Help Us, Help You

By now, if you're a US resident, you've probably gotten your 2010 Census form. And, by now, you've probably heard countless radio ads and seen countless signage and TV ads about it. From every direction, you're being urged to fill out the short survey form and send it back. After all, quite a bit is at stake: funding for things like transportation and education as well as congressional representation.

Ah, surveys! The tool that helps others, help you.

A survey, like the Census, is the most efficient way to ask a large number of people a question. The survey then allows the survey collector to make decisions and/or observations about the population of respondents. But, if you ignore surveys, like the Census, then it will be harder to get information on people (or businesses) like you as well as get a clear picture of the larger community in which you live.

SGIA has its own survey program that collects data from graphic imagers, garment decorator and industrial-use printers. And we need your help by filling out the form. You'll get rewarded with information not readily available elsewhere. Did you ever wonder:

*The average wage rate for production positions in your area?
*The size of the industry?
*Expected growth for this year?
*Which markets your peers expect to thrive in the future?

SGIA Surveys & Statistics reports can answer those questions and more. I urge you to take the surveys; it's just about 10 minutes of your time 5 times a year. And the result is better, more accurate industry information for all.

If you'd like to view past survey reports, go to SGIA.org, Keyword: Surveys. The next one, Market Trends, goes like May 3.

Submitted by: Katy Lellelid, SGIA

Pricing Accuracy

SGIA will soon announce a new service set to help members better manage pricing models in today's ultra competitive marketplace. Some members will benefit from step-by-step pricing help. Others, who have a strong understanding of their costs and proven business practices, will get ideas from case studies and new methodologies for maintaining reasonable margins.

The recession has put added pressure on price. Across the business landscape, competition has intensified and, in many cases, the result has been reduced profitability. But some markets are feeling the pinch more than others. SGIA will continue to explore the various markets and inform members of changes in activity. We'll also help members develop pricing models for value added services and support.

The Heart of the Problem is Under-Pricing
When the marketplace gets pressured, some companies begin selling their products and services at unprofitable rates. This creates havoc. Businesses that under-price don't last long. Pricing below market isn't sustainable. During 2010, SGIA will provide a new set of information tools to help members address pricing issues and maximize a sustainable business position.

Action Item: We would appreciate your help as we develop the Pricing Accuracy services. Please send me an email with your pricing concerns. What are your pricing questions? How can SGIA help you address your challenges with pricing?

Subject line: Pricing
email: Pricing Accuracy Services

Michael Robertson, SGIA

Comparing Notes on the Future

We're just back from the 2010 Congress of Committee meetings where 81 SGIA community leaders came together to discuss SGIA services and explore future opportunities. This was a much bigger crowd than we had in 2009 -- the bleak economic picture of last January kept many SGIA leaders from participating in the 2009 Congress. It was great to once again have strong participation and creative input from all sectors of the community.

The mood at this year's Congress was upbeat and positive, but there was also a sense of caution. This kind of cautious optimism certainly makes sense considering the events of the past year and the continued challenges in the marketplace.

Most of the participants I talked with see business improving, but don't expect to see a return to pre-recession profitability anytime soon. They have adjusted to a smaller marketplace and are working hard to maximize every opportunity.

Several commented on tightening margins. The search for improved profitability is driving many graphics producers to find new customers or, at the very least, modify their product/services offerings. Our community is fortunate to have new technology coming to market on a regular basis, which allows us to continue creating profitable opportunities.

Several of the graphics producers are expanding their reach through diversification. Some see diversification as a temporary move until the marketplace better supports their preferred product specialties, while others see diversification as the new "normal."

Thank you to all who participate in the SGIA leadership. And I invite those who haven't taken part to consider joining in. It's a rewarding experience.

Mike Robertson, SGIA

What Will 2020 Look Like?

As we enter a new decade, of course it's natural to look back on past decades and reminisce. However, I find it more interesting to look forward and imagine what 2020 will be like. I mean, it's only 5 years past the date when Marty McFly traveled "back to the future." It's impossible to say for certain how the world will look and act then, but there are some hints today for what will be popular tomorrow. Unfortunately, I don't think that flying cars or levitating skateboards are in the cards though!

For example, the hottest concept cars at the Detroit auto show this week are the ones that use the least energy. When I look back 10 years to 1999, I remember gas-guzzling SUVs were the car all my peers lusted after. In 10 years there has been a slow shift to more fuel efficient vehicles brought on, in my opinion, by ever-increasing gas prices. As the demand for oil increases from the developing world, it makes sense that by the beginning of the next decade increased fuel-efficiency will be more standard.

Additionally, the US government today is making changes that likely won't be in full effect until the end of this decade or the beginning of next. Healthcare overhaul, new banking regulations and proposed environmental initiatives are just a few issues on the horizon. Other nations are making changes as well. China is growing rapidly is soon expected to become the world's second largest exporter. With that kind of wealth-building within the country, the next decade could see China's consumption of goods dramatically increase.

And, finally, what effect will the current economy have on today's youth? Millions have watched their parents lose their job, have hours cut, or have anxiety over job security. In a decade these kids will be entering the workplace and setting up their own households. Will the frugality and tight budgeting they experienced as a child mean they will be less likely to incur debt? Or that they'll save more? Their consumption spending will have a large impact on all manufacturers.

