Volume 5 Issue 3 Fall 2023
Marco Boer’s Positive Outlook
Packaging Primed for Success
The Talent Gap
IN THIS ISSUE
Fall 2023 VOLUME 5, ISSUE 3
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Unleashed Opportunities in the Print & Packaging Industry Abound
In many ways, we are standing on the cusp of a resurgence in the print and packaging industry. The wave of AI, added to the deluge of digital communication, may make it seem like print is forgotten. However, the overwhelming digital fatigue and lack of human connection have propelled print to become a darling of marketers across the globe.
can positively impact the bottom line. At a time when “going green” is not just a trend but a necessity, we aim to provide insights to help you navigate the shift towards sustainable printing practices.
As our industry adapts, we need to focus beyond the merits of print. We have an opportunity to bridge The printing and packaging industry the skills gap and attract, train, and is at a critical juncture, facing retain the next generation of talent. challenges that also present boundOur feature story, “The Talent Gap: less opportunities. In this moment, Attracting the Next Generation,” we have a chance to discusses this return to a time when industry-wide issue connecting through and presents Even those print mattered, and actionable strateenthusiastic about AI to craft a future that gies. From hiring is sustainable, profitfresh talent straight know that we must still able, and innovative. connect on a more intimate out of school to Even those enthusiascreating modern, level. Print can do tic about AI know that engaging work that in spades.” we must still connect environments and on a more intimate level. Print can do promoting a culture of continuous that in spades. learning, this story underscores the need for a paradigm shift in our In addition to the technological approach to human capital. challenges we face, our world is increasingly becoming more aware of This issue of Print Illustrated should its responsibilities toward the planet, be a reminder to let go of any angst and our industry is no exception. Our and unleash the opportunity that cover story, “Eco-Friending: Meeting print presents. At Fujifilm, we see a Customers’ Sustainability Needs,” vibrant future for print and we aim delves into how sustainability is to embrace it alongside you. not just a buzzword but a business imperative. This piece illustrates how All the best, our industry has become demonMark Friedman strably more sustainable, not only to Vice President of Marketing, meet consumer demands but also to FUJIFILM North America Corporation, uncover efficiencies and savings that Graphic Communication Division
IN THIS ISSUE
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INK SPOTS
Tactics, stats, and trends that matter
THE SINCLAIR ADVANTAGE
Why Sinclair Systems International is more than just labels
ECO-FRIENDING Meeting customers’ sustainability needs
THE TALENT GAP
Attracting the next generation
OPEN FOR BUSINESS Marco Boer discusses the opportunities in print
A RESOUNDING SUCCESS IN CHICAGO Fujifilm’s Digital Inkjet Summit is largest ever
print illustrated is published quarterly by FUJIFILM North America Corporation, Graphic Communication Division Copyright 2023 All rights reserved Managing Editor Maree Joyce, FUJIFILM
PRESS Komori GL 840 PLATES Fujifilm SUPERIA LH-PL thermal plates
SCREENING Fujifilm 175 line Co-Res Screening INKS/COATING Outside cover prints 4/c process HUV ink
plus overall Gloss Aqueous Coating. Inside cover and body prints 4/c process HUV ink plus overall Satin Aqueous Coating.
Creative and Editorial Direction Conduit, Inc. conduit-inc.com
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INK SPOTS
Tactics, stats and trends that matter
READY FOR LAUNCH
Packaging Primed for Success
In 2022, the package printing market was estimated to be worth $473.7 billion; this will reach $551.3 billion by 2027 (constant 2021 prices), with a growth rate of 3.1%. Flexo is the largest process when it comes to package printing in 2022 and remains the largest to 2027, growing at a rate of 2.4%. Globally, corrugated and cartons is the largest material segment and will remain so to 2027, growing at a rate of 3.3%.
TAKE OFF
Flexible Packaging Fuels Growth
The global trends in flexible packaging with materials such as paper, foil, RCF, EVOH, PVC, PE, BOPET, BOPA, CPP, and BOPP are set to take off.
