26 minute read
TRADE PRINT: FIT FOR THE FUTURE
Fit for the future
With a growing influx of business-to-consumer (B2C) printers venturing into the business-to-business (B2B) printing space, is a shakeup of the sector on the way? Australian Printer spoke to several leading trade printers who shared their views on the current state of the market, and how they continue to stand out in an increasingly crowded space.
Avon Graphics
Avon Graphics is recognised as a leading specialist print trade supplier and embellishment company, boasting five manufacturing plants in Melbourne, Sydney, and Brisbane, and employing more than 100 staff. All Avon Graphics sites offer a range of equipment from small, half, and full sheet size embellishment machinery along with laminating, UV coating, form cutting and in-house die making.
According to managing director Tate Hone, Avon Graphics’ point of difference in the B2B space is its range of specialised services.
“While there are many strong players in the B2B space, we haven’t seen too many B2C printers make the change. We’ve seen a lot of printers install print finishing equipment such as laminators over the years but there is still a need for a specialised trade service. Our company has also changed direction to continue to offer new and exciting processes and services that others don’t have,” says Hone, adding that “being niche in the services that we offer helps keep our staff and machines busy”.
Having expanded into trade-only large format printing around 10 years ago, Hone says the key to Avon Graphics’ success and longevity in the sector has been its adoption of new technologies.
“Being such a fast-paced segment in the printing industry, we have found that installing the latest technology with automation has helped to keep us ahead of the pack. Quality is obviously a necessity, but speed has become just as important with turnaround times being shortened over the years.”
Big Image Australia
Big Image Australia offers a full range of wide format digital print services. Its products include stickers and decals, banners and mesh, rigid media such as corflute and aluminium composites, dye-sublimated textiles such as flags and silicon edge graphics and the hardware to support it.
“We keep all finishing in house,” explains Deon Capogreco. “It’s important for us to be able to control all aspects of our production to be able to serve our clients. With timelines being as small as they are these days, it’s important to be able to manage both the quality and timeliness internally.”
While Capogreco says he has witnessed a trend of B2C printers expanding into the B2B space, from a business to business/ trade supplier perspective, he believes it is important to show that you do not compete with your trade clients.
“Half-measures are not good for anyone in the long term. We always tell our clients that we are here to be your custom print shop, an extension of your business in a way. We are not here to make a quick dollar and then turn around and go direct to your customer. We built our business on trust and quality and that’s how we will continue.”
For Capogreco, finding your niche is critical in an increasingly crowded market.
“You must know what niche you fill, who your clients are, how they need to be served, the true cost of providing your service and of course where you see your work growing in the future. Just chasing the lowest price, is not sustainable that is for sure. There are those that do, but then there are also compromises that must be made to do it. Ultimately, companies that provide a good service, care about their client’s needs, and can look to future growth without compromising their current services will do well.
“Big Image Australia has always been a wide format trade printer; it is what we do. There are always challenges. Purely in the wide format digital space you have issues to contend with such as individual job volumes that vary wildly from 1 to 1000+, a massive variety of materials and intended uses for products and the custom nature of most work. Ultimately you need to be able to work with your clients to meet their needs on an individual basis whilst still being efficient and being able to scale effectively to keep your own profit margins healthy. It’s what we do day to day, and it certainly keeps work engaging.”
Carbon8
“While Carbon8 is primarily not a trade printer, we have found that with our unique set of capabilities, trade has become an important and successful part of our overall print mix,” explains Carbon8’s co-founder and director, Kenneth Beck-Pedersen.
“We offer everything from B2-sized Indigo printed flat sheets for other printers who may then take over the rest of production and binding; to full print, embellishment and binding for white-label printers or brokers; and niche requirements such as case-made boxes, section-sewn bookblocks and high-quality display products on our swissQprint wide-format press.”
While Carbon8 has internal capability for most finishing, Beck-Pedersen admits the company has found that it still pays to use external suppliers on regular occasions as it allows maximum flexibility and efficiency and allows the company to hold back additional capacity in reserve for dealing with issues.
“With the cost of labour increasing significantly since COVID we have also found it to be more profitable to outsource to certain reliable suppliers as that relieves some of our internal cost pressures.”