This next decade will certainly be interesting, whatever happens.

Submitted by: Katy Lellelid

A new year?....more resolution!

I am so glad times are tough!....wait, let me rephrase that a little and maybe explain what appears to be poor punctuation in the title line of this blog. I am a designer by trade and training. I became a printer during the pursuit of my degree. Once the print disease overcame my design senses I became a print junkie. Most of my life has been spent in print institutions treating my sickness.

When I put it in those words it sounds a little dark. The silver lining of this common and humorous mentality among those who print, is that every year of printing has a slight flavor of desperation. Its about what we do and how we work. The world of deadlines, insane customers, shortages of materials and sleep and the permanently split wardrobe. The clothes in one side of the closet have ink on them, the clothes in the other side can still be worn on the occasional day off to visit traffic court.
About 80% of all printed media is advertising. In the screen printing and digital world that may even be 90% or more. Advertising has its own nightmares. It not only has to look good but actually has be finished on time! I guess there is no point in turning out 3500 gorgeous president's day sale posters ....a day late. With the world of advertising print your daily stress level is tied to the rise and fall of the economy. In tough times....if you are still printing, its the same lunch in a smaller size with a different flavor.

In this bleak and colorful world of technical addiction, what keeps a print junkie coming back? For some printers its just a job. For those who can't use that excuse, it might be the challenge (you would think we would just find a hobby). For others...like me...its technical. I found that alongside the deadlines and madness I was most intrigued by the consistency and precision required to actually make the image. It was the challenge of maintaining detail and resolution (there's that word) in a difficult environment.
So what's the connection between hard times and resolution other than the beginning of a new year?
To put it simply, it's the quest for improvement in the process that feeds the addiction of the average printer. Improvements to the process seem to happen to a greater extent in every recession period that I have been through while being employed in the printing industry.
Customers are fewer. Orders are smaller. A better price per unit without a corresponding increase in image quality may not be enough to keep you on the job list of the average print buyer. The first sign that buyers are getting more particular are the requests to printers for higher...resolution. Less line work....more process. More colors for less money. Finer line count (many times unnecessarily) on materials that can be rendered into more than two dimensions (vacuum forming, in-mold decorating, heat bending). More bang for the buck.

Its a peculiar pattern. In the graphic and textile screen printing industry in 1988 through 1992, some of the greatest strides in resolution and repeatability were made in the drive toward creating better and faster printing for less money. It started in a subtle manner with the demand for...you guessed it....higher resolution more four-color process, more exotic materials and shorter runs.
The technical progress with emulsion, mesh and inks addressed the resolution issues first. Better equipment and innovative substrates followed quickly to address cost and speed. The mid 1990's were the boom days of technical achievement in screen printing. By 1996, most screen printers wore silk clothes and drove Cadillacs and smoked $7 cigars (OK...we all have our fantasies). By the time 1997 arrived and the dot-comers had punctured every ones bubbles....we landed in another recession of sorts and ended up back in the shops hoping we could still feed our print addictions.

Again it was the call for better resolution, shorter runs and better quality that heralded the fast influx of digital printing....and the movement out of another recession in the early 2000's.

Here we are again. Recession. Shorter print runs, fewer customers and less time to get it all done....and again....a noticeable upsurge of requests for four-color process, higher quality and better resolution from those who screen print. The drive for digital imaging to supplement or replace existing screen print is growing rapidly. The drive for screen printers to print lower volumes of more exotic substrates for specialty work is increasing again.
From a printers point of view it never seems to be an increase in available money for new equipment or droves of customers with larger print runs that first signals the light at the end of the tunnel during tough times. It was the renewed requests for higher quality in a shorter amount of time...with better resolution. I'm betting the pattern holds true. Happy New Year, work hard...and check your dots!

Submitted by: Ray Greenwood, SGIA

2010: Getting Where We're Going

For many, a new year is like having the opportunity to step through a doorway into a new room; a new decade is even more so. During the moment when the midnight countdown reaches its completion and the champagne corks pop, many of us feel that things will be different - that we will somehow get what we want.

Business owners and entrepreneurs are the same way, really. Whether what they want is long-term (continued growth, even in hard times), or short-term (holding on through our current, lessening downturn), they know that their wants can not be expected. The decade we now exit provides an excellent example. After the 1990s brought us a relatively prosperous and peaceful decade, the last ten years have been anything but. Terrorism, wars, natural disasters and economic collapse all took place on massive scales, while at the same time our industry challenged to grow and innovate.

While we as an industry held our own, little in our industry looks as it did back when our biggest concern was Y2K. The digital revolution continued, changing the graphics and sign community to the core, and significantly changing the way decorated garments are not only produced, but also acquired. New applications, markets and opportunities were launched, populated, saturated and commoditized, as specialty imagers sought new ways to differentiate themselves from the pack.

As we move into a new decade and seek new opportunities to grow both our businesses and our industries, we must accept that where we are going may not be where we end up. Business today is increasingly about the ability to adjust to opportunities and market forces in wise and advantageous ways. Getting what you want may mean developing goals that allow you the leeway to move forward without getting stuck.