Market Growth The market value for flexible packaging is forecasted to grow at a CAGR of 3.2% to $341.6 billion from 2023 to 2028. Consumption is expected to grow at a CAGR of 4.2% to 41.23 million tons. Material Usage Plastic is the most used material for flexible packaging, with an 89.1% market share in 2023, followed by paper (7.7%) and foil (3.2%). Source: Smithers.com
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BOPP Growth BOPP (Biaxially Oriented Polypropylene) is forecasted to grow at the fastest rate, at 5.2% CAGR to 2028. Applications Flexible stand-up pouches are challenging rigid packaging in applications like ready meals, soups, rice, and sauces. BOPP film is strong in savory snack packaging, replacing traditional materials like RCF.
Sustainability Sustainable technology developments include mono-materials, which are more recyclable, and improved barrier solutions for monomaterial packaging. Market Segments Pharmaceuticals and medical, and cosmetics and toiletries are the largest non-food markets for flexible packaging. Food markets dominate, accounting for a projected 2023 share of 76%.
TOUCHED DOWN AI Already Having an Impact on Print
Reducing Printing Errors and Improving Artificial Intelligence (AI) and Machine 5 Quality: AI helps in real-time error Learning (ML) are rapidly growing technologies that are becoming more detection and quality improvement. accessible outside of tech hubs like AI-generated Designs: AI is using neural 6 networks to create designs ranging from Silicon Valley. Their adoption is moving from the early adopter phase to the t-shirts to signage. early majority phase, with spending Using AI for Marketing: AI is transforming on AI technologies projected to reach 7 marketing by enabling personalization, $97.9 billion in 2023. In the printing industry, AI/ML is causing a revolution through various applications:
intelligent email content curation, and AI-enhanced Pay- Per-Click (PPC) marketing.
AI is already impacting the printing Print Automation: AI and Robotic Process industry, opening new revenue streams 1 Automation (RPA) are being used to autoand improving effectiveness. It is not mate tasks like data entry, quality assurance, and just a futuristic concept but a present printing, enhancing efficiency and reducing costs. reality, shaping various aspects of the printing Improved Security: AI/ML helps in guarding 2 against cyber-attacks and data breaches, industry, from automation and security to providing real-time threat detection and data protection. personalization and marketing. Predictive Maintenance: AI/ML enables predictive maintenance by monitoring equipment performance and detecting defects, reducing unplanned downtimes.
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Enabling Personalization: AI enhances customer service by delivering tailored experiences through personalized chatbots, search engines, and mobile notifications.
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CUSTOMER SPOTLIGHT
THE SINCLAIR ADVANTAGE Why Sinclair Systems International is more than just labels
Synergy. Resource sharing. Credibility. Trust. Sustainability. When you think about the power and promise of building partnerships, these are characteristics that jump to the forefront. Partnerships are strategic alliances that when shared and complemented show that you are as strong as the forces you align yourself with. They enable you to share expertise, networks, resources. They provide entry into new customer segments and markets, providing a collaborative platform that can offer new ideas, perspectives and knowledge. Sinclair Systems International is built on the premise that crafting and sustaining strong partnerships is at the heart of who and what we are. As a label manufacturing plant, we are committed to servicing and supporting our customers where and when they need us. But, as our partners find, we are more than just labels on produce packaging. We are 4
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a resource that not only helps build solutions, but also sees the big picture. Driven by innovation and a commitment to supporting the environment, our footprint is steeped in the characteristics that define us. It is the same qualities we seek in the companies we work with.
By Michael Obradovich For the Sinclair Systems International brand and the scores of vendors we work with, value is everything. Take our relationship with Fujifilm. When we embarked on our relationship in 2019, the company was marketing its new Flenex-FW water-washable flexo plates. The Fujfilm team said the plates would improve sustainability credentials, while maintaining quality and productivity. The innovation was touted as a game-changer for the label sector. Conducting our due diligence, we started to review our options, sitting down with four vendors, including Fujifilm. When you know something is right, you can feel it. The innovation, the customer service—everything— felt right. The overall Fuji package was the best way for us to go. This February, we implemented Fujifilm’s Flenex into our portfolio.