For Beck-Pedersen, there is no doubt the printing industry is highly competitive, however, the key to remaining successful is finding a unique point of difference.
“The printing landscape is overcrowded regardless of if you consider it B2B or B2C in my opinion. It really comes down to finding some unique point of difference or product you can market without constantly ending up having the profitability sucked out of your business. I can’t see it changing, it’s the nature of things. Print will hopefully always remain a valuable part of any business’s marketing mix but because it has real costs rooted in production and procurement it will forever be challenged and prices driven down as they compete with digital marketing evolutions.”
Centrum Group
Centrum Group offers aqueous, and UV large format offset printing (products ranging from trade print sheets, posters, flyers etc) including spot varnish, digital printing (including spot digital varnish) onto a large variety of substrates for short to medium run work, full laminating and die-cutting, film and foil laminating, gluing, assembly, kitting, and distribution. While most of its finishing is conducted in house, Centrum Group also uses trade finishing partners for specific requirements.
Looking back over the past few years, Craig Elvin, CEO of Centrum Group, describes COVID as a double-edge sword.
“The pandemic itself posed many challenges and obviously retail was affected greatly, which is a core industry for our business, but in terms of business operation it taught us some very valuable lessons in planning and how to be able to run lean.”
Despite a noticeable increase of B2C printers moving into the B2B space, Elvin says Centrum’s focus is on its internal processes.
“Everyone seems to be going after the same dollar now, so it is up to companies like Centrum to evolve and concentrate on our internal processes to ensure efficient pricing and on-time delivery. From a marketing perspective, we can do so much in house, so that is a key focus, as many B2C printers don’t have the full service we do.”
Looking ahead, Elvin anticipates further consolidation in the market. As he explains: “I think the cream will rise to the top in the space and acquisitions will continue. Unfortunately, there are casualties in the space as value for money is becoming even more relevant, and companies without key personnel, processes, and equipment to service B2B and accounts may become part of the shake out. You also have to have a point of difference and Centrum with our large format offering that is capable of printing spot varnishes, metallic PMS colours and onto foils allows us to keep pushing creative thinking.
“We have already moved into the large format digital space with our new Fuji Acuity Prime 30. This was needed to be able to service short run packaging and POS customers. For smaller companies the cost can be a barrier as can the rate at which the technology is evolving, so keeping up can be challenging. The challenge can also be to get the initial momentum to utilise the investment to its potential. It’s imperative that manufacturers with key equipment and a point of difference need to get their capabilities and message out there. Sometimes this can be difficult as procurement departments are sometimes happy to stick with an incumbent to the ire of the marketing department who desperately want to drive innovative print, packaging, and POS.”
CMYKhub
CMYKhub provides sheet-fed offset, HP Indigo digital, wide format, labels, packaging, embellishment, and design services.
“Although the industry has seen a decline in offset print, it has remained a strong pillar of our business since the beginning,” notes CMYKhub’s national communications manager, Glen Francis.
CMYKhub has recently diversified its offering, with the introduction of its new labels and packaging division, which according to Francis is growing rapidly. The company has also recently relaunched its product range to include laser-cut and embellished labels. Francis says the company hopes to have some folded carton products out to market for its resellers for the second half of 2024.
“We identified some time ago the requirements to add greater value to print through embellishment. Digital embellishment through Scodix and Metal (high build spot UV and foil) has been a game-changer for our partners. The ability to heighten a brand to a premium level without the price tag or requirement of buying a minimum amount has been extremely popular. Design and prepress has also been a value-added service for us. It’s about doing whatever we can to make it easy and affordable for our partners to run their business.”
According to Francis, COVID accelerated some long-term plans for centralising its service team and planning team structure. As he explains: “Each of our five locations was very siloed and independent pre-COVID, but having the business come to a standstill makes you count every dollar and make sure you are operating at optimum efficiency.”
With commodity print in decline, Francis anticipates further consolidation in the market.
“We are already seeing commodity print in decline, so unless B2B/trade printers are diversifying into other segments then there is no doubt we’ll see a few finish up. As the manufacturer behind the scenes you have to constantly be developing new products, finishes and then provide marketing material to support the commercial sales.”
