PA - June 2021

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14 6 30 10

ISSN 1481 9287. PrintAction is published 10 times per year by Annex Business Media. Canada Post Publications Mail Agreement No. 40065710. Return undeliverable Canadian addresses to: Circulation Department, 111 Gordon Baker Rd., Suite 400, Toronto, ON M2H 3R1. No part of the editorial content in this publication may be reprinted without the publisher’s written permission. © 2021 Annex Business Media. All rights reserved. Opinions expressed in this magazine are not necessarily those of the editor or publisher. No liability is assumed for errors or omissions. All advertising is subject to the publisher’s approval. Such approval does not imply any endorsement of the products or services advertised. Publisher reserves the right to refuse advertising that does not meet the standards of this publication.

Printed in Canada.

FEATURES

10 Print safe, smart packaging

Printed electronics are changing the packging industry

14 The Iron Index

Technology and process trends in the Canadian printing industry

DEPARTMENTS

GAMUT

5 News, People, Installs

TECH REPORT

28 Analyzing skin tones with AI

28 CALENDAR

NEW PRODUCTS

26 Detailing the latest offerings from Canon, Fujifilm, Neenah and EyeC

SPOTLIGHT

30 Brad Ranson, sales manager, Komcan

COLUMNS

FROM THE EDITOR

4 Nithya Caleb

Growth apportunities for wide-formats in industrial applications

CHRONICLE

8 Nick Howard

Two great gentlemen from Winnipeg

INSIDER

24 Bob Dale and Frank Kerr

Dealing with price increases

Future of wide-format

In Spring, I attended a webinar by the Digital Imaging Association (DIA) on growth opportunities with wide-formats. The webinar focused on industrial applications, such as fibreboard decorations. Gravure, flexography and screen printing are typically used to produce these commercial products, but digital inkjet is starting to replace them.

Registrations are open for the Canadian Printing Awards. Submit your project soon.

Jason Hamilton, director of digital print strategies & sales operations, North America Offset & Inkjet Solutions; Thomas Giglio, North American latex business lead for HP’s large-format production business; and Peter Spring, president of TI Group, was on the panel.

Packaging boom

According to Hamilton, the corrugated packaging space is witnessing the fastest growth. A lot of people are using digital presses to create corrugated displays. He also felt flooring and industrial decor has jumped into the digital space. Giglio added that many buyers were looking into printing on plastic.

Spring spoke about the shift to semi-permanent displays. “Permanent displays were made out of metal; the cost was high and the life was long, but the market is changing so quickly that a lot of those budgets are being redirected to semi-permanent displays that don’t need that level of structure or long-term performance. However, to get into that market you need to understand structural design, the way materials works, and also be able to put ink on that material whether it be thin metal or acrylic.”

All panelists agreed that the evolution in wide-format printing has created several opportunities to expand the print business.

The June issue

We also focus on packaging in this issue. The potential of printed electronics in packaging is explored on pg 10. This year, we all saw the effectiveness of smart packaging technologies in the distribution and authentication of personal protective equipment, test kits and vaccines. As Andrew Manly, communications director, the Active & Intelligent Packaging Industry Association, explains, smart packaging helps with brand protection (e.g. RFID tags),

authentication and traceability and consumer engagement.

Additionally, we present the 25 th edition of The Iron Index that tracks the production-technology investment trends of leading offset-based printing companies across Canada. Find out the investment plans of your fellow printers on pg 14.

On pg 24, Insider columnist Bob Dale and Frank Kerr offer strategies to deal with price increases, which is happening quite often these days due to supply chain issues.

Striving & Thriving in 2021 & beyond

I’m excited to moderate the “Surviving & Thriving” in 2021 & beyond roundtable on Wednesday, June 9, 1 p.m. EST.

The printing industry is at a crossroad. Hard decisions must be made as the world economy starts to recover. Innovation is the order of day, but how? What strategies can help printers succeed in a post-COVID world? Our panelists—April Burke, VP-operations – Corporate Printed Packaging, Bellwyck; Jay Mandarino, president & CEO, CJ Graphics; and Richard Kouwenhoven, president and COO, Hemlock Printers—have been there and know all about the struggles. They will offer practical strategies that you can successfully apply in your business/ work to not only survive, but also thrive in 2021 and beyond. Register for free at https://register.gotowebinar. com/register/9038979952831998219.

Canadian Printing Awards

Registrations are open for the 15th Annual Canadian Printing Awards that honour projects, designs, companies and individuals pursuing print excellence and innovation. With more than 35 categories, we are sure to have something that will fit your print project! Visit https://pheedloop.com/CPA/ site/home to submit your project by June 11, 2021. Winners will be honoured at a virtual awards gala on September 23, 2021.

I hope to see you all at the roundtable. Enjoy the wonderful weather while staying safe and healthy.

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Bob Dale, Frank Kerr, Laura Rendell-Dean and Nick Howard

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Pac Flexible Packaging plans to open its second Canadian facility in the Greater Toronto Area by the end of this month. The company has begun accepting orders. Fulfillment will be handled by ePac Vancouver until the Toronto facility opens.

According to George Boustani, managing partner for ePac’s Canadian operation, “We opened ePac Vancouver in December 2019, and realized the same rapid growth we’ve seen in other ePac locations around the world. Our value proposition of five to 15 day turnarounds and low minimums resonates well with the Canadian market, and we’re excited to bring our community-based focus to the Toronto area.”

