US Printers Creating Opportunity in a Challenging Economy

Until a few months ago, losing print work to non-US based companies was at the top of the worry list for most graphic producers I know. Print jobs have been leaving the United States and heading to China, Mexico, India and other countries.

However as the reality of a global economic slowdown settles in - along with uncertain fuel costs - some print buyers are rethinking their plans to send print work around the globe in search of lower labor costs. Reaping the return on this effort isn't as easy (or as inexpensive) as they might have thought.

Some challenges include quality and consistency. A couple of years ago, the production of membrane switches and other printed electronics were rapidly moving offshore. But little by little, some of the work has been coming back to the United States. The problems created by print errors cost too much.

Another challenge is transportation costs. Fuel prices have driven up the cost of transporting printed goods across oceans. (Note: we are seeing some reduction in fuel costs right now, but I wouldn't expect it to last.) Also, printing offshore requires more lead time and longer delivery times. These delays force print buyers to plan further into the future, which results in increased inventory; and inventory costs money. These added costs are eating into low-cost labor savings.

Response times are a factor, too. Some jobs can accommodate the delay inherent to global production; others can't. As the rate of change in the business world gets faster, the ability to respond to customers needs quickly increases in value.

With the global economy tightening up, print buyers need innovative solutions that give them a competitive advantage. They can't afford quality problems, or the added expense of shipping and storage. They need to move quickly in a rapidly changing marketplace.

SGIA members are stepping up to the challenge by providing cost effective, innovative solutions for their customers. In a slow economy, innovation is at its highest value. Innovative solutions, high-quality service and quick response times will be a winning combination for many US-based businesses in today's marketplace.

Submitted by: Michael Robertson, SGIA