While we toast the year and the decade ahead, let us also embrace the fact that the future can and will bring unexpected things - some good and some bad. During the good times, we must also prepare for the challenges that will surely come. By doing this, we chart the most direct course between where we are and where we are going.

Submitted by: Dan Marx, SGIA

SGIA Leadership Ready for Action

Every year SGIA's Congress of Committees brings together member volunteer leaders to help chart the course for SGIA. These discussions always uncover new and exciting opportunities. It's great to have the diversity of the community represented in one place at one time, and these meetings are a huge help to staff.

Last January, the economy kept many volunteer leaders from participating in Congress. I don't have to remind you -- it was a very unsettling time. I'm pleased to report that for the 2010 meeting we've bounced back to our typical participation numbers. We have a 26 percent increase in participation from the 2009 meetings!

These are exciting times -- a dynamic mix of opportunities and potential missteps. With the help of the volunteer leaders, SGIA will continue to provide the valuable resources that help members stay competitive and profitable.

I encourage you to take an active role in the SGIA Leadership structure. In addition to our existing committees, we will be adding some ad-hoc committees to address specific projects. Contact me at SGIA HQ for details.

Happy Holidays all!

Michael Robertson

"Tis the Season!

I thought I would take a break from expounding on my new favorite topic -- the Consumer Product Safety Improvement Act, though as an aside, there have been new developments. Drop me an email at marcik@sgia.org if you want more details... but I digress.

Tis the season to decorate our houses and yes, sometimes even our offices, with lights, trees, etc. As you consider your decorating scheme, and I do speak from experience as our house rivals Clark Griswald's on National Lampoon's Christmas Vacation, maybe opt for a sustainable decorating scheme. You really did not think I could write a column without at least mentioning sustainability! With our Administration seeking to align themselves with others in Copenhagen regarding Climate Change initiatives, I think we should do our part.

Take a look at the vast array of LED Christmas decorations. Not only do they last longer as well as use less electricity, you can string a whole lot of them together! Just think, instead of the two strands of lights you have connected to an outdoor extension cord, you can now have up to 35 or even 50 strings of lights! Boggles the mind.

Look for opportunities to recycle your old light sets. I know that Home Depot did run a campaign to recycle old sets, and you received a credit towards the purchase of new LED light sets. This not only was a great bargain, but assured a bit more loyalty on my part as I felt that this company is on the same page as I am!

Wishing everyone a very Happy Holiday Season, and Best Wishes for the New Year
Marci

Heath Care Debate: It's about more than health care

There's little doubt that we need to do something to improve access to health care here in the US. But the way we choose to address the problem has become a polarizing issue for Americans. The health care debate has touched a nerve. It's caused people to think about their rights and their responsibilities as though, suddenly, there is more at stake.

For some people the major concern is the uninsured, for others it's the debt being passed on to the next generation. For still others it's the increased government control; or the lack of controls on private business.

And, as people are taking a stand on the issue, they're also taking a closer look at their elected officials and what drives their decisions. Are they representing their constituents? Or just following the party line? The legislative system is being questioned.

Today's health care debate is about more than health care. It's about the relationship between citizens, private business and government. It's about where responsibility should be placed. It's about the role of government. It's about free enterprise.

For the SGIA community and other small businesses, the health care debate may be just the tip of the iceberg. Where below the surface we can expect to find more government controlled programs. Or, the debate may strengthen the belief that free enterprise and limited government are best for the country. Small business drives the economy and small business will be affected, one way or the other, by the outcome of this legislation.

We have more questions than answers right now, but one thing we know, it's going to be an interesting ride.

Submitted by: Michael Robertson, SGIA

The Power of Managing Change

The ability to manage change may be the most important characteristic separating successful businesses from the rest of the pack. It's not easy to chart a course that allows you to adjust your business model in order to maximize new technologies, markets and opportunities as they appear on the horizon - but it's absolutely necessary in today's challenging economy.

And, there is no taking a break from change. In fact, the rate of change just gets exponentially faster. Here's an interesting quote from the Did You Know 3.0 video, "University students in their junior year will find that about half of what they learned in their freshman year is already obsolete." In the not-too-distant future, we will be using technologies that don't exist today to meet challenges we haven't thought of yet.

Most in the SGIA community are excited about future opportunities. They're not content with the status quo. They're eager for the next technological advancement or emerging market. This optimism and positive outlook were the focal point of the 2009 SGIA Expo.

The difference between forward-thinking managers and those focused on the past has been intensified by the recession. This difference will contribute to further consolidation as those companies that are unwilling or unable to adapt to change will see their ability to compete slip away.

The SGIA community is an increasingly valuable resource for those eager to make the most of future opportunities. The interaction and exchange of ideas between SGIA members provides the insight and understanding needed for sound decision making.

Michael Robertson

Obama Administration on the Move!

Just nine months into the new Administration, we are starting to see movement on the regulatory front. Movement on issues that have languished over the past several years. Whether this is good news or bad news remains to be seen as the two prominent issues -- OSHA's adoption of the principles contained in the Global Harmonization Standard and the US EPA's issuance of, yet again, a notice regarding solvent contaminated wipers, also known as shop towels, move forward.