To date, we currently have a C-Touch 25x30 machine and an AR kit that uses Fuji Flenex plate material. The working relationship, support and everything that Fuji has been able to offer has been the kind of experience that we seek out. The improvements and feedback from our customers has improved across the board. Part of that feedback is that our platemaking workflow is more efficient and cost effective than ever before. By finding a partner that aligns with the tenets you strive to reach, the system and processes work. Fujifilm’s Flenex-FW water-washable flexo plates have indeed helped us improve our sustainability, while maintaining the quality and productivity of our work. A win-win.
In the beginning... and beyond
Sinclair Systems International is steeped in a history of achievement. More than three decades ago in Norwich, England, the majority of produce branding was on the box. Individual fruits and vegetables had no identity. Times, we decided, must change. It was time to give fruits and vegetables the branding they deserve.
Partnerships are strategic alliances that when shared and complemented show that you are as strong as the forces you align yourself with.” Pioneering the development of a patented technology in automatic high-speed fruit-labeling systems for individual pieces of fresh produce, we started to run at 12 fruit per second. Today, with more than 79 issued patents, excellence in innovation is the fiber of our company.
With a U.S. presence in Fresno, California, and our digs in Norwich, Sinclair now operates nine label-manufacturing sites around the world. That includes labeling systems installed in more than 45 countries worldwide. By partnering with vendors like Fujifilm, we are able to continue our pursuit of making sure this is safe and that it complies with requirements of the U.S. Food and Drug Administration (FDA) and the European Union (EU).
Michael Obradovich is Manufacturing Manager for Sinclair Systems International, a world leader in produce labels, labeling machinery and technical service support in the fresh produce industry. The company is part of a family of companies operated by Gulftech, which has an international footprint spanning 85 countries.
As we look to the future, our path is defined by the innovation, processes and partners we continue to build and sustain. It is The Sinclair Advantage.
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ecyclable. Compostable. Biodegradable. When GOpak talks about sustainability, the conversations go far deeper than putting catchphrases in a marketing slogan. To be fully immersed in the space—to be the kind of brand that stands out to consumers—GOpak offers a variety of material options that define its sustainability commitment. For example, its EBeam technology eliminates the need for a secondary lamination layer, which, in turn, reduces raw material use and allows for recyclable, compostable and biodegradable materials to be utilized. By choosing flexible packaging, GOpak is putting itself and its consumers one step ahead of the game. AJ Buran, President of Sales at the flexible packaging option provider, says it started with two pillars in mind: speed to market and sustainability. In tandem, the digital press and its EBeam technology hit the bullseye of both speed to market and improved sustainability. That way, its customers can eliminate a layer of material by using the EBeam technology to protect the inks rather than reverse printing and laminating. Most of the flexpack industry reverse prints on PET, then glues the film to the rest of the structure, which adds a couple of days of set-aside time for the adhesive to bond properly.
In a time when all eyes are on a brand’s sustainability efforts, GOpak continues to expand its offerings. “There tends to be a lot of talk around sustainability, but the action taken has been slow. There is so much confusion, politics and greenwashing in the marketplace. But brands are getting more educated to make good choices for their businesses. Ultimately, sustainability needs to make financial sense for the brands to operate.” For companies like GOpak and others in the flexible packaging space, one of the biggest challenges is the limited ability to recycle and reuse the plastic. This is due to different types of plastics that are laminated together. Chemical recycling, which some have as about 10 years out, is being developed and scaling to be able to separate the layers to be reused.
When it comes to print on paper, the right things are often buried under an avalanche of misinformation driven by corporate greenwashing, pop culture media, competitive interests and anti-paper environmental activists.” – Kathi Rowzie, President, Two Sides North America
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Today, the GOpak team continues to expand its sustainable offerings. Take electron beam curing, which is designed to help protect the inks and graphics without adding a layer. This makes it easier for compostable materials to compost and recyclable materials to be recycled. It also has been using landfill biodegradable materials called PakZero. Because it is biodegradable, it breaks down in an anaerobic landfill environment. Buran says that digital printing has been another player in helping to reduce waste. In addition, RFID/NFCsmart packaging and QR codes help give consumers access to updated information, as well as assist brands in tracking and tracing.
