Ward/Kraft The
E-Weekly
From
DMIA's Award-Winning E-Mail Newsletter for Members Only                                                  April 22, 2005
NEWS

 
View photos from SMC 2005.
Full of Life in the Desert
Tucson, Ariz., is a blue-sky city with more than 350 days of sunshine a year, so it's fitting that the industry's brightest talent arrived at the "Old Pueblo" to radiate knowledge. Photos

DMIA's Spring Management Conference (SMC), held April 13-16 at JW Marriott Starr Pass Resort & Spa in the mountains just west of Tucson, attracted 191 attendees, the second-highest attendance for the event. (Bermuda in 2000 attracted 250.) Englewood, Colo.-based manufacturer Quality Park sponsored this year's conference.

Joe Webb, vice president of sales and marketing at Formsystems Inc., Pensacola, Fla., and his wife Karen, the distributorship's president, attended SMC for the first time. "We came away with many new ideas on ways to improve our business, some of which will be introduced at our next company meeting," he said. "We're also very grateful to all who shared stories with us on how they have survived and succeeded in areas we still find challenging." Joe Webb served as chairman of the Publications Committee, moderating a discussion about how the association can improve Print Solutions magazine and DMIA's electronic publications.

Distributors, manufacturers and suppliers shared insight about their business challenges and opportunities during Peer-to-Peer sessions on trade-show marketing mistakes, successful e-commerce models, hiring top salespeople, the RFID market and supply-chain management. Popular Learning Forums included "Electronic Customer Service," "Preparing Your Company for New Ownership," "The Marketing Puzzle: Putting it All Together" and "Selling Skills for Tomorrow's Generation." Meetings for DMIA's seven Special Interest Groups (SIGs)—Promotional Products, Direct Mail, Labels, Customer Service, Health Care, Fulfillment and Commercial Printing—allowed attendees to discuss market trends in those segments.

"Aside from some valuable sessions, the time spent at the receptions created an atmosphere to have some great exchanges about ideas from many of the most committed professionals in our industry," said Marvin A. Makofsky, president of Conformer Expansion Products Inc., a manufacturer in Great Neck, N.Y. "This is an event that we should all include in our busy schedules."

Tom Gurd did, even though his company, distributorship FT Print, is located in Hertford, U.K. "As a first-time visitor to the Spring Management Conference, so many chords were struck, I could have been at a rock concert," said Gurd, FT Print's managing director. "It was an excellent introduction—and in such a wonderfully relaxed atmosphere—to what is happening in the American market. There is clearly great commonality between our markets, and therefore there must be synergy to exploit. That's the lesson I've taken away. FT Print will certainly be back."

Jeff Long, marketing director of Atlanta-based manufacturer Graphic Dimensions Inc., and DMIA's president, said his observation about the SMC was how many younger members attended this year, and how much energy was in the air. "Everyone was looking for new solutions to selling, and conversations were more open, friendly and leaned toward trusting one another, which is the first building block needed in creating partnering avenues," he said.

Here were some SMC highlights:

  • DMIA's annual Awards Ceremony was moved from the Print Solutions Conference & Expo to the SMC. 2005 Member of the Year Bob Boldig, owner of Tullahoma, Tenn., manufacturer TBF/Avant-Garde spoke about playing a role in bringing the Print Education & Research Foundation (PERF) to DMIA and the importance of education programs for manufacturers and suppliers. Mark Trumper, CEO of MaverickLabel.com, an Edmonds, Wash., technology firm specializing in distributing digital labels, and DMIA's 2001-02 president, accepted DMIA's 2005 President's Award. He talked about the importance of dreaming big and enjoying business. Michael O'Hara, Ph.D., president of direct mail and distribution firm AB&C Group, McLean, Va., and DMIA's 1986-87 president, accepted the 2004 President's Award. He shared a humorous story of narrowly averting a major disaster as a young business owner when he underestimated what would be required to handle a U.S. government collating and fulfillment job involving millions of documents.

  • Each speech by the three award winners was preceded by a photo presentation and reflections from peers, co-workers and/or family. Ross E. Barker, president of Reno, Nev.-based Forms Management Data Systems, and DMIA's 1989-1990 president, scored laughs as a roaster, poking fun at O'Hara's Irish heritage and penchant for wearing "loud" attire. He switched into two different suits as he spoke, then donned an all-green outfit and an Irish-themed baseball cap.

