COMMERCIAL PRINTING PLANT INSPECTION

Transcription

1 COMMERCIAL PRINTING PLANT INSPECTION Objective; Acquire perspective for the overall viability of the company Evaluate operating practices to determine key elements and equipment necessary for continued profitable operations Background: Arizona Lithographers Established 50 Years ago Privately owned by John Davis since 1978 One of the largest full service sheet-fed commercial printers in Arizona 65 Employees

2 Front Office Yes No Clean & Inviting Guest Book? Who s been signing in Are there awards on the wall? Industry affiliations Local affiliations Pre Press Are there more workstations than people? How many job jackets/tickets do you see? How many shifts does the dept. work? Is the equipment under service contract? How often is the equipment maintained Were you able to speak to the dept. supervisor? Press Room How many presses do they have? Brand, Size and # of Printing Units

3 How many machines are running? How many different jobs in process Who are they printing for? Local - National- Intl. Yes No How does the print quality look Are all of the presses clean and functional? Were you able to speak to the dept. supervisor? Questions for the pressman; How s the press running? Average running speed in production? How often is time allotted for maintenance? Is there a maintenance log? Bindery Brand and number of; Folders Paper Cutters Saddle Stitchers Die Cutters Specialty machines

4 Shipping and Receiving: Do they have docks? How many? Ground level Doors? How many? Is the parking lot paved How difficult would it be to remove a machine from the facility? NOTES D. LUX PRINTING EQUIPMENT, INC Jarvis Avenue Elk Grove Village, IL Phone: Fax: Web: dlux.com

5 State of the Printing Industry At the end of 2006, signs of slowing became evident. Growth in commercial print sales was moderating, and the economy was definitely on a slower growth path. The key question for graphic communications companies is, where do you go from there? Although commercial printing sales are up 6.3 percent for the latest period (Jan. 1-Sept. 30, 2006)-their fastest clip for the first nine months of any years since 1998 and nearly double the increase for the same period in growth slowed to 3.9 percent in September. That is significant, since it represents the slowest monthly increase logged in 2006-dropping from 5.6 percent growth in August and 8.4 percent in June. Still, compared to printing industry performance in recent years, sales are still quite healthy. However, a continuing deceleration in sales growth is likely as we move into 2007, and graphic communications must factor this slowing into their business plans. In October, only 41.7 percent of the panel reported that prices were higher than they were a year ago, the lowest level since March Add to this mix an economic slowdown. Although printers can no longer depend on a good economy to lift all boats, a slowing economy still has a significant impact on industry performance. The economy does not need to experience a full-blown recession to have a major impact on print. For every one percentage point slowdown in the gross domestic product (GDP), print sales drop by more than $1 billion. This matters in an industry as competitive as graphic communications, where many companies are struggling, and even successful firms are having a tough time with profitability. Any prospect of reduced sales is meaningful. Additionally, for companies that are not prepared, it can be catastrophic. NAPL, the trade association for excellence in graphic communications management, expects commercial printing industry sales-all services, not just ink on paper-to grow 2.2 percent to 3.2 percent in 2007, after growing close to 6.0 percent in 2006-the strongest growth in eight years.

6 The Outlook It is not a matter of if the economy and the printing industry will slow in the next 12 months. It is a matter of how much it will slow. Commercial printing industry sales are not adjusted for inflation and include all services (not just printing). All figures are NAPL estimates. GDP is adjusted for inflation. Source of 2006 and 2007 GDP projections: Blue Chip Economic Indicators, Aspen Publishers, New York City, 2006.