We believe in the power of print - Keep Me Posted Australia

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We believe in the power of print - Keep Me Posted Australia
September 2016

                  People Technology Business                                       www.proprint.com.au September 2016 $8.00

                                                                                                   FOCUS: TWO SIDES

                                                       We believe
                                                       in the power
                                                       of print.
                                                                                                   Lobbying for print
                                                                                                   on multiple fronts
                                                                                                   Kellie Northwood on the
                                                       Why Green & Gold Printing                   frontline for print industry
                                                       integrated digital and
                                                       offset with Ricoh.
                                                                                                   FOCUS: MIS W2P

                                                                                                   Opening the door
                                                                                                   to new customers
                                                                                                   MIS & W2P delivering beneficial
                                                                                                   customer relations for printers

                                                                                                   STAR BUSINESS: AVON

                                                                                                   New generation as
                                                                                                   Avon into new area
                                                                                                   Leading finishing house grows
                                                                                                   wide format trade printing

                                                                                                   ALSO INSIDE...
                                                                                                   Comment: Transformation
$8.00 (inc GST)

                                                                                                   Comment: Sales downturn
                                                                                                   Tech Guide: Digital labels

          ProPrint FC 3 mm spine for 56 pages.indd 1                                                                       29/08/2016 4:30 pm
We believe in the power of print - Keep Me Posted Australia
We believe in the power of print - Keep Me Posted Australia
EDITOR’S LETTER
              WAYNE ROBINSON

          Political power
          Two Sides Australia has been doing a                     public agenda, which highlights the        shambles it has been this time around
          great job highlighting the rort                          power of politicians.                      in its great online move, promoted as
          instigated by the big banks, telcos and                     Senator Dastyari's concern is not       easier for all. Some people think that
          utility suppliers whereby they charge                    print itself of course, but his concern    innovation and online are the same
          their customers to receive a printed                     is completely valid and highlights that    thing, and that online is the panacea
          bill. Promoted by the corps as an                        in the new world print has its place.      to all our problems, well the Census
          environmentally beneficial way to                        Let's get behind Two Sides in its          clearly showed it is not.
          pay bills the reality is that those same                 endeavours. If you are not backing            Quite apart from the fiasco of
          corporations are netting literally                       print then who will, because make no       August 9 when the website had to be
          millions of dollars in extra revenue,                                                               taken down under apparently what
          and mainly from the people who can         Netting literally millions in extra                      was a schoolboy attack, online data
          least afford it - the elderly and the
          vulnerable - a distinctly grubby
                                                     revenue - a grubby exercise                              management is a massive issue, and
                                                                                                              many of us have serious qualms about
          exercise indeed.                                                                                    handing such personal data with our
            Now the lobbying is paying off, in                     mistake print is under attack on           names attached to anyone, let alone a
          stage one anyway, with Labor                             many fronts, an often ill-informed         government agency. The ABS says it
          heavyweight Senator Sam Dastyari                         attack, but as they say if a lie is        is safe, which clearly cannot be true,
          getting on board and making some                         repeated often enough it becomes the       if NASA can be hacked then an
          strong statements, telling the                           truth. Check out our feature on Two        obscure government site obviously
          government that choice is all well and                   Sides in this issue of ProPrint, and see   can be as well.
          good but they cannot allow the                           how you can be involved in one of             Paper forms by stark contrast
          disenfranchised to be penalised by                       their trio of important campaigns.         cannot be hacked, and will not be
          profiteering corporations.                                And that leads us nicely to that other    shut down due to too much traffic -
            Having a Senator on board has                          great star of the online world - the       unless of course they are being
          meant the message is suddenly on the                     national Census - and the absolute         transported along Parramatta Road.