  • The session "E-Commerce, the Revenue Stream!" was "unbelievable," said Bob Lowy, CDC, from Proforma Spectrum Graphics, a distributorship in Baltimore. During the session, attendees listened to three printing pros describe what makes their companies' e-commerce business models work-Joel M. Chyke, CFO and owner of Nashville, Tenn., distributorship FSi, and a DMIA Board member; Gail O'Roke, CDC, CEO of Hayward, Calif.-based distributorship Independent Business Group, and DMIA's 2002-03 president; and Trumper. "Their level of sharing with the other members in attendance was wonderful. It didn't get any better than that," Lowy said.

  • Popular speaker Dirk Beveridge, principal of The Beveridge Consulting Group, Barrington, Ill., led a session called "'Driving Sales Beyond' Sales Training." He outlined a 4-step sequence to improving skills as a salesperson or sales manager that was well-received by attendees.

  • SMC included "Lunch with the DMIA Board," at which attendees suggested ideas to current Board members about possible new programs and strategies for improving the association and the printing industry in general.

  • Optional events included an 18-hole shotgun golf tournament at Arnold Palmer-designed Starr Pass Golf Club, a desert Jeep adventure and dinner at Anthony's In the Catalinas restaurant.
View photos from SMC 2005.

Vallis Companies Close Plants
Three Vallis Form Service plants closed operations April 18. The plants were part of Garland, Texas-based The Vallis Companies led by CEO Scott Metko. Located in Baltimore, Md., Cherryvale, Kan. and Chicago, the plants manufactured products such as direct mail, mailers, integrated products, labels, scratch-off products and business forms.

"All employees were just asked to leave at 1 p.m. [April 18]," said an angry employee who wished to remain anonymous and was answering phones at the Baltimore plant. They packed their belongings and left, and pending jobs with the manufacturer aren't being processed, she said, adding that none of the workers were expecting the plants to close. The plants employed approximately 200 people; none was given a severance package, the employee said, adding she didn't know the reason behind the move.

Metko couldn't be reached for comment, but speaking on behalf of the company, Greg Bustin of Dallas-based consulting firm Bustin & Co., said the plants were closed primarily because they were in the forms business "which has been off in the first quarter." The company considered several options before deciding to close them.

A press release issued April 21 from MLC Holding Corporation—which includes Vallis, Metro Label and other printing-related subsidiaries, said, "that it is discontinuing all operations related to the Vallis Company, effective immediately. This decision does not affect the other subsidiaries, which will continue to provide services to existing and new customers...MLC Holding Corporation will continue its plans to expand into growth markets and focus its economic resources on developing new opportunities within the printing industry."

Metro Label will continue to operate. Last year, The Vallis Companies, which was founded in 1961, announced that it was broadening its services to attract and develop new relationships with distributors. It ranked No. 10 on Print Solutions Top 100 manufacturers 2004 list.

Distributors, too, were caught off guard and heard about the developments through each other. "I did not expect this," said Stephen Thorner, president of Mount Airy, Md.-based distributorship In-A-Bind. The company worked with Vallis for 15 years and "never had any problems," said Thorner, who visited the Baltimore plant April 20, and saw "people showing up in trucks." The distributorship has 30 jobs pending with the plant and a million printed pieces in inventory. A Vallis employee informed Thorner that the manufacturer will ship all completed jobs, but not process pending ones, and distributors could collect their inventories, he said. Several manufacturers have called Thorner and offered to take on the pending projects, he said.

Paul Bailey, marketing and communications manager at Webb/Mason, a distributorship based in Hunt Valley, Md., said Vallis was one of the distributorship's main manufacturers. Webb/Mason employees were on site at Vallis' Baltimore plant April 20 and its Cherryvale plant April 21, trying to learn the status of Webb/Mason's jobs in production. "It's too early to determine our level of success in that regard, but fortunately we have most if not all important files on our own servers," Bailey said. Webb/Mason already has transferred the jobs to other manufacturers, and its customers won't be affected by the plant closings, he said.

Cenveo To Evaluate Alternatives
Cenveo™ Inc., Englewood, Colo., announced that it has retained Rothschild Inc. to assist its board in a thorough evaluation of its strategic alternatives. The law firms of Wachtell, Lipton, Rosen & Katz and Hogan & Hartson LLP also have also been retained to advise in connection with the review of strategic alternatives. The board said that while it will review all options, there can be no assurance of any particular outcome. Last week, Burton Capital Management, Greenwich, Conn., and other members of its group, increased ownership of Cenveo from 9.6 percent to approximately 10.8 percent.

