Wide-Format & Signage April 2021 by WhatTheyThink

APRIL 2021

24 S o Your Print Sales Team Isn't Very Technical?

36 I nnovate Incessantly: From the Printing Press to a Streamlined Workflow

56 E xtending The Fashion Runway

WhatTheyThink.com PrintingNews.com

ANNUAL

PRINT & SIGN Franchise Reviews p.8 & 44

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EDITORIAL ─ Continue To Innovate & Participate

NET NEW

NORMAL

There are certain things that are going to change for good, while certain things will go back to the way they were.

Eric Vessels President eric@whattheythink.com

Read More… Find article at PrintingNews. com/21149612

pring is my favorite time of year. There’s a renewal that is witnessed in nature that seems to rub off on us. As the snow mounds melt - in Ohio at least - and the buds and shoots begin to appear, it’s hard not to get energized by it. We humans also regularly shake off the winter stillness and come alive with activity. Spring brings forth a certain kind of optimism, and if there is anything we need right now more than optimism I’m not aware what it might be except maybe profits! As beat up as the industry has been in the past couple decades, we remain a pretty optimistic bunch. According to our 2021 Printing Outlook survey, printing executives reported that 78% expect their revenues to increase in 2021. I must say I join them in this thinking, and I’m already seeing not only a renewed energy and sense of optimism, but also the actual consumer and business spending that goes along with it. I’m not sure we’ve ever been this busy on the sales side over the course of a Q4 to Q1 before! You’re hearing lots of talk about how the events of 2020 will impact us going forward. Here is my perspective: There’s now a net new normal. What I mean is there are certain things that are going to change for good, while certain things will go back to the way they were. We are all now infinitely

more comfortable working remotely and dealing with the technologies that make that happen. You know something has reached the stage of universal adoption when product names become nouns and verbs. Anyone “Zoomed” lately or been invited to “a Zoom?” We were lucky at WhatTheyThink to have worked virtually since our founding some 20 years ago (excluding the merger with Printing News which was founded in 1928). No big adjustments here. For others, the learning curve was steep, and now that they have crested there may be no “going back to normal.” Back in the November/December issue, the three partners talked about the new things we did in 2020 as we responded to the new normal then. One thing we did that seemed to really resonate with the industry was our Technology Outlook Week. This online event provides an opportunity to connect with technology experts in real-time and to research and explore offline when developing strategy. We’re more excited than ever about this year’s Technology Outlook Week (May 17 to May 21). While the world stood still, technology continued to advance and provide new ways of doing business and making things. We look forward to innovating in the digital space and the physical space as well. We’ll also continue to look for ways to bridge the two. Onward! ●

WhatTheyThink - Printing News | April 2021

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VP, GROUP PUBLISHER Kelley Holmes kelley@whattheythink.com 772-579-7360 PRODUCTION EDITOR & MANAGER Amy Hahn amy@whattheythink.com EDITOR Jessica Taylor jessica@whattheythink.com

CON APRIL 2021

MANAGING EDITOR Richard Romano richard@whattheythink.com SENIOR EDITOR Cary Sherburne cary@whattheythink.com

Cover Story

ANNUAL PRINT SHOP FRANCHISE REVIEW

BUSINESS DEVELOPMENT Stephanie Papp stephanie@whattheythink.com 602-639-0530

By Cary Sherburne

PRESIDENT Eric Vessels eric@whattheythink.com 740-417-3333

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PRINTING NEWS

COO Adam Dewitz adam@whattheythink.com CONTRIBUTING WRITERS Dave Fellman Steve Johnson Elizabeth Gooding Jennifer Matt Joanne Gore Alexander Pekar Preston Herrin Wayne Rasor

Frank Romano Ralf Schlozer Heidi Tolliver-Walker David Zwang

CREATIVE SERVICES Bobbi Burow, CreativityTank LLC bobbi.burow@gmail.com

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ARTICLE REPRINTS Please contact your account executive PrintingNews.com—the web portal representing content from Printing News, Wide-Format & Signage—is devoted to delivering you timely news and multimedia content on a daily basis. WhatTheyThink (ISSN 2642-3189) (USPS 500-850) Volume 44, Number 5 is published nine times per year in January/February, March, April, May, June, July/August, September, October, November/December by WTT Media, Inc., at 2038 Ford Parkway #218, Saint Paul, MN 55116. Periodicals postage paid at Saint Paul, MN and additional mailing offices. POSTMASTER: Send address changes to WhatTheyThink, 2038 Ford Parkway #218, Saint Paul, MN 55116. Subscriptions: Individual subscriptions are available without charge in the U.S. to qualified subscribers. Publisher reserves the right to reject non-qualified subscriptions. Annual subscription prices in the U.S.A $95; Canada $125 USD; all other countries $150 USD. Printed in the USA. Copyright © 2021 WTT Media, Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recordings or any information storage or retrieval system, without permission. WTT Media Inc. does not assume and hereby disclaims any liability to any person or company for any loss or damage caused by errors or omissions in the material herein, regardless of causation. The views and opinions in the articles herein are not those of the publishers, unless indicated. The publishers do not warrant, either expressly or by implication, the factual accuracy of the articles herein, or of any views or opinions offered by the authors of said articles.

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SIGN OF THE TIMES

Franchises keep growing. By Joanne Gore

SHOW ME THE MONEY

SO YOUR PRINT SALES TEAM ISN'T VERY TECHNICAL

STICKING AROUND

INNOVATE INCESSANTLY

INKJET ESTIMATING

Making print secure. By David Zwang

Technical skills are just as important as sales skills. By Jennifer Matt Exploring the emerging trends in labeling. By David Zwang From the printing press to a streamlined workflow, it’s all about agility. By Preston Herrin Challenges and work-arounds By Elizabeth Gooding & Alexandra Pekar

WhatTheyThink - Printing News | April 2021

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NTENTS COLUMNS

2021 ANNUAL SIGN FRANCHISE REVIEW By Richard Romano

- PAGE -

WIDE-FORMAT & SIGNAGE

THIS DUBS FOR YOU

EXTENDING THE FASHION RUNWAY

CRACKING THE CODE OF 2021

A flatbed applications photo gallery By Richard Romano

The new virtual Runway Kit makes designing easier. By Cary Sherburne

Businesses with QR codes and near field technology expand. By Wayne Rasor

EXECUTIVE Q&A

Kilian Renschler, CEO of Koenig & Bauer US/CA, Robert Stabler, Managing Director Koenig & Bauer Durst By Ralf Schlözer & Cary Sherburne IF I COULD, I SURELY WOULD

What would you change about your job? By Dave Fellman

CHARTING YOUR COURSE

EVENTS

ASSOCIATION INSIGHTS

JOHNSON’S WORLD

What is an identity graph and why does it matter? By Heidi Tolliver-Walker

virtual.drupa 2021: Networking Plaza Now Activated By Messe Düsseldorf North America

Getting to know the Ghent Workgroup By David Zwang

Are You Impressed With My Press? By Steve Johnson

DEPARTMENTS

4 Editorial 34 Watch List: Video 42 Product News

64 Classifieds/Supplier Directory

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MANAGEMENT ─ Print Franchise Review

2021

ANNUAL

PRINT SHOP

FRANCHISE REVIEW By Cary Sherburne

n this review, we are covering the five traditional print franchise organizations – Alliance Franchise Brands, AlphaGraphics, Fortusis, Franchise Services and Minuteman Press International. As we did last year, we are also separately reporting on ProForma, a network of print distributors. While this is a different franchise model than what we usually think of as a franchise network, it still accounts for a substantial amount of revenue – in fact, about $538 million in 2020, up 5% from 2019 levels. Because of its different business model, it was the only network to demonstrate growth during this difficult pandemic period. This is largely due to the fact that many of the distributors were already working from home, and none of them had equipment production platforms they needed to support. That being said, exclusive of ProForma (whose results are shown on page 53), the traditional print franchise networks generated more than $1 billion in systemwide revenue, down 23% from the previous year. Across all five franchises, average shop sales were $676,700. Full details for each franchise are provided in the charts and profiles included with this article and summarized in the chart on page 9. Minuteman Press International again had the highest number of centers at year-end (948) and

the highest system-wide sales ($376 million). But in terms of average sales per shop, Franchise Services ranked the highest ($900,000), followed closely by AlphaGraphics ($850,000). Franchise Services had the highest performing center at $17 million, up from $13.6 million last year, followed by AlphaGraphics which had two shops in the $16 million range. There were several commonalities among most of the networks that helped them stay afloat during the pandemic. These included: ● Support from headquarters in filing for and obtaining federal assistance in the form of PPP and other programs ● Headquarters assistance in pivoting to production of PPE and pandemic-related signage - In some cases, materials were ordered from overseas and re-sold in the U.S., resulting in increased brokered services as a percentage of overall revenues. ● The ability to rely on partners within the network to produce customer work, especially valuable in allowing centers to remain open as the effects of the pandemic and associated regulations shifted around the country ● Development of new applications to support customer business requirements during the

WhatTheyThink - Printing News | April 2021

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pandemic - Most notably, this included the production, kitting and fulfillment of “meetings in a box” to support virtual events, including HR, training and other business areas. The sudden onset of the pandemic, where it felt like everything changed overnight, was devastating for many small businesses. But being part of a franchise network, with the support provided by the franchisor, including IT infrastructure, networking, advice and guidance, likely allowed these centers to perform better than the industry at large. According to WhatTheyThink’s "Printing Outlook 2021," 45% of printing businesses with one to 19 employees said that revenues decreased 25% or more, with the franchise networks performing slightly better at an average of 23% year-over-year decline. We also heard from most of the franchisors that while there were a few acquisitions of independent printing companies during 2020, many of those independents were relying on federal aid to help carry them through. Franchisors expect to see more conversion/acquisition opportunities become available as aid runs out, and some are not able to recover, or want to sell in the normal

course of things – retirement, etc. The bottom line is that industry consolidation is expected to continue, and the franchise networks are ready and able to take advantage of that opportunity. Franchisors also continued investing heavily in infrastructure, including production workflow tools, new application development, business intelligence, web-to-print and more. This is to be expected, since that infrastructure is one of the key selling points for them in attracting new owners. Another trend we have noticed is the blurring of lines between print and sign franchises – print franchises are all adding signs & display graphics to their offerings and looking to that segment to bolster their growth, while some sign franchises are also starting to offer commercial print—and some sign franchises have long offered it, usually through brokering or partnership arrangements. As one franchisor put it, this is a recognition of the fact that, to a customer, the equipment used to print something and the size of the print are irrelevant. They just see it as printing and find it convenient to get everything from one source. This blurring between the two is the result of their adapting to this changing customer demand. It is likely

Franchise

Total shops in system

Corporateowned shops

How many shops in North America

Average sales per shop

Average investment to open new shop

System-wide sales

Highest Revenue Shop

Alliance Franchise Brands (Allegra Marketing Print Mail, KKP, InstyPrints, American Speedy Printing Centers)

261

279

$762,543

not provided

$196,318,283

$9,349,208

AlphaGraphics

269

244

$850,000

$267,953

$229,000,000

$16,315,018

Fortusis, LLC (Kwik Kopy Business Centers, Franklin's Printing, The Ink Well)

$307,237

$238,875

$11,367,787

$1,001,771

Franchise Services (Sir Speedy, Pip Printing, Signal Graphics)

280

221

$900,000

$227,000

$252,000,000

$17,000,000

Minuteman Press International

948

776

$563,720

$150,000

$376,317,567

$8,045,482

1,795

1,557

$676,700

$220,957

Totals*

$1,065,003,637 $10,342,296

*All figures in this row are totals, except avg. sales per shop, avg. investment to open up a new shop, and highest-revenue shop, which are averages.

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MANAGEMENT ─ Print Franchise Review that our future reports will combine the two, rather than reporting them separately. (See also this year’s "Sign Franchise Review 2021" on page 44.) Another area of interest for print franchises is growth offered by adding more labels and packaging to the mix. While these can be more complicated sales cycles, most of the franchise networks have their sights set on developing this segment, especially for smaller customers that might not be able to absorb the cost of high minimum order quantities typically required from traditional packaging converters. It was a difficult year, no question, but the print franchise networks were able to adapt fairly well with most centers coming out of the year in a solid cash position. Overall, the total number of centers declined only slightly – from 1,879 in 2019 to 1,813 in 2020 – some of which is attributed to consolidation of centers by owners that had multiple sites. It is also serendipitous that in 2019, several of the networks worked to either strengthen or eliminate weaker centers, coming into 2020 in a stronger position overall. Overall, we expect to continue to see the franchise networks play a role in industry consolidation as 2021 and 2022 play out, and we expect to see them return to a much stronger position by year end. That is based on the belief by many experts that we will have returned to some semblance of normalcy, at least from a business perspective, by year end. But only time will tell. There was a great deal of uncertainty on many fronts as the pandemic evolved, and quite a few unexpected surprises, including rapid development of vaccines, which are being rolled out in large numbers in the U.S. as we write this. Here, then, are the details of each of the traditional print franchise networks.

Alliance Franchise Brands Marketing and Print Shares 2020 Experience and Future Outlook When we spoke with Kevin Cushing last year, he was President of the Marketing and Print Division at Alliance Franchise Brands. He has a new role as of November 2020, as President of the

Dual-Branded Allegra/image360 Center

Strategic Ventures Group. “With the growing merger between print and signs, and the fact that the core processes of sales, marketing and business planning are the same across both disciplines, we thought we could provide more clarity to our franchise members by having one team, one approach," Cushing said. "We also wanted to be keenly focused on new avenues of growth for us.

Ray [Palmer, president of the franchise’s Sign and Graphics Division] and I were doing a lot of the same things with a little focus on strategic opportunities. So now Ray has the leadership responsibility for our established franchise businesses, and I’ve taken responsibility for RSVP Advertising and some concepts we have in a test phase, as well as our corporate operations that include an Allegra location, an Image360 location and a dual-branded center with more concentrated management focus on them.” This shift in management strategy reflects what we

WhatTheyThink - Printing News | April 2021

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have been seeing in the industry, the blurring of the lines between print and signs, and the need to place greater focus on new and emerging opportunities. On the marketing and print side, Alliance Franchise Brands includes Allegra Marketing Print Mail, KKP, Insty-Prints and American Speedy Printing Centers. The organization has also created a dual-brand concept that incorporates Allegra and its flagship Image 360 brand under one roof, with 33 in place, the same number as last year, with time being spent on learning more about how to capitalize on the two brands and streamline their respective operations. As with most of the franchise networks, the pandemic took its toll, with systemwide sales down about 21%, from $249 million in 2019 to $196 million in 2020. Average sales per center declined from $909,539 in 2019 to $762,543 in 2020. The highest revenue center, however, only showed a small decline, from $9.9 million to $9.3 million. The total number of shops dropped from 279 to 261 in 2020, with a combination of some centers closing as scheduled or in response to the pandemic and some consolidating to work together to serve their local businesses. “Early in the pandemic, we took a real quick U-turn, providing immediate assistance to all of our franchises on a number of levels, with respect

with business continuity, how to survive this; a lot of work around liquidity, how to maintain cash positions," Palmer said. "We went so far as to give them

pre-designed product offerings to shorten their time to the sale, and it worked. We were able to stabilize the decrease in sales, and even in a couple months

For more information, visit Printingnews.com/10005202

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MANAGEMENT ─ Print Franchise Review in wide format, we saw growth due to pandemicrelated products and services.” One of the key elements was helping almost every one of its franchise members take advantage of PPP and other government support, with north of 80% participating in the first round of PPP, and about 90% of eligible centers participating in round two, taking advantage of some sort of government subsidy and maintaining a good cash position, in both the U.S. and Canada. While most product categories remained relatively the same from a percent of revenues perspective year over year, offset printing went from 23% of revenues to 17%, and notably, brokered and other services climbed from 16% to 35%. Last year we combined the two; this year Alliance Franchise Brands broke it out as 24% brokered services and 11% other. PPE was a contributing factor to this shift, as well as centers recognizing a need to be more efficient, which sometimes meant brokering out work rather than doing it themselves. That accounts for the decline in in-house offset production, as offset outsourcing becomes more popular. Other was mostly marketing and fulfillment services. There were a couple of factors that helped bolster revenues, preventing an even further decline. The highest revenue shop on the print side was the corporate print center; they served as a great example to the network as to how to pivot, according to Cushing. Contributing to that volume was the fact that the center was chosen to be the printer for the guide that went with the ventilators and respirators in the Ford/GE effort. “We were also chosen to be the exclusive provider of the school-at-home initiative for the Detroit Public Schools,” he added, “a massive job.”