The answers are out there
From where she sits, Kathi Rowzie has a unique view on the commercial print industry’s sustainability story. As President of Two Sides North America, she helps steer the group’s straightforward, balanced approach to the greening of print, paper and paper-based packaging. As part of the non-profit Two Sides global network, Two Sides’ reach can be pretty wide. The global network includes more than 600 member companies across North America, South America, Europe, Australia and South Africa. Its member companies span the graphic communications and paper-based packaging value chain, touching the areas of forestry, pulp, paper, paper-based packaging, chemicals and inks, pre-press, press, finishing, printing, publishing, envelopes and postal operations. Rowzie says print customers and their customers are increasingly aware of the environmental impacts of the products they buy and use. That means everyone understandably wants to do the right things— even if doing so becomes a battle between fact and disinformation. 8
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MYTHS & FACTS YOU SHOULD KNOW The production and use of paper is destroying U.S. forests.
Paper manufacturing is a major cause of greenhouse gas emissions that contribute to climate change.
MYTH
MYTH
U.S. forests are a renewable natural resource that is continuously replenished through sustainable forest management and natural regeneration.
FACT
U.S. forestland totals around 766 million acres, with the total live-tree volume exceeding 1 trillion cubic feet. This translates to nearly 9 billion stacked cords of wood. Each year, U.S forests grow approximately two times more tree volume than is harvested, with a net average annual increase in growing stock of about 25 billion cubic feet.
THE SKINNY
“When it comes to print on paper, the right things are often buried under an avalanche of misinformation driven by corporate greenwashing, pop culture media, competitive interests and anti-paper environmental activists. It’s a business imperative that printers arm themselves with the facts to help their customers and other stakeholders understand the inherent environmental benefits of print on paper, and how it contributes to a more sustainable, circular economy.” From Two Sides’ perspective, it helps to tackle relevant environmental and social issues head-on with an arsenal of factual, authoritative information that works to quash myths and
The pulp and paper industry contributes less than 1% of total U.S. greenhouse gas emissions.
FACT
Carbon neutrality is an inherent property of biomass reflecting the fact that the carbon residing inside it was only recently removed from the atmosphere, so returning it to the atmosphere has no net effect on atmospheric CO2. This inherent property exists whether or not trees are regrown.
THE SKINNY
explain the industry’s sustainability goals. The resources help give stakeholders a solid foundation for making well-informed decisions about the use of print and paper products.
There tends to be a lot of talk around sustainability, but the action taken has been slow. There is so much confusion, politics and greenwashing in the marketplace.” – AJ Buran, President of Sales, GOpak
MYTH
Paper manufacturing uses excessive amounts of water.
paper-making FACT While requires large amounts of water, very little water is actually consumed in the production process. In a typical U.S. paper mill, process water is recycled 10 times or more, then is cleaned to meet strict U.S. water quality standards. Approximately 90% is returned to its source. About 1% remains in the manufactured products, with the rest evaporating back into the environment.
THE SKINNY
MYTH
Using paper products is wasteful.
Paper recycling extends the supply of a valuable natural resource (wood fiber from sustainably managed forests), saves landfill space, and avoids greenhouse gas emissions (methane) that result when paper decomposes in landfills.
FACT
In 2022, 68% of paper and paperbased packaging in the U.S. was recovered for recycling. The recycling rate for cardboard, what the industry calls corrugated, was 93.6%. About 80% of U.S. mills use recycled fiber.
THE SKINNY
Only recycled paper should be used to make new paper products.
MYTH
The continuous input of wood fiber from sustainably managed forests is essential to the paper production cycle.
