Printing industry is in trouble worldwide – the Tribute analysis
Starting with a solid review of the current state of the industry, he identified a drop in the amount of printing due to the changes in the way information is delivered, combined with massive over capacity in the industry, which is driving down prices and margins, as the two defining challenges. With digital printing continuing to move steadily away from the commercial sector to become an office function, according to the Tribute view successful printers are concentrating on added value customer support, even while the majority of industry investments are still being ploughed into traditional technology in order to increase capacity. The current changes impacting the industry are not part of the normal business cycle, but are structural in nature. In other words there will be no return to the ’good old days.’ What is being experienced now is a fundamental, redefining change in how people communicate and print’s role in supporting that communication.
Accordingly printers have to recognise they are in the communications, not the ink-on-paper business. There is no doubt that the industry is under severe pressure with the market enforcing change encouraging printers to reduce costs, improve turnaround and improve quality. Under the impact of digital printing run lengths are coming down. Tribute made the point that 78 per cent of colour printing is in run lengths of 5000 and under, a figure that is set to rise. In addition he quotes Frank Romano of RIT who maintains that by next year 33 per cent of all jobs will require a 24-hour turnaround. Much of the impetus for change is driven by the emergence of the internet. The world is changing to an electronic transaction economy. Work is migrating from print to the internet at the rate of 45 billion PDF files moving onto the web annualy, in addition to huge numbers of office pages.
Printing is a service industry.
All of which proves that printers and the printing industry cannot generate demand for print. The market decides where the growth in demand will come and in such major sectors as newspapers, periodicals, books and catalogues the trend is downward. On the other hand packaging, advertising and direct mail are on the rise over the long-term Printers compete for work by the level and quality of service they provide to satisfy their customer’s needs. A printer cannot compete on price alone - they will soon go out of business if they do. Printers today need to be more than just put ink on paper, they must add value.
Printing is a digital industry
Addressing the state of technology Tribute maintains that every element of the print creation and production process is now digital. Digital work flows from customer’s job creation to print delivery. There is now an imperative to link the content (brand) owner into the production chain.
“Without digital prepress one cannot get production benefits from advanced offset presses. Without digital operations a printer cannot be an added value service provider," he said. Digital working with communications is opening up new markets and allowing greater competition. Digital workflows are primarily responsible for building efficiency and reducing manpower. Digital systems for management of digital files eliminates film storage. Re-usable digital data can be re purposed for other work and other media. The industry is entering a stage where full internet connectivity for client communication and marketing will be taken for granted.
Latest trends in CTP
Printers are under market pressure to move to CTP. The advantages are obvious – to reduce costs of consumables – to reduce costs in the press room – to give greater productivity – to improve quality on the press – to cut deadlines and to reduce space used for film processes. There has been a rapid adoption of CtP by commercial printers. The emphasis now on B2 and B3 formats. Thermal imaging has 60% plus of commercial market, but visible light is fighting back providing cheaper systems with lower costs.
In the CTP marketplace Tribute recognises that consumable packages are becoming all important. He identified Creo as increasing the competitive pressure in the thermal space with very low pricing particularly for market entry. More violet light plates are becoming available with the technology finding increasing favour with smaller and mid-size printers. KPG is the latest supplier to enter the field, having previously concentrated on thermal plates. Others suppliers are also coming in to the market in 2005.
Process or chemistry free plates are finally in the market since drupa. He posed the question as to whether the cost benefits of the more expensive technology is really there yet? Among the new approaches in CtCP for smaller printers he identified ink jet CtP from Glunz and Jensen using blank uncoated plates.
Pressrooms are going digital
Modern presses have a total emphasis on automation and are becoming more digitally controlled to improve efficiency and reduce manpower. Presses are being linked in to the company’s business systems as well as to prepress for rapid set-up. Lean production is the mantra of the moment and rapid make-ready is the key for profits.
He gave a briefing on Heidelberg’s new strategy with the major press manufacturer concentrating on sheetfed offset. It main thrust this year is to deliver an oversize B1 press with higher speed to attack Komori and MAN Roland. There is an enhanced product range in the B2 and B3 range. All suppliers are placing an increased emphasis on perfecting sheetfed presses with long format or stacked.
The latest DI presses from Ryobi (KPG and KBA) came in for a good wrap. He identified them as offering very high quality printing, easy to use and effective costs from 300 – 10,000 impressionsAs far as Tribute is concerned they are ideal for smaller printers wanting quality colour without high quality colour press skills. Excellent against digital printing except for variable information and very short run and immediate turnaround work.
Looking around at other forms of printing he nominated web offset’s improved capability for shorter run lengths due to increased automation efficiencies. There is little new in gravure apart from presses going to 4.2 m width for publications. Flexo quality improvements through through CtP is expanding the market. As for screen printing it is being severely hit by grand format ink jet, but the use of increased automation is helping it to hold onto its market.
In conclusion Tribute maintained that print should be a part of the customer’s workflow, not the customer being a part of the printer’ workflow. His parting advice for printers was to become a digital services company instead of a printer.
Starting with a solid review of the current state of the industry, he identified a drop in the amount of printing due to the changes in the way information is delivered, combined with massive over capacity in the industry, which is driving down prices and margins, as the two defining challenges. With digital printing continuing to move steadily away from the commercial sector to become an office function, according to the Tribute view successful printers are concentrating on added value customer support, even while the majority of industry investments are still being ploughed into traditional technology in order to increase capacity. The current changes impacting the industry are not part of the normal business cycle, but are structural in nature. In other words there will be no return to the ’good old days.’ What is being experienced now is a fundamental, redefining change in how people communicate and print’s role in supporting that communication.