Detroit Public School materials produced by Alliance Franchise Brands

In terms of mailing, Cushing noted that the political mailing season started slowly and later than normal, but the peak period was greater than ever, resulting in a more compressed political mailing season. Customers clamped down on direct mail early in the pandemic since they weren’t sure what was going to transpire, but it is picking up again. In terms of talent acquisition, the experience of the organization is that it has been easier to acquire production talent than in other categories like sales, which we found interesting. Looking ahead, Palmer noted that historically, the organization has done a great deal of event work in both print and signs, but experts are telling them they don’t expect events to come back like they were in the past until at least 2023. At a macro level, financial consultants are expecting a rapid comeback with growth opportunities even this year. Admittedly, not all segments will come back the same way, such as events and property management, but there will be segments that come back. The key, according to Palmer, is to identify those areas that will grow. “We are preparing for a strong second half, and we are already seeing things slowly start to come back from the pandemic," Palmer said. "Last year, January and February were terrific for us. An interesting note was that for many of the franchisees, while the top line was down, the bottom line was up due to the need to become more efficient as a result of the pandemic.” Another level of support headquarters offered to its franchisees was the development of vertical industry packages for franchisees to serve specific industry needs during the pandemic. This was a result of extensive research into CDC and other guidelines on safe environments during the pandemic and enabled the franchisees to use that package with their customers, supported by corporate level marketing to promote a back-to-business program. “The phones just took off,” Palmer said. “It was the right message at the right time. We were very early out, within four to five weeks.” Finally, Cushing talked about the company’s WorkStream initiative, a vision for reduced touches, increased automation and e-commerce. “Volumes in web-to-print in our network are very high,” he said. “Lean workflows and automation are

WhatTheyThink - Printing News | April 2021

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other components of WorkStream, and the adoption is a bit lower but growing as people realize they can’t bring a staff member back or a staff member chooses not to come back. Franchisees also took advantage of the pause to implement more automation. “I cannot imagine a time when a franchise network proved its value to its members versus being independent than what has been done this past year. I think Alliance Franchise Brands, and likely the other print franchises, provided a level of support to their members that simply wasn’t available to independent printers. We encourage our franchise members to continue to nurture relationships with the independent centers in their communities to help each other out. And when someone is ready to talk about succession, we should be a very viable option for them.”

AlphaGraphics Adjusts to Pandemic with New Products, Services AlphaGraphics ended 2020 with a slight decrease in net number of stores, at 269, down from 273 in 2019, with four of them being company owned and 244 located in North America. Revenues were off 22.8% systemwide, from $304.7 million in 2019 to $229 million in 2020. Average sales per store were at $850,000, down from $1.4 million the previous year, in line with the experience of the majority of the other print franchises. The highest revenue shop was up significantly, however, from $12.5 million to $16.3 million. CEO Ryan Farris noted that two franchise owners actually hit the $16 million mark in 2020. The cost of investing in a center remains at about $300,000. “The top end of the network performed well," Farris said. "If they had robust capabilities, they fared a lot better than the centers with limited production capabilities.” One factor that helped was 197 owners applying for and receiving PPP. “The average loan was $100,000, with larger centers receiving up to $500,000, and most are applying for the second round in January/February,"

Farris said. "About 75% of them that qualified the first time, qualified the second time as well. It helped them maintain the staff they needed and not take a loss. Without the PPP loan, I think we would have seen more significant layoffs and certainly more closures. On a positive note, the network steadily improved sales, picking up steam each month between August and December, with a positive upward trend through the fourth quarter. In that final month of December, systemwide sales were only down year-over-year by about 13%.” AlphaGraphics saw an increase in the percentage color digital printing compared to the year before, at 26% of revenues compared to 15% the year before. Black and white digital also grew, from 7% to 9% of revenues. Offset printing, however, was down. In 2019, the network did about $43 million in signs.

“In 2020, we did almost exactly the same revenue volume in signs, but as a percentage of overall revenues, it was significantly higher, 18% compared to 14% of total revenues," Farris said. "It was a whole different mix of products – a lot more window, floor and wall signage and a lot less eventrelated signage. If the broader network had more robust wide format capabilities, we would have performed even better.”

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MANAGEMENT ─ Print Franchise Review Direct mail was also up with people working from home. Fastest growing and emerging segments for the network were wide format, packaging and labels. “We wouldn’t have performed as well as we did in 2020 if we hadn’t gotten into the signs and wide format space several years ago," Farris said. "I know some of the sign businesses are adding commercial print. To me, it’s more about small business marketing solutions that include printing, and not about the specific output device as has been in the past, focusing on the traditional manufacturing mindset. I think it’s important to do commercial print, signs and marketing. It is important to provide comprehensive marketing solutions, provide those key communications through any and all mediums customers need. When it comes to supporting small businesses, it’s going to be a blended model. I can’t imagine people being specialized by specific manufacturing equipment moving forward.” Brokered services were down. “We got better at doing some of that work in house, like wide format," Farris said. "Work we would have normally sent out was done in the network. We didn’t have massive country-wide programs or very high volume print runs that would have been sent out to a trade printer. So we were able to do more in-house.” While some of the other networks were buying PPE (masks and gloves primarily) from China for resale, AlphaGraphics took a little different approach, selling a small volume of branded masks, but also producing safety shields, countertop dividers, ordering raw materials from overseas by the truckload and subdividing it for the network. “Individual centers would cut them down, distribute and install them,” Farris said. “A lot of that work we did internally and didn’t outsource.” Also in response to the Example agBOX pandemic, AlphaGraphics introduced a new product called Building Outstanding Experiences, agBox, to support virtual

events. These are custom boxes they produce with direct print and other finishes. “Boxes can be anywhere from 1.5 to 4 inches deep, depending on the need," Farris said. "It could be, for example, a sales kit to introduce a company to new customers. The most popular is company parties or holiday parties where we send out the current HR materials, exercises and activities to accompany the Zoom call, through the holiday season. Now we are moving into the true virtual events. We work with their sponsors to add relevant promotional items to the box, put in all the swag materials and training material, events schedule, the normal things you would get at an in-person event, and we ship them out to the attendees. The average quantity is 30 to 50 boxes, so small orders, but we can produce those small quantities at an affordable per unit price for them, generally less than the cost of lunch. Since we launched it in November, we’ve done about $3 million worth of agBox kits. We’re looking at doing a national marketing campaign, since we see this need still being there. We think it’s our largest potential, with window, wall and floor graphics being the second largest as businesses and schools continue to open, providing social and motivation visual communications, updating graphics, etc. Digital marketing is our third.”

Fortusis Only Down One Net Center Fortusis, which includes the Kwik Kopy Business Centers, Franklin's Printing and The Ink Well brands, was only down one net center in 2020 as compared to 2019, from 38 to 37. Annual revenues were down 22%, which is not out of line with most of the other franchise networks. In 2019, the network had one center with more than $1 million in revenue; 2020 saw three centers reach that mark, according to CEO Curtis Cheney, who noted that several centers actually did better in 2020 than 2019, largely due to a diversity in customer base. One success story Cheney noted was a center in Louisiana that

WhatTheyThink - Printing News | April 2021

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printed all of the school materials for all of the students in their district and probably had the best month they had ever had. As 2019 came to a close, Fortusis was on a path to start actively recruiting new franchisees, after spending time doing a full analysis of franchise offerings, new shop start-up configuration and more. That was put on hold when the pandemic struck. Although there was a net decrease in centers, three resales took place during the year, including two new owners who had no print experience. The plan had been to bring on two to three new centers in 2020, but Cheney was pleased overall that he was able to bring on new owners to take over existing shops.

was wide format and signage, with other categories remaining about the same in terms of percentage of overall revenues. Cheney attributes the increase in brokered services to the fact that some centers were closed during part of the year and needed to outsource work to continue to meet customer needs. And pandemic-related production of PPE and floor graphics also contributed toward overall performance. Not all centers have wide format; in fact, as we spoke to Cheney, he was visiting such a center, and while he was there, four people walked into the shop who had been looking for both print and signs; the competitor next door couldn’t provide the signs, so they were asking if Fortusis could -- a clear indicator that adding wide format and signage might not only increase revenues through implementation of a new service, but also add to print revenue

π OVER 900 CUSHIONING ITEMS IN STOCK In 2019, the average investment for a new Fortusis center start-up was $350,000, was reduced to $239,875 in 2020, and upon further examination, is now even lower. Cheney said that this reduction, ranging from $195,750 to $226,000 with an average of $210,875, is the result of reducing the initial franchise fee and redesigning center layout to reduce the cost on the furniture package while maintaining a robust equipment package. Like most other franchise networks, brokered services were up in 2020 as compared to 2019, as

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MANAGEMENT ─ Print Franchise Review as well, since customers are likely to prefer a onestop solution. Cheney said that from a customer perspective, they just look at it as printing, regardless of the size. Looking ahead, Cheney believes the network will be back to early 2020 levels by the end of the first half. The franchise is rolling out a new web-to-print solution with a significant investment to customize it to the network’s need. “How do you create an e-commerce solution that takes full advantage of a franchise model?” he wondered. “Average sales prices for copying vary significantly depending on which part of the country they are in. We needed a website that could accommodate each center’s pricing, give them the ability to download their own work – to make it work for everyone is a challenge.” One advantage Fortusis may have as it rolls out this solution is actually the small size of the network. “Before we start selling a lot of franchises, we want to make sure our foundation is solid, we know exactly what we are going to do and what we can offer,” Cheney said. “The e-commerce piece has been a thorn in our side for a long time. It’s not cookie cutter.” But working with his relatively small group, and understanding and meeting that array of requirements, should make it easier to extrapolate and build a system that will also support the needs of new franchisees as they join the network. The e-commerce launch is planned for early April with full implementation by July. One of the other outcomes of the pandemic situation, according to Cheney, is that everyone has gotten more comfortable with virtual trainings, which will help make the roll-out easier. Fortusis is also seeing an increase of walk-in business from people who are working from home and don’t have access to the infrastructure they had before; he expects that to continue moving forward. “I think this is the perfect opportunity for me to rally our franchisees around the fact that no matter what comes our way, there is an organization standing behind them," Cheney said. "Just as we had all 13 of our centers in Texas close because of the ice storm, we had a number of centers that were able

to offer them help. The more we can pull together and help one another, the better off we are.”

Franchise Services Shares Positive Outlook for Future Growth Franchise Services, which includes the Sir Speedy, PIP and Signal Graphics, saw a significant decrease in centers in 2020, at 280, down from 322 in 2019. According to its President, Rich Lowe, this had little to do with the pandemic; rather the company disenfranchised its centers in China by mutual agreement. He noted that only 10 centers closed domestically. Revenues were down 22%, at about $900,000 in 2020, but in the early months of 2021, business is picking back up.

Its largest center actually grew substantially, from revenues of $13.6 million in 2019 to $17 million in 2020. Part of that growth is attributed to production of documentation for East Coast financial institutions that report on bankruptcies. Total systemwide sales in 2020 came in at $252 million. The network was up 6.5% in January and February, before the pandemic hit. Key growth areas included signs and brokered services. Lowe said that about 22% of the company’s business is

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in signs, up about 11% over the previous year, and he expects that to continue to grow, especially as we get back to in-person events, hopefully later in 2021. The largest volume sign business in the network is about $1.5 million, representing about half of that center’s business. Lowe expects that trend to continue, with 50% of revenues over time coming from signs. Digital color printing still represents about 25% of the business, and many of the centers have seen significant growth in mailing services with the pandemic. In addition to providing mailing services for end customers, the network had more than 5 million touches with its customers via direct mail and email to promote the business. He noted, however, that the company took a hiatus on its own promotional mail the first two months of 2021 to give centers the opportunity to update their mailing lists. “So many people are working from home, have changed jobs or don’t have jobs,” he said, “that mailing lists quickly got out of date. Once we start back up, though, we expect that to continue to be a key business development service we offer our franchisees.” On the brokered services side, he said that part of the business has continued to grow, largely due to a wider range of sourcing opportunities. Interestingly, a large part of that in 2020 was PPE, including masks, gowns and gloves, much of it imported from Asia. That is an area he believes will be part of the business model for the foreseeable future. In terms of brokered services in general, Lowe noted that when he started in the business 32 years ago, brokered services were about 8.5% or 9% of the business, and today on average it is north of 30%. “We just didn’t have the sources back then that we do today,” he said. “That really has made a big change in our business.” In terms of challenges, a clear focus is helping both franchisees and their customers rebound their businesses and maintain cash flow. “Because we have been able to take advantage of PPP funding from the government to the tune of about $16 million across the network in the first round,” he said, “most of our centers are in a fairly good cash position.”

Steve and Emily Albritton operate the Sir Speedy center in Tampa, Fla., one of the network’s more successful operations

During the year, several asset acquisitions were made – meaning acquisition of the assets of independent printers, including their books of business. Lowe does not see an emphasis being placed on opening new centers, however, in the current climate. Rather,

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For more information, visit PrintingNews.com/12333994

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MANAGEMENT ─ Print Franchise Review there is a focus on developing a conversion program that will attract more small printing businesses to the network that would like to take advantage of the support and services the network offers. A great deal of focus in the network is also being placed on recruiting talent, doing cross-training of staff, and improving workflow automation. He spoke about a tool developed by one of the centers in Florida, Plan Profit, based on SalesForce, and sitting on top of Printers Plan or PrintSmith. “We have about 10% of centers already using this tool with great success,” he said, “and more that are interested in using it. I hope we can get to about 50% of centers using this workflow tool, which gives them a wide range of capabilities they didn’t have before to better manage their businesses.” Overall, Lowe has a positive outlook as to the future of the network, and the industry in general. For Franchise Services, signage of all types will be a key growth element, and some centers are starting to work on offering packaging solutions. As in-person events scale back up, he foresees huge demand for soft signage. And various centers are also producing a wide range of indoor and outdoor signs, building and vehicle wraps and more. Most centers have rollfed printers, some have flatbeds, and the network is looking forward to adding some of the new HP Latex printers recently announced, with white ink, that will expand the range of products that can be offered. As a side note, this is the 32nd year Lowe has been with Franchise Services as mentioned earlier, and his father, Don Lowe, just celebrated his 40th anniversary, and 49 years of working with the same board of directors. As we noted last year, longevity has done nothing to dim their enthusiasm for the business, the success of individual franchisees, and the support and help they are able to provide to end customers in marketing and other materials and services.

Minuteman Press Sees Business Bouncing Back in 2021 For the first time, I think, since I have been following the print franchises, which dates back before the turn of the century, Minuteman had a slight

decrease in the number of centers, from 967 in 2019 to 948 in 2020. Systemwide revenues for the network were down about 19%, pretty much in line with other franchise networks. Average shop sales were also down, from $632,222 in 2019 to $563,720 in 2020. The highest revenue center, though, increased sales from $7,484,595 to $8,045,482. In terms of percent of revenues by application, color digital printing was down year over year, from 36% to 28%, with minor differences in other areas, including a slight uptick in brokered services. Minuteman Press President Nick Titus attributes the decline in centers to the fact that there were a number of new franchisees that entered the system right before the pandemic hit and just didn’t have the resources to carry through. In addition, some multiple center owners who had kind of a hub and spoke arrangement, consolidated to one location, and were able to keep all staff on, but reduced overhead by closing some locations.

“March and April were pretty bad,” Titus said, “but we put everything we had into providing marketing materials to our franchisees and implemented some new programs to help them through this, including our Bounce Back program, offering free advertising to local businesses, and a marketing campaign called 'Let’s Build Your Business,' and that helped a lot.” Minuteman also provided resources to franchisees relative to government subsidies including PPP, which most centers took advantage of. Minuteman centers also produced PPE to help with the pandemic. Minuteman centers were an early adopter of dye sublimation printing including heat presses, and those were placed into service

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to create masks in-house. All centers also produced pandemic-related signage. Titus sees that as a continued area of growth, including production of T-shirts, a nice addition for the owners to get involved with. It’s easy to understand, the demand is there, and the investment is low. “At the home office,” Titus said, “one of our main challenges is staying on top of government regulations; every state is different, every county is different, every city is different. For example, many of the inner cities are still very much shut down. Whereas areas outside of those cities, more is open. You never knew what was coming at you next.” At the center level, few reduced the number of employees; payroll numbers are right where they have always been, at 22%. “The biggest challenge for our owners,” Titus said, “is getting through to customers to help them with their marketing efforts. At this point, they all have their social distancing signage and PPE. It’s getting people back into the rhythm of marketing to build their own businesses and the things we can help them with. That’s always been a challenge, really; it’s just on a larger scale now.” Titus said that the network is only down about 5% now, with many centers back to pre-COVID sales. “We shot right out of it. In the U.S., in May, June, July, it was back up.” He also said that there has been a lot of interest in franchising from people in restaurants, gyms, etc., who were really hammered and have always been in business for themselves. “Right now the interest is high,” he said. “Right now people are working from home, but when things open back up, they don’t necessarily want to be commuting to the city and are looking for something closer to home.” Titus expects the number of centers to recover. In terms of the drop in color digital printing as a percentage of overall revenue, Titus said that mailing has increased, including color postcards, so it’s likely that the volume didn’t really decrease that much; it was just categorized differently. In terms of the future, Titus is bullish. “I don’t think we are any different,” he

said. “Our trends go with the Read More… Find article at industry. I definitely see marPrintingNews. keting materials and promocom/21149598 tional products coming back. Things will change; they may not be doing as many in-person trade shows, but virtual trade shows have been popping up all over. And there is a significant kitting and fulfillment opportunity there, to provide attendees with many of the materials they might have received by attending an in-person show. People want to keep

their name in front of you, so I do see promotional products coming back more than ever.” In terms of a return to in-person meetings, Titus said it’s all over the place. Different organizations have different perspectives. Minuteman moved its World Expo from 2021 to 2022. “We had to make that decision last year in April or May for contract reasons. No one knew where this was going to go. We’re feeling comfortable that we will be able to hold it in August of 2022.” ●

Cary Sherburne is a well-known author, journalist and marketing consultant whose practice is focused on marketing communications strategies for the printing and publishing industries.