          CONTENTS                                                                                            PROFILE

                                                                                                              30-32 Star Business: Avon
          2-6 Update                                                                                          Trade finishing house Avon Graphics
          The monthly round-up of all the                                                                     is now entering the wide format
          major news from the world of                                                                        world, and going through a
          Australian print                                                                                    generational change

          8-10 Monthly debrief                                                                                FOCUS
          Recap of all the major developments
          published on proprint.com.au since                                                                  24-26 MIS & W2P
          the last issue of ProPrint                                                                          MIS has been though warp speed
                                                                                                              improvement, and now with web-
          12 Comment: Baden Kirgan                                                                            to-print shold be a formidable part
          Kirgan confronts a print market that                                                                of any print business
          seems to have virtually stoopped
          since the new financial year started                                                                32-33 Print 4.0
                                                                                                              At drupa we saw the future and its
          14 Comment: Transformation                     p 32-33   COVER STORY                                name is Print 4.0, Simon Eccles
          Sarah Leo at Openbook Howden                                                                        unwraps the mega trend
          shares the journey the business is                       18-19 Integration: Ricoh
          going through                                            The Ricoh TotalFlow solutions              TECHNOLOGY GUIDE
                                                                   seamlessly integrates offset
          14 Comment: 11th drupa                                   and digital print production               24-26 Digital Label Presses
          Romano shares his thoughts on                                                                       The options for digital label printing
          drupa 2016, the 11th he has attended                     FOCUS: BUSINESS                            are multiplying along with the
          since 1972                                                                                          opportunities, Proprint checks out
                                                                   22-23 Two sides and three                  ten of the best new releases
          15 Reader Reaction: Factoring                            campaigns
          Hot topic, following Kirgan's vampire                    ProPrint talks to Kellie Northwood         POSTSCRIPT
          attack last month three readers                          about TSA and the trio of campaigns
          share their thoughts on factoring                        it is now running                          50 Print's Past, Diary, Q&A

          www.proprint.com.au                                                                                                 September 2016 ProPrint 1

Contents.indd 1                                                                                                                                  29/08/2016 4:38 pm
We believe in the power of print - Keep Me Posted Australia
UPDATE

         IVE and PMP achieve differing results
         by April Glover
         Print giants PMP and IVE have released                                   PMP Australia sales were down by           December last year. The net profit after
         their annual figures, with PMP taking a                               $57.6m to $334.6m from $393m,                 tax was up by a strong 117.5 per cent to
         dive in print sales, while IVE exceeded                               although some $25m of that was due to         $20.9m from $9.6m last year.
         forecasts across the board.                                           a major customer buying its own paper.          Pro-forma revenue was up strongly, by
           The country’s biggest printer PMP had                               It also included a major contract loss at     13.2 per cent to $382m over last year’s
         its new $77m distribution contract with                               $13m, the final end of the Directories        $337.4m. Pro-forma earnings before
         Bauer Media to thank for keeping its                                  business at $8m, the $6m Dick Smith           interest, tax, depreciation and amortisa-
         sales figure at the same level as last year.                          bad debt. Australian EBIT was down            tion (EBITDA) and pro-forma revenue
             However the print giant saw its                                   $1.6m. Griffin Press was hit with lower       were also above prospectus forecast.
         2015/16 profit all but wiped out by the                               heatset sales and higher costs although       The company’s pro-forma EBITDA of
         Dick Smith collapse and the termina-                                  it says these were mainly offset by           $42.8m was 38.7 per cent above pro-
         tion of an old bond, Dick Smith cost the                              tighter cost controls. Griffin will be an     forma EBITDA of $30.9m in FY2015.
         company around $4m, the end of the                                    entirely digital business from 2017 on          Its customer base expanded by 12 per
         bond $4m, eliminating its $8m profit                                  the back of its $3.2m a year lease deal for   cent over the year, with the Group now
         from last year, and giving the business a                             HP web and sheetfed printers.                 providing services to some 2260 clients,
         razor thin margin of $185,000.                                          Distribution business Gordon & Gotch        the biggest of which represents four per
             The company described FY16 as                                     saw sales rise strongly to $345.8m, up by     cent of revenue, with the top 20 respon-
         ‘another year of patchy markets’ and                                  a quarter with the revenues from Bauer        sible for 32 per cent of total revenue.
         said there had been a ‘higher than nor-                               offsetting lower sales from existing cus-       The company says its high cash genera-
         mal level of customer disruption / churn                              tomers as magazines circulations con-         tion reflects its strong operating perfor-
         of contracts’.                                 Patchy year: PMP CEO   tinue to fall. EBIT was down by 22 per        mance with a continued focus on
           Sales revenue was up by half a per cent      Peter George (top)     cent falling by $700,000 to $2.3m on          working capital. Executive chairman
         to $816m with total revenue up by a                                   the impact of those lower sales.              Geoff Selig told ProPrint, “The results
         third of a per cent to $820m. EBIT             Continued evolution:      In contrast, in its first public results   are pleasing, and are through a combi-
         excluding significant items was down           IVE exec chairman      report, Blue Star parent IVE revealed it      nation of factors, reflecting the contin-
         by 11 per cent or $3.1m to $23.2m while        Geoff Selig            has achieved an increase against fore-        ued evolution of the group.”
         EBIT including significant items was                                  casts across the board, with profits,            IVE does not provide segmented fig-
         down by 46 per cent to $11m. EBITDA                                   sales and customer numbers all on the         ures but Selig told ProPrint, “The Blue
         at $51.2m was down by $6.9m with the                                  rise, and all up against forecast figures.    Star division is a good business, it is
         decline coming from PMP Australia and                                   The IVE after tax profit at $20.9m was      market leader in most of its areas, and
         PMP New Zealand, which was partially                                  proforma 2.9 per cent above its prospec-      w ill continue to receive strong
         offset by lower corporate costs.                                      tus forecast, given when it listed in         investment.”

