9 minute read
TALENT
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.”
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.”
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.”
One avenue of hope is things like offering apprenticeship programs for both young people and current 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.”
Into the Great Wide Open
In the beginning of 2023, seasoned industrial sales professional Steve Bates acquired CityPress Inc., 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 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.”
– Steve Bates, President,
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.
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.
Marco Boer Discusses the Opportunities in Print
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.”
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 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.
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?
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.
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.
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.