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MANAGEMENT ─ Franchises

SIGN TIMES OF THE

Franchises hold strong.

ne of the main reasons for becoming a franchise owner is the appeal of less operating risk and more security, predictability and a greater chance at success than if you chose to become an independent business owner. In 2007, the franchise industry as a whole, generated $675 billion in the US, according to Statista. Fast forward to 2019 – US franchise output increased by 16%, generating $787.5 billion. According to WhatTheyThink’s Printing Outlook 2021, 45% of printing businesses with 1 to 19 employees said that revenues decreased 25% or more, with the franchise networks performing slightly better at an average of 23% year-over-year decline. In the 2021 Print Franchise Review, Cary Sherburne expects to see the franchise networks continuing to play a role in print industry consolidation as 2021 and 2022 play out, with a return to a much stronger position predicted by year end. This is largely due to the infrastructure franchisors provide to help their members rebound, a set of services not readily available to an independent printer. Let’s dive into what makes franchises so advantageous, and why sign franchises in particular, are

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presenting opportunity in the wake of the pandemic.

Franchises have an established brand. People are spending much more time at home, which means much more time online. Overall, social media – a powerful brand awareness generator – has seen usage increased by 69% in the US. 82% of people are exposed to brand via social media and 66% agree that social media has a definite impact on what brands they choose to buy. Today, it takes more than 10 interactions before brand recall even begins to set in. These 10+ “touches” come in many forms, including digital marketing, social media, advertising, websites, cold calling – and print, which has the strongest memory recall of all. Each touch is an opportunity to create awareness, build trust and develop a relationship. Brand has always mattered, but in the context of the pandemic, it matters more than ever. However, getting people to pay attention to a brand – on social media especially – is difficult. Here is where Franchises, with their sheer exposure volume, have an advantage. Being part of a franchise network turns franchisees into brand ambassadors. They’re on the front line every day as the public face of the business,

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delivering the product or service to the general public. For the franchise parent, its the franchisees who hold the power to the brand’s ultimate success. Along with a recognized brand, come a host of business, marketing, sales and technology support and resources that position franchisees for success – and further franchise growth. Being part of a print and/ or sign franchise family exposes you to established workflows, access to technology solutions, integrations, partners, vendors, research and results. As well, franchises can take advantage of association affiliations and memberships, like the American Association of Franchisees and Dealers, the International Sign Association, APTech and WhatTheyThink. They provide guidance, market research, resources, networking opportunities, and more - all of which reduce the inherent risk to running a business, troubled times or not. It’s a big reason why after one year, the franchise success rate in the US is 6% higher than those of independent businesses, and 8% after two years.

Signs Sell According to the ISA, signs are: ● The least expensive and most effective form of advertising ● Your #1 marketing tool ● Typically responsible for half of your customers (that’s right, 50%!) ● An investment that pays returns many times over ● A key part of getting a business loan Signs act like “silent salespeople”— branding businesses, providing information about products and services, and pointing customers to exact locations. Just one additional sign was proven to increase sales by nearly 5%. In its Economic Value Of On-Premise Signage report, the Sign Research Foundation determined that adding one sign at every fast-food outlet in Los Angeles would raise business revenues by $132 million; those businesses would in turn pay an additional $10 million in sales tax revenue to the local municipality. The US sign franchise industry has grown as big as the signs themselves – in 2014 it was worth $37.5 billion and was represented by over 15,000

Read More… firms – and it’s getting bigger. In Find article at 2016, just two years later, the PrintingNews. need for messaging and brandcom/21149609 ing catapulted the sign industry into an estimated $55 billion market in the US, and a $35 billion market in Canada. The pandemic caused a small decrease in output from sign franchises, but the International Sign Association is projecting that the industry will bounce back with 3.7% growth in 2021 and 3.2% in 2022.

Now may be the best time to join a sign franchise Deemed an essential service, the pandemic provided a niche opportunity for the print industry at large, many of whom re-tooled to supply face shields, barriers and COVID-related signage such as social distancing floor decals, directional signage/displays, wall graphics and window decals. It exposed many printers to new opportunities through a vertical segment that was already huge. And it introduced a new generation to a new lucrative stream of revenue. What began as a need to offset a shortage of critical medical PPE, led to large format print providers helping businesses open safely and in accordance with new social distancing guidelines – and plain walls being transformed into brand-showcasing experiences. While COVID has created economic hardship and increased pressure on businesses, it has presented perhaps the best opportunity to become a franchise owner. While It may seem that starting a new business during COVID may seem risky, if you look below the surface, franchises have actually made the appeal stronger, according to entrepreneur.com. Rick Bisio, a franchise coach, points out that the potential pool of employees is much bigger than it has been in the past. That, plus a drop in property prices, means that finding a location to open a franchise may never be cheaper. These are Continued on page 61 Joanne Gore is founder of Joanne Gore Communications. She has spent the last three decades helping companies maximize their marketing and communications efforts. Contact Joanne at joanne@joannegorecommunications.com.

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LABELS & PACKAGING ─ Security

SHOW ME THE

MONEY

Making print secure.

It’s in the design.

By David Zwang

When digital presses were introduced in the 1990s, as their level of quality for reproduction increased, governments and businesses around the globe were concerned about counterfeiting. As a result, all of the digital press manufacturers were compelled to print very small indicators as a part of the print reproduction. Since that was not an ideal solution, subsequently many currencies added design features that the printers are now designed to identify and prevent copying. Increasingly “microprinting,” or printing at a very small font size and embedding in the design, is being used for some applications. This requires a design and a high enough resolution to be practical, but it is a growing market. It is estimated that it will increase at a CAGR of 5.39% to a value of approximately $750 million by 2026. Xeikon, HP, Zebra, Ricoh, Canon and many other printer manufacturers offer compatible solutions. Another design method for security used are Guilloché patterns. These are very intricate, complex and repetitive patterns that can use multiple colors and are very hard to duplicate. There are many other design techniques that can be used to secure print from copying or counterfeiting. Many of these use the high resolution available

rinting is a valuable and versatile platform that provides methods of communication, identification, even interaction. However, what happens when you need your printing secure or validated? For centuries, validation was a function of the watermarking of papers at a very basic level. When you take it to a more functional level like securing financial documents, the actual paper can be manufactured for identification. In the case of some types of documents that would be through the use of specific fibers and threads included in the slurry of the paper manufacturing. In the case of U.S. currency, their security has evolved over the years to combat continuing attempts at counterfeiting. As a result, they have resorted to Read More… layers of security utilizing many Find article at different methods combined. It PrintingNews. com/21149610 starts with a specially designed and manufactured paper. U.S. currency paper, which has been manufactured by Crane & Co. since 1879, starts as a special blend of cotton and linen, but that is just the beginning. While most print service providers are not producing currency, or shouldn’t be since it is a federal offense, there is a lot to be learned from the techniques used by the Bureau of Engraving and Printing. The layered security approach is probably not practical for most general secure print applications, however many of the individual methods can be. Since keeping ahead of those who would try to break your secure print is an ongoing issue, it is important to look at the various methods available.

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with current printing technologies. Design can also be adapted using prismatic coloration techniques, which are also very difficult to reproduce, as seen above, 2nd photo.

Specialty Inks Specially designed inks are increasingly used for security as well. Magnetic ink character recognition, also known as MICR, is used to automate computerized reading and is used on checks, forms, etc., but usually not used for security, although it could be in conjunction with other methods. Although, machine readable inks and coatings are readily used for banknote printing, tax stamps and brand protection. Taggants, which are uniquely encoded materials or chemistries, can be readable with specially designed cameras, lights, scanners and machines. They are usually invisible to the eye and can be mixed with all types of inks and toners to present an invisible yet identifiable level of security. Color change inks are also used for security. In the example below, if you tilt a U.S. currency of $10 or higher you can see the numbers on the lower right corner change color from copper to green. Additionally, on the $100 bill the “Liberty Bell” in the inkwell changes from copper to green. Canon, HP, Ricoh, Xeikon and other digital press manufacturers have special toners either only visible or fluorescing with UV light for their digital presses. HP has developed a machine readable infrared RainbowSecure ink in conjunction with

VerifyMe for their Indigo presses to ensure brand protection security. Holograms are also used as identification of counterfeit, although they require specialized design and production techniques. An interesting development using a unique nanocrystalline ink designed in a research institute at the International Laboratory of Solutions Chemistry of Advanced Materials and Technologies at ITMO University in Russia has provided a way to print holograms on a conventional inkjet printer in “a matter of minutes.”

Electronics are increasingly being used. Technologies like RFID and NFC may be better suited to identify and secure print, especially in packaging. These solutions have already started to find the way into the product supply chain. These technologies currently require the application of a pre-manufactured tag to the label or package and a reading or receiving solution. These technologies work. However, there is an additional cost in excess of $.10 per tag not including the inline or offline application on a label or package. In the near future, we will see the use of a post print electronic embellishment technology to accomplish this more cost effectively.

Summary Securing print, whether for documents or labels and packaging, is increasingly important as we continue to see an increase in counterfeiting and need for brand protection. There are many tools available to address this, but since protection methods are always a moving target, evaluating the level of protection against the cost is always going to be an issue. ●

David Zwang specializes in process analysis, and strategic development of firms involved in publishing and packaging across the globe. Contact him at david@zwang.com.

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SOFTWARE & WORKFLOW ─ Technical Skills Are Needed

SO YOUR PRINT SALES TEAM

ISN'T VERY

Technical skills are just as important as sales skills. By Jennifer Matt

n a recent conversation with an executive at a large print organization, he was moaning about the lack of technical expertise in his aging sales staff. In another conversation with a Chief Technology Officer (CTO) of another printer, he was moaning about how his sales team was setting crazy technical expectations with their customers. Technology is already an

important component of the print sale. I’m not talking about file transfer or artwork approval— I’m talking about the customer wanting printers to solve challenges up and downstream of the printing function. Those challenges all revolve around “data” (collecting, managing, auditing the data that ends up on the printed pieces) and then analyzing, evaluating and adjusting strategies based on the

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effectiveness of the printed it’s not good for the salespieces. person. As you’ll find out in This is a big, important topic the three skills that I think all that is impacting the entire print sales people should acquire, industry—and every industry being technical doesn’t necfor that matter. Being “techessarily mean you have to nical” used to be relegated to become a geek. those “guys” who work on comThe other side effect that can puters in the back of the buildhappen here is that you bring ing and whom you called when IT personalities into the sale, you couldn’t connect to WiFi. which doesn’t always end well. Being technical is no longer A sale is a different beast than relegated to a few—it is an operations. Think about the expectation of all, even sales. personalities; your IT person I am going to start with three might not be capable of being a things I hate about the way positive contributor to a sales printers are handling their chalmeeting. I’ve experienced this lenge of less than technicallymany times, and it isn’t pretty. savvy sales teams. Then I’ll You segment your sales discuss three skills every print team so non-technical salesperson should have. sales reps are servicing nonIf your sales team is not technical customers. technical, here’s what not to do: As millennials take over the Sales delegates all workforce, this won’t work. technical topics to Millennials are all technical. your technical team. They were raised in a ubiquiThis sounds like a reasontous technology culture, which able response, so why do I hate makes them overconfident and it? When your production staff not afraid of technology. A nongets a new piece of equipment technical sales representathat nobody knows how to use, tive will come off as a dinosaur. do you teach one guy how to use This is another tactic to hide it and let everyone else delegate the fact that you’re allowing to that person? You are enabling your sales team to not evolve. your sales team to not evolve. Technical issues will come up If your sales team is not techin every sale, even if the main nical at all, you have contact at that cusRead More… been enabling them to tomer is not technical. Find article at non-evolve for a long In fact, a non-techniPrintingNews. time now. Your busical customer needs a com/21149608 ness requires technitechnical sales reprecal skills at every position. I have sentative even more. There is found the sales team to be the no such thing as a non-techniplace where the lack of evolucal account. If your sales team tion is tolerated the most. It’s tells you this, it’s because they not good for your business and shy away from all conversations

about technology. When people aren’t confident (especially sales personnel) they keep the conversation where they have expertise. This means that they aren’t able to meet the customer where they are challenging (e.g. data issues, technology integrations, etc.). You hire one young, technical sales representative. Good start but new, young, and technical means they will need mentoring and support as well. Hiring younger and more technically savvy sales people will not solve your problem, but it will put some peer pressure on the existing sales team. Don’t let non-technical sales folks eat up this person’s time and energy helping with their prospects who have technical questions. So here are three skills every print sales person should have: The Ability to stay calm when technical topics come up This might not sound like a technical skill, but it is. When you’re insecure about your technical knowledge, you naturally get anxious/nervous when technical topics come up. Remaining calm is the very first requirement, and everyone can learn this. A calm sales representative will not be tempted

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SOFTWARE & WORKFLOW ─ Technical Skills Are Needed (out of their anxious state) to say yes to everything that’s asked or guess at questions they don’t know. You don’t have to know everything. You don’t have to have solutions or answers off the top of your head. You just need to remain calm (first) and do the next two things. The ability to uncover the business challenges underneath the need for technology In a sales interaction, when technical topics come up, it is mostly in the form of customers making suggested solutions on how you might be able to help them with their challenges. This is the critical distinction. Customers do not typically tell you their challenges; they tell you how they think you should fix them. This can get really technical. The customer could very well start talking about APIs (application programming interfaces) or XML (Extensible Markup Language), a markup language that defines a set of rules for encoding in a format that is both human-readable and machine-readable. Don’t freak out, and here’s why. We (the technical people) don’t want the customer’s suggested solution. We want to fully understand the underlying business challenge—this is not technical. If you engage with the customer around their proposed solution, you are setting the expectation that this is how it will be solved. You are limiting the full range of options your technology team should have when solving issues. Your customer might say we need to integrate these two systems using defined RESTful APIs so that we can exchange data via XML…and your response should be, “What problem are you trying to solve by having these two systems talk to each other?”—not technical at all. Your job is to uncover the business challenge in detail. Your job is to focus on who, what and why—even if the customer is

stuck on the how. So you’ve remained calm, then you’ve figured out how to keep the focus and your curiosity on the challenge (not the solution). Asking well-formed questions about the business challenge has you come off as engaged, curious and caring (all good things for the sales relationship). Staying with the definition of the problem also helps you to not overpromise. Don’t ever say, “We can make it work however you want,” or “That seems like an easy thing to do.” Really, when asked about what’s possible or when it’s possible, the best answer is, “I don’t know, but I can find out.” Your job as a sales representative is to uncover the business challenge, not to engage in specific solutions, and not to set unrealistic expectations about technical outcomes. Accurately communicate these business challenges to your technical team. You’ve remained calm, then you listened and figured out that the customer was talking about “solutions,” so you led them back to uncovering the business need. You asked clarifying questions (all about the business challenge), focused on the who, what and why. Now you need to bring this information back to your technical team so they can brainstorm on solutions. When you deliver a clear definition of the problem, you have a much better chance that the solution will actually deliver the desired business results. Lots and lots of technical projects deliver, but fail to solve, the underlying business challenge because it was never well-defined. Here’s a sentence we use in development a lot: who? what? “As a ____________, I need to ____________, why? so that I can ____________.” Before you leave the meeting/call/Zoom with the customer, try to say this sentence about their challenge(s). It is a good gut check on your common understanding. ●

Jennifer Matt writes, speaks, and consults with printers worldwide who realize their ability to leverage software is critical to their success in the Information Age.

