Executive Insight

Chief Executive Officer - CEO

Developing Diverse Customer Base
Demand for printing services is cyclical because it depends on economic activity. During the 2001 recession, US printing activity declined 15 percent. In local markets, swings in demand by customers in specific industries can be even greater. Companies can prepare for changes in demand by owning equipment that can switch to other types of printing, courting different types of customers, and offering alternative services.

Expanding Digital Expertise
Rapid advances in digital technology present printers with opportunities to provide new and faster services using digital presses and composition software. Digital presses are more expensive but more versatile, and are useful for the short production runs typical for most projects. Digital technology is especially useful for providing prepress services, such as design and composition, and for communication with customers.

Chief Financial Officer - CFO

Reducing Equipment Costs
To minimize equipment costs, printers may use a combination of ownership and leasing, and may buy used rather than new equipment. Because of specialized printing requirements, printers often lease presses and binding equipment that are used only occasionally. The switch to digital presses has expanded the availability of high-quality used printing equipment.

Reducing Receivables Risk
Some printers may get a large proportion of their business from a few large customers and therefore have a large concentration of receivables. Companies in the industry often have receivables of 60 days or more. To reduce receivables impact on cash flow, printers may finance the receivables of large customers.

Chief Information Officer - CIO

Evaluating Digital Presses
Despite higher costs, digital presses from manufacturers like HP, Indigo, and Xerox provide greater flexibility than standard off-set presses. Because they use toners or liquid ink applied directly to paper - rather than a printing plate - digital presses are suitable for short print runs or for print jobs that must be done rapidly. Per unit costs are high, quality and printing speed aren't as good, and prices for digital presses are higher than for off-set presses.

Increasing Prepress Capabilities
Many printers have expanded into higher-margin design and composition work, acquiring computerized design systems and hiring graphic designers. Prepress work may include page composition, typesetting, image manipulation, graphic design, proofing, and editing. The output from such digital systems can go directly to digital presses, traditional off-set plate systems, or to electronic media, and allow customers to easily view proofs before printing.

Human Resources - HR

Hiring and Training Design Specialists
Digital and graphic design systems require workers with different skills than those needed for traditional printing. Graphic designers are typically paid 50 percent more than regular printing workers. The high cost of such workers means that only printers with a steady volume of work can afford to provide high-quality prepress design services.

Improving Workplace Safety
The nature of printing work exposes employees to special types of workplace risks. Although the safety record for printers, on average, is better than for all private industry, commercial printers have twice the rate of repetitive motion injury and three times the rate of injury from hands caught in machinery. The use of solvents to remove ink can create toxic effects if cleaning and ventilation aren't done properly.

VP Sales/Marketing - Sales

Improving Customer Relationships
Many printers receive a large amount of their business from repeat customers, but don't have a retention strategy. Because of the large number of printers who can provide equivalent services, customer turnover can be high. Computerized customer relationship management (CRM) systems like Salesforce.com can help printers efficiently maintain regular contact with customers.

Implementing Web-Based Marketing and Customer Service
As Internet search ads have become a common alternative to traditional Yellow Pages' advertising, some printers have built sophisticated websites to advertise services and give price quotes. Some printers allow customers to track the progress of their print orders online, view order history, and re-order.