Guru Labels
“We moved to our current premises in Lisarow around five years ago, which at the time was five times the size of our previous site and five years later we are again at capacity,” says Guru Labels director, Nick Lowe.
According to Lowe, it is Guru’s understanding of speed that sets it apart from its competitors.
“We have no less than 1500 orders in our system at any one time. Today, customers expect not only a quick turnaround for their order, but they also want their communication just as quick. We pick up a lot of customers because of our levels of service and our response time,” he says.
Culture is also at the heart of Guru’s efficiency.
“We come from a long line of good culture,” says Lowe.
“Our people are some of the best and brightest in the industry and because of their talents we are constantly innovating and introducing new technology that is homegrown.
“On the day of a customer enquiry, we have the job quoted, artwork approved, and in the system. We understand that speed and response time is king. If you’re waiting more than 10 minutes for a quote from us, then there is something wrong.”
Lowe believes that the B2B space is currently undergoing a shakeup, with those that differentiate their offering from their competitors the ones likely to succeed.
“I wouldn’t say that the B2B space is overcrowded, however, I would say that there are a lot of businesses starting to look the same,” he explains.
“In business I think you must be opportunistic and a bit bullish – I believe in going for every market you can if there is transparency in the market you’re playing in. For example, while we have an exceptional amount of trade business, we’ve never stated ourselves as a dedicated trade house. In this industry, you need clear lines of engagement. As the saying goes, when you try to be everything to everyone, you become nothing to no one.”
Imagination Graphics
For Sydney-based Imagination Graphics, its main trade services include printing, celloglazing, digital die-cutting, perfect binding, and CtP. Depending on the job, the Marrickville-based printer aims to keep its finishing work in-house.
“Imagination has a big market dealing with other printers and brokers,” says Imagination Graphics’ owner, Emmanuel Buhagiar.
“I have found this way to do business to be very good. If you have a strong relationship with the printer they will outsource more and more to you. I would suggest we are 40 per cent trade and 60 per cent direct to organisations/businesses. Having said that, I have noticed more and more that our clientele base is growing to the B2C. I will keep on advertising to the trade as more printers are outsourcing their work.
“I don’t think the B2B printing space is overcrowded, but as times get tougher a lot more printers will downsize, amalgamate, or sell up,” he notes.
According to Buhagiar, Imagination is planning to enter the wide format market in the near future.
“Our signage area is growing each month, and I can see a place for us in that field. Our expertise with colour and pre-press makes it a no brainer. Our only challenge will be space and we will have to re-organise our equipment to fit. I am traveling to drupa to have a look at all new machines and technologies.”
Lamont Print & Signs
Lamont Print & Signs specialises in banners, corflute, PVC, high volume print runs onto SAV and mesh, with all finishing processes conducted in-house.
“We feel that to maintain total control over the entire production process is essential to maintain an excellent client experience,” says Stephen Lamont, owner of Lamont Print & Signs.
According to Lamont, the pandemic significantly altered the Townsvillle-based business.
“We observed a shift among Queensland businesses towards favouring local suppliers over interstate ones due to transportation and supply constraints. Consequently, we underwent an expansion to enhance our production capacity, doubling it during this period. Moreover, disruptions in Chinese supply chains prompted challenges in rebuilding trust with local clients.”
Lamont believes there is movement of larger sign shops into the B2B sector, possibly driven by substantial investments in production-grade equipment.
“We perceive potential challenges in terms of trustworthiness from the perspective of these businesses. Concerns may arise regarding the confidentiality of files and customer data, as well as the risk of undercutting prices. If considering engaging with such companies, one might question the guarantees they offer against competing for the same projects.”
Despite the increase, Lamont believes “healthy competition is beneficial overall, and market dynamics will naturally dictate the survival of businesses”.
“We have a significant presence in the wide-format trade printing domain, having operated in this sector for the past five years as a trade supplier,” explains Lamont.
“As a regional entity, we encounter challenges in receiving technical support. Although our current channel partners have been working very hard to upskill local support companies and this is having a positive result.