Fasson Roll North America To Increase Prices
Fasson Roll North America, Painesville, Ohio, announced that effective May 23 it will increase the prices of thermal transfer and direct thermal paper products and other specialty products by an average of 4 percent. "While inflation is hitting all pressure-sensitive products, emulsion-based products are the most heavily impacted," said Rick Olszewski, the company's vice president and general manager, in a letter to customers. "We have absorbed the additional raw material costs wherever possible, but are not able to continue to absorb them in all product lines. In addition, high energy costs continue to affect our costs to deliver and to manufacture products." Rising energy costs are affecting industry firms coping with price hikes for everything from freight and utilities to paper, plastics and laminates. The plastics business has been especially hard hit because plastic is a petrochemical-based product. Manufacturers producing integrated cards, labels and magnets are not immune from price increases.

RR Donnelley Opens Distribution Facility; To Acquire The Astron Group
RR Donnelley & Sons Company, Chicago, announced the opening of a new logistics facility in Bolingbrook, Ill. The 661,000-square-foot building, which has 100 bays and parking for 300 semi-trailers, is designed to house the Logistics Control Center, a mail consolidation center, as well as the company's rapidly expanding co-mailing, co-palletization, co-mingling and fulfillment operations. The facility also will be the headquarters of RR Donnelley Logistics.

Additionally, the company announced that it has signed a definitive agreement to acquire U.K.-based The Astron Group that offers integrated, end-to-end document business process outsourcing solutions, in an all-cash deal, for approximately $990 million. The agreement is subject to regulatory approval and is expected to close this summer. The Astron Group employs more than 4,000 people across 70 locations globally, and expects approximately $550 million in revenue in 2005.

Reynolds and Reynolds Announces 2Q Results
The Reynolds and Reynolds Company, Dayton, Ohio, announced that revenues of $251 million for the second fiscal quarter ended March 31 were slightly higher than a year ago. Net income of $23 million and earnings per share of 34 cents per share for the quarter, were about 14 percent and 11 percent lower than a year ago, respectively, reflecting costs associated with the company's recent reorganization, it said. Revenues in the company's largest segment, Software Solutions, were $202 million, 2 percent higher than a year ago. The Documents segment revenues declined 5 percent to $42 million. Revenues in the Financial Services segment declined 20 percent to $7 million, primarily because of lower interest rates.

FormStore(R) Incorporated

C.E. Printed Products Opens Bob's Bargain Basement
C.E. Printed Products Inc., Carol Stream, Ill., opened Bob's Bargain Basement for distributors to buy top-quality blank or printed envelopes and letterhead at extraordinarily low prices, according to the company. Users can view the selections at www.hotce.com and read a product's description, its standard pricing and Bob's Bargain Basement price. Distributors can save 30 percent or more when they order from the basement, the company said.

Carlson Craft Releases Statement Stuffers
Carlson Craft Business Solutions, North Mankato, Minn., released statement stuffers for distributors to mail with their bag stuffers, packages, statements or invoices. The stuffers can be personalized with a stamp or label and are available in eight varieties, including stationery, presentation folders, full-color products, Post-it® products, stamps, promotional products, creative colors and plastic cards.

Top 100 Distributors
Print Solutions Magazine is compiling its June 2005 Top 100 Distributors issue, which will rank distributors by fiscal 2004 sales and include top sales by product, top sales per employee, the fastest-growing distributors and top sales by niche market. The best way to submit your Top 100 information is to complete the online form. If you'd like to fax a hard copy instead, download a PDF and fax completed pages to Darin Painter, Managing Editor, at (703) 549-4966.

Call for Entries: 2005 Print Solutions Magazine PEAK Awards
Win a Print Excellence And Knowledge (PEAK) Award and show your talent to the rest of the world! A PEAK award is a valuable marketing tool that will raise your company's profile and show clients and prospects that your work is the best in the industry. PEAK awards recognize companies that meet customers' printing needs through creativity in design, manufacturing, fulfillment, cost savings reporting or other services that solve problems or improve a client's business. Click here for complete information and entry forms. Deadline for entries is June 1.

select*Print


SOLUTION OF THE WEEK

Cowbells Ring in Business
A rush on cowbells? That's what helped Advantage Graphics, Portland, Ore., increase its promotional business by approximately 5 percent.

Advantage Graphics is a full-service graphics company specializing in traditional business forms, laser forms, digital printing, integrated labels, design services and inventory management. That work represents 95 percent of its business. The balance is promotional work, including corporate apparel and promotional products, a market it entered three years ago. Full story.


WHAT'S NEW AT DMIA?


The industry is moving faster than ever, and DMIA's TRADEMarts make it easy and convenient to stay updated. Attending a TRADEMart is your best chance to take advantage of the product innovations and dynamic ideas that are hitting the marketplace.