With a significant increase in its business, Fort Dearborn, a custom label and packaging company with 20 locations in the U.S., reached nearly 82 million impressions on its Heidelberg Speedmaster XL 106-8+L in 2020. This high level of productivity was critical to Fort Dearborn’s success as demand surged at grocery stores.

Printing primarily cut and stack labels, the Fort Worth location of Fort Dearborn is equipped with two Speedmaster XL 105s and one other XL 106 in addition to its world-record press, which was installed in July 2019. Fort Dearborn credits its performance to the advanced technol-

ogy of the press, its increased business in 2020, and its overall plant strategy and teamwork mentality.

Pollard Banknote has been awarded a primary contract from the Idaho Lottery to provide scratch ticket printing. Under this contract, Pollard Banknote will provide at least 71 per cent of the lottery’s instant scratch tickets on an annual basis. The contract term is two years, with the option for three two-year extensions. Estimated contract value, including all available extensions, is approximately $26 million.

Agfa has increased the prices of its offset plates at a global level. Soaring input costs, particularly relevant to aluminum, energy and packaging materials, in combination with rising freight rates due to global logistic constraints make price increases unavoidable, the company said in a press release. Therefore, prices increased between five and 10 per cent on April 1, 2021.

Esko, a developer of integrated software and hardware solutions for the packaging and label sectors, has sold its Kongsberg digital finishing business to OpenGate Capital. OpenGate Capital is a private equity firm headquartered in Los Angeles, Calif. The new business, Kongsberg

Precision Cutting Systems, now employs around 400 former Esko employees operating from the business’ original research and development facility in Kongsberg, Norway, the production facility in Brno, Czech Republic, a new headquarters in Gent, Belgium, as well as other global locations.

Earlier this Spring, Quebec-based Technorol-Innovachon, a manufacturer of rubber rollers and print and varnish blankets converter, acquired Papco. This acquisition allows Technorol to offer different types of papers and envelopes for duplicators, photocopiers and digital printing.

Xeikon has brought to market its brand new XCS Pro 2.0. The fully automated suite of colour management tools is based in the cloud and delivers “every advantage of quality colour control – predictability, repeatability and profitability.”

The new colour package includes training courses as well as ongoing consultancy. It is offered as a ‘pay as you go’ subscription model.

Ricoh USA, Inc., recently announced Idealliance has named the RICOH Pro VC70000 and its RICOH TotalFlow Print Server R600a digital front-end the first continuous-feed inkjet recipient of its Digital Press System Certification Idealliance, a graphic communications industry association, conducted in-depth assessments of the

Ricoh technology and found that it met or exceeded industry benchmarks for “excellence in the areas of colourimetric accuracy, uniformity, repeatability, durability and registration.”

Heidelberger Druckmaschinen AG (Heidelberg) is offering all print shops free access to its Zaikio Procurement industry platform. Zaikio networks print shops’ IT systems with those of their suppliers, which enables print service providers to establish an automatic link with these suppliers.

“With Zaikio, Heidelberg is gradually establishing an industry platform that is open to all companies, digitizes and automates numerous value-adding processes between participants, and makes these operations transparent,” explains Heidelberg CEO Rainer Hundsdörfer. “By making overall processes and collaboration in the printing industry far simpler, Zaikio is boosting the competitiveness of everyone involved.”

Aleyant, a software services provider to the graphic communications industry, has recently joined Dataline’s Certified Partner Program. The program involves an integration between Aleyant’s Pressero web-to-print solution and Dataline’s MultiPress MIS/ERP software. The integration is expected to result in a seamless and sustainable connection between MultiPress and Pressero that delivers productivity benefits to users of both automation solutions.

Rosendo Pozos and Brent Baldwin, press operators, and Mike Suarez, maintenance technician, of Fort Dearborn press, Fl.
Xeikon launches new colour management service.

Industry veteran Garry Gunter rejoins Mitchell Since 1928 as president. Gunter joins the executive leadership team with co-owner Dan Castilloux (now CEO); executive vice-president, sales + marketing, Scott Gray; and CFO, Jim Mann. Gunter has experience in pre-media, digital, offset, flexography, marketing storefronts, and new communication technologies. David Mitchell has stepped back from day-to-day operations, but maintains his ownership stake in the firm.

The Paper Converting Machine Company (PCMC), a division of Barry-Wehmiller, names Stan Blakney as president of its global operations. In addition to leading the company’s U.S. business, as he has since February 2019, Blakney assumes leadership of operations in Italy and Serbia as well. The creation of this new role enables PCMC to unify its operations worldwide and expand into new regions.

Bill Pope

Toronto-based Reproart Imaging, in business since 1986, recently installed the Agfa Tauro H2500 LED. It offers large-format printing, mounting and lamination, POP displays, floor graphics and specialty printing.

Dave Leskusky has been appointed as president of Printing United Alliance. Leskusky has successfully overseen operations at NAPCO Media, which melded with the alliance in 2019 to further connect members and the industry at large. Leskusky will support the alliance’s efforts to streamline the resources and services offered to members.

Additionally, industry veteran Bill Pope has been appointed as vice-president, technical services. In this capacity, he will work closely with the newly merged team at Idealliance, oversee the alliance’s heavily utilized consulting services and awards programs, as well as lead the alliance’s educational initiatives. Pope’s 30+ year career in printing and packaging focused on print processes and graphic reproduction excellence.

When the opportunity to replace their aging fleet of offset presses presented itself, Keystone turned to Manroland Sheetfed and the Evolution Speed press to fill their production capacity and spring-board to a new press technology level.