“Additionally, pricing pressure from larger trade print houses poses a challenge. However, our unwavering commitment to superior customer service remains paramount. Addressing challenges in this space entails ensuring reliable delivery schedules, maintaining open communication with clients at all levels, and dedicating resources to both personnel and equipment.”
The Lamson Group
The Lamson Group of companies is comprised of Lamson Paragon, Paper Rolls Australia, Cheque-Mates, Integrated Office Solutions, and Fairplay Print.
With a long history in the print and communication industries and with distribution capabilities Australia wide, the group provides an extensive range of products and services to a multitude of businesses and commercial operations.
“I’m not aware of anyone that has this diversity as a trade offer,” says Rodney Frost, Group CEO of The Lamson Group, on the company’s range of products and services.
“[Covid] increased our focus on technology to ensure we made it easier for people to do business with us, particularly via our fully integrated digital solutions. This takes processing costs out for our partners leaving them focussing on high margin work and consulting on large projects.”
Commenting on the current B2B printing space, Frost says he anticipates further market consolidation.
“There seems to be some movement with consolidation happening via an increase in mergers and acquisitions. This will continue in my opinion, potentially in the mailing sector also. This is far more responsible than seeing administrators appointed and a whole lot of collateral damage to the industry if a liquidation was to occur,” he says.
“We moved into wide format and signage in 2016, however it seems to be very overcrowded and a service that we offer as a part of broader requirements, not as a standalone offer usually. The challenges here seem to be available trade volume as there is just so much available capacity with a low entry point of circa $30k.“
For The Lamson Group, the focus remains on integrity, speed, and quality.
“There are some large trade players in wide format that are heavily invested chasing volume. In wide format we focus on service and the product variety we can offer. One minute we are printing fabric, the next minute it’s signage and then we are wrapping a vehicle an hour later!”
LEP Colour Printers
LEP Colour Printers is a trade only offset, digital, and wide format printer, specialising in producing four colour process work.
“At LEP, we endeavour wherever possible to complete work inhouse, enabling us to have complete control over the production process from a quality assurance perspective,” says LEP CEO, John Bromfield.
“We take a lot of pride in the work we produce, and reputation is critical from a brand value perspective, hence we want to be confident all work leaving LEP is of the highest possible standard. We do however outsource some specialised finishing as and when required, to a discrete number of trade providers with quality standards aligned with those of LEP.”
Covid has arguably accelerated the shift to digital marketing technologies, which brings with it new challenges to traditional print industry sectors, notes Bromfield.
“In addition to the unprecedented impact which Covid has had upon the Australian print industry, in recent years the industry has been besieged by a plethora of imposts including significantly rising input costs; the costs and complexities of new digital print technologies; the ongoing decline in demand for printed materials as electronic mediums continue to penetrate our lives and the ever-increasing shortage of skilled print trades people.
“LEP has embraced these challenges, seeing it as an opportunity to further streamline its business model, to provide further cost reductions, enabling its print reseller customers to remain relevant in what is becoming an increasingly dynamic marketplace. As a result, more and more of our customers are effectively becoming a print broker outsourcing their back-end production requirements to LEP, transitioning from a high cost, high risk printing operation to a low cost, sales focussed business where margins and profitability are predictable and strong,” says Bromfield.
“In the past, the Australian print industry could support a high number of decentralised, autonomous commercial printing businesses. The harsh reality of this economic model is that in a declining industry with ever increasing cost pressures, a high number of relatively small operators
each investing in real estate, equipment and employees means that unit printing costs across the entire industry are very high; and indeed, unsustainable in the long-term. As a natural consequence of the evolving commercial print marketplace, it is inevitable there will be a certain degree of industry consolidation, as organisations look to implement change within their businesses.
“LEP’s economic model, through its lean manufacturing environment and highly developed processes, is based upon the economies of scale which come with high print volumes of four-colour gang printing. At LEP we are pursuing a transformational change to the traditional commercial printer paradigm, encouraging our commercial print partners to actively seek out opportunities as a means to pivot their business models, by divesting themselves of non-performing capital assets (freeing up vital cashflow in the process) and transition to an outsourced business model to LEP, who has the economies of scale and ability to deliver cost effective print solutions.”