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“ A t P o c k et F o l d er sF a s t ,

weh a v ea nu n ma t c h edt ea mo f ex p er t s . Wea r eea c hv er yp a s s i o n a t e a b o u t b r i n g i n go u rc u s t o mer st h eb es t q u a l i t yp r o d u c t p o s s i b l e. ” –S h a n eMa r o n , P l a n t Ma n a g er

R eq u es t y o u rF R E EF o l d ers a l esk i t a t P o c k et F o l d er s F a s t . c o m/ R ea l S o l u t i o n s For more information, visit PrintingNews.com/21044280

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EXECUTIVE Q&A ─ Koenig & Bauer

EXECUTIVE Q&A: KILIAN RENSCHLER, CEO OF KOENIG & BAUER US/CA By Ralf Schlözer

ilian Renschler has been named the tools quickly to keep our customers busy. new CEO and president of Koenig We were also happy to grow our market share. & Bauer US/CA at the start of 2021. One of the reasons was that we have a very strong Previously, he was executive vice presiportfolio for packaging customers, not only our dent of sales of Koenig & Bauer US/CA. Rapida presses, but die cutters and folder-gluKilian Renschler has been named the ers. We are seen as experts in this new CEO and president of Koenig & Bauer market and when times get diffiUS/CA at the start of 2021. Previously, he cult customers go to the company was executive vice president of sales of where they feel they get the best Koenig & Bauer US/CA. service and the best consulting. We WhatTheyThink: Having a discussion in saw customers investing in devices early 2021, there is no way not to touch upon with higher productivity, customthe developments in 2020, the COVID paners investing especially in large logisdemic and the impact it had on everybody. tics systems around their equipment, How would you describe the impact it had on since logistics is a big cost driver in Kilian Renschler, CEO Koenig & Bauer, and how much of the impact folding carton. Customers, when do you still feel? upgrading presses, they were also looking into ways Kilian Renschler: A big difference we saw was to increase the overall efficiency on the shop floor. the use of virtual tools. The importance of virtual We have seen more sales of sophisticated service and support tools was key in this time. It machines, long presses, more embellishment, also brought up the importance of the digitization double or triple coaters to offer new products and of Koenig & Bauer, that we already have tools in innovations for the market place for preventive maintenance, to monitor press WTT: I assume commercial press sales were down performance and consult customers based on that. considerably during the pandemic. Has that market Communication was very important, how to recovered? train service technicians in a pandemic when travel KR: We have customers in the commercial market is not possible. Here the factory came up with innowho are very successful, they have succeeded even vative ways to train technicians and continue to in difficult times depending on the market they serve the market. serve. Overall, it is fair to say that commercial printWhat we clearly saw is that the packaging ers have not grown in comparison to the packaging market remained very active. The changed conmarket. However, we do see the commercial market sumer behaviors to buy more packaged food in rebounding once we get past COVID. grocery stores resulted in a high demand of food WTT: Last year you had the Koenig & Bauer Print packaging. Also, on the pharmaceutical side we saw Live event where you launched new machines. Maybe that customers were busy and we needed to guaryou can give a quick intro to these and whether they are antee uptime. We have a strong service team that available already? proved to be very flexible and adopted the new KR: Last year we had a virtual event, which was

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well accepted by the market. A big innovation we introduced was the CutPRO X – our new rotary diecutter. It is available and is being installed right now in the U.S. We also introduced a new generation of flatbed die cutter at the event, the CutPRO Q. It will become available in the U.S. later in the year – in Europe we are now installing the first machines. A big innovation for us was the new Rapida 106 generation, especially the Rapido 106X. Koenig & Bauer has done a fantastic job of enhancing this platform to achieve a new standard. We showed the 20,000 sheets/hour in perfecting mode on the Rapida 106 X. The new generation consists of Rapida 105, the 106 and the 106X. We tailor the presses to each customer’s exact need. This is a ground-up new generation of press technology with faster throughput, a focus on short runs, less maintenance, simpler operation and more integration with pre and postpress. As we speak, we have the new generation being installed in the U.S. WTT: One thing I found remarkable is the Qualitronic Color Control. You can measure every sheet on the device and detect faults. KR: We measure every sheet and adjust based on every 10th sheet. Our system measures after the coating unit, which is a bit different from others. We have systems that can measure from basic density to spectral analysis to grey balance. We can use the same hardware to offer sheet inspection control. We can offer different levels of inspection quality control, from basic to highly sophisticated, depending on the application. Between color control, inspection and registration this is a leading technology. The aim is to have the system autonomous and self-managing. WTT: On large format offset – Heidelberger left the market citing not being profitable there. How did the market develop for Koenig & Bauer? KR: We have invested into our large format Rapida machines and the market has been very strong for us. The pandemic showed that the demand for food-driven applications grew substantially, and in North America this is mainly produced on large format presses. We also see growth in the litho laminate or

top sheet printing segment with our large format presses. Overall, our success is quite diverse and comes from small, independent companies to large integrators. We clearly believe large format will be a longterm integral part of Koenig & Bauer’s and our customers’ future. WTT: The focus is more Read More… towards packaging than book Find article at print or commercial? PrintingNews. com/21149482 KR: I believe that large format is of interest to all market segments including book and commercial. We also have online printers running ultra-short runs on large format presses in Europe. Koenig & Bauer sees the importance of having presses and technology for commercial, book and web-to-print printers and has developed new products for their exact needs. This includes special features for them as their workflow is different. At Koenig & Bauer every machine is custom built to their individual needs. WTT: A market where Koenig & Bauer used to be very strong is webfed offset. This is probably different now. Where does that market stand for Koenig & Bauer? KR: With the demand for newspapers declining the market size has reduced. However, we are happy to be installing one newspaper press in Florida right now, but this is definitely not a growth market. We also have ongoing retrofit and upgrade projects for both newspaper and commercial applications. WTT: A growth market is certainly digital printing. There has been a number of installations in Europe, how about installations in the U.S.? KR: We have digital print on various platforms. We have had the RotaJET for quite a while and we currently have one installation going on in the U.S. We are very excited about the VariJET 106 sheetfed press for the folding carton market. We Continued on page 62 Ralf Schlözer has over 20 years of experience in the Graphic Arts and Graphic System Manufacturing industries. He has extensive knowledge of traditional and direct imaging presses as well as non-impact printing technologies.

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KOENIG & BAUER DURST ANNOUNCES BETA TESTING FOR VARIJET 106 Koenig & Bauer Durst GmbH has announced plans to bring the VariJET 106 to market with the first installation of the single-pass digital printing press at a customer site early next year prior to a formal unveiling at the rearranged VariJET 106 drupa in Dusseldorf, Germany, from April 20-30. Targeting the folding carton industry, the much-anticipated B1 6,000sph VariJET 106 is (Left) Robert at the heart of the collaborative development Stabler, Managing between Koenig & Bauer and Durst. It inteDirector, Durst grates inkjet technology into the and Koenig & Bauer platform of the high-performance Rapida 106 offset press. The VariJET 106 combines the strengths of digital inkjet with those of CorruJET classic offset printing and inline finishing. It is this SPC_130 unique flexibility which defines the VariJET 106 as a performance and reliability. It can manage small productive and cost-efficient hybrid printing system formats from 500 x 600mm through to very large for digital packaging printing. The VariJET 106 can formats with maximum dimensions of 1,300 x 2,100 produce personalised and individualized print prod(optionally 1,300 x 2,800 mm) and print a maximum ucts or alternate between short and medium runs. thickness of 12 mm with water-based, food safe The VariJET 106 offers: modular integration of inks. The Delta SPC130 FlexLine machine includes upstream and downstream processes; combination feeder, six-colour single-pass printing, cooling of digital print with proven modules of the Rapida section and stacker. platform; perfect register accuracy thanks to inline For the CorruJET 170, successful beta testing production; highly competitive TCO; efficient prohas been completed at the Kolb Group in Bavaria, duction of ultra-short to medium runs; reduced Germany, a company that develops and proresource consumption, storage costs and waste; duces packaging, packaging materials and specialabsolute flexibility for test packaging and new ist products made in corrugated cardboard. Based campaigns; fastest possible response to market on Koenig & Bauer’s RotaJET inkjet web press demands. for commercial printing, The CorruJET 170 postThe announcements from the joint venture prints sheets of corrugated up to 1.7m wide at up to company, which was set up by Durst and Koenig & 137m/min on water based, food safe inks. Bauer in 2019, have also included updates on its All three presses meet the stringent requiresingle-pass corrugated presses – the Delta SPC 130 ments for food safe primary packaging utilizing proand the CorruJET 170 – which have a specific focus prietary water-based ink technology. The VariJET on delivering for the stringent requirements of the 106, Delta SPC 130 and CorruJET 170 are designed packaging sector. with core technologies to provide automated, proA digital priming unit for uncoated media will ductive, food safe printing systems. They deliver broaden the applications customers can address shorter response times, more variants, shorter run on the Delta SPC 130, as well as extend the range lengths, individualization and enable more small of media that can be used for printing. And special value orders. colours being introduced for the fifth and sixth Robert Stabler, Managing Director, Koenig & colour stations will enable converters to meet Bauer Durst, said: “We’re really excited by the brand colour requirements. opportunities and progress with our much-anticiThe Delta SPC 130 FlexLine Automatic compated VariJET 106. Successful companies need to bines a well-engineered mechanical design with be able to embrace the trends that are occurring easily accessible sub-assemblies and selected and offer solutions. We deliver on this.” components to guarantee durable quality, high

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MANAGEMENT ─ What Printing Salespeople Would Do…If They Could

IF I COULD, I SURELY WOULD What would you change about your job?

often ask salespeople: “What one thing would you change about your job if you could?” The answers tend to fall within two categories, internal and external. The internal changes tend to focus on one particular area – speed. “I need to get quotes faster. I need to get answers faster. I need to get my jobs through the system faster.” I’m sympathetic to these complaints – to a point. And that’s the point where the customer’s expectations are met. I’ve observed, though, that many salespeople want quotes/answers/orders faster than their customers need them, which only serves to put unnecessary pressure on the entire system. I remember a conversation with a salesperson who put a three-day deadline on a complex project that the customer didn’t actually need for five days. “We’ll probably be a day late,” he told me, “but I’ll still be a day early.” As it turned out, they were right on time against the artificial deadline and two days early against the real need. The customer was happy. The salesperson was happy. Everyone else in the company went crazy for three days to get the project completed, and numerous other orders were impacted. Other customers whose deadlines or expectations weren’t met were unhappy, and other salespeople who had to deal with those customers weren’t happy either. My point here is not just about could or would. It’s actually more about woulda, coulda, shoulda. The salesperson could lie about the deadline, and he did. But would you agree that he should not have? Sadly, this happens a lot in the printing industry. The external changes tend to focus on two areas. One is for customers to be more reasonable in their expectations. The second is for them to be more responsive in their communications. I hope you see the connection between these internal and external “I wish/I need” complaints. And I fully agree that many print buyers do have unreasonable expectations. But the solution to that problem is

not to lie to the system. That just makes meeting the expectations even more unreasonable. Read More… It is a much better strategy to Find article at PrintingNews. manage customer expectations. com/21149451 That takes a certain amount of skill, and also a certain amount of courage. The skill involved is a very specific communication skill – the ability to convey bad news. (That, of course, is where courage comes in. Nobody wants to be the bearer of bad news.) The key to survival as a bearer of bad news is to bring a “yes” as well as a “no.” “I can’t do that, but I can do this. Will this work for you?” I can’t guarantee that every buyer will agree, but it’s been my experience that most buyers will at least consider an option. It’s also been my experience that buyers aren’t always truthful about their expectations in the first place. In other words, they’re trying to manage your expectations. How do you get people to be more responsive in their communications? That’s really pretty simple. You give them a good reason to respond. Want a prospect to call you back? “Please call” is probably not enough. But acknowledging the situation and providing a good reason may well be. “I’m sure you get a lot of phone calls from salespeople. Let me tell you why this one is worth returning.” If I had to complete that message, I’d say, “I have 40 years of experience in the printing industry. I’m hoping for the opportunity to put some of that experience to work for you.” Obviously, that may not be your value proposition, but please give thought to what is. I promise you, you’ll at least increase your chances of a response. ●

Dave Fellman is the president of David Fellman & Associates, a sales and marketing consulting firm serving numerous segments of the graphic arts industry. Contact him at dmf@davefellman.com.

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LABELS & PACKAGING ─ Emerging trends

STICKING AROUND Exploring the emerging trends in labeling By David Zwang

CONVENTIONAL DIGITAL ccording $750 $7 to Mordor Inventory costs (on call-off (4%/year cost of captial) x inven- 1 month x 4%/year cost of capital order, in transit, inventory, WIP tory value (1,500,000 labels x x inventory value (125,000 lables Intelligence, $25/1000) x $35/1000) the print $3,750 $263 label market Cost for label stock 5-20% are common figures. Almost zero. Assume 0,5%: obsolescence Assume 10%: (1,500,000 lables @ (1,500,000 labels @ $35/1000 is expected to grow at a $25/1000 @ 10%) @ 0,5%) CAGR of 4.2% over the fore$500 Rush order fees / Assume 1 rusorder/year cast period (2021 - 2026). $3,750 Last year had a significant Reprint or additional print costs Assume 5% reprints = 60,000 / labels x $50/1,000 labels impact on consumer purchasTotal cost of ownership of labels $8,750 or $270 or ing habits, so as a result it also (TCOL) 23,3% of COLS 0,5% of COLS had an impact on labels and As you can see from a recent Xeikon presentation, the cost of obsolescence combined with packaging in general. These the more competitive costs now available with digital label production make a compelling changes and more imporcase for on-demand label procurement. tantly trends, many of which seeing more direct-to-object printing in place of were already beginning to evolve, started shifting at conventional labels and even the testing of paper an increased rate, facilitated by new technologies. bottles from brands including Absolut, Carlsberg Procurement Trends and even Coca-Cola. While they are using an inner The most consequential driver is the increase in barrier for the bottle produced from a recycled on-demand label procurement. With the increase polyethylene terephthalate (PET) polymer film, it in market segmentation, and the need to keep up still limits unrecyclable waste. with regulatory label changes, label procurement There is also continued movement to flexible has been moving from an annual or semi-annual packaging, which don’t need labels, from rigid conproduction purchase and warehouse model to tainers in the form of stand-up pouches. Pouches, produce what is needed for current production or which are easier and less costly to ship actually on-demand model. use anywhere from 40-70% less plastic than rigidcontainer-and label combinations. However, while Labeling Trends they use considerably less plastic, the plastic that is Pressure-sensitive labels still represent the used in pouches is generally not recyclable. Lately largest segment of growth in labeling, or about a there has been a lot of focus on Bioplastics as an 40% share, and is projected to grow at a CAGR of alternative. Bioplastics, manufactured by synover 4% through 2026. Glue-applied labels are in thesizing corn, soy, sugar cane and other crops, second place at about 35%. Plastics used in labelprovide quicker biodegradability than plastics, ing, like shrink sleeves and in packaging in general and are sourced from renewable crops. One of are increasingly the target of sustainably conscious these, PLA (polymerized lactic acid) manufactured consumers. Even if a label that on its own can be by NatureWorks LLC, a Cargill company, is one recycled, once applied to a plastic bottle, it can play of the more widely used components of bioplashavoc on the recycling stream. As a result we are tic packaging in the U.S. PLA can also be recycled

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Inkjet and Hybrid

into the same product repeatedly, while plastics can’t. However, currently PLA can’t be processed by mainstream recyclers, and they probably won’t create a new recycling stream until the use creates a critical mass and an economic incentive.

Technologies Increased cost competition between digital and analog (primarily flexo) label production can be attributed to the explosion of inkjet label press solutions as well as hybrid solutions, and it is expected to continue. In the last year, there have been a significant amount of new press introductions in both toner and inkjet technology.

Toner The digital printing of labels really started with and is still currently dominated by electrophotographic presses. HP Indigo and Xeikon offer the most widely used label press offerings, although others including Konica Minolta and Mark Andy entered the market with their own toner solutions as well. In the last year, HP Indigo and Xeikon introduced new models that increase productivity by about 30% over their previous models. Additionally, HP previewed their next generation V12, based on their LEPx inline architecture, which is expected to print at a speed in excess of 120 m/min, bringing it in line with inkjet and hybrid inkjet/flexo solutions, further increasing digital competitiveness compared to flexo.

Xeikon recently introduced their PX30000 to complement their PX2000 and PX3000 UV inkjet label presses, based on their Panther platform providing a higher level of productivity over their toner line. Mark Andy, historically a flexo press manufacturer, has continued to increase their digital offerings with the Digital Series iQ powered by the Domino N610i UV inkjet module in addition to their Digital Series HD, the configurable hybrid press. Canon, which is not new to inkjet but new to the packaging market has started placing their LabelStream 4000 hybrid label press as well. Memjet OEMs like Colordyne, Konica Minolta and others are increasingly integrating their printheads into a variety of different inkjet and hybrid machines to support label print applications. And the list goes on…

Embellishment Brand identity and shelf appeal are still the primary functions of a label. Digital embellishment technologies like those from JetFX, Actega, MGI and others are providing the solutions needed to support the needs of on-demand label printing. Increasingly they are integrated into complete inline label production with solution like the FEU offered by Read More… Xeikon and the HP GEM. Find article at

Summary

PrintingNews. com/21149607

The use of labels is going to continue to increase, especially pressure sensitive, however there are other alternative packaging methods that will put some limits on that growth. Digital label production will continue to increase as a result of the increase in available toner, inkjet and hybrid solutions. ●

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PIA Affiliates Speak Out About PRINTING United Alliance Relationship Christine Hagopian, Tim Freeman, and Lou Caron share their perspective on what this relationship means. Find video here: www.printingnews.com/21149525

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MANAGEMENT ─ Agility

INNOVATE

INCESSANTLY From the printing press to a streamlined workflow, it’s all about agility.

nnovation has powered the advancement of people, civilizations, nations and businesses for ages. Easily one of the greatest innovations of all time gave rise to the print industry: the Gutenberg press. It not only improved an existing process, but expedited the process of print and democratization of information so remarkably that it is credited for ushering in the Age of Enlightenment. For centuries the printing press had been so influential in business, politics, religion and science that Mark Twain would write, “What the world is today, good and bad, it owes to Gutenberg.” In the modern age the impact of innovation, comparatively moving at light-speed, is measured in hours and days, not centuries. Digital transformation, or the Fourth Industrial Revolution, is advancing at a mind-numbing pace. In the print industry, technology advances bring promise of propelling new digital integration, seamless workstreams, marketplace convergence, down-market reach and extreme personalization. While advances may be enlightening to some, the delta between the early adopters and the laggards continues to widen. Weighed down by the technical debt and disconnectedness of legacy systems, many print companies are investing precious capital and time in course-correction of their technology strategy. B2B customer expectations of user-experience is increasingly blurred with the B2C ease of online shopping and near real-time availability of order information. Thus, the print

service providers who can tightly align with emerging customer expectations will own the future. The answer to this growing problem is to establish a new agility within your operation. For organizations to become more agile there must be a catalyst. That catalyst is innovation, which is the fuel that powers the engine of agility. Those who incessantly innovate at key tactical points within the organization, will cultivate a lasting and flourishing business agility. Innovation is not an unreachable ideal reserved for the entrepreneurs and engineers. It is, in fact, something you are likely already doing. The easiest way to approach innovation is to holistically apply it both internally to your business systems, and externally to your market solutions.