FACT
Every time paper is recycled, the fibers get shorter and weaker. After being recycled 5 to 7 times, the fibers become too short and weak to bond into new paper. Mills producing fresh fiber use different processes than mills using recycled fiber. As a result, the releases to the environment differ.
THE SKINNY
As Rowzie says, the truth—and untruths—are out there. For example, paper is one of the few products on earth that already has an environmentally sustainable, circular life cycle. North American paper is made from an infinitely renewable natural resource—trees, which are purpose-grown, harvested and regrown in sustainably managed forests. “Paper is manufactured using mostly renewable, carbon neutral bioenergy in a process that uses a lot of water,” Rowzie says. “But in reality, it consumes very little of it. And with a 68% recovery rate, paper products are recycled more than any other material in the country’s municipal solid waste stream.”
MYTH
Paper is a dying industry.
The U.S. paper industry makes products essential for everyday life.
FACT
The U.S. forest products industry is among the top 10 manufacturing employers in 43 states. The industry directly employs approximately 925,000 people and supports more than 2 million additional jobs throughout the supply chain. The forest products industry also is a major contributor to the U.S. economy, representing approximately 5% of manufacturing GDP.
THE SKINNY
Source: “Paper & Paper-Based Packaging Busting The Environmental Myths” — Two Sides North America
Buran believes that the solutions and answers to the industry’s sustainability path are ones that more companies should be willing to embrace and share. For example, it is helpful to undertake actions like using eco-friendly materials when possible. Waste reduction. Press optimization. Training employees. Continuous improvements in production, shipping and receiving. Choose suppliers with the same intentions. And the list goes on.
That is one of the approaches Two Sides—and others—hope catches on. The bottom line is that with consistent, verifiable messaging that is able to continually demonstrate the industry’s wealth of sustainable benefits, the industry—everyone on every side—can make a difference that can be measured.
“It all comes down to transparency,” Buran says. “We, as an industry, must be able to show and share our progress without avoiding industry challenges.” Fall 2023
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THE TALENT GAP Attracting the next generation
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n 2016, Modern Litho began utilizing the Predictive Index, a behavioral assessment that helped the
commercial printer and direct mail service provider gain insight into behavioral patterns of current and
prospective employees. The Modern Litho team also
used the tool to manage its daily interactions in group
settings in the workplace. Since then, it has incorporated the Index into its onboarding program. The results of the assessment help Modern Litho team leads understand individual behaviors so that they can effectively communicate one on one with employees to optimize training and build a productive environment.
While the process of growth for us has been successful, the goal is to train skilled employees who share the same vision and feel a vested interest in the company.” – Lauren Bauman, VP/HR, Modern Litho Modern Litho VP of Human Resources Lauren Bauman says that it is no surprise that technology continues to become such a critical part of our everyday lives— one that is enhancing the learning and development of all its employees. “Some may think that the printing industry is phasing out in a world where technology and digitization have seemingly become the future generation’s main source of obtaining information. In reality, that couldn’t be further from the truth. It has been proven that print is the most soughtafter form of media and is still relevant in today’s modern world.”
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The challenge, as industries everywhere are discovering, is to find the right mix of talent and desire needed to pass the torch down the line. Today, the skills needed for success have become more complex because the ideal candidates are both tech-savvy and mechanically inclined, which is still very necessary to be able to problem solve, effectively troubleshoot and perform maintenance. As the overall commercial print workforce is aging, there has never been a more critical time to address this issue. According to the U.S. Bureau of Labor Statistics, the average age for printers in the U.S. is 47.9 years, with most employees between 45 and 64 years old. For its part, Modern Litho has implemented several strategies that are not only designed to attract future employees, but also to retain them. From attending local job fairs, to sharing current events on social media and staying involved in the local community, the company constantly is researching and utilizing different methods to capture the interest of quality minded people who desire to join a growth-oriented company. One of the initiatives it has added is to help new employees succeed in their careers by offering a formal onboarding program revolving around specific training and oneon-one interactions. The move helps employees build relationships as well as progress in their printing journey. “We have had many long-tenured, skilled employees, but the myth that the printing industry could phase out has affected the younger generation’s interest in obtaining an occupation that requires specific skills and training to succeed in the industry,” Bauman says. “In the past, the printing process was very manual and with technological advances, the process has transitioned to be more automated.” 12
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Even though Modern Litho has taken steps to build a continuous learning culture, there have been challenges finding effective and relatable programs that support the necessary training needed for skilled positions. “We have core values by which we all live and work, and without clear instruction or expectations, reaching the level of excellence that we strive for can be difficult,” Bauman says. “We have been gradually overcoming this hurdle by working with each department to formally develop internal operating procedures while keeping abreast of industry updates.”
