Specialty Graphic Imaging Association
	Executive Summary August 2009

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This month’s Executive Summary is in response to a letter I received regarding “Let the Other Guys have the Recession.”

Mr. Robertson,

I read your article "Let the Other Guys have the Recession.” As a new SGIA member, I have to ask this question: Just who are these specialty imagers you are talking about?

My company produces exhibit graphics, event signage, banners, window graphics, back-lighted panels, etc.  We are not a sign shop. We are not a quick printer, traditional printer, etc.  All we do is large graphics. Yet, for the past six months we have had every job come down to price.  Wall murals, back-lighted panels, especially pop-up booth replacement panels; custom jobs for commodity pricing. Any calls we get off our website are about price. Even clients we have had for 10-plus years are beating us up on price.

I would like to know what magic market is not affected by the recession.

First, thank you for joining SGIA! I appreciate your questions.

As a representative of the diverse specialty imaging community, I’ve had the opportunity to talk with, and visit, many specialty imagers serving a wide range of markets. All have seen margins tighten dramatically during this recession, but not all have had the same response to the challenge.  The difference I see among our members isn’t so much the markets they serve, but they way they serve their markets.

The SGIA members who I see doing the best in today’s marketplace are finding ways to increase their value to their customers. For many, the actual printing and imaging, while important, is no longer the primary “value” that they provide the customer. They have evolved from printer to solution provider. For example, several graphics producers are winning jobs based on their advanced project management and distribution capabilities. Others have increased their value through diversification. They are using additional imaging and finishing technologies to cover more of their customer’s needs. Still others are using creative support to add value. But in almost all cases, the successful companies are finding ways of increasing their value to the customer.

The imagers I see struggling the most are order takers. These imagers collect their orders from their Web site, or from customers coming through the front door, but don’t necessarily take an active role in developing opportunities for their customers. Unfortunately, in today’s competitive marketplace, companies that are simply selling basic printing, imaging and finishing are increasingly subject to commoditized pricing. The customer will expect high quality and good service, and price will be the only competitive difference.

The quick printers and lithographers referenced in the article have been in the commoditization trap for a while now; long before the recession. Their products are commoditized because it is extremely difficult for them to add value and improve their competitive position when they are all using the same mature technologies. In the document printing business, high quality is expected. Great service is required. Price is highly competitive. One provider is as good as another in a commoditized marketplace.

Specialty imagers (while still in a highly competitive marketplace) have the great benefit of emerging technology. The SGIA community is in the middle of a technology revolution — new imaging and finishing technologies and techniques are constantly changing the game. And this constant change means new opportunity for specialty imagers.

I don’t want to give you the idea that success is easy. It’s not. But building relationships with customers and finding ways of increasing your value are key to staying ahead of your competitors. To do this, it’s imperative to stay informed on the latest technologies, materials and trends.

That’s where SGIA and the 2009 SGIA Expo come in — we are dedicated to helping specialty imagers become total solution providers for their customers.