                                                           MADE AN IMPRESSION

                  OOH EARNINGS
             The out of home advertising
             industry continues to surge,
              up 18 per cent on last year

                   HANNANPRINT
            Wins job to print new 250,000
             run David J0nes glossy mag

                    LOTSA PRINT
            There are plenty of distressed
           print business sales, but up-for-
           sale Lotsa Print is in rude health

            UPS & DOWNS
                 THE PRINTCENTRE
           Directors under fire as company
            closes without warning, staff
                arrive to locked gates

                 NATIONAL CENSUS                           The muggles at Griffin Press produced the latest Harry Potter blockbuster in the usual top secret conditions,
            Online shambles as paper-free                  with books under heavy security during the printing and dispatch. Harry Potter and the Cursed Child was
                Census teeters on edge                     not actually a novel, and not actually written by JK Rowling, it was the script of a stage play based on the
              following big night fiasco                   teenage magician’s adventures, but that did not stop fans engaging in a buying frenzy the night it went on
                                                           sale, the first three days saw some 170,000 copies fly out of the door of the nation’s grateful booksellers.
                                                           Griffin Press is in the middle of a transition to digital print production, with the first tranche of a multi-
                                                           million dollar HP web and sheetfed investment through Currie Group to be commissioned on September 7.

         2 ProPrint September 2016                                                                                                                 www.proprint.com.au

Update-NEWS.indd 2                                                                                                                                                 30/08/2016 4:16 pm
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We believe in the power of print - Keep Me Posted Australia
UPDATE

             PRINT BY NUMBERS

                                                Census disaster highlights power of print
             $1.85m                             by April Glover
                                                The country’s first online census - which
                                                cut out millions of copies from the print
             The asking price for Peter
             Martin’s FNQ print business        run - has proved an unmitigated disas-
             Lotsa Printing p6                  ter, with the website crashing and
                                                remaining offline while the majority of

             14%
                                                people were trying to upload their
                                                details.
                                                   Thanks to the website fail - which is
                                                variously being blamed on international
                                                hackers or public overload - only two
             The out-of-home (OOH)              million of the estimated 10 million
             industry’s July revenue increase   online forms were completed on census
             compared to the previous year      night, and what was suppposed to be a
             p8                                 triumph of online technology has             Debacle: online census   incident, with 14.5 million forms –
                                                turned into a national debacle.              form                     printed by IPMG - completed. This time

             250,000
                                                   The ABS is blaming an overseas                                     around only around a third of that num-
                                                attack, while the government minister                                 ber were produced – printed by Print
                                                responsible is flatly contradicting this                              Media Group, distributed by IVE - with
                                                and blaming an overloaded system. If it                               some 10 million forms set to be filled in
                                                is a hack it highlights the serious con-                              online, which did not happen. At least
             The print run of the new David     cerns expressed by many Australians                                   half a million Aussies that did not
             Jones quarterly magazine           about online data breaches, which of                                  receive a paper form have already
             printed by Hannanprint p9          course are not possible with paper cen-                               requested one, with that figure now set