The Durst Group, a manufacturer of digital printing and production technologies, is restructuring its label and flexible packaging segment.The current segment manager Helmuth Munter will retire at the end of 2021 after more than 40 years with the company. He will be succeeded in the role of global sales manager, label and flexible packaging, by Thomas Macina. Macina is an expert in digital printing technology. He is a native of South Tyrol (Italy). Macina worked with HP for more than 15 years, where he was most recently Labels Business Manager EMEA in Barcelona.

AMS Print & Mail Specialists (Blaine, WA) is utilizing Rollem’s Mailstream to help produce their application of trifold mailers with a bi-directional “T” perf, folded and glued. The application is produced near-line using a sheet feeder, but can also be fed directly from digital presses, such as Xerox, Ricoh, HP, Canon and KM.

Dave Leskusky

Two great men from Winnipeg

A tale of persistence, hard work and goodwill

Winnipeg is often called the gateway to Canada’s west. Situated far north, it takes a hardy bunch to live there year-round.The Arctic winters seem to last forever, only to be interrupted by short, hot summers when mosquitoes reign supreme. You won’t find a better class of people than Manitobans. You’ll be surprised by how many famous people grew up there.

Early inhabitants and settlers ranged from Indigenous, Ukrainians, Germans, English, Scottish, French and the Dutch.

Post-war migration

The Second World War left scathing wounds all over Europe, and the Netherlands was no exception. Dire conditions saw many families surviving on tulip bulbs to fend off starvation. Life wasn’t better in the western city of Enschede, as it was only a short distance from the German border. A young Gerrit (Gerry) Kuik served his apprenticeship as a printer and typesetter in that city. Kuik was also a member of the Dutch Resistance. He used his printing skills to produce anti-German propaganda. Unfortunately, the Germans caught up with the teenager. In August 1944, Kuik and two of his brothers were arrested. After weeks in solitary confinement, Kuik was released; his older brother wasn’t as lucky and ended up in a concentration camp where he died.

Premier Printing

After the war, Kuik completed his trade school courses and continued in printing until 1950 when he immigrated to Carman, MB.

After taking on some back-breaking work in sugar beet fields and mink farming, Kuik found an open-

John Toet, Gerry

1998

The first Manroland 708-SW was installed in Canada.

ing in a small printshop in Carman. After 12 years, Kuik was able to open his printshop on the outskirts of Winnipeg. Thus, in 1962, Premier Printing came into existence. Kuik passed away on January 2, 2021, at the age of 96.

As we go through life and bump into people along the way, few of us are fortunate to meet remarkable people like Kuik. Since the early 1980s, our business lives intertwined. I got to see firsthand how Kuik built a formidable printing operation. It was not only hard work, but also due to a guiding principle of absolute honesty and decency that permeated the whole company. Everyone carried out their work with a sense of purpose and were always in a refreshingly friendly and positive mood.

Kuik was also instrumental in building the local church. A park is named after him in recognition of some of the efforts he took to support his neighbours.

1962

Premier Printing sets shop

In all the years I knew Kuik, we never had a disagreement. Although things were not always smooth, I never saw him lose his composure. He is a true gentleman and an icon of the printing industry.

Bill (Wilhelm) Gortemaker

Kuik’s daughter Grietje married a newly transplanted Dutch immigrant in Ontario. After a few years, the family moved to Winnipeg where Bill (Wilhelm) Gortemaker

joined his father-in-law at Premier Printing. Schooled in administration back in the Netherlands, Gortemaker soon took on more responsibilities and began to control the purse-strings of the thriving Premier enterprise.

Kuik and Gortemaker think in a similar manner. In my dealings, Gortemaker often cast himself as the ultimate “Dr. No”, but beneath that exterior was a wonderful human being. Sadly, he died in 2015.

Our firm made many sales to Premier in the 1980s and 1990s with occasional hiccups. However, this isn’t a story about buying or selling printing and bindery equipment, anyone is capable of that. It’s a lesson on how doing the right thing while caring deeply about the people around you changes your perspective on what is important.

Both Kuik and Gortemaker touched many lives while demonstrating how devotion to good values can make a lasting impact. Premier Printing remains a success story, not only for the print industry, but also for people everywhere.

NICK HOWARD, a partner in Howard Graphic Equipment and Howard Iron Works, is a printing historian, consultant and Certified Appraiser of capital equipment.

nick@howardgraphicequipment.com

Kuik’s nephew, Bill Gortemaker, Gerry Kuik and Nick Howard.

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Smart technologies allow service providers to personalize packaging.

PRINT SMART, SAFE PACKAGES

Printed electronics is creating a new generation of packaging

Digital printing has revolutionized the packaging industry.

Packaging product providers can now offer bespoke services to their customers, such as short runs for specific campaigns or events (e.g. Christmas and the Olympics), and personalization. It has also helped create a new generation of smart packaging.

During the pandemic, smart packaging technologies have been effective in the distribution and authentication of personal protective equipment, test kits and vaccines.

QR codes can carry a lot of information. They are now embedded in

a secure way, making then versatile and ubiquitous. Holograms also contain more security features than before, thanks to digitization. Further, digital ‘watermarks’ help sort plastics for easier recycling.

Printed electronics

Printed electronic is an emerging technology. Printing techniques, such as layer deposition, enable printed electronics (PE) to adhere directly to flexible surfaces, typically plastic. Additionally, these sensors can be produced at scale, as ‘labels,’ on roll-to-roll machines, thereby reducing production costs.

