Erasing the “Margin for Error” via Smart Investment

An article in a recent issue of the NAPL Business Review goes straight to the heart of what the current economic turmoil means for printers:

“It’s no secret that profit margins are being squeezed not only for print, but also throughout the economy in general ... But profit margins are not the only things being squeezed in this challenging business environment: so is the margin for error.”

Mistakes stemming from poor planning are always costly. In present conditions, they’re not just expensive—they can be fatal. Never before have sound strategy and correct execution been more crucial to business survival than they are today.

It comes as no surprise to learn that, as noted in the 2009 NAPL State of the Industry Report, printers want to be savvier in all aspects of their operations. This is reflected in what the report says are the top three investment objectives for U.S. commercial printers: achieving more efficient workflows for improved productivity; servicing current markets more profitably; and reducing labor costs through automation.

The New Perception of Postpress

Here’s a paradox in two parts: 1. A strategic capital investment in postpress equipment and systems can be the best answer for printers seeking profitable new markets. 2. The bindery is often regarded as the least automated, most labor-intensive part of a printing plant, and therefore stands last in line for investment when capital spending decisions are being made.

To eliminate the paradox, correct the perception, advises Dennis Killion, director of marketing, Graphics, xpedx. He says that the image of the bindery is evolving rapidly as the emphasis on automated efficiency that transformed prepress and press now is transforming postpress as well.

“The bindery has traditionally been viewed as something of a necessary evil by most printers,” says Alan Oppenheim, country manager for Morgana Systems Ltd. in the U.S. But now, “with the type of automation available to the bindery, it was inevitable that printers all over the world would begin to view the finishing area as a potential profit center.”

Attention, Printers: Your Check Is in the Mail

According to the National Association for Printing Leadership (NAPL), mailing systems and equipment will be the No. 3 capital investment priority for printers in 2009. And no wonder. The opportunity in mailing can be substantial, notes Dennis Killion, national director of marketing, Graphics, xpedx®.