PLASTIKOIL Binding Stick is useful for very thick books, allowing different sections to be combined for easy use and storage.

For those who don’t have the ability to punch with a wider pitch, another option is the PLASTIKOIL Binding Stick. The PLASTIKOIL Binding Stick is a clear plastic stick with a shepherd’s hook on one end. It allows multiple coil bound sections to be combined so they can be used and stored as a single book. For example, a very thick book is divided into two equal sections. Each section is coil bound, and then the sections are stacked on top of each other with the coil overlapping slightly. The binding stick slides between the overlapping rows of coil and locks into place to provide a strong, nearly invisible binding link. The PLASTIKOIL Binding Stick is ideal for combining volumes, addendums, price lists or catalogs.

As one of the most popular and fastest growing styles of binding, spiral binding offers a number of advantages for binders and their customers. Not only are spiral-bound documents able to lay flat, but the pages also are able to turn a full 360 degrees around the flexible spine. Furthermore, with more than 60 colors available, spiral binding offers the greatest range of colors of any other binding style. Even thicker books can be bound using colored coils. The important thing to remember when binding thicker projects is to select an appropriately size punch hole.

Anna Massey is the director of marketing at Gateway Bookbinding Systems. With over 30 years of experience in the industry, she is very familiar with the product and the process of plastic spiral binding. For more information, visit www.plastikoil.com.

Using a B.O.L.D. Approach to Succeed in an Unpredictable Business World

December 9, 2016

by Jill Johnson, president, Johnson Consulting Services

Our economic, political and social environment is exceptionally volatile, uncertain, complex and ambiguous. It has become increasingly difficult to develop strategies for success when every time you turn around there is another challenge that threatens your enterprise survival.

One of the most effective methods you can employ to navigate in this unstable business climate is to take a B.O.L.D. approach. This four-point framework will focus your strategic mindset on gaining the insight and critical skills you need to thrive.

Business strategy – Grow your organization with purpose and prosperity.

Rethink your approach to planning. Stop engaging in strategic planning focused on fun and/or bonding events where you vision-quest about idealistic wishes for your future, resulting in ineffective plans and written reports that collect dust.

Focus instead on grounding your planning efforts by gaining the information and insight you need to develop effective business strategies. Leverage the emerging opportunities available to you and minimize the risks that an uncertain business landscape creates for your enterprise.

Those who thrive in an unstable environment focus on understanding the potential future of evolving trends. So what do you do now? Let go of old ideas. Coalesce your business strategies around innovation and adaption.

Build your sustainable success on a viable future that is grounded in a full understanding of your situation, not on wishful thinking. Manage your transitions effectively by hiring more sophisticated talent to match your evolving needs. Consider how you can leverage new opportunities to enhance your operation and profitability.

Opportunities – Uncover the potential in your market to achieve sales results.

Effective strategic planning in turbulent times requires a deep assessment of your market opportunities. This environment is driven by significant market forces influencing your enterprise success and long-term potential. These market forces impact your business lifecycle and the on-going value of your product or service offerings to your consumers. You must fully understand the impact of the market forces determining your ability to survive and thrive.

Staying close to your target market is crucial to your long-term success. But market needs, wants and desires change over time. You must understand how your market is changing and why. To remain feasible, you need to determine what you need to change to meet those evolving market needs.

There are nine key market forces impacting most businesses today: shifting demographics, competitive actions, fluid economic conditions, unstable capital markets, governmental interference impacting regulations and reimbursement, technology evolution, workforce skills and capabilities, and industry changes as organizations adapt to these forces and generational shifts.

You have no control over these market forces. Yet you continually have to adapt and adjust your strategies to respond to them.

Leadership – Lead with confidence and effectiveness.

It takes many, many hours to master a skill or hone your expertise. Don’t expect to be an effective leader in the beginning. It takes time. Building your insight to effectively navigate stormy strategic waters will take time too.

Asking the right questions is the foundation of an effective strategic mindset. Yet learning to ask the right questions is extremely difficult because most people only ask superficial questions that have easy answers. Asking challenging questions allows you to deepen your understanding of the impact of each market force and their influence on your long-term potential for success.

Effective leaders in turbulent times are not afraid to listen to divergent perspectives. They understand that their ability to take corrective action before things go completely haywire requires candor from their teams and a full understanding of the market forces.

Confident leaders use objective advisors to get to the truth and to push their teams. Look for real expertise that has proven results. Stay away from advisors offering strong sales hype and marketing sizzle. They can do lasting damage to your enterprise.

Decision making – Gain the clarity you need to thrive.

Effective decision-making in an uncertain and unstable world begins with a desire for clarity. Gaining clarity requires a complete and candid understanding of your situation. Truth gives you information. Well-researched information gives you insight. Insight gives you the clarity you need to set the right priorities and focus your team on the most critical activities impacting your success.

Make sure you are not operating under a false set of assumptions that were correct at one time but have not been updated to reflect your current situation. If your assumptions are wrong, your ability to make good decisions will be severely limited by your skewed viewpoint.

It is critical that you reassess your assumptions about the future. Getting the right information for effective decision-making is essential. Look for more than superficial answers to the critical issues you face. Be willing to invest the time and money to bring in a fresh and different point of view to discover the truth.

The value of taking a B.O.L.D. Approach?

By taking a B.O.L.D. approach, you will integrate an action plan for uncertainty into every facet of your strategic mindset. By asking challenging questions to understand your current and evolving situation, you will build your confidence that you are developing the business strategies to enhance your success. You will uncover the potential in your markets. You will be a more confident and effective leader. You will make better decisions.

As a result, others will be more confident in following your lead. If you demand more of yourself and your team, they too will think more strategically, become more effective leaders, make better decisions and achieve results designed to create lasting success for your enterprise.

So take action now. What is the first B.O.L.D. approach step you will take to address the impact of uncertainty and volatility in your enterprise?

Jill Johnson is the president and founder of Johnson Consulting Services, a highly accomplished speaker and an award-winning management consultant. Johnson helps her clients make critical business decisions and develop market-based strategic plans for turnarounds or growth. Her consulting work has impacted nearly $4 billion worth of decisions. She has a proven track record of dealing with complex business issues and getting results. For more information on Jill Johnson, please visit www.jcs-usa.com.

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