“PE has enormous potential. We should see more of this in the future,

producing antennas and batteries for RFID/NFC tags and as light-emit ting diode (LED) or organic LED (OLED) features on labels, such as Coca Cola bottles with luminous Star Wars light sabres,” says Andrew Manly, communications director of the Active & Intelligent Packaging Industry Association (AIPIA).

“You can use PE embedded in a package to communicate with a po tential buyer’s cellphone, as they walk by a store. A digital sign near the product can announce a sale or special for the hour. If we can cap ture the consumer’s name on the phone, then it would be possible to personalize the message,” explains Doug Schardt, Komori’s director of product management. “You can also do inventory control on shelfs with smart packaging.”

Smart packaging scope

According to Manly, the main areas of activity fall under the following three broad categories.

Brand protection

Counterfeiting is estimated to be as much as seven per cent of the global trade, says Manly, so many smart packaging technologies are geared toward making it as difficult as possible to pass off fakes as the real thing.

According to Manly, several companies are looking at nanotech to deliver microscopic security features which are, literally, impossible to replicate. Other companies are developing invisible features, even a complete RFID tag, which can only be read with special equipment and has the advantage of not altering the existing pack graphics.

Authentication and traceability

Each pack can be made a unique item with microscopic differences. These differences can never be seen by the naked eye, and is not a missing label or ‘fault’.

“Print inspection/vision systems just record each pack and ‘see’ tiny differences that can be used for verification and traceability.This can be done without investing in new printing equipment. It literally uses the existing pack artwork and redefines it,” explains Manly.

“Labelled packaging with printed sensors brings ‘intelligence’ to the

items while shipping and trading. They can communicate about product information and condition, shipping and logistics information and can be linked to the Internet of Things (IoT), for a sustainable, reliable and customized supply chain,” explain Fabrice Domingues dos Santos from Arkema Piezotech, co-ordinator of the Supersmart project, and Gerhard Domann from Fraunhofer IS.

According to Manly, both Danone and FrieslandCampina include various types of authentication features on their baby milk products for China, where fakes are rife.

At this stage, it is pertinent to highlight one of the concerns expressed by the smart packaging sector. The track and trace systems required by the U.S., E.U. and many other countries to track pharmaceuticals through the supply chain is based on 2D matrix codes, which,

Multi-Color Corporation, a label solutions manufacturer, and Digimarc Corporation have co-developed a hybrid printing method to print Digimarc barcodes in large volumes. The barcode is scannable throughout the supply chain and thus helps with food safety and traceability initiatives.

according to Manly, are not the most secure form of coding.

Consumer engagement

In Manly’s experience, smart packaging can be the most cost-effective and high-impact marketing tool in a brand’s armoury. AI-powered packaging allows customers to get product-specific information, such as its origin, ingredients and allergens. Also, consumers can receive alerts, for instance, to take a medicine, if it is close to expiry or needs replenishment. These features increase brand trust and engagement.

Challenges

Cost is a major issue. “It’s okay to spend $0.15 on a tag for a product costing $50 to $5,000, but when the product is $1, the dynamics are somewhat different,” as Manly says. Additionally, since the technology is new, servcie providers have to

prove reliability and have the ability to produce them at a scale that makes mass adoption possible.

The industry is also aware that some components of smart packaging are not easy to recycle. Some companies are evolving products to use degradable materials, such as graphene-based inks.

Supersmart project

Recognizing the need to control the use of plastic packaging, the Supersmart project, a European consortium of 11 companies, has for the past three years worked on bringing PE to paper using highly scalable technological processes that allow mass production.

Use of paper as a substrate for PE has many advantages. It is recyclable,

Labelled

available in huge quantities, comes from (partly) renewable resources, has low costs and is widely used in packaging. As Santos and Domann say, “If you make paper smart, you have easy access to a huge market.”

With its approach to transferring technologically mature high-throughput processes (roll-toroll and sheet-to-sheet) to the printing of electronic components, the Supersmart project removed major hurdles to wider use.

Paper-based sensors and labels are attractive for numerous applications. They can easily be integrated into packaging and consumer goods. An anti-counterfeit tag for vulnerable or expensive goods can help to protect manufacturers and consumers from fraud. Large-area shock

Paper-based sensors and labels can easily be integrated into packaging and consumer goods. Below: Printed sensor devices on paper are a new and sustainable approach to smart labelling.

The Active & Intelligent Packaging Industry Association (AIPIA) is the global networking and information hub for the smart packaging sector. In its 10 years of existence, it has established a community of more than 1700 members comprising brand owners, retailers, packaging converters, R&D organizations, logistics companies and smart packaging product and service providers. For more information on AIPIA, visit www.aipia.info.

detection sensors integrated into packaging or other paper-based elements provides transportation protection and event traceability. Finally, these printed elements can be used as security features, that add reliable and cost-efficient smartness to simple products.

In a feasibility study at the beginning of the project, a figure of around 100 million smart labels per year was considered a realistic value. Visit www.supersmart-project.eu for more information.

Role of inks

100

m

100 million smart labels per year was considered a realistic value at the start of the Supersmart project.

Inks play an important part in the development of smart packaging. At the most obvious level, there are thermochromic and photochromic inks, which react to heat and light. They can be used to highlight certain features on the pack. For instance, chilled beers reveal features on the can when cooled or bottles that have the ability to ‘light up’.

One can use conductive inks in PE or add magnetism to make it readable as a security or authentication feature. Next, there are inks that react to the product’s condition. For instance, the ink colour changes when milk turns sour. On another level, there are e-inks that can be used to relay information.