Internal Innovation: Adopt Efficiencies Efficiency in business can be simply defined as “doing things right.” As I have advocated through the entire agility series, our industry is in need of improved organizational efficiency. Whether assessing your organizational design, planning inclusively, bridging strategy to execution, or wielding the data sword, the focus has been on creating efficiencies that will stoke new agility. Contemplate an optimal state business system

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design: jobs flow seamlessly into your operating system with few preflight exceptions, are routed to the appropriate location, and then queued at the most efficient piece of equipment for production. All the while the customer is monitoring their dashboard progress chart and adjusting expectations and the latest distribution plan based on clear job visibility and trust borne of consistency and accuracy of information. There are hundreds (if not thousands) of variations of this optimal flow where innovative providers have leveraged people, processes, technology and structure to enable the operation to function with increasing automation. That is the efficiency of internal innovation. Investing, planning and executing on systems improvements will take time. Manage within your resources but create stretch goals that reward your team at defined intervals for systems and process innovations. While the leaders (early adopters) pave the way beyond this optimal state, it is incumbent upon the early and late majority to lean into a plan to accelerate adoption of automation technologies. In doing so, be realistic with your current state and augment that realism with patience to create an attainable path forward.

External Innovation: Advocate Effectiveness Where efficiency is “doing things right,” business effectiveness is defined as “doing the right things.” The commercialization of products and services requires a large percentage of annual budget. You are introducing change into the organization and customer relationships, which is accompanied by risk. It would be ideal to know that the solutions you bring to market have relevance and can solve customer problems, deliver an ROI, and help scale company growth. At times, innovation can be

an inexact science (or art). Read More… However, you can mitigate Find article at PrintingNews. much of the risk through com/21149614 a deliberative approach to external innovation. To minimize risk focus on these two things: First, know what your customers want. There are simple tools like customer surveys, written and conducted by professionals, that will divulge objective results. You want to know what customers think of your current products, new solution ideas, the overall customer experience, and how they rate you in comparison to others. These data points, and others, are easily discoverable and infinitely informative. Capture customer insight, formally and informally, to know how to anticipate the market and guide your innovation efforts. Second, find your creative high-potentials, that operationally-minded person who is always bringing the latest ideas from the marketplace, and build resources around them. Develop an operational plan for them to identify emerging products, technology and solutions and test them in the marketplace. Modify incentive income so that the customer-facing team will engage the innovation team in expanding current relationships and breathing new life into the dusty prospect list. Insure this effort is augmented with strategic guard rails where the innovation effort is aligned with the company’s vision and mission, the true-north. Few things will galvanize your customer base and intrigue prospective customers like the bleeding edge of innovation. Assume the risk of misfires, as there surely will be some, and adopt a cultural principle of tolerance for imperfection. Transparently create customer partnerships to forge into the new world of the evolving optimal state. The stakes can be high, but so are your goals and expectations.

Continued on page 63

Preston Herrin is a strategy, growth, and performance consultant. He has served in c-level and senior leadership roles at fast-growth companies like 4over LLC, Café Press, and Drummond. In his 30-year career Preston’s roles span strategy, business development and executive management providing e-commerce, software, logistics and service solutions for all vertical markets such as Manufacturing, Finance, Healthcare, Nonprofits and more.

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DIGITAL & INKJET ─ Estimating

INKJET INK ESTIMATING Challenges and work-arounds

stimating in any print business can be a challenge, but inkjet users face a level of variability that users of other print technology don’t. Ink costs represent a large percentage of job costs, and the level of ink use varies widely. Any time you change the media for a job, you also change the level of ink consumption – sometimes by a little but often by a lot. Savvy inkjet users also have the ability to control costs by limiting ink usage according to the minimum needed to hit particular color targets. This makes understanding ink costs on each job an important part of the estimating process. In a recent Inkjet Insight survey of production inkjet users, 79% of respondents considered the ink estimating process to be important or very

Figure 1. Use of Ink Estimating Software

Source: Inkjet Insight Production Inkjet Market Survey on Ink Estimating

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important to their overall estimating process. More than half (54%) of respondents indicated that they run more than half of new jobs through their estimating software, and 81% indicated that there were particular types of jobs where ink estimating has helped them compete more effectively. However, not everyone follows best practices with ink estimating. More than a quarter (28%) of respondents indicated that they perform ink estimating on fewer than 10% of jobs. We dug further to find the reasons why. Survey responses included participants who reported working with a wide range of OEMs including Canon, Durst, EFI, Fujifilm, HP, Kodak, Konica Minolta, Kyocera, MCS, Monotech, Ricoh, RISO, Screen, Xerox and others. Many participants had presses from more than one inkjet OEM and some used more than one ink estimating tool. The survey also represented companies across application segments including direct mail, commercial marketing collateral, transaction print, books, catalogs, magazines, signage and display, packaging, labels and newspapers. The majority of respondents used inkjet for more than one type of work.

Challenges with Estimating There are multiple reasons for the discrepancy between the stated importance of ink estimating and the percentage of jobs actually estimated: ● Some companies don’t have an ink estimating solution installed, or the solution they have is linked to the press and can’t be used when a job is running. ● Some companies cite challenges with the ink estimating process, lack of time or lack of trained resources as reasons for not using their ink estimator. ● Transaction printing operations and those producing certain types of books have jobs that are relatively uniform in their formats and coverages. In these segments it is reasonable to create an estimating baseline using a representative sample of jobs (10% or fewer.) ● Other companies have extremely variable ink and paper usage and would prefer to run ink estimating, but they don’t receive a file to use for estimating prior to delivering a quote. To generate a useful ink estimate, you need to have a

WhatTheyThink - Printing News | April 2021

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production-ready PDF, not just a designer’s concept file. It’s important to pre-flight the PDF for estimating the same way you would for production. For example, if black is specified as CMYK (rich black) instead of pure K you will lay down more ink than needed. Once you have a tuned-up PDF, you need to make sure that you are setting the estimator to real-world conditions as well. Have you created a profile that limits inks? Will you be using primer? Will you run the file at full speed with a lower resolution? This may seem obvious, but we’ve seen many examples where companies estimate at full speed and end up producing a job at lower speed with the highest resolution to improve quality. However, that level of quality uses more ink and more press time, so it should be priced accordingly. If these scenarios exist in your shop, that means that the person doing the ink estimating needs to have the skill level to adjust for those settings and assumptions. There can also be challenges with accuracy, particularly if you don’t look closely at what is being measured. OEMs take different approaches to their estimating process in a number of areas. First, the volume used to calculate the job. Some will measure based on 100 or 1,000 copies of

Figure 2. What Ink Estimating Software is Available for Your Use?

Source: Inkjet Insight Production Inkjet Market Survey on Ink Estimating

the file and average the ink usage per page. Roll-fed estimates may be based on linear feet with the volume then averaged per image. In addition, some estimators measure the amount of precoat when used, while others don’t, or don’t show it clearly. Another factor is the amount of ink used independent of image rendering for exercising printheads or flushing. Most importantly, remember that ink estimating is just that – an estimate. Several tools promise estimates with accuracy within +/- 5% while others might have a higher variation of 10% or more. Typically, the estimates are conservative to prevent customers from under estimating and losing money. However, how closely you set the parameters in the estimator to the reality of production will affect

Elizabeth Gooding helps companies to streamline their business process, improve customer retention, and maximize new opportunities for document design, print and Internet technology.Contact her at Elizabeth@inkjetinsight.com.

accuracy. If you own an ink estimating solution, take the time to check the accuracy of your estimator against your specific press and paper types.

Overcoming Challenges Most inkjet printing system manufacturers provide an ink cost estimator to help printers determine an accurate cost per page. The majority of survey respondents (67%) owned software provided for free by their OEM and another 10% paid for software from their OEM. Another 18% developed a solution internally, and some companies had access to more than one solution. As noted earlier, if you don’t have files to run through it, even a perfectly accurate estimator won’t help. This is where work arounds come into play.

Alexandra Pekar is a consultant at Insight Forums and an analyst at Inkjet Insight.

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DIGITAL & INKJET ─ Estimating Data Reproductions Corporation in Auburn Hills, Mich., is a book and catalog producer that recognizes the importance of ink estimating. According to Dennis Kavanagh, DRC’s EVP and COO, ink costs can run from 15% of the job cost for black-only jobs up to 50% of the job cost for heavy coverage, high-color jobs. Unfortunately, they rarely receive files to estimate in advance of quoting, so they created their own process by drawing on data from actual runs. Daily ink consumption by job and by page is harvested from their inkjet press and put into a Microsoft Access database/MIS. From this data, they developed conservative estimate ranges for three classifications of jobs: Read More… mono, light/ Find article at low-color and PrintingNews. heavy/highcom/21149797 color. They also back-test jobs after production to verify that their estimates were in the target range of actuals. Kavanagh reported that between 2019 and 2020 fewer than 10 jobs out of 700 were costed incorrectly. “We don’t constantly look at the ink usage now because of the fact that our methodology appears to work sufficiently,” Kavanagh said. “We have the luxury of having relatively simple requirements based on our niche as a book manufacturer.” This data drives a selfdeveloped Excel-based estimator that is used by sales reps and estimating staff.

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DRC is not alone. Even companies who have commercial estimating solutions often need to find work-arounds. Martin Aalsma, COO with AM Solutions, a customer-driven, multi-channel communications provider in Edgerton, Wis., reported that both a lack of files from customers and challenges with their OEM-provided estimating tool have forced them into a threetier estimating process for much of their business. “Our press has an onboard estimator, but you have to stop the machine from printing or RIPing anything to do the estimate, then drop the results into a homemade Excel sheet to calculate rough cost yourself,” Aalsma said. “Besides the inefficiency of the process, the variance with that estimate and the final press report after printing was sometimes in excess of 5%, or even a 10% difference.” Like DRC, AM Solutions uses data-driven work-arounds that involve measuring actual usage from jobs and creating baselines for estimating future work. This is less than optimal for the company because their work is highly variable. To safe-guard their profit margins, they follow best-practices with qualifying and profiling their media, including developing different profiles for varying color requirements to ensure that they are using the minimum ink necessary to deliver a quality result. “A lot of shops are not taking advantage of really

fingerprinting their stock library to maximize ink savings to best quality,” Aalsma said. “At one of the previous companies I worked at during the early days of inkjet, we had a consultant spend several days with us to optimize our color profiles to and teach us how to manage the ink. We saved about 20% on our ink costs.“ With or without estimating software, work-arounds are often needed to make sure that jobs are estimated profitably. If you don’t have estimating software, or don’t receive files to use with the system you have, create baselines using actual ink usage for typical jobs and generate guidelines for incorporating ink costs into the estimating process. It won’t be exact, but it will be as consistent and evidence-based as possible. Make it a regular practice to compare a wide sample of actual jobs produced to their related estimates. You will likely find that the estimator diverges from actuals in certain areas by a consistent amount and you can factor this into the estimating process. Also, consider that there are areas that the estimator will not catch on an individual job basis, such as time and ink usage on certain devices to ramp-up to printing speed. Make sure to also account for differences by paper type and profile. With estimating, you get out of it what you put into it. Find more information on the Production Inkjet Market Survey on Ink Estimating Solutions at InkjetInsight.com. ●

WhatTheyThink - Printing News | April 2021

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MANAGEMENT ─ Identity Graph

CHARTING YOUR COURSE What is an identity graph and why does it matter?

s the world of data and technology continues its relentless race forward, its speed often outpaces our ability to keep up with the new terms it generates. One of the latest—and quite important—of these is “identity graph.” If you had a graphic that described everything you know about a shopper, from his or her demographics, to online and offline shopping behavior, to channel preferences and social media interaction, further amplified with third-party data to fill in the gaps (from the make and model of that person’s car to their music tastes), and that information was continuously updated and validated over time, that would be an identity graph. The identity graph is the next step along the continuum of marketers’ understanding of their customers. That continuum look like this: 1. Customer data: This includes any data located in any of a number of a company’s often siloed databases, including purchase, email, direct mail, advertising, web, app and in-person. It can include demographic data, as well as behavioral and psychographic data. 2. Identity resolution: People interact with brands through any number of different channels. Identity resolution is the process of identifying individuals across those channels and connecting their profiles from each channel into a single, comprehensive profile. For example, through identity resolution, a marketer can identify Janie B. Smith who shops online on her laptop as the same as Chocolate Labs Forever who interacts on social media on her iPhone as the same as Janice B. Smith who shops in-store. 3. 360-degree customer view: Once identity resolution has occurred and the customer data from disparate silos has been pulled together, marketers have a

“360-degree view” of each customer that they can use to target their marketing campaigns with incredible precision. For example, as described by Amperity, “An airline can easily create a segment of people who have flown to Denver in the last 12 months, who have not checked a bag, have the airline’s credit card, and are opted in to email communications. This sample Read More… segment could be used for highly Find article at targeted marketing campaigns PrintingNews. com/21149649 across a variety of digital and nondigital channels.” 4. Identity graph: An identity graph is the next step beyond all of this. It adds even more data, whether gathered by the marketer or purchased from other sources. It contains and centralizes all of the data touchpoints for a customer, not just in the moment, but over time. It’s who they are, where they live, what devices they use and their device IDs, social media interactions, demographic and psychographic characteristics, buying preferences, purchase history and any other characteristics or behaviors that can be known about them. An identity graph ensures that, at any give time, the information on each customer is accurate, complete, up to date and as deployable as possible. Key to an identify graph is not just gathering information, but linking it. Linking is the ability to accurately link data sets so that this view of a customer is not only complete, but accurate. You don’t want to inadvertently link two different people into a single, inaccurate profile. An identity graph is also Continued on page 63 Heidi Tolliver-Walker has been a commercial and digital printing industry analyst, feature writer, and author for more than 20 years. Her industry commentary can be found in national printing publications, blogs, and marketing publications.

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PRINTING INDUSTRY NEWS ─ News Trending On Printingnews.com EFI Introduces Nozomi C18000 Plus

Duplo 150 Booklet System Duplo USA Corporation has introduced new products to its bookletmaker, duplicator, and cutter lineups. Designed for efficiency and ease of use, these products will appeal to print providers and in-plants with shorter run demands. Ideal for low to mid-volume runs, the 150 Booklet System offers an entry-level solution for print providers considering bringing their bookletmaking in-house. With a production speed of up to 2,400 booklets per hour, the 150 Booklet System performs saddle and corner/side stapling up to 25 sheets. Users can go from a letter-size job to a CD-size booklet within minutes and minimal tooling required. www.printingnews. com/21149033

The new EFI single-pass for display graphics UV LED inkjet printer, part of EFI’s super-high-speed series of devices, leverages the capabilities of the market leading EFI Nozomi C18000 Plus printer for direct-to-board corrugated packaging production. With this 63-inch wide single-pass solution, users can reach breakthrough speeds, running through skids of synthetic media and paperbased materials at speeds up to 1,000 sheets or boards per hour. This Nozomi C18000 Plus can give users the lowest cost per square foot in the market, while also giving them the greatest application range and extreme efficiency. The 7-color printer delivers a wide color gamut with six colors: CMYK with optional orange and violet inks, plus white. The printer’s on-board quality inspection system checks for color uniformity, as well as for nozzle out and other defects to further ensure optimum print quality. www.printingnews.com/21149046

Inkcups Expands Helix Product Line with New Machine That’s Twice as Productive: The Double Helix Inkcups announces the release of the newest addition to the Helix line of products: the Double Helix. The Double Helix features two side-by-side print stations that are able to simultaneously print the same artwork on two of the same vessels. These print stations have the ability to print superior quality, full-color (CMYKWW+V) images on straight-walled and tapered cylinders. Fast and flexible just like the flagship Helix, the Double Helix can print full-color seamless graphics at around 6 to 8 parts per minute depending on artwork size. Ideal for use with drinkware, barware, spirits, craft beer, candle holders, and many other industrial cylinder printing applications. Typical end products include high quality graphics on stainless steel tumblers, pint glasses, beer cans, wine and spirit bottles, sports bottles and much more. www.printingnews.com/21148816

Mark Andy Partners with Domino on New Digital Series iQ Press Mark Andy has announced the launch of its latest production inkjet press, Digital Series iQ. Built on Mark Andy’s Evolution Series flexographic platform for application flexibility, the press uses a Domino N610i UV inkjet module for high-quality production-class printing. The Digital Series iQ is available for immediate order. Joining Mark Andy’s digital hybrid solutions, Digital Series HD and Digital Pro, Digital Series iQ follows the path of its Mark Andy digital portfolio companions by combining high-resolution digital print and the flexibility of inline converting to maximize revenue generation. Digital Series iQ can be configured with up to 7 UV inkjet colors (CMYKOV+WW). Hybrid converting components can be integrated to meet each customer’s specific requirements. Print stations, semi rotary die cutting, rail system, and inline slitting are common options selected by some early adopters. The press has a high-quality print resolution achieving speeds up to 230 fpm (70 mpm) in rapid production mode. The press also integrates software solutions from Esko and Global Graphics. www.printingnews.com/21148533