employees interested in progressing in this industry. Bauman says the initiative not only supports the mission of employing quality-focused individuals, but also encourages confidence in employees resulting in self-improvement. “While the process of growth for us has been successful, the goal is to train skilled employees who share the same vision and feel a vested interest in the company. It can be difficult for some individuals to understand and support the overall perspective of growing with a company both in skill and compensation.”
One avenue of hope is things like offering apprenticeship programs for both young people and current
In the beginning of 2023, seasoned industrial sales professional Steve Bates acquired CityPress Inc.,
Into the Great Wide Open
how conversations were left with customers. Bates asked if he ended a conversation by saying, “Thank you so much for the business. We really appreciate it. We do many types of printing projects so if we can help you in any way, we’d love to do so.”
Technology plays a huge role, not just for our organization’s profitability and ability to remain relevant to our customer base, but also in attracting new hires.” – Steve Bates, President, CityPress The salesperson looked at him and said, “I don’t think I ever have.” Thirty minutes later, the salesperson, taking Bates’ advice, came into his office and said he had tried the closing with a customer, who in turn ended up committing $50,000 additional work for the year. It was business that CityPress had never had before. The approach set the example—one that Bates says is creating an atmosphere of more open-mindedness and attention to new details from the whole company.
a Waukesha, Wisconsin, commercial printing company with a longstanding reputation for quality and service. Among other things, Bates was drawn by the care the owners of CityPress put into the company over the past 50 years. Part of the steps Bates took when he acquired the company was to embrace its team of longtime employees, along with making solid technological investments. Moving forward, Bates is keeping a keen eye on what the future holds for his workforce. First and foremost, as owner and president, he is seeking people of good character and work ethic, including those who might be new to the print industry, like him.
“I think the talent availability for experienced production and sales is very limited in our industry,” Bates says. “Prepress and design talent, at least here locally, are available through junior college programs. I’m looking for salespeople at all stages of their career. It’s the same for production. Lack of experience in our industry is not a barrier to entry. As long as they communicate well, they can work as part of a team, and are trainable, we will give them an opportunity.” As for his existing team, Bates continues to initiate new ways of approaching traditional ways of doing business. For example, in a recent chat with the longest tenured salesperson on his team, they discussed
It is the atmosphere he believes is needed in the new print landscape, where technology and the search for new, more effective ways of doing things evolves every day. “Technology plays a huge role, not just for our organization’s profitability and ability to remain relevant to our customer base, but also in attracting new hires. Investment in advanced technology demonstrates an investment in the future. It provides a stable and sustainable work environment.” As companies like Modern Litho and CityPress prove, investing in the future— in resources, technology and especially people—is key. In this technology-rich era, the need to find human assets who can steer the ship should be at the top of everyone’s to-do list. Fall 2023
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QUESTIONS & ANSWERS
Marco Boer Discusses the Opportunities in Print
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arco Boer is recognized as a trusted consultant to the digital printing industry. He has a reputation for being able to put complex information and concepts into a context that is easily understood by his audience. With more than 30 years of experience in advising digital printing equipment and supplies manufacturers on developing the next generation of digital printing technology, Boer has developed a deep understanding of digital printing technology and its applications. I.T. Strategies, Inc. conducts and delivers research data, offers interpretation and advice, identifies specific opportunities, and helps organizations implement these strategies to achieve effective solutions. Boer has been the Conference Chair of the popular IJ Summit and Digital Packaging Summit since 2014, and actively participates on many advisory boards across the industry. You talk about how print is about to become more expensive for end customers. Can you elaborate on the factors driving this increase in cost and how printers can ensure they offer more value to justify these costs?