To summarize, smart packaging is largely exployed for specific campaigns except when authentication is critical. Manly is confident smart packaging will be used increasingly in all areas of consumer packaged goods in the future.

Andrew Manly

Technology and process trends in the Canadian printing industry

The following snapshot of the Iron Index 2021 survey produced by PrintAction compares current production trends to a historical benchmark of capital investments made by Canadian printers. The facts presented throughout the article relate 2021 numbers to past survey statistics. The first iteration of the Iron Index was launched in 1996, when PrintAction published a short, but important, list of innovative commercial printers that were the first to install computer-to-plate (CTP) imaging systems. Now, 25 years later, the Iron Index tracks the production-technology investment

trends of leading offset-based printing companies across Canada. This includes tracking the offset (by model, number of units and format size), toner and inkjet press specifications of participants, as well as employee levels, revenue, frontend technologies and MIS. The following statistics provide insight into what is going on with the direction of production ratios. The key statistics describe how the landscape is changing in terms of long and short runs, as well as the work of 29- and 40-in. printers, and how they are shaping their companies and Canadian printing. Based on the information provided by 53 responding companies, it appears toner printing is enjoying an upward trajectory, as

22.6 per cent of all printers surveyed this year say toner printing accounts for at least 40 per cent of their work, up from 13.9 per cent last year.

Production inkjet remains steady; just like last year, 5.6 per cent of all printers surveyed (both 40- and 29-in.) are producing at least 30 per cent of their work with production-strength inkjet.

Since this year has its own unique challenges, we also asked survey respondents about how their workflow has been impacted by the coronavirus pandemic, and whether it has led them to change their business plans. To participate in next year’s Iron Index survey, please contact ncaleb@annexbusinessmedia.com.

Key

statistics from The Iron Index describing technology advances in Canada

47%

Percentage of respondents sold PPE or social distancing-related products, up from 36% last year.

Percentage of respondents that cite COVID-19 as a prime barrier to their company’s future competitiveness; down from 13.33% last year. 9.43%

44%

Percentage of respondents that found sales of PPE or social distancing-related products did not continue after the first wave of COVID-19 in 2020.

THE IRON INDEX METHODOLOGY

For over 20 years, PrintAction has surveyed commercial printing companies across the country to track their production-technology investment and trends. Below is a sample of the survey questions respondents have answered to produce our results. This primarily includes tracking the offset (by model, number of units and format size), toner and inkjet press specifications of participants, as well as employee levels, revenue, front-end technologies and MIS.

Year of company founding:

Number of employees:

PPE:

• Did you produce and sell PPE or social distancing products during the pandemic?

• Did sales continue beyond the first wave?

Offset presses:

• List up to four primary offset presses. Include press brand, press format size in inches and number of press units.

Toner/Digital Presses:

• List up to three primary toner/digital presses. Include press brand and model number.

Management Information System:

• Provide brand, type and version if available.

Primary Frontend (Prepress) Software:

• Provide brand, type and version if available

Primary Platesetter:

• Provide brand and type if available.

Primary Offset Plate Brand:

• Provide brand and type if available.

Production Ratio:

• Provide approximate percentage of work done, in terms of total revenue generation, with Offset : Toner : Inkjet.

Wide-format Inkjet:

• List up to two primary wide-format inkjet machines. Include press brand and model number.

Production Inkjet:

• List up to two primary production inkjet machines. Include press brand and model number.

Challenges

• What do you see as the prime barrier to your company’s future competitiveness?

Future plans

• What is your best estimate at a dollar amount for how much printing technology, software and related services your company will purchase over the next three years?

• What areas does your company plan to invest in over the next three years?

• What are your plans for diversifying your capabilities?

• In the next 12 to 18 months, which is most likely to happen at your company?

Percentage of respondents with 15 or less employees.

20% 47.17% 1891

Percentage of 40-in. printers surveyed in 2021 producing at least 70% of their work with offset, down from 56% last year.

The oldest company to participate in this year’s survey.

Percentage of 40-in. printers surveyed in 2021 producing at least some of their work with production-strength inkjet. 60%

80%

Percentage of 40-in. printers surveyed in 2021 with at least two toner printing systems, up from 39% last year.

Percentage of 40-in. printers surveyed in 2021 generating at least 30% of their revenues from toner, better than the 0% in 2020. 20%

Serving the US market for nearly a decade, RM Machinery (RMM) proudly brings our expertise to Canada’s printing industry. We deliver the highest quality sheetfed o set, digital inkjet, and flexo printing presses by partnering with the finest manufacturers in the industry.

RMM is the premier distributor in Canada for Mitsubishi, RMGT, and Miyakoshi printing presses; Böttcher rollers, blankets, and chemistry; Standard Horizon finishing systems; GEW UV curing systems and TOYO inks.

The Return of Excellence

For years, Mitsubishi set the superior technology standard for Canadian printers. Today, RM Machinery returns that innovation to Canada, but with an even higher standard: Ryobi Mitsubishi Graphic Technology (RMGT).

We are stable, local, and o er the best-in-class technology. We maintain an ample supply of parts, and for as long as you own one of our supported presses, you are guaranteed ongoing service and support programs that are among the best in the industry.

RM Machinery Inc. 905-238-9797 • 1-855-RMGT-123 5250 Satellite Drive, Unit 9 Mississauga, ON L4W 5G5 www.rmmc.ca

40-inch printers

The following statistics apply to Canadian printing companies with at least one 40-in. sheetfed press, based on their participation in The Iron Index surveys.