Yes, the shop towel issue is alive and well. One would think that after 18 years that this issue would be resolved. After all, we are talking about shop towels. As you may recall, the US EPA did issue a proposed rule on this issue only to be called upon to re-evaluate the rule and conduct yet another risk assessment. This risk assessment, started in 2005 or 2006, has finally been completed and will be published in the Federal Register shortly. Based on a quick review of the EPA notice, the revised risk assessment focuses on the disposal of contaminated shop towels into municipal landfills and in the sludge from commercial laundry facilities and requests comments on the risk methodology used as well as disposal recommendations.

OSHA has issued its proposed rule that aligns the Hazard Communication Standard with the Global Harmonization Standard. Again, this rule has long been anticipated and does propose major changes that will impact preparation of Material Safety Data Sheets, yes we will see a required standardized format, the use of labels, as well as training components for employers. It has been announced that OSHA would like a final rule published within 18 months. This is a VERY ambitious schedule. Remember, all public comments must be addressed during this rulemaking process.

This has also been declared the year of "carbon" regulation. US EPA has issued its final rule on the reporting of greenhouse gas emissions (for information on this issue, check our advocacy blog) and will be issuing changes to air permit requirements to include emissions of greenhouse gases.

Finally, work has started on the overhaul of the Toxic Substances Control Act -- also known as TSCA. While many may not see the importance of this issue, there have been references to the EU REACH program during discussions of possible pathways forward.

All in all this is shaping up to be a very active year -- the new Administration has found its footing and is moving forward at a rapid pace.

Where was all of this when I was pulling a squeegee?

So I'm just getting rested after the SGIA Expo in New Orleans. Here is my ten second recap. This year's Expo was excellent! I'm NOT just comparing it with what one might have expected with the current state of the economy and saying it was better than expected. There was something quite different (and refreshing) about the people who attended this year. They were hungry for technical information and for the most part, they came because they needed to buy something. Things in our industry are definately starting to move forward.

In general terms I am a printer (offset, Flexographic and screen printing). Now I mainly just call myself a screen printer. I came to grips long ago with the fact that I have this incurable disease. I will spend the rest of my life working hard to become up to date with digital imaging technology, but at some level I will always be a screen printer whether its industrial, graphic or textile.

Two of my close friends who work primarily with digital imaging systems commented the first day of the Expo that it did not appear that there was much that was new in screen printing at the show. I disagreed strongly! On Friday, the last day of the show, I made it a point to walk the show floor with both of them and pointed out exactly where the screen printing technology is, why its important and not so readily visible.

Screenprinting is a mature industry. We don't see earth shaking technological advancements every month like we did in the mid 1990's. The digital imaging industry is on that track right now. It's their turn to shine with advances in speed and chemistry for unique substrates happening almost every week. The advances in screen printing are subtle but still exciting for those of us who work with it. These recent advances are not very equipment related. They are chemical. They are accessory. They are workflow. They are market segment. They are....integration.

At this Expo more than any in the past few years, I found screen photo emulsions that dry faster and cure quicker with less energy, better surface quality and wider UV lattitude. The emulsion manufacturers have been working overtime. I found reclaiming chemicals that use less water, require less chemical volume, less mechanical work and create less environmental impact than ever before. I was most impressed with the range of post-print automation equipment for cutting, routing and material handling. On the surface, this post-print equipment seems little changed from last year. The details come in the form of accessory attachments and workflow options that are clearly aimed at the shop that has integrated both screen and digital imaging.

The overriding impression I came away from the Expo floor with is that the equipment, ink and substrate manufacturers are really finally getting onto the same page with the integration of screenprinting, digital imaging and their combined efficiency. I can actually see in the details of my parent industry that the fusion with the digital imaging world has increased the quality, speed, substrate choices and efficiency of screen printing. Sooner or later digital will replace screen in all but the most specialized industrial markets. Until then, playing in the same sandbox will make the ride a good deal sweeter.


Submitted by: Ray Greenwood/SGIA

R&D Never Sleeps

The economy is improving. Business is picking up. Even RV sales are enjoying an uptick. It's great to see the marketplace gaining ground, and many in the SGIA community are responding to the improvements. Imagers are improving their competitive position by employing the latest technologies. These are the companies that will dominate in tomorrow's marketplace.

Last year, as the economic challenges unfolded, I was concerned that research and development efforts by manufacturers would be at a standstill. I was worried because a lull in R&D would hurt the community during recovery. Well, it turns out my concerns were unwarranted. Most manufacturers either maintained or increased R&D efforts this past year. The number of enhancements, advancements and completely new technology introductions taking place at the 2009 SGIA Expo in New Orleans surpasses recent years.

Looking ahead, the marketplace will be dominated by well-equipped specialty imagers offering diverse solutions for their customers. The manufacturers serving our community are responding to the needs of those imagers with exciting new technologies, and this constant flow of new technology will help specialty imagers compete.

Thanks to the ongoing efforts of the manufacturers in the SGIA community, we're in a great position to quickly maximize opportunities as the economy improves.

Michael Robertson, SGIA

Educate, Train and Organize

Most economists and financial gurus say that the economy is slowly starting to turn around. Heck, it might even have already turned the corner! What should you be doing? Preparing for the recovery.