Print has gotten more expensive for several reasons, the core reason being the price of paper has increased on average 50% since before COVID. This is due to paper mills shifting production from printing and writing paper to packaging and tissue paper production, which are growth markets that are often more profitable for paper mills. At the moment paper supply is well-balanced and available. But when inevitably the next paper mill for writing and printing papers is shut down, capacity constraint will drive up pricing once again. Postage is also
a key contributor to higher print cost, as much of what is printed is mailed. And of course, rising labor cost, rising consumable cost have also added to making print more expensive. With print budgets that are typically flat, that means buyers of print end up buying less print volume. This means they have to eliminate all waste from over-ordering print that is never utilized. They will want to order smaller volumes more frequently to ensure the content is relevant, and they’ll want those jobs to be ready faster. This is exactly what digital printing enables, but this addressed only the cost side. The opportunity is to add value by making it easier for customers to make last-minute changes (which makes those customers “stickier”); enable more transparency and control through the use of custom web portals; to allow options for a premium price; etc.
The reason why digital print is growing is simple: It is a very accommodating technology that fits today’s customer expectations.”
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QUESTIONS & ANSWERS
You’ve highlighted the potential in expanding applications, especially in vertical markets like automotive, sports/concerts, and trade shows. How can commercial printers effectively tap into these markets, and what challenges might they face?
Tapping into verticals is not easy, mainly because those customers tend to “speak” a specific language. Unless you “speak” their language (and know how their industry operates), they will be reluctant to engage with a new partner. Hiring an industry insider can be a shortcut to getting into new vertical markets. This isn’t just about using the right terminology, but it can be as simple as having delivery of print only during an early morning hour to accommodate set-up by the event organizer, rather than the end of the day. It could be understanding a specific application requirement, such as the use of backlit signage that has to look equally vibrant during the day and night. There are typically tens of little issues specific to a vertical market that you’ll need to understand in order to cost effectively serve a vertical market.
Digital printing seems to be gaining a significant market share. What are the primary reasons for this shift, and how can traditional printers adapt to this changing landscape? The reason why digital print is growing is simple: It is a very accommodating technology that fits today’s customer expectations. It serves “I want it today, and I only want less than 500 pieces.” It serves the “I have a last-minute change; can you change the file 16
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without extra surcharges?” The overwhelming majority of print jobs are now for runs of under 2,000 sheets, a level of volume that fits within the capability of many digital production presses.
When you extrapolate those premiums across pages printed digital, there are some segments in the market where more than 50% of budgets for print are directed towards digitally printed pages.
You’ve emphasized the importance of folding cartons in sustaining the offset press business. Can you discuss the emerging trends in folding cartons, especially with the increasing demand for sustainability and the rise of online consumer purchases?
After having chased more and more page volumes for decades to gain better economies of scale, commercial printers could today be better off printing fewer but more valuable and profitable pages.”
Unlike commercial print which has been in decline for over a decade, demand for folding cartons continues to grow. We do not stop eating, and you can’t sell a good in a folding carton without print. The growth of new categories of goods that can be packaged in a folding carton continues to expand (especially in areas like nutraceuticals, cannabis, etc.) This is why for most offset press manufacturers, more than half of their revenue comes from selling offset press for folding carton applications.
2023 is the beginning of a tipping point from conventional to digital print. What are the key indicators of this shift, and how can printers prepare themselves for this transition? The qualifier “beginning” of a tipping point is important. We are not yet at a tipping point. About 20% of document pages are now printed digitally, but if you add publishing and packaging volumes into the mix, the percent of all pages that are printed digitally worldwide drops to about 5-6%. What’s more important is that those digital pages command upwards of 3-5X a premium over an offset printed page.