Upcoming TradeMart Dates and Locations
May 4 St. Louis, MO Seminars
May 5 Lisle, IL (Chicago) Seminars

St. Louis Seminars Include:
Selling Variable Data Solutions for a Marketing Campaign —Wise
Pressure Seal for the Financial Services Market--Distributor Case Studies
—InfoSeal, LLC
Closing The Sale With Pressure Seal —Wilmer

Lisle Seminars Include:
Selling Variable Data Solutions for a Marketing Campaign —Wise
Pressure Seal for the Financial Services Market--Distributor Case Studies
—InfoSeal, LLC
Security Required--Document Risk Management —Appleton
Closing The Sale With Pressure Seal —Wilmer
Distributor Turns a $500 Folder Quote into a $7,000 Filing System Sale--A Case Study —ASE Dealer Source
Don't Touch that Stationery Order —Business Stationery Inc.

For more information on TradeMarts, click here.


2005 Manufacturer & Supplier Print Conference
Join print manufacturers and suppliers from May 18-20 in Philadelphia at this business development conference and find out where the industry is headed and where you might want to go in the next five years. The industry's most noted experts will share their insight on emerging markets, new products and alternative distribution channels. For details, click here.


TOP TEN

Here are this week's top unusual source requests received by DMIA:

  1. Seat Check Tickets; 1 1/8" x 4"; prints 1/1 per lot; 5 lots total; 10pt. Bristol Cover C2S; QTY=8MM each color
  2. Bio-hazard Specimen Bags; 6" x 9"; prints 2 colors; pouch on front; QTY=7.5M-8M
  3. Point of Purchase Product Testing Display; 12" x 10"; Acrylic/PVC material; QTY=250
  4. Lenticular Posters; medical usage to show cancer cells; 3' x 4'; QTY=1-10
  5. Check Mailer; 8 1/2" x 11"; prints 2/1; transfer tape affixed in three places to form mailer; QTY=500-1M
  6. Vacuum Form Packaging; 9" x 5"; triangular; QTY=5M
  7. Unit Set Form; 11" x 34"; prints black ink; four panels; three perfs; consecutive Arabic numbering; QTY=1M
  8. Shrink Wrap; 26" x 9"; prints 4cp; delivered in rolls; QTY=10M-50M
  9. Imprint company name on provided plastic packages; 3" x 3"; packages hold flat computer screen wipes; QTY=1M+
  10. Fundraising Boxes for Candy, Cookies, etc.; blank with handles; QTY=1M

If you have a source request—for anything—call the Hotline at (800) 333-2828 between 9 a.m. and 5 p.m. Eastern Time, or use the Source Hotline Database online. For new sales ideas every day, try our 1,000 Sales Ideas Database. Manufacturers, if you produce any of these items and would like to check your listing with the Source Hotline, please email Cheryl Rush.

Sales and Marketing Tip
Creating A Strategy
The quality of your merchandise is important, but it's the promotion of products and its impact that determines success. Full story.


E-Commerce Spotlight
Have You Checked Your Web Site Today?
Running an online business presents the challenge of monitoring your web site 24/7 to ensure that customers don't face the frustration of slow-loading pages, a downed server or denial-of-access to parts of the site. How should you keep track of your site? Full story.




Product of the Week
The New Business of Distributing Print
Different trends affect print distribution. Getting an idea of what the end user wants is key because it dictates the actions of an entire industry. This research discusses the vertical markets that are emerging and declining. The report also talks about products that will emerge and decline over the coming year. Code: PERFDIPRT. Member Price: $39.50. To order, contact Tina Davis.


Hot Sites
Cameratown.com

Are you a shutterbug? Or are you planning to buy a camera, but aren't sure of prices and features? Then this site's for you. Here you can read camera manuals, reviews, tutorials, forums and the latest news on cameras. Visit the site.

Talkallergy.com

Here's a site that offers information and support to allergy sufferers and their families. Visitors can share their stories about coping with allergies, along with reading stories from others. The site also contains feature articles written by doctors and journalists on topics such as "Food Allergy and Intolerance." Visit the site.



Got News?

Email your press releases to:
E-Weekly News.
Send company logos as .gif or .jpg files (20k or less). Submissions may be edited and logos may be resized.


Printer-Friendly Version. • Open this issue in your browser.  ISSN1552-3667
© Copyright 2005 Document Management Industries Association
433 E. Monroe Ave.;  Alexandria, VA 22301;  (800) 336-4641 (703) 836-6232
To subscribe click here. To unsubscribe or change your address, click here. To advertise, click here.
The E-weekly is designed by Christine Sachs and edited by Preeti Vasishtha with contributions from Darin Painter and Andy Brown. Contact us at eweekly@ printsolutionsmag.com.
Visit Print Solutions Magazine at www.printsolutionsmag.com.