Key 40-in. printer findings in 2021: The Iron Index indicates the number of commercial printers with full-size sheetfed presses focusing solely on offset work has declined. This is seen by the total lack of printers producing 80 per cent or more of their work with just offset.

29-inch printers

The following statistics apply to Canadian printing companies with at least one 29-in. offset press (or of smaller format) and no 40-in. presses, based on The Iron Index surveys.

58.49%

Percentage of printers surveyed in 2020 that were founded 50 or more years ago.

20%

Percentage of 40-in. printers surveyed in 2021 producing at least 20% of their work with inkjet, illustrating how large-format inkjet continues to make an impact in this segment.

100%

Percentage of 29-in. (or smaller) printers that indicated they own at least one toner printing system.

33.33%

Percentage of 29-in. printers surveyed in 2021 producing at least 30% of their work with toner, down from 50% in 2020.

24.53%

Percentage of respondents owning a wide-format inkjet.

Key 29-in. printer findings in 2021: The Iron Index survey finds that all commercial printers surveyed in 29-in. market have at least one toner press. The number of surveyed printers producing more than 90 per cent of their revenue with offset continues to decline, while a significant number of respondents are producing at least 20 per cent of their revenue with toner production presses.

5.66%

Percentage of survey participants owning a production inkjet.

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Complete Iron Index participants by year

The following percentages are derived from 80 Canadian printing companies who participated in The 2019 Iron Index survey.

Percentage of printers surveyed in 2020 that plan to invest in equipment, machinery or technology upgrades.

18.87%

Percentage of all printers surveyed in 2021 generating at least 30% of revenue from toner.

30.19% 33.33% 9.43%

Percentage of 29-in. printers producing less than 50% of their work with offs et, which remains important.

Projected investments in printing technology, software and related services over the next three years.

$100,000-$499,999

$500,000-$999,999 No

9 9 1 12

Percentage of all printers surveyed in 2021 producing work with all three processes (offset, toner, inkjet).

28.03%

Percentage of all printers surveyed in 2021 producing at least 10% of their work with toner, down from 36% last year.

PrintAction would like to thank all of the companies that have participated in The Iron Index over its 25-year history, and in particular those who responded to our 2021 edition, enabling these statistics to be generated. To participate in next year’s survey, please contact the editor at ncaleb@annexbusinessmedia.com.

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Dealing with price increases

The need for cost escalation clauses

Lately, the industry is facing paper and substrate price increases. The potential for quarterly adjustments is estimated to be in the range of four to 10 per cent.

Reasons for increases

There are several reasons for price hikes. There were few or no increases since 2018. Also, for the first three quarters of 2020, the demand for printing and copy paper grades evaporated due to the pandemic. During that time, North American mills removed capacity by more than 20 per cent, and converted offset and copy paper grade equipment to more profitable grades.

In 2021, Asian paper export supply reduced, as shipments were routed to meet Chinese demand. To complicate matters, a shortage of shipping containers raised costs.

North American and European mills have been at the end of their financial ropes for many years. Due to a tight supply situation, mills had to raise prices.

Customer perspective

It is true customers are reluctant to accept price increases. In some cases, they threaten to pull out work if the printer insists on passing on the cost.

Further, terms and conditions (T&C) of sale can be unclear. Quotations need to include T&C clearly identifying that the quoted prices are only valid for 30 days and they are based on the cost of materials at the time of estimate. The printer has the right to pass on cost adjustments that happen up to the time of the order. However, it becomes the printer’s responsibility to confirm and lock in the paper price promptly after receiving order confirmation.

Print contracts limit the ability to raise prices. As a buyer, we include

Price increases can

be tough on the bottom line if contracts don’t make space for cost adjustments.

appropriate material escalation clauses in our contracts. The clauses indicate that all price increases must have documents to validate, plus an accounting for the effect of the material increase on the total cost of the work. For example, if paper represents 50 per cent of the cost of the order, then a 2.5 per cent cost increase was acceptable within the contract terms.

Most commercial print jobs are not tied to binding contracts. Also, printers suffer from a market base that is notorious for slow payments. Printers have to deal with collecting money on a timely basis. This puts the viability of many printers at risk.

Many businesses operate with budgets, which cannot be changed in the middle of the year. If the printed product is to be re-sold, buyers may not have the ability to pass on cost increases to their customers. However, some customers do pass on 100 per cent of the printed product cost to clients. In such cases, it is advisable to negotiate an arrangement where legitimate, documented increases would be paid through another channel, subject to contract T&C.

Fair dealings

So, how do you fairly deal with this issue? Ensure estimates include current T&C that accurately and fairly address material cost hikes.

Keep a close eye on material prices when customers accept your quotes and act promptly to secure material. If prices increase, then have an honest discussion with the customer to negotiate adjustments.

Understand the customer’s perspective, and try to get past people who are unwilling to be flexible.

When entering into fixed price agreements for printed goods, ensure there is a paper or material escalation clause.

Offer alternatives to price increases, such as reducing paper grade or run length or making other changes that bring down the cost so as to offset material price hikes.

Good luck with your efforts. Also, if you want to be treated fairly, you must treat your customers and suppliers in the same way.

Bob Dale and Frank Kerr are with Connecting for Results Inc. They can be reached via email at info@ connectingforresults.com.