Can you share how the business model of print has evolved and what opportunities it presents for printers to create additional value and revenue? This is the business model conundrum. After having chased more and more page volumes for decades to gain better economies of scale, commercial printers could today be better off printing fewer but more valuable and profitable pages. Changing business models (habits really) isn’t easy, but as the total volume of offset pages continues to decline, those same economies of scale we chased for years are now starting to work against us as volumes decline.
SOUND OFF
Fujifilm’s Digital Inkjet Summit is Largest Ever
A RESOUNDING SUCCESS IN CHICAGO Big and fun. That was the vibe in the Windy City of Chicago when Fujifilm played host for their latest Digital Inkjet Summit. The grand event, which saw over 130 attendees from the print industry, was held at the luxurious Sable Navy Pier Hotel. But this summit wasn’t just another event; it was Fujifilm’s largest summit ever, offering first-class accommodations and a prime location for all attendees. Tommy Katagiri, Division President, FUJIFILM North America Corporation, Graphic Communication Division, kicked off the event with a heartwarming welcome message about partnership. He touched upon Fujifilm’s commitment to a “whole solution” approach for customers. Rick Brown, Fujifilm Graphics Systems Division National Sales Director, got the group amped up by introducing segment leaders with showcase presentations on digital print solutions in toner, inkjet and wide format. Renowned industry expert Marco Boer from IT Strategies delivered a robust outlook on the future of digital print, emphasizing its growth and potential. Boer shared his deep understanding of digital printing technology and identified specific opportunities for the industry to pursue. The first day concluded with an enchanting Architectural Cruise & Dinner. The evening was nothing short of spectacu-
lar, with drinks and a taste of Chicago’s deep dish pizza. But what truly stood out was the networking opportunity it provided. With a large crowd of industry professionals in attendance, the boat was abuzz with conversation, laughter, and shared insights. Such networking felt rejuvenating and was a testament to the camaraderie in the industry. Day two saw Jeffrey Nelson, Fujifilm’s National Sales Director for JPress, leading a panel discussion featuring industry stalwarts like Steve Bates of City Press, Jamie Brisendine of ASB Graphics, and Henning Rose of Wegner. Concurrently, Chris Chara moderated a wide format user panel with Todd Bricco of Delzer, Michael Magerl of the Trabon Group, and Christian Rhodes of Colorchrome in Atlanta. One of the highlights of the summit was a presentation by Fujifilm’s color experts, Ben Lubin and Don Schroeder, titled “The Money In Color.” Their insights underscored the potential for expanding revenue within a print business through color efficiency. The day wrapped up with a trip to Hanover Park, where attendees were treated to live demonstrations and Q&As. The Digital Print Summit was not just about showcasing Fujifilm’s innovations but also about fostering collaboration and the idea that, collectively, the industry can “Never Stop Innovating.” As Boer aptly summarized, “The reason
why digital print is growing is simple: It is a very accommodating technology that fits today’s customer expectations.” The event provided an intimate way to connect while getting up close to Fujifilm’s next-generation digital print technology. Attendees witnessed demonstrations explaining the core technology, what sets Fujifilm solutions apart, and got hands-on learning experiences at the remarkable Hanover Park-based Experience Center. Steve Bates, CEO of City Press, highlighted the role of technology in shaping the future of businesses and attracting new talent. He said, “Technology will and does play a huge role, not just for our organization’s profitability and ability to remain relevant to our customer base, but also in attracting new hires. Investment in advanced technology demonstrates an investment in the future. It provides a stable and sustainable work environment.” Fujifilm’s Digital Inkjet Summit was a resounding success. It was an educational and interactive platform for industry professionals to stay updated, get inspired, and understand the latest innovations. Fujifilm truly rolled out the red carpet, ensuring that their guests had a memorable experience filled with top-tier presentations and entertainment. In essence, it was big and fun!
Fall 2023
print illustrated
17
850 Central Ave. Hanover Park, IL 60133
Six stations, ten colors. Unlimited potential. The Fujifilm Revoria Press™ PC1120 Digital Press: Redefining expectations. Learn more at print-us.fujifilm.com.
