C. Clint Bolte & Associates

More than 300 gathered at the Chicago O'Hara Marriott for the 13th annual sheetfed conference jointly organized by PIA/GATF and NAPL. Initially targeted to sheetfed pressroom supervisors and plant managers, this conference has evolved into a top management manufacturing venue for those printers investigating the most sophisticated of technologies. Presentations and panel discussions are being dominated by consultants and suppliers to some extent because of the newness of the technology but more significantly because the earlier printer practitioners do not want to share the secrets of their success.

Printers are being admonished to distinguish themselves in their market place. Several printers choose to let others make the early investments in capital equipment and hard knocks learning. When the market says, "Wow," these printers quickly add "Me too" and install the proven gizmo. More and more of these few technology leaders are having their consultants sign nondisclosure agreements and even being very tight lipped with their suppliers about tricks learned to prevent these come-lately printer-competitors from catching up too quickly.

The best presentations at conferences are universally acknowledged to be those case studies unveiled by the folks who plowed that stony field. However, the Jim Workmans and Sue Reifs, who are charged with putting together state of the art educational programs, are occasionally forced to turn to those with proprietary interests in what is being discussed. To their credit, at least at this Sheetfed gathering, these manufacturer and consultant speakers avoided self-promoting comments. Jim and Sue are the two association executives who led the creation of this timely program agenda and along with many other association staff facilitated this conference.

Keynoter and organizational consultant, Cam Marston, discussed "Managing Across the Generational Divide." His book by the same title will be coming out in July. Today four different generations of employees with their own unique and often conflicting work habits and attitudes about their vocations are butting heads in the workplace. Marston offered proven techniques for today's managers to deal effectively with each of these identified groups: the matures born before 1945, baby boomers born between 1945 and 1964, gen X'ers between 1965 and 1977 and the millennials born after 1977. These managing tips lean on the understanding of values and belief systems of each distinct group.

The first two think those who follow should "Pay their dues as they did." The two younger groups scoff at that thought as they have mastered the computer technologies that the older folks are still struggling with. The matures and boomers choose to invest in their careers by spending long hours on the job. The younger clearly want a more balanced emphasis between work and personal life priorities. The matures particularly have been loyal to their companies. Because this loyalty has increasingly not been reciprocated, the younger groups are more critical and skeptical and place their work loyalties solely in their bosses. The millennials strongly value "character" traits in their boss.

The average mid-twenties employee leaves his or her job once every 1.3 years according to the Bureau of Labor statistics. Marston said, "They don't leave the company they leave their boss." Companies that are able to hang on to these younger professionals for four years experience dramatically lower turn over. Those experiencing retention success with this shorter term view perspective purposely set up opportunities for younger employees to interact with several bosses and corporate leaders, enact informal mentor relationships and reward good performance with "take the rest of the day off."

Dr. Mark Bohan, PIA/GATF's Director of Research and Integrated Technology, discussed the return on investment on computer integrated manufacturing via JDF (job document format). A 2002 Profectus Study indicated an annual savings approaching 10% of revenues for a $10 million printer on improved communications, customer satisfaction, productivity and reduced waste and inventory. Automated scheduling of the plant is an objective whose stumbling block is not technology but the "detailed information to implement." Again those firms practicing JDF are not sharing specific data of their results.

Harris DeWese, Chairman of Compass Capital Partners Ltd, reviewed merger and acquisition activity with attending CEOs over breakfast. The 38 total transactions in 2004 (>$5 million in revenue for one partner) were small by comparison to the 189 in 1998 and 140 in 1999. And yet the six mega deals, e.g., RR Donnelley and Moore Wallace were twice as many as any previous year. Compass Capital's 28 current engagements with sellers do not have many buyers.

The shift toward buying specialization and away from general commercial printers is clearly pronounced as only nine of the 38 '04 transactions involved GCPs. Typical valuations have been 3-5 times EBITDA with an all digital company right now being very desirable and could demand twice that multiple.