Article prepared by C. Clint Bolte, C. Clint Bolte & Associates, Chambersburg, Pennsylvania. For additional information please call 717-263-5768, fax 717-263-8945, or e-mail to clint@clintbolte.com.

Graph Expo & Converting Expo 2006:
Web-to-Print and Other Maturing Workflows

Two hundred and eighty new products were introduced for the first time by the 625 exhibitors to the largest gathering - 40,000 strong - to attend a Graph Expo since 2000. All traditional heavy equipment vendors had reduced the size of their booths; for example, there was not a single web press running for the first time at any McCormick Place print show. And yet the number of mailing and fulfillment vendors with full equipment in operation rivaled their more traditional venues of MailCom and National Postal Forum. Similarly it was difficult to see the carpeting in the wide format pavilion for all of the large building and auto wrap panels adorning the floors and aisles.

Digital printing hype by manufacturers was everywhere, as would be expected. And yet educational seminars and market research study synopses rolled the curtain back on the Wizard of Oz revealing practices and results, which the large print engine vendors vigorously oppose.

Lets begin with some numbers, what they imply, but what is actually a different rest-of-the-story. Among the 280 show product introductions were mature products/services from the eighty first time vendors never before showing at Graph Expo, which certainly is not bad, but is not the next level of technology as may be implied. While the aisles were as full as can be recalled in many years and vendors were justifiably gleeful, my show badge was "wanded" 4-6 times each of my three days in attendance as I went from show floor to press conferences to seminars and back again. Does that mean 15 Boltes are counted in the 40 thousand attendees? These numbers really don't matter but clearly suggest that there was plenty to see and do on this vertical learning curve quest to stay on top of the latest breaking news. Lets look at some numbers that do have a deeper story.

The marketing research firm, The Industry Measure, gave a briefing on their view of the commercial design, publishing and printing industries, which they cover. Their presentations were based upon highlights from the quarterly and annual surveys, which they conduct. Heidi Tolliver-Nigro, Senior Analyst, authored their survey and study on variable data printing, which was just published. She remarked that the use of variable data printing by the printing industry peaked back in the fourth quarter of 2004 at a 21% penetration level. It currently is down to 17%. Thirty-six percent of printer respondents acknowledge having worked with variable data while another 11% outsource the requirement.

Of the variable data applications 63% are simply addressing for entry into the mail stream and a full 80% of that is being done on simple desktop digital printers and copiers. Of the short run color printing, printer respondents report that only 32% is being produced on digital color devices with 20% of that 32% on small digital color copiers. When queried about the use of web-to-print, i.e., access and ordering print on line, 74% of all printers still do not have this capability and 55% of those with digital print capability still do not offer web-to-print. A full 97% of all process color work run on digital print devices is still static and not variable data.

The big engine suppliers and digital print advocates seem to suggest a much more urgent need to move to the 100+ color cpm or else miss the competitive advantage. The very thorough Industry Measure studies conclude that the industry appears to be moving ahead into the digital color print forest in a much more deliberate and small scale fashion, i.e., crawling before they walk and walking before they run. They are learning as they go, helping clients build databases and expanding into incrementally faster units as the proven volume warrants.

The digital print engine suppliers are all acknowledging that digital and lithographic printing will coexist in most all printing plants for the foreseeable future. With that reality in mind the digital press manufacturers continue to offer "free consulting" to their clients in terms of estimating software packages. This helps the printers calculate their breakeven costs between running a static job on their litho presses versus their new digital press. The costs are based upon the printers' own hourly rates, paper costs and spoilage experiences.

Hewlett Packard discussed one case study of a 4/0 11" by 17" that should be run on the printer's Indigo up to 1,851 sheets before switching over to litho to realize lower costs. Heidelberg announced a new keyless, analox inking system for their small SM 52, called Anicolor. Process color make ready sheets of less than 40 are claimed before saving good sheets. Their costing study showed that a comparably sized digital press was cost effective versus the SM 52 only up to a 100 sheet run length. Then the SM 52 should be less costly.

The economic cross over point is always helpful to know. But the final decision often entails so many other considerations such as stock demanded by the client; total product mix on the specific presses that day, and the ultimate delivery date promised.

At the Executive Outlook Conference traditionally held the day before the start of Graph Expo, Kip Smythe, NPES Vice President, summarized the printers overall improving though historically lack luster economic landscape but highlighted the light at the end of the tunnel as projected by other value-added services. He took snippets from a thorough PRIMIR study entitled "Recovering from Adversity through Diversity." It was just released weeks before Graph Expo. While these nearly dozen non-print ancillary services totaled 8% of printers' revenues in 2005, the study projects them to more than double to 13% or $23.4 billion of printers' total sales pie by 2010. For general commercial printers of all sizes these services are expected to be as much as a quarter of total revenues.

These numbers are most assuredly conservative as they (1) are projected from the largest printers in the industry only and (2) do not include any statistics from complimentary industries that comprise the heart of these niche services. For example, the mailing and information fulfillment industries are definitely kissin' cousins to the printing industry with their extensive amount of digital print revenues as well as the myriad of expanding print distributors offering highly sophisticated fulfillment services.

The "how to" conclusion drawn is that while the capital investment to get into these ancillary services is modest compared to conventional print production, the knowledge investment is critical and significant. In forethought and response the Graphic Arts Show Company tripled the number of mailing and fulfillment seminars offered in previous years at Graph Expo.