This recovery is anticipated to be long and slow. To better position your business, consider emphasizing education, training and organization. With production being a bit low, now is the perfect time to reorganize your business structure or even your production area to streamline work flow. It's also a great time to cross-train employees and have them keep current on technology, trends and business practices.

How are you supposed to do this in a cost effective way? Use your SGIA membership to the fullest. SGIA has FREE webinars and affordable workshops as well as great information sessions on a wide variety of topics at the SGIA EXPO . If you want to review your safety training, SGIA has resources for that as well .

Use the downtime to your advantage to prepare, and strategize, for the future.

Submitted by: Katy Lellelid, SGIA

Create Your Future in a New Marketplace

The 2009 SGIA Expo is only a few weeks away, and the timing is great for the community. There's a much stronger sense of optimism in the SGIA community today than there was just a few months ago. Printers, suppliers and manufacturers are all responding to the positive momentum in the marketplace as we head toward the fourth quarter of 2009.

But, in addition to the optimism, there's an element of caution, too. Just about everyone I talk to - printers, suppliers and manufacturers - expect the future marketplace to be much different than the one we've known; they anticipate a marketplace with new challenges and opportunities. Most in the community are making important adjustments to their businesses to improve their competitive position. They realize that now is the time to act. The leaders in the community know that the beginning of the growth curve marks the time to be assertive.

The 2009 SGIA Expo is all about helping you prepare for tomorrow's marketplace. The Expo will bring the community together and create an educational experience in which participants will gain a much better understanding of what the future holds. The 2009 SGIA Expo will be a game-changer for many.

As the opening of the Expo grows closer, attendee registration is jumping and the Expo floor is jammed with exhibitors eager to show their latest technologies. It's great to see so many in the community eager to turn the corner and create their futures in a new marketplace.

See you in New Orleans! Register now for the 2009 SGIA Expo!

Michael Robertson, SGIA

SGIA Expo: See, Listen and Learn

The upcoming 2009 SGIA Expo (October 7-9 in New Orleans) is the premier showcase for specialty graphics technology, featuring technologies and supplies to support a diverse range of process and end products. It is also this year's best opportunity to learn the latest about our industry, and go home afterward with a stronger sense of where to take your business.

The SGIA Expo will feature sixty educational sessions in a curriculum designed to help you maximize your business. The sessions, organized by tracks addressing digital graphics, screen graphics, screen garment decoration, digital garment decoration and business management (including "corporate level" sessions), are presented by respected experts in the specialty graphics industry. They have the information you need.

For garment decorators, the SGIA Expo is also presenting four hands-on workshops addressing printing on polyester, printing on darks, ink management and special effects printing. These workshops are low-cost, high quality training designed to push your company forward.
To bring added value to the SGIA Expo educational experience, you will be able to apply fifty percent of the fees you pay for Expo educational sessions to SGIA membership, or renewal dues, up to $115. To take advantage of this unique benefit, you must register and pay for the sessions by September 4.

Last, the 2009 SGIA Expo is your opportunity to learn from any of the thousands of industry experts on the exposition floor. Whether they are suppliers, printers or industry pundits, you are urged to meet, greet, and expand your professional network.

The SGIA Expo is like many things in life: You get out of it what you put into it. Simply put, the more effort you put into seeing, listening, learning and asking questions, the more benefit you will receive from your time at the New Orleans event. This, my friends, is your opportunity to grow.

I look forward to seeing you in New Orleans. And remember, if you register prior to September 4, your expo pass is free. Register now for the 2009 SGIA Expo!

Submitted by: Dan Marx, SGIA

Getting your Share of the Stimulus Bill

Manufacturing is on the upswing, retails sales are beating projections and economic indicators are staying positive. The leaders in the specialty graphics community are gearing up to capture increased business as the economy improves. Taking full advantage of the Stimulus Bill can help you stay competitive.

The Stimulus Bill packs a few "cash on the barrel head" benefits that will help specialty imagers stay on the leading edge of technology developments. Up to $800,000 worth of equipment purchases can be expensed the first year of service. Buy equipment at the SGIA 2009 Expo, place it on your production floor, and you're ready for a major tax write-off.

Also, in an effort to help businesses buy technology, the Stimulus Bill continues the 2008 bonus depreciation rule which allows businesses to expense up to 50% of the cost of fixed assets put in action the same year.

The Stimulus Bill is also designed to help small businesses get loans. The Small Business Administration has received stimulus funds to lower loan costs, increase loan limits and implement start-up or "micro loans" for new businesses or businesses with fewer than 10 employees.

Be sure to work with your tax accountant and your local SBA loan participating bank to maximize the various options available to you.

The 2009 SGIA Expo will be the place to experience the latest technology and supplies. See you in New Orleans!

Learn more - see the SGIA Stimulus Analysis:
SGIA member access
Non-SGIA member access (Guestbook)


Submitted by: Michael Robertson, SGIA

A quiet moon landing

So its been forty years since "the Eagle has landed". For those of you born late, I'm talking about the first man on the moon. An interesting interview I heard last week commented on the huge economic and technological stimulus the Apollo program generated, even though its origin and aims were purely politically motivated. It created jobs all across the United States in fields ranging from chemistry, metallurgy, textiles, electronics, construction and aeronautics.