             28%
                                                sus forms which have served the census                                to skyrocket.
                                                since 1911.                                                              Kellie Northwood from lobby groups
                                                   In the latest development, the                                     Keep Me Posted and Two Sides Australia
                                                Australian Privacy Commissioner has                                   says, “Paper should have been the pri-
                                                weighed in, commencing an investiga-                                  mary media, with an opt-in for online.
                                                tion into the ABS and the census, aimed                               We lobby for whatever is easier for the
             The jump in packaging giant
                                                at ensuring personal data is being                                    consumer.
             Orora’s full year revenue p10
                                                protected.                                                               “Clearly paper census forms are eas-

             $2.8m
                                                   The last census in 2011 used print as                              ier on every level, as last night conclu-
                                                its only form, and passed off without                                 sively proved.”

             The amount 3D printer Aurora
             Labs raised through IPO before
                                                Fuji Xerox opens new Perth print hub
             listing on the ASX p10
                                                by April Glover

             26.8%
                                                Fuji Xerox Australia is spreading its
                                                print tendrils further across the country
                                                with the opening of a new print centre
                                                in Western Australia, and revealed
                                                plans to open two more shops in another
             The jump in readership 4X4         two locations.
             magazine has experienced,             The supplier giant’s print centre –
             according to Roy Morgan p10        called Luminate – marks part of a com-
                                                pany rebrand of its existing PrintWorks

             30
                                                businesses in WA.
                                                   Fuji Xerox says the print hub will pro-
                                                vide document management, print and
                                                copy services firstly to students at Edith
                                                Cowan University (ECU) in Perth.
             The age of Star Business,             Promotional material rolled out for       Luminate: rebrand of     “ECU and Fuji Xerox have come to an
             Avon Graphics p32                  the service states, “Luminate by Fuji        Fuji Xerox print hubs    agreement that student printing prices
                                                Xerox facilitates creation, whether that’s                            will massively reduce from the com-

             4.0
                                                through print or something else entirely.                             mencement of Semester 2.”
                                                Luminate’s services are the gateway to                                  The cutthroat price drop has seen a
                                                design, fresh thinking and document                                   50-page colour thesis that would nor-
                                                production.”                                                          mally cost $45 reduced to $11.
                                                   The Fuji Xerox branded centre at one                                 The Fuji Xerox parent company also
             Print 4.0 was pronounced as        of Western Australia’s biggest universi-                              owns its separate print division called
             one of the ‘mega trends’ at        ties represents a partnership between                                 Fuji Xerox Document Management
             drupa p30                          the supplier and the school.                                          Solutions (FXDMS), an operation that
                                                   In an internal communication sent         Go to proprint.com.au    competes in an open market – often
                                                out to students, the university stated,      for news as it happens   against Fuji Xerox customers.

         4 ProPrint September 2016                                                                                                        www.proprint.com.au

Update-NEWS.indd 4                                                                                                                                       29/08/2016 5:00 pm
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We believe in the power of print - Keep Me Posted Australia
UPDATE