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Xeikon Adds Two New Entry-Level Presses Xeikon America, Inc. announced the addition of two new digital label presses – the Xeikon CX30 and Xeikon CX50. Building on its sixth generation platform and based on CHEETAH 2.0 technology with new generation interfaces and cloud connection, these new presses are designed to offer maximum overall equipment effectiveness. The Xeikon CX30 and Xeikon CX50 fit into the Xeikon portfolio between the Xeikon 3030 REX and Xeikon 3050 REX entry-level presses and the higher-end Xeikon CX300 and Xeikon CX500. Xeikon has designed and developed the two new presses to suit any label printer operating on ‘middle capacity’, that is: 20,000-40,000 m2 or 30,000-55,000 MSI in all end-use segments. The new machines are available for online demonstrations from Xeikon’s Global Innovation Center in Antwerp, Belgium, and commercially available worldwide in the first quarter of this year. CHEETAH 2.0 technology is based on Xeikon’s scalable press architecture that includes five print stations and a full rotary process with a variable repeat length. Each station utilises Xeikon’s dry toner process and a variety of print widths up to 512mm (20.3”) using an LED imaging head operating at 1200x3600 dpi and delivering offset/gravure image quality. The two new presses use Xeikon’s QB dry toner based on CHEETAH 2.0 technology, which ensures the highest volume of output with reduced waste. The toner is available in CMYK, Red, Blue, Green, Orange, extra Magenta (gamut extension colors), Super Black, plus technical colors. www.printingnews.com/21149385

Summa Launches Tray One, a Most Effective A3 Sheet Feeder for the S One Roll Cutter Series Specifically developed for the desktop models of its new S One roll cutter Series, Tray one not only benefits large volume industries but focuses equally on small volume businesses such as copy shops and retailers. Tray One represents the ideal sheet/label cutting solution specifically engaging in optimal easeof-use in the cutting workflow. www.printingnews.com/21149471

Agfa Introduces Fastest Jeti Tauro Inkjet Printer to Date

Colortrac Introduces New Value-Priced Scanners, Software

The Jeti Tauro H3300 UHS LED is Agfa’s new flagship, targeted to the high end of the sign & display market. This UV LED inkjet engine prints media up to 3.3m wide in four or six colors at a speed up to 600 m²/h. Like the other members of the Jeti Tauro H3300 family, it is a hybrid that can handle boards and sheets as well as flexible materials – in different configurations. Every component of the new Jeti Tauro H3300 UHS LED (UHS for ‘ultra-high speed’) is geared towards sustaining productive, reliable print operations with low maintenance requirements and high uptime. Examples include the high-speed autoloader for fast media processing and the large ink tanks for greater autonomy. The extended vacuum zones and media guides make it well-suited for corrugated cardboard packaging printing, enabling sign & display printers to expand their offering and cover all deliverables for marketing campaigns. The master roll-to-roll configuration can handle single- and dualroll printing and features an optional camera for accurate double-sided printing of block-out media.

Colortrac introduced new large format scanners, the SmartLF SGi and SmartLF SCi, along with new scanning software, SmartWorks Imaging, to support them. The SmartLF SGi and SmartLF SCi scanner series are ideal for capturing, enhancing, sharing, and copying information from large format documents of all types, such as handdrawn originals, old plans, markedup construction drawings, textured artwork, thick media, and more. The Colortrac SmartLF SGi and SmartLF SCi large format scanners deliver fast performance, with optimized preset controls and an extended list of internal printer drivers to connect directly to large format printers.

www.printingnews.com/21149428

www.printingnews.com/21149660

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WIDE-FORMAT & SIGNAGE ─ Sign Franchise Review

2021

ANNUAL SIGN

FRANCHISE REVIEW Signage remains strong, even throughout the pandemic.

ne of the biggest themes of this year’s “Print Franchise Review” and this “Sign Franchise Review” is that the division between the two types of franchises is starting to blur. The commercial print franchises have been expanding into wide format and display graphics, and even, in some cases, traditional manufactured signage, such as channel letters, monuments and other non-printed signs. This is not a new trend, and in fact parallels what we have been seeing in the general printing industry for the better part of the past decade. On the other side of the admittedly narrowing divide, the sign franchises have also been adding commercial print services, either by installing equipment in-house, via brokering, or by acquiring commercial printers and rolling them into the franchise brand. This also is not a new phenomenon, and some franchises have long offered commercial print products and services, although some—SpeedPro namely—are starting to move more strongly in the M&A direction. Others, like Alliance Franchise Brands, have a co-brand program that jointly brands a single center with both the print and sign franchise. We are still debating whether to combine the two franchise reports, but there is NAICS (North American Industrial Classification System) to think about. For example, when we track the printing industry in our various data series we are talking about businesses classified in NAICS 323 (Printing and Related Support

Activities), which the U.S. Census Bureau defines as: ● Industries in the Printing and Related Support Activities subsector print products, such as newspapers, books, labels, business cards, stationery, business forms and other materials, and perform support activities, such as data imaging, platemaking services and bookbinding. The support activities included here are an integral part of the printing industry, and a product (a printing plate, a bound book or a computer disk or file) that is an integral part of the printing industry is almost always provided by these operations. On the sign side, the Census Bureau has two different classifications for signs and display graphics: ● NAICS 339950 Sign Manufacturing: This industry comprises establishments primarily engaged in manufacturing signs and related displays of all materials (except printing paper and paperboard signs, notices, displays). ● NAICS 541850 Display/Outdoor Advertising: This industry comprises establishments primarily engaged in creating and designing public display advertising campaign materials, such as printed, painted or electronic displays; and/or

Richard Romano has been writing about the graphic communications industry for 20 years. He is an industry analyst and author or coauthor of more than half a dozen books.

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placing such displays on indoor or outdoor billboards and panels, or on or within transit vehicles or facilities, shopping malls, retail (in-store) displays and other display structures or sites. This may all seem a little Inside Baseball, and it is, but it does provide an argument for keeping the two franchise reviews separate. After all—and this doesn’t just apply to the franchises, but to print and sign businesses throughout the industry—there is a difference between a “sign shop” that has decades worth of experience in all facets of signmaking and a commercial printer that has bought a wide-format printer and produces some printed signage and other display graphics. We just need to be sure of what and who it is we’re taking about. At any rate, that was an issue we wrestled with as we were putting together this report. (It is worth mentioning that PRINTING United Alliance and IT Strategies have launched an initiative to overhaul our entire industry taxonomy. We’ll cover that in detail as it progresses, but here is an overview of the project: https://bit.ly/2NsJYS0.)

The State of the Sign Franchises According to the latest County Business Total Corporate- Shops Shops In North Owned In America Shops System

Patterns, in 2018 (the most Find article at recent year for which the Census PrintingNews. com/21149786 Bureau has data), there were 5,853 Sign Manufacturing establishments, an increase of +2.2% from 2017, and 2,765 Display/Outdoor Advertising Establishments, an increase of +4.7% from 2017. So, generally speaking, the sign business is on rise—or at least was as of two years ago. Anecdotally, we know these trends continued through 2019. Until… …the elephant in the room. As you might expect, dealing with the pandemic was what occupied all the franchises in 2020, and often—but not always— pushed other initiatives to the side. How do the sign franchises compare this year? The sign and display franchises included in this year’s review are: ● Alliance Franchise Brands (Image 360, Signs By Tomorrow, and Signs Now) ● FASTSIGNS International ● Signarama (part of United Franchise Group) ● SpeedPro All told, there were 1,942 centers among the four franchises in 2020, which represents a -2.2% decline in total centers from last year’s franchise

Average Sales Per Shop

Average Number Of Employees Per Center

Average Investment To Open New Shop

System-Wide Sales

Highest Revenue Shop

$2,653,556

Alliance Franchise Brands (Signs By Tomorrow, Signs Now, Image 360)

303

299

$547,133

$196,498$370,473

$165,781,337

FASTSIGNS

750

650

$860,000

$250,000

$545,000,000 $14,000,000

Signarama (part of United Franchise Group)

721

415

$1,121,672

$104,908$313,775

$281,000,000

$8,433,651

SpeedPro*

168

$446,000

$200,000

$75,000,000

$2,600,000

Total**

1942

1532

$743,701

4.5

$244,495

$1,066,781,337

$6,921,802

* SpeedPro numbers include SpeedPro Canada, which has lower sales and investment numbers than the US operation. ** All figures in this row are totals, except avg. sales per shop, avg. number of employees, avg. investment to open up a new shop, and highest revenue shop, which are averages.

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WIDE-FORMAT & SIGNAGE ─ Sign Franchise Review review. All things considered, that’s not bad for 2020. And while three out of the four franchises had a net loss of centers over the course of the year, FASTSIGNS actually grew centers. In our conversations with the franchise heads, loss of centers wasn’t entirely due to the pandemic; some locations had been struggling for a while, there were owner retirements and non-COVID medical issues (even some deaths), and other factors unrelated to the business. For all franchises, the number of current centers is a net number; there were some closures and some new centers opening, so it wasn’t an entirely moribund year. Still, some of the franchises chose to focus on helping out the centers that already existed rather than opening new centers. “We had a number of resales that we did last year, but we did not focus at all last year on opening up new studios,” said Larry Oberly, president and CEO of SpeedPro. Some centers used the shutdowns of the spring and summer to catch up on backlogged projects. “A lot of owners were able to go in and say, ‘Hey, since your school is shut down, can we do that rebranding project you wanted to do?’” said A.J. Titus, president of Signarama, “or, ‘People can’t come out, so this is the best time to rebrand your stadium.’” Tracking the changes from last year: ● Alliance Franchise Brands had no net change in centers, compared to 2019, as new centers offset lost centers. System-wide sales were down -8.9% from 2019, and average sales per shop were down -10.0%. The highest revenue shop in the network was actually up from 2019—a common occurrence in this year’s survey. ● FASTSIGNS saw a +3.3% increase in centers. System-wide sales were also up +0.9%, and the average sales per shop were up +4.2%. The highest revenue center for 2020 was 75% higher 2019’s highest revenue center. ● Signarama also saw a growth in centers last year—they were up +3.0%. System-wide sales declined -10.2%, however, and average sales per shop dropped -6.4%. And, again, the highest revenue shop for 2020 was 20% higher than 2019’s. ● SpeedPro U.S. saw a -6% drop in studios and

system-wide sales were down -17%. (These numbers exclude SpeedPro Canada studios.)

The Pandemic: Grace Under Pressure The sign franchises were well-positioned during the pandemic because if there was one graphic communication application that became essential, it was signage. Many centers closed down immediately and reopened when they were allowed to, although some chose to stay closed even if they could stay open. How well individual centers did was generally a function of two factors: geography and primary verticals served. In states that aggressively forced businesses to shut down—like California, New York, Washington and some others—centers fared worse than in states that allowed businesses to remain open. “We definitely were harmed the most in California, Nevada, Illinois, New York and Washington state as well,” Oberly said. “We had the biggest declines in some of those, some very severely like California, where we have our largest market penetration.” As for verticals, it’s no surprise that centers that primarily served events, travel and hospitality customers did the worst, while those that served medical and health customers fared the best. It was a year that demonstrated very well the advantages to being part of a strong, effective network and having a strong corporate “mothership” offering guidance, education, downloadable materials and templates, and sometimes just a “pep talk.” “Every Thursday, we would hold a weekly ‘Connect with Catherine’ video conference call on everything they needed to know about successfully navigating the COVID pandemic,” said Catherine Monson, president and CEO of FASTSIGNS International, “whether it was how do you comply with the FFCRA [Families First Coronavirus Response Act]? How do you benefit from the CARES Act? How do you apply for a PPP loan? Very early on, how do you get deemed an essential business? How do you market virtually? How do you make virtual sales calls? What products and services are selling? What industries are buying?” The weekly video calls also let the individual centers help inspire each other. “We set up a ‘successstory’ email address and

WhatTheyThink - Wide-Format&Signage | April 2021

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every week in the ‘Connect with Catherine’ I would share franchisee-specific success stories that would motivate other franchisees to try the same thing; I would remind them to send in their success stories. This created a ‘flywheel’ of success.” Lying beneath the surface of the aggregate numbers in the table above is a range of individual center performances. “Our best stores actually performed extremely well,” said Signarama’s Titus, “and the middle-tier stores probably lagged a little bit.” He chalks up the success of the leading shops to focusing on sales and getting out and talking to people—largely through Zoom. And one major key for many sign franchise centers was being able to start producing PPE, safety signage, and all the new applications that came out of the pandemic. The sign franchises also quickly supplied

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resources for local businesses. For example, Alliance Franchise Brands developed “Back to Business” packages for various vertical industries. “Early in the pandemic, we knew it would be critical to support our franchise members in new and innovative ways,” said Ray Palmer, President of Franchise Operations for Alliance Franchise Brands. “So, we quickly aligned our teams, researched the CDC and NIH guidelines on safe environments during a pandemic, and built vertical marketing packages by industry. These turnkey marketing and sales materials allowed our members to quickly reach out to clients with ideas on how we could help them reopen safely.”

The Competition: A Crowded Market Being part of a franchise network was an important lifeline during the pandemic, but other trends had started impacting these businesses years

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WIDE-FORMAT & SIGNAGE ─ Sign Franchise Review earlier, but were made more acute during the pandemic. Last year, we heard many stories of commercial printers who were able to “pivot” to signage and display graphics, and that helped them get through the year. But it was a pivot that many printers started doing years ago. So the sign franchises have been seeing increased encroachment from general commercial printers and the commercial print franchises, and the consensus among the sign franchises is that “we know signs better than anyone” and they are undaunted by these seeming “upstart crows” coming from other parts of the printing industry. On the other hand, it makes sense to offer customers one-stop shopping, so the sign franchises have largely been able to offer small-format commercial print work either on a brokered or partner basis. “We’ve had national print partners and relationships in place since the first year I got here,” Monson said. “We’ve got a number of co-brand franchisees who also do printing for other fellow franchisees, and we have some franchisees that have added small-format equipment. So whether it’s done in-house or outsourced doesn’t matter to us. We’ve had some franchisees buy local independent sheetfed print companies and bring them into their FASTSIGNS just buying the book of business. “Signage is our business,” Monson said. “It has been our core business for 35 years. We just continue to sell more and bigger comprehensive solutions and comprehensive projects.” Signarama’s Titus concurs. “This is our 35th year in the business, and if someone’s going to try to jump in now, we have all the history, we have the brand, we have the R&D, and we have all the history in what we’ve built.” On the other hand, it makes sense to offer customers one-stop shopping, so the sign franchises have largely been able to offer small-format commercial print work either on a brokered, partner or in-house production basis. “We’ve had national print partners and relationships in place since the first year I got here,” Monson said. “We’ve got a number of co-brand franchisees who also do printing for other fellow franchisees, and we have some franchisees that have added smallformat equipment. So whether it’s done in-house or

outsourced doesn’t matter to us; it is about servicing the customer. We’ve also had some franchisees buy local independent sheetfed print companies and bring them into their FASTSIGNS, just buying the book of business and equipment.” Likewise, SpeedPro has offered commercial print as well as signage and display graphics. “We’ve been in the business, we’ve just been doing it through third parties,” Oberly said, “but I think there is opportunity for us to acquire the right company in the right marketplaces. We’d expect to roll those into our operation.” Look for SpeedPro to be more active in the M&A space as we go forward. Alliance Franchise Brands, having franchises on both sides of this divide, are well-positioned to understand what is driving commercial printers into wide format and signage. “They’re becoming blended so much it’s hard to distinguish anymore,” Palmer said. “Everywhere you look, you see that most of the printers, if not all, are heading into the signage world because they have to, whether they like to or not. They have to maintain relevancy— and keep up with the demands of their customers.” As a result, they have 33 Allegra/Image360 dualbrand locations, which they are in the process of streamlining. “We’re taking a look at that business model because when you put two brands together, the business model changes for both brands,” Palmer said. “We are evaluating how the operation looks, the ability for cross-training and efficiencies, as well as marketing strategies. But the bottom line is that there is power in having two brands that specialize in print/mail/promo and signage/ graphics/displays to meet our clients’ needs.” Signarama, part of United Franchise Group (UFG) and its family of brands, really stepped up during the pandemic and aided their local communities. “For Signarama specifically, many of our franchisees retooled their sign-making equipment to create face shields, sneeze guards and customer CDC signage and even intubation boxes to protect surgeons as new information became available from the CDC,” Titus said. Signarama stores focused on the needs of essential businesses as well as gratitude signs for

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healthcare workers and those serving the community. The brand often partners with Fully Promoted, another UFG brand which specializes in promotional items and screen and specialty printing. “Fully Promoted did an incredible job from the PPE side, and our franchisees were able to align efforts and assist customers in their communities while working together,” Titus added.