The Apollo program also created more high tech metals, plastics, coatings, processes and even medicines than any subsequent technological and industrial race has. The innovations that came from the race to the moon, made possible the later innovations that create and shape the cheap, abundant technology that is the hallmark of the time we live in now. It also profoundly changed the curriculum structure of universities world-wide. That alone has had more long-term impact than anything else from that era.

With this fortieth anniversary there is much talk of returning to the moon. There are two main, public camps of thought on this subject. (1) That its a waste of money and effort because there is not any return benefit to what we might find (not quite true, but that's a very long argument). (2) Regardless of what we find or do not find, its a staging base for Mars and....more importantly....the monumental nature of this effort alone, would most possibly create another vast economic, educational and technological stimulus as it did in the 1960's and '70's.
That last sentence alone is an intriguing thought!

While listening to this interview, I started thinking about our "modest" industry along the same lines as the space industry at the height of the Apollo program. I'm not comparing the two industry's by any means.
I was simply trying to gauge exactly at what point we might have had an equivalent rate of growth in process technology, education, manufacturing technology and ability that was the screen printing and graphic imaging industry's equivalent to the culmination of the Apollo program. What would the bench mark have been? Have we reached the zenith? Has there even been one? Are we there now?

More importantly, could reaching for some extreme or difficult production goal in our industry cause a resurgence or increase of R&D, testing, education or manufacturing?
From my limited life-span range in the screen printing industry (approximately 1985 to present), I can only see so far in either direction. I believe there was one zenith in the combined graphics and textile screen printing industry that peaked between 1993 and 1996.

Near the end of this period of time (1995-1997), textile and graphic screen printing production speeds and accuracy peaked (for the most part). The number of shops using automatic and semi-automatic production equipment finally overtook the numbers of those using manual equipment. The usage of high-quality, optically correct, professionally output, computer generated film finally overtook hand-cut and hand-stripped film. The use of UV inks became common enough that it was no longer considered a "specialty".
And most importantly, right about this time, the screen printing industry as a whole had about 40,000 shops and companies of all identifiable types and it was about this point in time that digital graphics really started to emerge as a viable production source.

We are a little smaller now as an industry (about 30-35,000 printers of all types). Some would say the mid '90's was simply a small peak in a moving graph and that the rapid rise and changes to digital technology are the real indicator of moving toward a technological zenith. They may be right. I think its too early to tell.
I have this belief because I'm watching yet another data point on the graph. The one segment of the screen printing industry not really mentioned yet.....is growing at a very high rate. That would be the industrial, medical and circuit industry using both screen printing and digital technology. Oddly enough, screen printing had roles to play in the original Apollo program (circuit green-board nomenclature and coating, protective coating deposition, selective deposition of phosphors in CRT construction etc.).

Many of the companies that have historically used industrial screen printing are out of public view. Its always been this way. However, the products they produce are growing exponentially in our lives (solar, telecommunications, medical sensors, coatings for visual displays and touch screens, RFID, security products....the range is endless). Because of this, these producers (or what they produce and how it is made) is becoming increasingly visible. Digital production methods are involved to a growing but somewhat less degree.
Screen printing is seen by these industries as the most cost-effective method of material deposition regardless of whether a color or graphic image is involved. This material might be ink, metal, plastic polymers or even edible products.

When we start counting the industrial printers we can now see, the total number of screen printers is growing again.
I'm just wondering what high-tech, must-have product will appear that will be the next "moon-shot" driver of our industry because it requires cheap, accurate material deposition that for the moment, only screen printing can deliver.
I'm actually betting that it is already here. I'm also betting that it will be changes in the inks and chemistry that will actually be the catalyst that allows our existing processes (or versions of them) to make these "must have" products at a speed and cost not yet seen before.

Just some things to think about while you are watching re-runs of the Apollo 11 landings. See if you can spot all of the possible screen printed products within the photos of the Apollo program.

Submitted by: Ray Greenwood, SGIA

Wide Format Inkjet Technologies Converge

What a long way we have come in digital graphics technologies. What started out as a technology offering coarse, slowly-printed, but colorful one-off images has become something else altogether.

Just a few short years ago, I wrote in the SGIA News of a growing dichotomy in the digital graphics industry. Because of the technological situation at that time, printing companies were being forced to make a decision between high quality, or high production solutions. High quality printing focused on high print resolutions and color fidelity, and was used primarily by companies doing close-up POP work and other quality critical jobs. High production inkjet, on the other hand, offered throughput that began to push the envelope on the traditional boundaries in the printing industry, making inkjet increasingly competitive against screen printing and short-run lithography. For the most part, high production systems offered high speed, though with a trade-off typified by reduced print quality.

Today, we find ourselves at a new point along inkjet's still-expanding continuum. Some of the new systems entering today's graphics marketplace now offer both high quality output and high production capability. This new development, like so many of inkjet's technological changes to date, serves to both expand the possibilities for market access by wide-format inkjet and again push inkjet further into the territory traditionally held by analog processes.

Theses systems, however, are not for every graphics shop, as the cost for entry is still quite high. That said, a number of shops have done the math up front, and proven that the additional capabilities of these units place them on the positive side of the profitability equation. Further, these developments will not be limited only to the "high end." The technological changes that are integrated into today's high quality/high production machines will, over the next few years, begin to be integrated into mid and entry level machines as well.