         Victorian industry suffers buffeting in Aug                                                                          Print director quits to
                                                                                                                              become policeman
         by April Glover
         The Victorian print industry has been                                 Hi-Mark describes itself as five decade
         buffeted for the past month with a suc-                             old family-owned and run print and
         cession of businesses large and small                               design business specialising in bro-
         being forced to close their doors.                                  chures, stationary and promotional
             Highest profile collapse is large for-                          material printing.
         mat trade outfit PrintCentre. It shut                                  The Williamstown business collapsed
         down operations and left its employees                              into liquidation with Roger Grant and
         in the dark, they turned up for work as                             Shane Deane from Dye & Co appointed
         usual on the Monday morning only to           John Doyle,           to wind it up.                                   Craig Mulligan: printer turned policeman
         find the doors padlocked and no sign of       Printcentre               Dandenong South based digital
         diretcors John Doyle or Darren Soppi.                               printer Pax Printers also collapsed into         Queensland print identity Craig
         Disgruntled employees told ProPrint                                 liquidation under mounting debt owed             Mulligan has stepped down from his
         The Printcentre owner Darren Soppi                                  by the business.                                 role as joint director of GT Print to pur-
         had been on stress leave for some time                                The 35 year old printer was taken over         sue a career as a policeman.
         before semi-retired co-owner John                                   by new owners in recent years and                   Mulligan was managing director of
         Doyle returned to patch up a ‘failing’                              according to LinkedIn, is currently              GT Print for six years before departing
         company.                                                            headed up by managing director Alan              the company, leaving the print dream
            Soppi and Doyle have not contacted                               Stewart. It provided digital, offset and         behind to chase the police vocation.
         their employees since Grant Thornton                                large format printing services to the               A spokesperson from GT Print told
         entered the building – leaving its            Darren Soppi,         Dandenong South area.                            ProPrint Mulligan left the business for a
         twenty-strong workforce mystified.            Printcentre              The Pax customer list was bought by           ‘change of scenery’ after his established
            ProPrint understands that super has                              Steven Todisco’s Affinity Printing.              career in the print industry.
         not been paid to employees for some                                     Michael Wu’s On Demand and                      GT Print is now headed by Mulligan’s
         time – with some employees allegedly                                Longbeach Printing business are also in          co-director Graham Hart who has been
         owed a backlog of entitlements.                                     liquidation, with the on again off again         with the business since its inception in
              The Printcentre moved into its                                 saga at Longbeach now at an end and              1990.
         Melbourne facility in March last year,                              the business set to close. Wu only bought           The Sunshine Coast based printer has
         after pulling production including its                              the business from longtime owner Josh            since shortened its name from GT
         Onset printer out of Sydney.                                        de Groot in January, and his son John de         Printing Services Australia to simply GT
            Alsio falling over is Melbourne com-                             Groot has been general manager ever              Print following Mulligan’s departure.
         mercial printer, Hi-Mark Press which is       Michael Wu,           since. installed. Wu’s other Victorian              Mulligan was an essential cog in the
         in liquidation after 50 years in the print    Longbeach and         business, On Demand, which he bought             GT Print wheel during his tenure, which
         industry.                                     On Demand             from administration in November last             encompassed a move to Maroochydore.

         Tassie printer Pearce
         leaves PIAA Board
                                                       Martin to sell Lotsa after 21 years
                                                       by April Glover
                                                       Far North Queensland printer Lotsa
                                                       Printing is on the market after long-
                                                       time owner Peter Martin looks to pack
                                                       up his inks and retire after 21 years in
                                                       the industry.
                                                          Martin is aiming to sell the business
                                                       for $1.85m. It boasts a workforce of 33,
                                                       and a suite of pre-press, offset, digital,
         Craig Pearce: resigned from PIAA Board        wide format, and finishing equipment.
         Tasmanian PIAA Board member Craig                Lotsa operates two main production
         Pearce put forward his immediate resig-       plants - one in Port Douglas which
         nation to the Association after the           focuses on digital and offset, and a sig-    Lotsa Printing: on sale   going,” Martin explains to ProPrint.
         demands of his print business Flying          nage facility in sunny Cairns.               as Peter Martin retires      “The strength of the business is
         Colours forced his retirement.                   Martin says the possibility of a sale                               relentless. We have a loyal client base
           Pe a r c e , w h o w a s a p p o i nt e d   and subsequent retirement has been on                                  and the presses are ready to start pump-
         Association Secretary to the PIAA last        the cards for six months.                                              ing out the work immediately.”
         year, says his resignation comes as              Lotsa has carved out a strong niche in                                 Martin also says a major perk for any
         Flying Colours faces increased growth,        its region over the years. “The key to the                             potential buyer is Lotsa’s strong ISO cer-
         demanding his full attention as manag-        businesses success is delivery speed                                   tification, coupled with the printer’s
         ing director.                                 with local supply and not from down                                    accomplishment as the first print busi-
           “While I accepted the appointments          south, Lotsa is very well known in the                                 ness in the world to achieve 100 per cent
         with relish, the reality of balancing the     area,” says Martin.                                                    on its six-monthly audit certificate ear-
         demands of my business and the com-              The veteran printer moved from                                      lier this year.
         mitment to the industry has proven too        Sydney to Far North Queensland some                                       “Lotsa Printing is furious on colour
         great,” says Pearce.                          25 years ago, and says the print industry                              and quality, and the support network of
           “I am faced with focusing on the very       in regional Queensland is tight, helped                                the industry in regional Queensland is a
         real growth opportunities at Flying           by the ironclad support of the locals.                                 major asset for any buyer,” adds Martin.
         Colours or allowing my love of the               “Regional Queensland is full of locals                                 Martin asks that interested parties
         industry to dictate the success of my         supporting locals, and the spirit of the     Go to proprint.com.au     contact Richard Rasmussen of agent
         business.”                                    industry will keep Lotsa Printing            for news as it happens    Ascent Partners on 0402 021 101.