SURVIVING & THRIVING in 2021 & beyond

June 9 • 1:00 pm EST

PrintAction invites you to a panel discussion on “Surviving & Thriving” in 2021 & beyond. The printing industry is at a crossroad. Hard decisions must be made to survive the pandemic. Innovation is the order of day, but how? What strategies can help printers succeed in a post-COVID world? Our panelists have been there and know all about the struggles. They will offer practical strategies that you can successfully apply in your business/work to not only survive, but also thrive in 2021 and beyond.

MODERATOR PANELISTS

Nithya Caleb, Editor, PrintAction
April Burke, VP OperationsCorporate Printed Packaging, Bellwyck
Jay Mandarino, President & CEO, CJ Graphics Inc.
Richard Kouwenhoven, President and COO, Hemlock Printers Ltd.

2. SUPERIOR TECHNOLOGY — Die crease without a die, then fold and even glue all on the same machine, up to 30 pt.

3. INTEGRATED MODULAR UNITS — Combined in-line finishing: crease, fold, glue, tipping, envelope inserting, ink jetting (Duplex), clip seal (3 sides), mail prep.

4. SAVE ON POSTAGE COSTS —As a Certified Canada Post Direct Marketing Specialist, we get contract pricing reductions.

5. RETURN MAIL PRODUCTS — Customized “Return Mailers” created in-line with “U” or “BOX-shape” remoistenable glue, time perfed applications and envelope formation.

6. MINI-BOOKLETS — Saddle-stitch and trim 2-up booklets in-line to the size of a business card. No need to trim off-line, or do 2 passes.

7. HIGH SPEED EQUIPMENT — High speed Tipping, Folding, Saddle-stitching and soft folding ensuring on time delivery.

U.S.A has added two new hybrid solutions to its line of large-format

Canon U.S.A. launches ImagePrograf TZ-30000 Series

Canon U.S.A. has boosted its ImagePrograf line of large-format printers with new hybrid solutions: the ImagePrograf TZ-30000 and ImagePrograf TZ-30000 multifunction printer (MFP) Z36.

Offering “high-speed printing, security features and advanced media handling,” these new solutions are designed to benefit a variety of production CAD markets including architecture, engineering, government and manufacturing.

The ImagePrograf TZ30000 series is able to produce a D-sized print in 14 seconds, and up to 236 D-sized prints

per hour. The integrated Top Output Stacker can stack up to 100 A0-size sheets face-down. The product’s airflow system can also help reduce paper jams while keeping prints in place. Its “integrated, compact design can help save office space, allowing printed materials to be easily retrieved from the front of the printer.”

Fujifilm introduces new J Press 750S

Fujifilm North America recently launched the J Press 750S, a high-speed, sheetfed digital inkjet press with output speeds of 5,400 B2 sheets per hour.

“Fujifilm is dedicated to the continued development of innovative products for the digital

The ProofText is an automated web-based text inspection software from EyeC.

printing market,” said Tommy Katagiri, president of the graphic systems division, Fujifilm North America. “We are very proud to have introduced the world’s first B2 inkjet press with the launch of the original J Press. Since then, we’ve continued to listen to, and focus on our customers’ needs. The differentiated features of this enhanced J Press deliver the solutions that will help them continue to produce top quality printed materials, quicker and with even more efficiency.”

Neenah expands Endura wide-format lineup

Neenah is expanding its popular Endura wide-format line to include Endura Poster in a new seven mil, 500-ft roll. It is also adding a 17-mil matte finish Endura Art to the portfolio. These additions are in response to market demand created by wide-format equipment enhancements while providing a “durable and cost-efficient” signage solution for various retail, hospitality, attractions, and commercial art businesses.

“The new sizing means fewer interruptions of print runs for reloading, less stopping to purge and clean the printer, and more manageable time, effort, and labour per project,” said Jason Leonard, business development manager, Neenah.

EyeC releases new artwork inspection software

EyeC has announced that ProofText, its automated webbased text inspection software, is now available globally. ProofText is designed for initial artwork proofreading and revision control in order to assist creative agencies, prepress service providers, pharmaceutical manufacturers, FMCG companies, as well as label and packaging printers in accelerating the artwork creation and prepress process. The goal is to shortening proofreading time and avoiding costly mistakes.

ProofText is developed for text-heavy and multilingual artwork on products, such as folding boxes, labels, leaflets, booklets and flexible packaging.

Neenah has expanded its wide-format line to include the Endura Poster in a new seven mil, 500-ft roll.

CALENDAR

June 7-10, 2021

Bobst Days 2021

Virtual

June 8-10, 2021

Brand Print Americas 2021

Chicago, Ill.

June 10, 2021

DIA Annual Golf Tournament Aurora, Ont.

August 12, 2021

OPIA Toronto Golf Classic Brampton, Ont.

October 6-8, 2021

Printing United Expo Orlando, FL

October 12-15, 2021

FESPA Global Print Expo 2021

Amsterdam, The Netherlands

October 20-21, 2021

Print & Digital Convention

Düsseldorf, Deutschland

Analyzing skin tones with AI

The problem with skin tone identification by algorithms

SIf a large number of pixels with skin tones are detected, the image is likely to include nudity, and is then flagged for review by a human observer.

kin tone identification through artificial intelligence (AI) is used in our everyday lives whether we are aware of it or not. If you are on social media, you are using skin tone recognition algorithms. This kind of intelligence is used for facial recognition. The technology can also be utilized to place silly filters over your face or unlock your phone.

