As any dealer interested in entering a new discipline will attest, there are a few key questions that precede the decision to pull the trigger. What’s the ROI? Is it a good fit for my customer base? Is there recurring revenue? What is driving demand?
If you think about it, that last question will answer many others. Knowing what is fueling the demand for production print, which is this month’s State of the Industry report, will connect most of the dots. Is it a client looking to build up its in-house marketing efforts? Is it a business taking control of a substantial monthly billing load? Maybe it’s a client with an ongoing need for signage.
Education, health care, legal—each of these areas didn’t get the note about general dwindling print volumes. Commercial shops, in-plants/CRDs and marketing all present a voracious appetite for demand. Going wide, going large, and going long on print runs— it’s all out there. Did someone say labels and packaging printing? Specialty substrates. Artistic reproductions. Cities wrapping construction scaffolding with large printed images that are more aesthetically appealing.
If production print—with its explosive array of applications—doesn’t get you excited, then it’s time to take a closer look at the possibilities to flourish within your own book of business. We kick off this month’s subject with dealer examples of growth opportunities.
In-house CRDs spanning the legal, education, government and health care spaces are prime growth sectors for KDI Office Technology of Aston, Pennsylvania. Rick Salcedo, president and CEO, notes that customers who are looking to consolidate their equipment can benefit from higher-speed equipment.
Manufacturer enticements provide a boost by offering low leasing rates for production print gear. Salcedo believes the advancement of liquid ink-based production equipment, augmented by low costs of service and supplies, represents the future of the industry.
“This technology provides a cost-effective and efficient solution for high-volume printing needs, making it an attractive option for our clients,” he said. “These trends and technological advancements are creating a dynamic environment where KDI can continue to grow and expand our production print offerings to meet the evolving needs of our customers.”
Prime Time
Of all the markets Blue Technologies addresses, perhaps one of the greatest opportunities lie in the world of retail and ecommerce. Lauren Hanna, vice president of sales for the Cleveland-based dealer, points to Amazon and its much-ballyhooed Prime Days. The retail behemoth uses packaging (right down to the packing tape), adorned with its ubiquitous logo and calls to action for Prime Days, to trigger more future engagements with its customers.
“I think that’s where retail can really benefit from production,” Hanna said. “How do we take packaging and do something more with it, give consumers an incentive to come back and continue to do business, leading to that warm and fuzzy feeling.”
There’s opportunities for marketing, especially for those companies that are realizing the benefit of printed mailers. Hanna points to studies that show email saturation is losing ground as a marketing tool simply because consumers are inundated with emailed messaging. So-called snail mail is enjoying higher return rates, and marketers are using variable data printing for not only more effective targeting but also as a segment within a larger integrated, multi-channel campaign that crosses over into digital via QR codes and other touch points.
“Organizations that are targeting their prospects in a marketing campaign is an evolving opportunity,” she said. “That’s where we’ve had a lot of success creating light production opportunities so that organizations can drive a more customized marketing message to their prospects.”
At Edwards Business Systems and Virginia Business Systems, signage, packaging and high-volume cut sheet color output represent some of the more lucrative market opportunities. Michael Horvath, corporate director of industrial print and regional sales manager, notes his dealership now has the products and manufacturer support to capitalize on these areas.
“Demand is strong as clients look to grow their print business by doing more in-house rather than outsourcing,” Horvath said. “These decisions often come down to having the necessary budget and space.”
Areas in which customization, quick turnaround and sustainability are paramount can pave the way to the best production print opportunities, according to James Loffler, president of Loffler Companies in St. Louis Park, Minnesota. On-demand digital printing, variable data printing, packaging, wide-format and even 3D printing are poised for growth, in Loffler’s estimation.
“[This is] driven by technological advancements, shifting consumer preferences, and economic factors,” he explained. “Innovations in digital printing technology have enhanced print quality and production speeds, making it more competitive with traditional printing methods.”
Burgeoning Circles
There’s a wealth of opportunities at the disposal of Cincinnati-based Prosource. Wide-format and inkjet printing have expanded customer capabilities from printing on different substrates of various thickness and cutting to different shapes automatically through finishing equipment. Tom Messmer, Prosource’s vice president of strategic accounts, points to the rise in ecommerce, labels and packaging as an ongoing growth facilitator.
Another key growth factor is automation. “Automation in workflows to reduce manual processes addresses the limitations of today’s workforce and offers our customers the ability to do more with less,” Messmer noted. “If you can automate something, do it. We’re also using software and cloud solutions to enable automation, increasing uptime and optimizing device performance.”
Topping the list of verticals is health care, as the medical field has supplanted government in having the largest segment of employees. As that space continues to see increased M&A activity, the size and score of health organizations’ needs continues to evolve and grow.
Messmer also points out that emerging markets have triggered opportunities for geographic growth. “We’ve leveraged our partnerships with existing customers to use their facilities as showrooms for targeted demonstrations—an opportunity possible because of our focus on supporting our customers,” he said. “We have key accounts where we have strong relationships and a reliable track record, which in turn has made them strong advocates for our team and our equipment.”