In the past few years, I have heard inkjet scientists and pundits alike speak to the as-yet-untapped potential of inkjet for graphics applications. The recent convergence of quality and productivity is a strong step toward realizing this potential, though there is still much to discover, integrate and benefit from.

Submitted by: Dan Marx, SGIA

Closing the Loop on Graphics Installation

The recent placement of PDAA, the Professional Decal Application Alliance, under the broader umbrella of SGIA is an exciting new development for graphics producers and installers alike. The new alliance is important because it addresses a significant area of the production chain by providing reliable support at the end of the process, also referred to as the installation of the finished piece. The word "reliable" is important here, because if all the hard work you do to create eye-popping graphics amounts to nothing because of a fly-by-night installer, your company's bottom line and reputation suffer. When something goes wrong, the blame is on you, the "graphic solutions provider," and not on the unqualified installer who produced numerous bubbles, creases, visible cut marks or worse. That is why installers recognized by a meaningful, objective certification are so important to your business.

If your company currently works with independent graphics installers, or plans to do so in the future, you owe yourself a visit to PDAA's Find and Installer Search, where you can locate PDAA Master Certified Installers nationwide. The "master certified" designation is a calling card that means the installer has the proficiency to do the job right. The truth of the matter is that there are a lot of installation companies in business today, but just because a company has the tools of the trade does not mean they know how to use them effectively. By working with a PDAA Master Certified Installer, you gain assurance, reliability and professionalism, period.

If you employ your own installation team, now is the time to raise the bar on what you offer your customers, by getting your company PDAA certified. The PDAA "badge" means your company is committed to quality from the start of a project to its successful completion. Further, companies that hold master certified status rise to the top section of the PDAA installer search. This offers higher visibility and an increased ability to make valuable business contacts. Small price, big benefit.

In today's business climate, where margins are thin and every penny counts (and, really, shouldn't it always), your company must have the ability to deliver the job as agreed, on time, and done correctly. There is no alternative. By using PDAA certified installers, you close the loop on the process.

Submitted by: Dan Marx, SGIA

Last to Move - First to Lose

Stuck in recession neutral? Waiting for the return of business as usual? Don't wait too long.

Businesses of all types are positioning themselves for the rebound as the economy begins to improve. Tomorrow's business leaders are investing today. They're investing in business development, improved technology and other creative ways to push their company to the front of the pack. They intend to break out of this recession, leaving their competition in the rearview mirror.

Risky? You bet. But, it's a calculated risk that can pay big dividends for those companies willing (and able) to step up.

The recession has given many companies the opportunity to re-evaluate. What business are they really in? What do they want to do? It's helped them focus. Many will come out of this mess better for the effort.

On the other side of this recession we'll have SGIA members that are more efficient, more-diversified in their print capability and better suited to a wide range of customers, large and small. In addition to these "one-stop shop" companies, we'll have other imagers providing very specific print capability for very specific customers. Regionalized production will also come into play. Through consortiums, or other arrangements, companies will share production capability. Regionalized production will add a new and valued wrinkle to this exciting mix.

Bottom-line. The imagers and suppliers that will lead the way out of the recession are beginning to stir...

Submitted by: Michael Robertson, SGIA

Sticky Side Down

My son, Julian, is approaching three years old, and loves to play with stickers. In the parlance of our industry, we use the term "decals," though the difference does not seem to make much difference to him. Recently, he was about to place one of his stickers onto s piece of paper when he looked at me and said, "sticky side down." Good advice.

His words got me thinking that for many in our industry, "sticky side down" ia all that a great number of people in our industry know about vinyl installation. It is easy, right? The answer to that question is yes...and, no. To me, vinyl installation is a lot like playing the drums: Anybody can bang on the them and make some noise, but it takes a great deal of practice and experience to make "Sing, Sing, Sing" swing. It takes a master.

The recent placement of PDAA, the Professional Decal Application Alliance, under the broad umbrella of SGIA, serves to connect masters in graphics installation, those who have had their abilities tested and certified, with those who have graphics to install. PDAA Master Certified installers have the knowledge they need to install on flat surfaces, curves and complex curves with aplomb. Whether they are independent installers, or they work in-house for a graphics producer, they know what they are doing, and they can do the job right the first time.

But that's not all. It goes much farther than that. In a recent discussion with a representative of a major manufacturer of pressure sensitive vinyl, I heard a viewpoint that served to broaden my view of the graphics installation. The next step in my thinking goes beyond the skills needed to wrap a VW Beetle free of errant bumps, image distortion or wrinkles; and it goes far beyond how quickly the job can be done. It has to do with materials awareness.

For those who believe that "vinyl is vinyl," and that every product out on the market is pretty much the same, I offer that the world of adhesive vinyl has grown by leaps and bounds over that past couple of years. This includes the introduction of a growing arsenal of materials that allow imaging companies the chance to diversify their offerings and access new, interesting and profitable new markets. Those companies that will succeed, even dominate, these new markets are those that not only print the image, but also can ensure the print buyer that the print can be installed beautifully, and will stay on the surface - whether it is a window, a brick wall or a car - for its intended duration without peeling around the edges, popping out of concave areas, shrinking, or simply falling off.