In response to this increased demand from B2B customers, LEP is embarking on a major upgrade to its offset printing fleet, transitioning to LED UV printing, commencing with the installation of an RMGT 8-colour LED UV Press in the coming weeks.
Mediapoint
Mediapoint specialises in large format and UV printing for both micro and volume runs. Its core offerings include boards, banners, posters, stickers, and labels on rolls. At Mediapoint, all production processes are handled in-house.
“As a dedicated trade printer, we prioritise maximising margins for our resellers, necessitating full control over every aspect of production. This strategy enables us to manage costs effectively and safeguard our partners’ profitability,” explains Mediapoint sales manager, Jamie Xuereb.
According to Xuereb, the pandemic brought both challenges and opportunities for Mediapoint’s business model. As Xuereb explains: “While some of our resell partners faced operational setbacks and increased overheads, prompting downsizing and outsourcing, it also allowed us to strengthen our relationships with them. By providing support during a time of need, we could enhance their profitability and reinforce the value of our partnership.”
While there’s been a noticeable influx of B2C printers venturing into the B2B space, Xuereb says Mediapoint maintains a distinct definition of its trade clientele.
“Trust is paramount in our industry, and we believe actions speak louder than words. The general feeling is trade customers prefer not to use B2C or companies who are deemed as having a retail component where possible as they do not want to help build a competitor.”
Xuereb says he is currently witnessing a surge in the introduction of new print equipment in the B2B landscape, which has been particularly noticeable over the past year.
“This development addresses a longstanding challenge for our industry: capacity constraints. At Mediapoint, we’ve successfully tackled this issue by partnering with Durst, resulting in a remarkable 300 per cent increase in our overall business capacity. However, despite this expansion in printing capabilities, we’re not seeing a proportional increase in demand across the market. This observation leads us to anticipate a significant transformation in the industry dynamics. We foresee a clear dichotomy emerging on one end, there will be larger capacity printers like Mediapoint, offering high volume production at lower costs. On the other end, we anticipate a rise in micro printers catering to ultra-short runs with rapid turnaround times.
“Consequently, we believe that occupying the middle ground in the current market scenario is precarious for printers. It necessitates a careful examination of the feasibility and long-term viability of in-house production. Our experience indicates that many resell partners investing in small to medium print setups might find themselves burdened with liabilities rather than assets. Therefore, Mediapoint presents itself as a compelling solution worth exploring, particularly for businesses seeking to optimize their printing operations for sustainable growth.”
Mezographic
Established in 1993, Mezographic is a family-owned business based in Melbourne’s Dandenong. It is an innovative business that provides high quality wide format digital print to the corporate, print service, advertising, graphic design, and sign industries.
Over the past 18 months Mezographic has purchased three large format machines – signifying its investment in intelligent automation. Earlier this year in March, the company installed the first swissQprint Kudu with neon print capability in the Southern Hemisphere.
“In today’s marketplace, you need quality to meet customer expectations and speed to be able to compete in the marketplace,” says Frank Mezo, owner of Mezographic.
“[The swissQprint Kudu] fills the gap between high-end productivity and quality. It gives us that very high-end quality but with enough production speed,” said Mezo, who is a vocal advocate in the industry for new technology.
In January 2023, Mezographic expanded its existing premises, moving into the neighbouring site to accommodate its growing fleet of new machines, including the Durst P5 D4 HS 350 (the first fully automated version in Australia), which has been up and running since June 2023.
“The extra space has given us the ability to expand our automation. I had the first P5 in the Southern Hemisphere in 2019 (HS 250). I first saw the machine when I was at the Durst factory and for me it was a case of being at the right place at the right time, and keeping an eye on it until it was released.
“In today’s market, this kind of thing sets you apart – automation and productivity. While we still work with clients one on one, we are now trying to automate the manufacturing as much as possible.
“I believe what sets us apart in the marketplace is our customisation and personalisation that we offer – we are focused on working with our customers on bespoke projects. We are always on the lookout for the latest technology and looking forward to seeing what drupa will offer.”