The Future: Adding Other Services At the moment, the sign franchises are busy enough keeping up with demand for signage that they are not looking too hard for new applications— like 3D printing or textiles—to branch into. “We’re seeing people dabble in the 3D space, but nothing substantial or even measurable,” Palmer said. “The technology is there, but the applications really aren’t. There’s no killer application for 3D yet.” Palmer has been seeing their members on the sign side expanding their offerings into what he refers to as “non-traditional, but becoming traditional” graphic opportunities, such as “XGD” or “experiential graphic design.” “Those are more advanced types of offerings that take more creativity, and they’re higher value,” Palmer said. “We’re seeing a migration of our more advanced centers into those types of projects.” Again, this is to effectively compete with the encroachment from the commercial printers adding wide-format equipment. Indeed, that is the strategy of the sign franchises, which is to focus less on the printing aspect of signage and concentrate on the more traditional aspects of signage like monuments, channel letters and complicated installations that are more akin to construction projects than applying a graphic to a surface. And while it may not seem immediately intuitive to think of some aspects of interior design to be “signage,” that’s another line that’s blurring. “We still do all the core signage that is a staple in our model, but we also see an opportunity to differentiate by working in new spaces,” added Palmer. “With the same equipment that we use to make traditional signs, there’s a lot we can do that wouldn’t be thought of as traditional signage. People don’t consider art on the wall to be a sign, and yet we do that.”

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Some of the franchises—not necessarily en masse, but individual centers—were proactive in doing “celebratory signage”—those “Class of 2020” lawn signs that cropped up around graduation time last year. “Many of our franchisees reached out to the local school districts to sell the school district $10,000–$20,000 jobs to produce graduation signs for all the seniors, including photos and names and individual signs for every senior’s front yard,” Monson said. “Even junior high and elementary schools were getting them because schools were trying to make their students feel special.” Others, like Alliance Franchise Brands, went the B2C route for these kinds of signs, but the sign franchises still tend to not focus on the B2C market. “Our focus continues to be B2B because we think that’s where the model needs to be,” Palmer said. “It’s a recurring revenue model: once our members get a client, they keep them. They find new ways to work with them and build trust. You don’t get that same type of repeat business from a B2C base. So, while we captured these opportunities, especially during the pandemic, it’s not something we see our members deeply focusing on in the future.” FASTSIGNS has been active in the M&A space for the past year or so, and is actively moving into new markets. In December 2019, they acquired a small sign franchisor called Sign Me Up and converted their locations to FASTSIGNS, which added another 12 locations to their footprint. In September 2020, FASTSIGNS also acquired a computer support franchise called NerdsToGo. “We are adding a lot of enhancements to their offering and professionalizing them as a franchisor,” Monson said. “We’re teaching their franchisees how to be more profitable. We’re bringing them higher margin, recurring revenue products and services.” After the NerdsToGo acquisition, FASTSIGNS created a holding company called Propelled Brands. “And we’re looking for other B2B franchisors to buy,” Monson added.

Looking Forward The sign franchises are bullish on 2021— heck, many were even bullish on 2020. And while many initiatives and strategies that predated the

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WIDE-FORMAT & SIGNAGE ─ Sign Franchise Review pandemic were put on hold, it’s not time to start them up again. Most of the sign franchises have a conversion program, whereby an independent sign shop is converted to a franchise, and they will be making a renewed effort in this direction, as well as other growth initiatives. Here are the results of our Sign Franchise Survey, conducted in February, 2021.

Alliance Franchise Brands What do you see as the biggest challenge for your network in 2021? ● The pandemic is going to change the way we do business for the foreseeable future and perhaps permanently in some ways. ● Helping our franchise members operate profitably while we work to get to the “new normal” is a key focus of Alliance Franchise Brands. ● Liquidity, partnering with our supply chain, and increasing market share will continue to be some of the key focus points for Alliance Franchise Brands and our members. ● A challenge that we try to keep front of mind is “pandemic fatigue.” Not only of our franchise members, but of their client base as well. We

need to continue to stay focused on providing the solutions needed now and into the future. ● The way to effectively conduct business in the future will continue to change, and we are focused on helping lead and drive that change. What do you see as the biggest opportunity for your network in 2021? ● We continue to see evidence that the underlying foundation of the economy remains strong. The experts we consult are advising us of a solid comeback to the economy. We have seen figures of almost double-digit quarterly GDP increase projections. ● We plan to be ready to capitalize on these new opportunities as well as be prepared to work differently with our customers and suppliers. We are starting to see some strengthening of business opportunities and the economy but are aware that the pandemic unknowns can still have a big impact on our near-term future.

FASTSIGNS International What do you see as the biggest challenge for your network in 2021?

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● The pandemic. What do you see as the biggest opportunity for your network in 2021? ● We’re stronger and nimbler than ever and ready to lead this industry.

Signarama What do you see as the biggest challenge for your network in 2021? ● As a franchisor, our job is to help and grow our franchise network of business owners. During the pandemic, Signarama, along with the other United Franchise Group brands, created the Reopening America Together initiative to encourage and inspire our business

change and growth in mind. ● We have kept our business model and location requirements updated to start our franchisees off ahead of their regional competition. ● Signarama has introduced upgraded equipment, and we are seeing demand for our services and the industry is booming. ● Signarama is always looking for passionate business owners who want to grab the wheel of their career—there has never been a better time to start a digital signage business.

SpeedPro What do you see as the biggest challenge for your network in 2021? ● The worst is behind us. We’re working towards a rebound by Q3. What do you see as the biggest opportunity for your network in 2021? ● Rebound, businesses re-opening, verticals such as events coming back by Q3. ● New products and product extensions, new marketing campaigns, and aggressive acquisitions program are in progress that will kickstart our sales. ● Our owners are reinvigorated to make 2021 a great year. ●

owners to encourage and inspire their customers and communities. We pivoted our support, training and communication to be virtual and focused on what our franchisees needed during this time. What do you see as the biggest opportunity for your network in 2021? ● The signage industry is constantly evolving—new trends and technology have gradually changed the way that we do business. Signarama’s goal is to move forward with

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WIDE-FORMAT & SIGNAGE ─ Sign Franchise Review PROFORMA SHOWS GROWTH IN 2020 As we did last year, Printing News is also covering the performance of Proforma, a network of print distributors. While this is a different franchise model than what we usually think of as print franchise networks, it still accounts for a substantial amount of franchise revenue – in fact, about $538 million in 2020, up 5%. Founder Greg Muzzillo indicates that in 2019, the network generated just over $500 million (not the $600 million that was reported in last year’s review). Franchisees, who do not own any equipment, are still generating 38% to 40% gross profitability, and many were already working from home, so the transition to work from home was less of a challenge. Rather, they source for their customers printing and promotional products, online technology, company stores and variable data solutions. The network’s highest performer came in at $38 million, slightly down from last year’s $40 million. There were 601 members in the network at the end of the year, compared to 600 the previous year. Muzzillo notes that December was strong with January 2021 being a little soft for unknown reasons. February numbers were not available at the time we spoke, but he expects 2021 to pick up. He indicated that franchise owners do not track the level of detail necessary to be able to provide a break-out of the categories from which his franchisees generated revenue, so it is difficult to know how much of that is printing versus promotional items, apparel, PPE and other products. The Proforma web site lists a variety of products that can be sourced through the network, including PPE, uniforms and apparel, promotional products, branded merchandise, awards and recognition items, and print and packaging. For example, during the pandemic, Proforma worked with its franchisees to quickly pivot to areas of opportunity. One Muzzillo identified in particular was uniforms, including scrubs. “Uniforms for security, healthcare, construction (safety gear), elder care, businesses that were thriving, were in high demand. We were able to help

Franchise

Proforma

them take advantage of opportunities in not only products that were selling but markets that were buying.” Many of his members already have a lot of knowledge about what he classifies as “wearables,” including fabric types, thread count, etc., so it was an easy pivot. “What’s certain is that even if markets are off 30% to 40%, there are still hundreds of billions of dollars of promotional products being sold,” Muzzillo said. To foster this, Proforma did a great deal of training on how to sell in today’s world, how to utilize LinkedIn prospecting, including automated LinkedIn messaging, how to conduct Zoom sales calls – a total of some 300 webinars to help the network adjust to the new reality. While the network previously produced a great deal of revenue from meetings and events, which were not happening, during the pandemic, they were able to maintain at least some of that revenue to support virtual events with what Muzzillo described as “Events in a Box.” He noted that some businesses are even spending more on promotional products, wearables and event pieces because they didn’t have to pay for the event venue, meals, etc. “About a third of those webinars were on the topic of what’s selling and who’s buying right now, and how do you go find them, and ‘Event in a Box’ was clearly one of those opportunities,” he said. Proforma continues to invest in technology, and one of the most powerful is the company stores. “We offer different levels of company stores,” he said. “That ranges from pop-up stores to high-end variable data stores. Because many companies have a distributed workforce now, they wanted to be able to deliver items that would normally have been picked up at the office and let their people order online.” “I think there will be a shake-out this year,” Muzzillo said. “Sometimes the difference between slower sales and expenses not falling, it takes a while for it to catch up to businesses. We are now seeing it catch up. PPP has helped business stay afloat, but it’s a temporary fix.”

Total shops in system

Corporateowned shops

How many shops in North America

Average sales per shop

Average investment to open new shop

System-wide sales

Highest Revenue Shop

601

$895,923

$12,863

$538,450,000

$38,049,000

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EVENTS ─ Virtual.Drupa 2021

VIRTUAL.DRUPA 2021:

NETWORKING PLAZA NOW ACTIVATED

s of today, exhibitors and visitors at virtual.drupa can connect in the Networking Plaza: https://virtual. drupa.com/en/Networking_Plaza/ Matchmaking. Due to an intelligent matchmaking tool, they can find companies and contacts that are relevant to their business – and accordingly boost their network building and generate new, valuable leads even before the trade show starts. In the Networking Plaza, participants can also already make appointments in virtual meeting rooms for the trade fair duration from April 20 - 23, 2021, in order to be optimally prepared for virtual.drupa.

Find relevant contacts To participate in matchmaking, visitors must create an additional personal profile in the Networking Plaza during registration. Exhibitor personnel has to be invited by the company’s main booth contact. The more precise and detailed the personal information on activities and interests in the matchmaking profile, the better participants can benefit from the networking options and the more likely they are to find the contacts they are looking for. On this basis, the tool makes initial suggestions about companies and users who meet the set search criteria. The participant then has the option of inviting them for a meeting, marking them as interesting or irrelevant. The intelligent algorithm learns from these actions and thus suggests ever more suitable contacts. Companies and contact persons can be found quickly and easily in Matchmaking via a search field function – and there is also the option of targeted

communication via the exhibitors’ online showroom in the Exhibition Space.

Personal exchange via virtual meetings Relevant contacts can first be saved on an interest list in Matchmaking in order to contact them later or to arrange an appointment. This way, participants can first get an overview before scheduling their meetings. Afterward, the pre-marked contacts can be invited to an individual meeting in a virtual meeting room. Exhibitor representatives, who are added by their company’s main booth contact and thus linked with each other, have additional options in the team Read More… area to organize their contact Find article at requests and appointments as PrintingNews. com/21149838 effectively as possible.

Easy participation, great benefit When registering for virtual.drupa, visitors can activate their participation in Matchmaking at the same time. This means that the initial settings from the virtual.drupa profile are automatically transferred to the Matchmaking profile. Company information of exhibitor representatives is automatically copied when invited by the company’s main booth contact. After successful registration, matchmaking can be used via the browser and also via the drupa app to effectively connect with the community. Matchmaking is activated in the Networking Plaza from now on until October 2021 to offer exhibitors and visitors maximum exchange and added value and to give them the opportunity to familiarize themselves with the various functionalities already now. ●

For information on visiting or exhibiting at virtual.drupa 2021, contact Messe Düsseldorf North America; Telephone: (312) 781-5180; E-mail: info@mdna.com; Visit https://virtual.drupa.com/ and www.mdna.com; Follow us on twitter at http://twitter.com/mdnachicago.

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WIDE-FORMAT & SIGNAGE ─ Flatbed Application Gallery (Below) Luis Vivas at Vivas Inc. in San Francisco, Calif., printed this project for Magnolia Brewing using a Roland DG LEJ-640 64-inch flatbed hybrid UV-LED printer.

THIS

(Above) AJJ Enterprises in Cincinnati, Ohio, is a cornhole board manufacturer and had been a beta site for EFI’s Pro 30f flatbed UV LED inkjet printer. With the printer, they were able to move from a less-efficient process of mounting graphics to cornhole boards to printing them directly.

(Right) Brian Manky of Decosign in Coquitlam, British Columbia, directprinted these rustic-looking signs on barn wood using a Roland DG LEJ-640FT UV flatbed printer. Decosign also does work for the film and television industry, as well as for general signage clientele.

Read More… Find article at PrintingNews. com/21149736

DUBS FORYOU

ornhole boards, barn wood, hand sanitizer stations, 3D effects and acrylic on glass. In this photo gallery, we highlight some recent projects that users have produced using flatbed UV printing equipment. I hope that these ideas serve as “food for thought” in developing creative applications for

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(Left) Greg Analian, at the City of Los Angeles Publishing Services, printed this hand sanitizer station (and other related materials) using a Roland DG IU-1000F UV-LED flatbed printer.

A flatbed applications photo gallery By Richard Romano

clients. Very often half the battle is just letting customers know what’s possible. I am always on the lookout for new and creative wide-format printing applications and projects. Have you worked on something unique and of which you are proud? Feel free to share them with me at richard@whattheythink.com. ●

(Left) Haas Werbetechnik took first place in swissQprint’s 2019 Creative Challenge, using a Nyala 3 flatbed to print on acrylic glass. SwissQprint’s high-precision droptix 3D effects were combined with relief printing.

(Above) Erwin Hüttl Ges.m.b.H. took second place in the swissQprint Creative Challenge with Privathaus M, a piece of art featuring various varnish effects and seemingly random but precisely positioned splotches of printed paint, produced on a Nyala 3 printer.

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3/17/21 10:23 AM

TEXTILES ─ Runway Kit Service

EXTENDING THE

FASHION RUNWAY The new virtual Runway Kit makes designing easier. By Cari Sherburne

n textiles and apparel, there is a keen focus emerging on sustainability and the ability to manufacture on demand, or at least in smaller years. The Runway Kit program was launched in the quantities to reduce inventory risk and waste. summer of 2019 with swimwear, added activewear We recently came across a company in Sri in October of 2019, and plans to add lingerie and Lanka, Runway Kit, that is helping smaller and other categories in the future. emerging brands to easily enter the market in a susWickramasuriya said that customers are tainable way with reasonable minimum order quannot required to manufacture with Runway Kit, tities (MOQs) that they might not be able to achieve although, obviously they would like them to do so. with conventional manufacturers. While there is In either case, the customer can choose from Ready also a move to re-shore some aspects of the indusor Custom Styles on the Runway Kit website to get try, the Runway Kit approach is interthe process started. esting, especially for larger brands that “Ready Styles can be might be producing smaller quantities used as a base for design,” of new styles, emerging brands that Wickramasuriya said. need help with the technical details of “Designers simply select apparel manufacturing and entreprethe category they are neurs who perhaps have limited prelooking for – currently vious apparel design experience but swimwear or activewear have some great ideas for new prod– then select style, color Example catalog images of Runway Kit ucts and are looking for high quality, and fabrics. With Ready Ready Styles for Activewear sustainable manuStyles Plus, we can also facturing with all of the necescater to certain pattern changes, like a deeper sary technical detail provided. neckline or wider straps. The designer can also To learn more about Runway place a logo or other graphic image on the design. Kit, we spoke with Nethmi Images are shown with high quality 3D rendering.” Wickramasuriya, the company’s Once the design is submitted, a sample kit is digital entrepreneur. She explains created and sent out. that Runway Kit is a subsidiary of “The sample kit contains a sample of the apparel MAS Holdings, which has been item, along with technical comments on the sample Nethmi Wickramasuriya in business for more than 30 measurement sheets (shared in the tech pack itself),

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Runway Kit Cut-and-Sew Operation

fabric swatches and a full industrial tech pack,” Wickramasuriya said. “We believe that in this day and age we should empower our customers with all the details they need for their samples.” Custom Styles are a little more complicated since the designer starts from scratch. “We work around the ideas the customer has, and it’s a little more effort to make sure the design is exactly what they are looking for,” Wickramasuriya said. “Runway Kit provides industry expertise for those who need it, including less experienced designers/entrepreneurs, nurturing and helping them grow with the right tools and knowledge. We use virtual prototypes to reduce the number of physical samples. There is no point in shipping multiple rounds of physical samples for approval, and virtual reviews also cut down on cost and lead time. Customers can, of course, make adjustments after they receive their physical sample, but we have a really good percentage of acceptance of the first sample we send.” If the customer chooses to manufacture with Runway Kit, it’s a complete turnkey service and they will also receive frequent updates as manufacturing proceeds. For Ready Styles, samples are delivered within four to six weeks; samples for Custom Styles can take eight to 10 weeks to arrive, subject to COVID-19 pandemic delays. Another Runway Kit advantage is the MOQs,

which are 100 pieces for swimwear (optionally 25 pieces per color) and 300 pieces for activewear. Fabric choices for swimwear include nylon plus elastin, and a more sustainable nylon plus elastin using recycled yarns, as well as a liner fabric. The fabric range for activewear is larger, including nylon plus elastin, polyester and polyester blends and cottons. Solid colors are sourced directly from the mills, but Runway Kit can also print the fabrics, using digital direct-to-fabric and dye sublimation, as well as screen, silicon and rubber printing. Company policy prohibits disclosure of the exact models of printing equipment. Runway Kit already has 30 to 40 customers using the service. Because the concept was based on a virtual Read More… platform from the beginning, the Find article at company was able to weather PrintingNews. com/21149348 the pandemic, since there is no in-person, face-to-face contact involved between the designer and Runway Kit. “But even before the pandemic,” Wickramasuriya said, “we understood how important it was to designers to be able to take advantage of the conveniences of a virtual platform.” In terms of future expansion, in addition to offering intimate apparel, Runway Kit is seeking manufacturing partners that can deliver the lower MOQs and have a sustainability aspect to their operations. “These factors are very important as we onboard manufacturers,” Wickramasuriya said. “We are hoping that other manufacturers will be joining us at Runway Kit to enable us to more easily expand into other categories and offer this service to their clients as well.” We are looking forward to speaking to some Runway Kit customers in North America as they progress through the process. Solutions such as Runway Kit can go a long way toward both enabling new brands to enter the market at an affordable price as well as improve the sustainability of the textiles industry, which is badly needed. To view the full interview with Nethmi, visit www.bit.ly/3stgqm8. ●