A truly qualified installer, one who has used and been tested on the widest variety of materials, is the best possible resource for installations that look as good after a year or two or more as they did the day the job was done. That is the advantage that PDAA's Master Certified installers bring to our community, allowing SGIA members to provide their clients with total imaging solutions - design through installation. SGIA is thrilled to have PDAA on board, and to help SGIA and PDAA members alike make their businesses stronger and more profitable.

Submitted by: Dan Marx, SGIA

Tax Man in Your Pocket

State and local municipalities are really feeling the effects of the economic downturn. California, a state with the budget of some countries, will have to borrow as much as $20 billion to cover its bills. Kansas is working to eliminate a $328 million deficit. Wisconsin is looking at a $1.5 billion shortfall. Here in Virginia, lawmakers faced a $3.7 billion shortfall. According to CNN, 43 states have a deficit.

While many states are counting on a big pile of Obama dollars to get them through, this is a short term fix. It will be the business community that foots most of the bill. You can expect your city, county, state and federal tax agencies to pull out all the stops to tax businesses any way they can. You should be extra careful to maintain all the documentation appropriate to deductions and tax related concerns. You can expect the tax man to be more aggressive with a budget deficit looming over his shoulder.

For those companies with manufacturing and sales overseas, the Obama administration wants income generated in other countries to be taxable in the US. That's in addition to taxes paid in the country where the manufacturing and sale took place. These efforts will further limit US companies to compete in the global marketplace. There also is a proposal to eliminate a tax advantage provided to US companies that invest in a subsidiary outside of the US. This is especially troubling to many in India where US investments have been so important to business development.

Here's a quote from the Wall Street Journal:

"A German firm doing business in Ireland, say, pays no German income tax on its Irish profits, but it does pay Ireland's corporate income tax at its 12.5% rate. The US company competing with that German business in Ireland, by contrast, pays Ireland the same 12.5% on its profits -- and it then pays Uncle Sam up to 35%, minus a credit for what it paid the Irish. And because almost everyone else's corporate tax rates are lower than America's, U.S. companies end up paying higher taxes than their international competitors."

Taxing US businesses out of the global marketplace might generate funds short-term, but it doesn't appear to support long-term US business growth in the global marketplace. The idea that taxation will shift jobs from developing countries back to the US is a long shot.

The dramatic changes in the administration's tax proposal can have real-time effects on your business. Whether your business is large or small, regional or international, I encourage you to stay well informed as new regulations and tax laws change the business landscape.

Submitted by: Michael Robertson, SGIA

An Inconvenient Rant

We have poor memories. Really poor memories! Ok, by that I mean, "WE" as an industry (screen printing most specifically) can barely seem to remember last week in the context of lessons learned. No, I'm not talking about the economy or sub-prime loans. I'm talking about passed-down production knowledge. I'm talking about learning from the mistakes of how things were done when we didn't have inks, printing presses, films and emulsions that were as good as we have now. I'm talking about know-how that makes printers successful and not just low quality survivors. Its a common sight to see start-up graphic, textile and promotional products companies digging for the knowledge and training necessary to learn to print acceptable enough products with enough efficiency to make the first dollars that signal survival. That process can be tragic because everyone seems to have an opinion about best practices. Far too many offer those opinions to those who do not yet have any basis for comparison. There is a big difference between practices that simply work and best practices that work well. Many times that difference is between making money or not. Brand new printers will too often flock to the least common denominator for advice on equipment or methods before those who might help can notice the direction they are taking. The driving proclamation of these least common denominators is that screen printing is not rocket science and anything can be printed with no real skill and the public will buy anything. The problem is that this philosophy generally produces print quality that no-one wants to buy more than once and has a huge range of hidden costs when you finally wake-up and try to improve.
What are we talking about here? Inaccurate, cheap equipment, inacurate screen making and artwork habits designed to reward the use of cheap labor and substrates rather than good planning and careful, solid print production standards. Speed over quality takes precedent, when too often an equal measure of both could be had for more not much more investment money or time spent learning. Many of us thought that some of the more common bad print habits and cheap equipment pitfalls were dying out in the mid to late 1990's.

Whose fault is this? Pretty much everyone involved. More specifically, the time spent researching methods and equipment before starting a screen printing business have become truncated and narrowed as more time is spent shopping and learning only in cyberspace instead of in person. Less time is spent on a hands-on education. A whole segment of the industry caters to (or panders to) those who don't know any better. Too many start-ups are in a hurry to begin printing and (hopefully) making money. They buy the first thing that fits their budget and time frame. Many times, this equipment is ancient in design and accuracy and only reinforces habits that are are ancient in accuracy and efficiency as well.
Those of us who have been around the industry long enough to know the pitfalls and bumps in the road need to spend as much time as we can in the right places to guide people just starting out. This is part of what we do in the technical department of SGIA. Typcially there are between 10,000 and 12,000 start-up screen print and graphic imaging shops per year. About one-half of those do not survive the first eighteen months. Thats down from 12,000 to 15,000 start-ups from ten years ago with a 60% failure rate. less start-ups but also a lower percentage of failures. We are all working toward even more improvement in the future.
Submitted by: Ray Greenwood, SGIA