Print Logistics
Print Logistics boasts a comprehensive suite of trade printing services, including digital and offset printing. Its recent investments in case binding equipment enhance its inhouse finishing capabilities.
“This allows us to provide more competitive rates and faster turnarounds than what’s out there, particularly for hard case binding projects. Our trade-only printing portal is also launching very soon, so keep an eye out for that,” says Print Logistics production manager, Geoff Montgomery.
“Our preference for managing most finishing processes in-house is rooted in our commitment to ensuring quality control and achieving efficient project completions. This strategic choice significantly benefits our trade clients by meeting all their finishing requirements effectively.
According to Montgomery, the pandemic was surprisingly beneficial for Print Logistics.
“We intensified our marketing efforts, forged new partnerships, and solidified our team culture. These actions enabled us not just to return to our pre-pandemic levels of activity but to surpass them, highlighting the importance of resilience and adaptability in challenging times.”
Montgomery believes the move of B2C printers into the B2B space seems driven by the demand for more effective solutions.
“As older B2B providers may fall short in meeting client needs, it naturally opens up opportunities for other printers to fill this growing demand,” says Montgomery adding that expanding further into wide format printing is a “definite move” for the company.
“This aligns with our aim to continuously evolve and cater to the comprehensive demands of the market.”
Twin Loop Binding
In response to the ongoing challenges within the print industry, Twin Loop Binding has adapted and expanded its services to meet the evolving needs of customers. Listening closely to feedback, Twin Loop Binding recently announced the addition of hard cover and case binding to its range of services.
While twin loop wire binding remains the company’s specialty, it now offers a comprehensive range of binding and finishing solutions, including calendars with hangers or tent stands, plastic spiral and comb binding, as well as perfect binding using both EVA and the more durable PUR glue options.
“The disruptions brought about by the pandemic compelled us to reassess our strategies and refocus on specialised services,” says Twin Loop Binding managing director, Wayne Rubin.
“As part of our commitment to quality and innovation, we’ve implemented several enhancements, such as the creation of a dedicated storage and dehumidification room to further safeguard PUR bound books awaiting final trimming. In line with our dedication to efficiency, we made strategic equipment upgrades, including the replacement of our saddle stitching unit and the purchasing of an A3 perfect binder.
This investment allows us to focus on the needs of our customers and enhance our capabilities.
“Moreover, we’ve purchased additional punch bars to facilitate the easy binding of plastic spiral and twin loop wire bound books and documents on the A3 long edge, ensuring greater flexibility and efficiency in our processes,” says Rubin.
“Looking ahead, while we remain committed to delivering exceptional service, we are mindful of the importance of remaining competitive in terms of pricing. To better serve our customers, we’ve introduced special pricing incentives for non-urgent projects and eliminated charges for replacement boxes. We’re also actively encouraging our colleagues to take advantage of our services to save on costs associated with underutilised staff and labour.
“At Twin Loop Binding, we’re dedicated to staying ahead of the curve, continuously innovating, and exceeding the expectations of our customers. As we navigate the challenges of the future, we remain committed to delivering excellence in binding solutions and customer service.”
Vivad
Melbourne-based Vivad is predominantly a trade printer, with around 90 per cent of revenue generated from resellers. Vivad prints up to five metres wide on roll stocks using UV cure inks. The company also print dye sublimation up to 3.2 metres wide, as well as flat bed printing, and roll-to roll latex printing. The company performs all printing and print finishing in-house.
“We weld, sew, stick, fold, crease, screw – pretty much all the print finishing services required for large format,” says Vivad managing director, Ewen Donaldson.
Vivad also manufactures VivadFrame aluminium framing systems and supply Silicone Edge graphics for retail, exhibitions, and events.
“Covid caused a reduction of revenue of 60 per cent, so like many businesses Jobseeker was an absolute lifeline for us,” says Donaldson.
“Covid allowed us to become more organised, work on our systems and do a little bit of R&D and product development. I’m so glad those days are behind us and let’s hope they never return.”
According to Donaldson, since Vivad began in 2000, demand for large format has been “growing exponentially”.
“There is so much demand for what we produce, there is plenty of room in the market for competent players. It seems the more entrants into the industry, the bigger the market gets.”