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3/18/21 9:31 AM

THE SIGN CONNECTION ─ QR Codes & Near-Field Communication (NFC)

2021

CRACKING THE CODE OF

Businesses with QR codes and near field technology expand. By Wayne Rasor, Director of Digital & Exterior Technology at FASTSIGNS International, Inc.

s businesses start to open back up, the way businesses interact with their customers has changed. “Contactless” has become the key phrase, and merging print media with digital media is key to unlocking the way forward in today’s pandemic-recovery world. QR codes and Near-Field Communication (NFC) enable customers to make a static sign digital in a simple way. Imagine being able to scan a code or tap your phone to a static sign,

and an image, video, website, contact card or map location instantly pops up on your phone. These protocols enable the static world to become digital and dynamic. QR codes and NFC have been around for years, however NFC has recently become more available since Apple opened up their restrictions on NFC to allow beyond ApplePay. Android phones have had this ability for many years, but now that both platforms allow the use of NFC tags to trigger a multitude of links to different digital assets, things are really getting interesting. QR codes are easy to create online for a web link to virtually anything, and that same link can be encoded into an NFC tag depending on the abilities of the smartphone. Most of the time, both are offered to cover all of the bases. Restaurants have shown fast adoption of QR codes for serving up digital versions of menus, and of course this can be combined with NFC tags for broader compatibility. Brent Walker, franchisee at FASTSIGNS of Detroit, Mich. Downtown, has worked with three restaurants in his market since the pandemic began. Each business has its own

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amazing branding and interior decor. When the pandemic first hit and it was recommended that restaurants start using disposable menus, Walker saw it as a great opportunity to present custom designed QR menus to them to incorporate their branded colors and their logo. “I had been to other restaurants that were printing menus on regular printer paper and taping them to the tables. It worked, but the tape became dirty fairly quickly, and the overall appearance wasn’t great. I knew some of our clients in the restaurant industry would want to continue to hold their brand to a high standard even with QR codes. We created samples, both tabletop QRs that stuck to the table and also table tent style that could easily be moved around,” Walker said. “We presented them to our clients, and they loved them.” Walker said that QR codes didn’t really become popular when first introduced into the market, because they did not need to be. The traditional style menus worked well, so there was never a need to change or implement something new. Once the pandemic hit, the need for change was evident because no one was confident about the safety of reusing menus. With the majority of people owning a smartphone, QR codes were a logical and simple solution. Even though more information has come out that reusing menus is relatively safe, Brent believes that QR menus are here to stay. Customers are comfortable using them now, and from the owner’s perspective, it is a huge cost savings as the owner does not have to reprint menus with every change. One restaurant owner shared that he would spend $5,000-$7,000 a year on menus. In addition to QR codes, Walker and his team continually brainstorm about

trending topics and the next big idea in the industry. Their ability to think ahead and adapt has led them to success. “It would have been very easy to get down and feel sorry for ourselves over the last year, but we knew that wouldn’t bring us business,” Walker said. “The team has continued to show up and work hard every day with determination and perseverance. We are thankful for the opportunities that we have had and will look for more opportunities to capitalize on in the future.” This type of option isn’t only for restaurants, though. It’s also ideal for use in museums where an exhibit can use a QR code and/or NFC tag to enable the viewer to pull up a video that explains more about the exhibit or bring up a map location to the next exhibit building. They will even be advantageous in the coming days during a trade show or networking event. Imagine having an NFC tag on a name badge and when someone taps it with their phone, they have all of your contact info. The possibilities are truly endless as the “touchless” aspect will continue to be of interest to the public moving forward. ●

Read More… Find article at PrintingNews. com/21149785

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ASSOCIATION INSIGHTS ─ Ghent Workgroup (GWG)

GETTING TO KNOW THE

place “non-printing” objects like finishing and converting steps, Braille, information panels, etc. within PDF files. In an effort to promote and ensure the best practices developed by the GWG, the Ghent Output Suite was developed. and packaging workflows with Currently in v5 (GOS5), this the ultimate goal of facilitatworkflow test suite has been ing best practice workflows for evolving for almost 15 years. each of those industries. This During that time, it has been is all done in partnership with increasingly used by members member industry experts, print to troubleshoot and identify service providers, software problems in output configuraand hardware manufacturers tions. It has also been used by along with other industry assomany hardware and software ciations and standards bodies. nonmembers to tune and valiThe goal is to ensure the global date their product offerings, blind exchange of PDF/X files and GWG vendor members and process data to enable print can achieve GOS in addition to service providers to meet their preflight certification and be client’s expectations. This ultiacknowledged through a certimately facilitates consistent, fication process. A new output higher quality output as well workflow conformance certifias process automation, and the cation program for service progoal of Industry 4.0 (IoT). viders has been introduced with In addition to preflight proGOS based on one successfully files and application settings implemented by member orgacurrently availnization PDFX-ready in able in many Switzerland. This new Read More… graphic arts appliprogram facilitated by Find article at cations and workPrintingNews. GWG members will offer com/21149202 flows, the group output conformance cerhas also develtification to their service oped job tickets for ad submisprovider constituents. The goal sion and soft proofing. In the is to expand the service proarea of packaging, in addition vider conformance certificato output settings and preflight, tion globally to further ensure the group created Processing the consistency and quality of Steps, which subsequently was output. submitted to the International Expanding Reach Standards Organization (ISO) While the group was and is now represented as ISO founded in Western Europe, its 19593-1. It is designed to stanmembership subsequently grew dardize the use of metadata to

GHENT WORKGROUP By David Zwang

he Ghent Workgroup (GWG) is an international organization made up of graphic arts experts, users, hardware and software vendors as well as educational members building best practices for print and packaging workflows. Founded in 2002, it is perhaps the fastest growing, global best practice organization for the graphic arts. The initial idea for the GWG took hold among a group of professionals representing Belgium, France, the Netherlands and Switzerland, who at that time were working toward consensus on PDF creation and preflight settings. The process was complex, and it became clear that a more coordinated “global” approach was needed then and for the future.

Expanding Scope It has been almost 20 years since its founding and a lot of work has been done. In the beginning, the GWG had a strong focus on the creation of tools and best practices for publishing workflows. Since then, as the print and packaging industry and its requirements have evolved, the group has expanded its scope to include commercial print, digital print, sign and display

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to include North American, Eastern European, Latin American and Chinese representation. Many other areas of the globe, while not actively represented in the group, are actively using the best practices and tools developed. The expansion, however, is not limited to geographies. It also includes new industry, vendor, association and educational members.

Expanding Focus on Education The GWG has a large selection of educational white papers, presentations, instructional videos and webinars freely available on its website. However, in an effort to expand the reach of the educational platform and offerings, it is working with educational member universities to develop targeted messaging for the creative communities as well as the industries’ student populations. Since the group has global membership and constituents, there has been an ongoing effort to offer multiple language translations of the educational

materials offered by the GWG. Currently many of the educational offerings are available in English, Dutch, Italian and Spanish, with other translations on the way.

Don’t sit on the sidelines The GWG is happy to welcome new members to participate in the best practice creation and educational outreach efforts. While COVID has forced them to hold virtual meetings, they look forward to holding live meetings three times a year in various member locations again. However, you don’t need to be a member to take advantage of the GWG best practices and educational offerings. Other than membership and certification programs, everything the GWG has created is available at no cost. After all, their goal is to get as many service providers as possible to adopt best practices to raise the consistency and quality of output and facilitate blind exchange and process automation around the globe. ●

SIGN OF THE TIMES Continued from page 21

two important considerations, which could prove to be quite the payoff when the economy bounces back. Over 55% of respondents to a Franchise Insights poll at the start of the pandemic agree or strongly agree that “now is a good time” to become a franchise owner. 48% expect to start a business within the next three months, and another 16 percent within four to six months. Less than 20% put their franchise plans on hold.

Three Advantages to joining a Franchise Family As predictions continue to point towards growth in the sign industry, being part of a franchise family has become quite appealing – especially when you consider these three core advantages: 1. Support from parent. Business infrastructure is established and operating risk is reduced with training, marketing, human resources, processes, and systems provided by the parent company. 2. Future-forward technology. Workflow, automation and integrations - as well as interactive, digital and big data solutions - make printing

operations more efficient and more profitable. Having access to these technologies enables quicker expansion and growth. 3. Instant brand recognition. An instant connection to brand loyalists means you know who you help, how you help, and why it matters. Capturing and holding their attention shortens the prospect to customer journey – and speeds up your time to money. Choosing to open a franchise rather than starting your own business offers no guarantees of success – you still need to be a savvy businessperson to make it work. If you are a true entrepreneur and want to start and run your own business – where you’re free to develop your own concepts, brands, systems, etc. – owning a franchise might not be for you. However, when you’re faced with every detail of creating and growing your brand – as well as your business – the ramp-up period and return on investment can be a long time coming. Consider the pros and cons involved, from the costs – including franchise fees, start-up costs and royalty payments – to the overall health of the franchise brand. ●

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EXECUTIVE Q&A ─ Koenig & Bauer Continued from page 29

have machines in our factory in Radebeul and we are looking at a North American market introduction later this year. It is a unique machine as it offers a very interesting TCO concept. It is a combination of digital and conventional print units that can be combined for the best of both worlds. We also see a good market in the corrugated with the direct print products from the Koenig & Bauer Durst joint venture. Each business unit within Koenig & Bauer has a competence team to develop digital solutions. There is a cross-platform team that ensures there is uniformity between the concepts. We see digital as a very important part and being complimentary to our current products. WTT: The presses from the Koenig & Bauer Durst joint venture are sold by both companies in the U.S.? KR: Yes, there is a collaborative effort by Koenig & Bauer U.S. and Durst U.S. We work together to sell products such as the CorruJET 170 and the SPC 130 depending on the customer’s needs. Since we have both conventional and digital technologies, we are in a unique position to consult our customers based on their requirements and offer the best solution. WTT: In 2019 there was a press release of Tetrapack and Koenig & Bauer cooperating on a digital packaging press based on the RotaJET. Can you give an update? KR: The machine is in progress of being implemented. We are working with them, but due to confidentiality I can’t go beyond what is stated in the press release. One RotaJET 168 has been sold and we see this just as the beginning of this technology entering the marketplace. WTT: Koenig & Bauer invested a lot into finishing recently. Have you started to roll out the devices in North America? KR: The folder gluers from Duran are well established in the U.S. and Canada and under the roof of Koenig & Bauer we are selling them successfully. They are a proven platform, highly reliable and solid technology built in Europe. With our Iberica die cutters we have many successful installations in the U.S. and Canada. It is all part of our success story. We think our advantage is that our devices are manufactured in Europe and the market has

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been looking for alternative solutions. Sales have exceeded our expectations and we have hired many new experts with tremendous experience in post press. It has been important to offer complete systems. WTT: Koenig & Bauer is the press manufacturer with the widest portfolio. We have not even touched upon flexo, metal print, security print. Do they play a role in the U.S. as well? KR: We are present with all lines here in North America. In flexible packaging we are successful with our CI flexo presses. We have a very strong installed base and currently two installations in progress and more projects on the way. There is great potential to grow our market as we have a solid portfolio from small, compact to large machines. Our Flexotecnica flexo presses are used for printing on film, but also for gift wrap and folding carton. Our flexo and sheetfed sales teams work together and many users have both types of machines. We are the market leader in metal-decorating presses, but this is a focused market. Currently we have two installations taking place right now. We do have a great emphasis on the corrugated market with digital solutions as mentioned above as well as our new CorruCUT high board line flexo press. WTT: Is Koenig & Bauer becoming a one-stop provider for all packaging print? KR: This is a strategy set by the board many years ago and it is good to see the strategy having been implemented. We can also print on hollow objects like bottles and we have a coding division. The strategy to become preferred provider in packaging print has come true. WTT: Koenig & Bauer has always been a big supporter of drupa. Will Koenig & Bauer be at the virtual event in 2021? KR: We will be participating and although we had a launch event in 2020 we will have some little surprises. WTT: With such a big portfolio, is there something left on your wish list for the future? KR: We already have new innovations coming to the market like the VariJET and our new Rapida series. We are investing in additional digital business processes for our customers. ●

WhatTheyThink - Wide-Format&Signage | April 2021

3/18/21 11:23 AM

INNOVATE INCESSANTLY Continued from page 37

I have built several innovation teams throughout the years with great success. In fact, receiving an annual supplier innovation award from a $800MM client is still a highlight of the incredible innovation team performance I was fortunate enough to lead. If

your company is known in the market as an innovator the natural conclusion is that you are a problem-solving organization. Every customer and prospect has problems they need solved. Building inertia behind your innovation efforts, which drives new agility throughout

the company and the market, creates new value for the company and the customers you serve. In addition to adding new value, innovation will sustain your organizations ability to be agile. With agility your team can confidently conquer whatever the future holds. ●

CHARTING YOUR COURSE Continued from page 41

set up to provide continuous, long-term updating and verification so those profiles stay current over time. After all, people move, get married, have children, change jobs, get new email addresses, change their names and discover new hobbies. Yet, they are still the same person. Needless to say, it takes a heavy lift of artificial intelligence (AI) and processing power to create and maintain an identity graph. It can be done inhouse, or through a third-party. But creating these graphs is growing in importance, particularly as marketers eye the upcoming “demise of the thirdparty cookie” (as Google joins Firefox and Mozilla in no longer support third-party cookies by 2022). Third-party cookies are a key way for brands to track, understand and serve up relevant online ads to potential customers. As third-party cookies get phased out, brands currently relying on them for precise targeting information will have to find other ways to understand and connect with potential buyers.

As defined by Infutor, which offers identity graphing capabilities, “An identity graph turns the unknown consumer into the known, enabling your brand to recognize customers—and know their history, needs and interests—across any channels they choose for their interactions.” In other words, identity graphs do, in essence, what third-party cookies do by following consumers around the web. But instead of treating them as anonymous web visitors to whom brands are trying to sell stuff, they turn each shopper into a human being, someone who is known, a person with a name, a life and a profile. Everything has a next generation, from iPhones to high-speed inkjet presses, and identity graphs are the next generation of customer identity management. You may not be ready to set up identify graphs for your customers, but it’s a concept that you should be familiar with because it’s going to be part of the ongoing marketing discussion for awhile. At least, until the next generation comes along. ●

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JOHNSON’S WORLD ─ Focus On Clients’ Needs To Achieve Dominance

ARE YOU IMPRESSED WITH MY PRESS Buying a new press shouldn’t be a competition.

just bought a press! Pretty exciting, eh? Can you guess exactly what I bought? Loyal Johnson’s World readers know that I run Copresco, a cutting-edge establishment, so whatever I bought is sure to be something exciting. Perhaps it was a 40-inch, 6-color + UV offset press such as my competitor down the street just bought. Maybe I bought a nifty roll-fed high-speed inkjet press like the direct-mail house up the road. No, guess again. Well, you are thinking, if not roll-fed, Steve must have bought one of those new sheetfed production inkjet monstrosities that every equipment vendor seems to be unveiling. After all, everyone is telling us that inkjet is the way all print is going. Guess what? The “everyones” who are telling you to go inkjet are the ones who sell inkjet presses, and their consultants. That doesn’t mean inkjet isn’t right for you, but it doesn’t mean it is, either. No inkjet? No offset? Steve bought a toner device? How boring! I know what you are thinking: it must be full color printer with fifth-color and dimensional printing capabilities. Yes, we do beautiful four-color digital printing at Copresco, and we have a rooms full of awards to prove it, but, no, we don’t need fifth color white toner, and we don’t do dimensional effects. What I bought was a monochrome (black-only) sheetfed digital printer from a well-known (though not glamorous) manufacturer. Why on earth would I add something so basic to my equipment lineup? The answer is simple: because it does what I want it to do, which is to say it helps me do what my customers need me to do. That is the only reason to buy any piece of equipment. Notice that several times I mentioned the equipment my competitors have purchased. I really shouldn’t call them

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Wide-Format & Signage April 2021

Articles inside

IF I COULD, I SURELY WOULD

EVENTS

ASSOCIATION INSIGHTS

EXECUTIVE Q&A