Web-to-print is no longer a leading edge application but a mainstream workflow necessity for printers of all sizes serving virtually every specialty market niche. For the Executive Outlook audience RIT Professor Frank Cost humorously illustrated the ease of vanity publishing with a home digital camera, a web link to a templated book layout service and digital press output. The book he published in a couple of hours one morning was a series of photos taken of every conceivable angle of his teenage daughter's constantly and thoroughly trashed bedroom in their home. His run length of one, but potential distribution throughout the corridors of her high school, generated the angst among reader(s) that all would-be Boris Korloff authors could only dream of. The message was well illustrated; web-to-print software is facilitating large and small projects for quite small companies.

More than a dozen web-to-print softwares were in live production at McCormick Place in virtually every digital print engine booth. The Pageflex^TM, Printer's Presence^TM, NowDocs^TM, XMPie^TM, Four51^TM, iWay^TM, Printables^TM et al were offering the familiar custom websites for printers. Functionality varied but was universally client friendly and straightforward.

PrintingService.com out of the UK was seeking master licensees in North America to use their software and network to compete against VistaPrint's highly touted web-to-print solution for small businesses needing templated business cards, stationary, brochures and flyers. No mention was made of similar computer integrated manufacturing capabilities that VistaPrint has obviously mastered. EasyMailer offered a total package of (1) Internet accessible templated direct mail products into which a marketer can pore proprietary photos and text, (2) rentable mailing lists sorted by any conceivable criteria to focus on a retail or wholesale prospect list and (3) digital print output (4) to be delivered into the USPS mail stream.

Kodak announced their MarketMover service, which is their version of the previously tried and often failed nationwide and potentially worldwide network to link geographically dispersed printers. This network allows regional and local companies to generate more volume and revenue demanded of the distribute-then-print minded buyers. Kodak's MarketMover concept might make it where the others have failed because of these neat quirks; (1) web-to-print softwares have matured considerably, (2) their chosen partner Four51^TM has a proven network and strong relationship with a series of print distributors already moving a billion dollars of print buying, (3) open to everyone with a yellow box in the house not just the elite, (4) no multi-page contract need be signed, (5) no investment required, and (6) network costs will be financed by transaction fees which will initially be picked up by Kodak. Obviously Kodak's model was fashioned to counter the complaints of Xerox's Premier Partners global networking efforts.

Upon hearing of the MarketMover concept a few concern were expressed; (1) choosing distant printers that you don't know, (2) surprise about after the fact pricing, and (3) a third party printer possibly cutting out the initiator by trying to go straight to the client on future work. Jeff Hayzlett, Kodak's Chief Marketing Officer, acknowledged that there were many operational and relationship details to be worked out. He felt that most of these would simply be resolved between printer participants using proven free enterprise techniques.

In a light-hearted look at Kodak's digital transformation in the graphic communications industry, an irreverently funny video clip first shown at Graph Expo to employees and customers and is available on http://www.youtubecom/watch?v=L8XvRcZHanY. It pokes fun at the past suggesting "the 1990s was a big make ready" while clearly presenting Kodak's history of innovation in imaging.

IPA, formerly the prepress association but now the Association of Graphic Solutions Providers, presented their new e-LEAN package to help members incorporate the effective principles of LEAN manufacturing in their operations. This total learning experience includes webinars, a handbook and coaching. The free introduction is available at ipa.org/e-LEAN or call 800-255-8141. David Haridan, IPA Manager of Webinars, presented the program and said the essential beginning point was to assign an in house e-LEAN Program Manager.

There is little doubt that any company who makes a commitment to learn and abopt LEAN manufacturing could benefit soundly. Unfortunately most printers are running such "lean" staffs that no one has the time to take on a project of this magnitude regardless of its potential payoff. More time and space needs to be dedicated to that solution then available in this article. However, suffice it to say that hiring a rising junior or senior Industrial or Mechanical Engineering student as a summer intern from an engineering college could be an inexpensive investment. These young professionals reporting to the company's e-LEAN Program Manager, as Mr. Haridan advises, could do the necessary workflow data collection for the value stream mapping. Presentations to and discussions by the affected departments would then take less time and still assure their buy-in. The brief 8-10 week summer intern period is adequate to arrive at one or two "lean" and clean base hits. These personal departmental successes can build enthusiasm and commitment throughout the plant to attack more complex and difficult areas of opportunity.

The roar of what was not discussed at Graph Expo 2006 was deafening. And that is JDF or JMF-enabled integration. The original JDF specifications came down following DRUPA 2000. Each trade show hence has touted this vital feature for new equipment. Every major supplier can point to a handful of successful implementations of their newest equipment in a computer integrated manufacturing context.

Broad JDF adoption has clearly fallen short as the printing industry simply has too much incompatible legacy equipment to tout the practicality of any near term JDF workflows. PIA/GATF, who is the industry's only independent authority to verify full JDF compliance and compatibility, announced in September the first two certifications being issued to suppliers acknowledging proven compatibility. It will only be a matter of time before the legacy equipment is deep-sixed and replaced by JDF enabled equipment.

For the small to medium sized printer to find out that the JDF promise he bought a couple of years earlier cannot be realized would be a real shame. The printing industry suppliers and manufacturers are truly 3-5 years ahead of most of the technology demands of their clients. But if they choose not to get in line at the PIA/GATF JDF certification counter they are missing a vital opportunity to prove their claims. If they are truly compatible then it should be little more than an administrative process.

Article prepared by C. Clint Bolte, C. Clint Bolte & Associates, Chambersburg, Pennsylvania. For additional information please call 717-263-5768, fax 717-263-8945, or e-mail to clint@clintbolte.com.