Additionally, the AI-powered technology can be employed to detect nudity in social media posts. When you post a photo to Instagram or Facebook or a lens to Snapchat, the image is automatically analyzed. If a large number of pixels with skin tones are detected, the image is likely to include nudity, and is then flagged for review by a human observer. However, errors can occur. For example, if the graphic contains a large, neutral-coloured item such as a sofa, the AI could slip up and recognize it as a person.

Samples are handy

When it comes to detecting skin

tones, an AI algorithm is given plenty of sample images and videos to absorb and develop the ability to detect new images of people. A key component of this process is the ability to detect the amount of skin tone pixels in order to determine the image is of a human being.

Skin tones are generally neutral beige and brown colours that can be easily taken out of images as colour clusters and recognized as humans by the algorithm. AI uses the variation in tones to recognize the distinctive body parts. AI can detect the eyes, nose and mouth of a person who is just looking into the camera on a phone, and then place a multitude of filters—from dog ears to face warping—in real time. As mentioned earlier, it can also identify images of faces and bodies that are posted to social media platforms, and when a predetermined threshold of skin tone pixels is in a specific image or video, the AI will flag it for potential nudity.

Content tracker

An experiment was held by the

European Data Journalism Network where they used a content tracker on Instagram accounts of some volunteers to see how often scantily clad men and women would show up at the top of their Instagram explore pages. The data showed it was 54 per cent more likely for images of women in bikinis or undergarments to be boosted to the top over anything else. This content is being targeted and boosted to other people by using AI. The algorithm detects models in the photos are not wearing much clothing. This ‘intelligence’ allows social media platforms to highlight similar content/photos to ensure the targeted user stays longer on the site/app.

Another thing to note is that this algorithm will flag photos of people with larger bodies more consistently than people with lean physique. This is likely due to the amount of skin tone pixels that are detected by the AI. Numerous plus-sized models and influencers have spoken out on this imbalance, as their posts get flagged for nudity, or they are given age restrictions and content warnings. This is either a genuine mistake in the system or thinly veiled fatphobia since larger bodies do not fit into our society’s beauty standards. These images tiptoe the line for what is deemed inappropriate content for the site and what isn’t, and its complications are being exposed (and hopefully fixed) all the time.

Laura Rendell-Dean is a fourth-year student in Ryerson University’s Graphic Communications Management Program.

Artificial intelligence-powered technology uses variations in skin tones to determine body parts.

Brad Ranson / Sales Manager / Komcan

Brad Ranson is a sales manager at Komcan. Besides Komori, Komcan is the exclusive Canadian distributor for Kuda, Finito and AMS Spectral. The 25-year-old is super excited about the technological changes that are strengthening the printing industry.

How does your company innovate after nearly eight years in business?

BR: Komcan follows the Komori motto of “Kando – Continuous Improvement”. Whether it’s in improvements on the press or customer experiences or a minor tweak, Komcan and Komori always strive for perfection.

We continue to innovate by increasing productivity with our new GL/GLX Advance series of machines, and transforming pressroom management through our cloud based, KP-Connect.

In such a competitive landscape, how can printers win more sales?

BR: In the competitive landscape we live in, it has to go beyond the actual product. Every press can print a sellable sheet. Someone will be willing to sell for less than you, so we must provide a reason for someone to come back to you. Having the technology and infrastructure to provide a sharp, repeatable and cost-effective sheet will help drive product sales.

What is the state of the print industry?

BR: As everything else, it’s been a tough year. Thankfully, a lot of our printers are essential businesses and were able to keep operating safely. Print might not be as strong as the “good old days” I keep hearing about, but that’s why we innovate. With the introduction of production inkjet and nanographic technologies, and innovations in the sheetfed world, the industry is diversifying itself. There is no longer one way to print a piece; printers now have multiple options to complete a job.

What are some of the biggest opportunities in the print industry?

BR: Print is print; it always has been and will always be [there]. A lot of people outside our industry view online or digital products as a

competitor to print, but it’s really a compliment. Print has started to innovate using digital technologies. We’re seeing it in the augmented reality applications that are starting to come out. Right now, there’s a boom in custom packaging. Production inkjet technology has allowed printers to turn around custom packaging quicker than ever while also making it cost-effective for short runs.

What attracted you to the industry in the first place?

BR: As they say, print is in my blood. My grandfather worked on presses, and my dad has been on the sales side of the business all his life. My dad used to bring home lenticular print samples. I think what grabbed my attention first is the fact that print is more than posters and CD jackets. When I was 15 years old, I worked a summer feeding a saddle stitcher and stripping skids. Witnessing the stitching of magazines, and understanding the full process, opened my eyes to the work that goes into many of the print products we take for granted. When I was 17, I started working summers with our Komcan service crew. In university, I took on a parts role with Komcan for two years,

and upon graduation started selling in Western Canada.

Why do you think print continues to be relevant in a digital future?

BR: Print will never be irrelevant. As a youngster in this industry, I don’t know a single person who reads e-books. I don’t know anyone who’s ever purchased a digital magazine. I do know people who throw out their coupons, but not even one person who prints off email coupons. The tactile touch, feel, and smell of holding a physical item will always have more value than an e-file.

What do you think is the most exciting thing about print today?

BR: Today’s technology is super exciting. With inline sheet inspection, auto nonstop feeder, logistics systems for pile transport, there are many options to increase productivity. Colour, registration and loading of skids can be controlled without manual input, thus allowing operators to focus on the task at hand.

Ranson’s responses were edited for length. For more Q&A Spotlight interviews, please visit www.printaction.com/profile.

Brad Ranson began working in a press when he was 15 years old.
Ranson started working with the Komcan service crew when he was 17 years old.

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