         6 ProPrint September 2016                                                                                                                    www.proprint.com.au

Update-NEWS.indd 6                                                                                                                                                       29/08/2016 5:00 pm
We believe in the power of print - Keep Me Posted Australia
We believe in the power of print - Keep Me Posted Australia
UPDATE
                            JULY - AUGUST TIMELINE
                                                                                                                                                                                                                              29 july                                            04 august

                            Monthly debrief                                                                                                                                                                                                                                      REAL ESTATE
                                                                                                                                                                                                                                                                                 SIGNAGE GOING
                                                                                                                                                                                                                                                                                 DIGITAL
                                                                                                                                                                                                                                                                                 The high turnover
                                                                                                                                                                                                                                                                                 industry for printed
                            Recapping the major                                                                                                                            27 july                                                                                               real estate signage
                            developments since your                                                                                                                                                                                                                              has been disrupted

                                                                                                                                                                           $6.1m
                                                                                                                                                                                                                              VISTAPRINT PARENT TRIALS PRINTER                   by a major shift to
                            last issue. Stories are                                                                                                                                                                           CO-OPERATION                                       electronic signboards
                            breaking every day at                                                                                                                                                                             Web to print giant Cimpress – the parent
                                                                                                                                                                                                                              of Vistaprint – has a new tool in beta
                                                                                                                                                                                                                                                                                 as Aussie realty
                                                                                                                                                                                                                                                                                 agencies demand
                            www.proprint.com.au                                                                                                                                                                               testing, Cimpress Open, which could deliver        digital advertising.
                                                                                                                                                                           OPUS SELLS CACTUS TO OOH! FOR                      huge benefits to other print businesses.           Touch screen
                                                                                                                                                                           $6.1M                                              If successful Cimpress Open will enable            digital displays are
                                                                                                                                                                           Opus has sold its outdoor media printer            printers to embed the entire Vistaprint            replacing many
                                                                                                                                                                           Cactus Imaging to out of home giant oOh!           product range within their own websites            paper board signs for
                                                                                                                                                                           Media for $6.1m and will concentrate               and apps. It will also enable speciality           major Australian real
                                                                                                                                                                           entirely on its publishing division. Cactus is     printers to sell their own products through        estate outfits such
                                                                                                                                                                           one of the largest if not the largest outdoor      the Vistaprint website, opening up a               as Ray White and
                                                                                                                                                                           printer in the country. It saw an 18 per           massive new market for most printers.              LJ Hooker in a bid
                                 4 august                                                                                                                                  cent boost in sales in the 2015 financial          Cimpress Open is in the early stages of beta       to keep pace with
                                                                                                                                                                           year. It runs both HP Scitex and Fujifilm          testing, which is expected to continue well        technology trends.
                                   WW20_ProPrint-Cover_160726_vC08.pdf   1   26/07/2016   5:03 pm

                                                                                                                                                                           grand format printers. Brendon Cook, CEO           into next year. The twin track of enabling
          August 2016

                                                                                                                                                                                                    of oOh! says classic      printers to sell Vistaprint products directly
                                                                                                                                                                                                    print-based out of        from their own websites and enabling
                               People Technology Business                                                           www.proprint.com.au August 2016 $8.00                                           home advertising is       printers to sell their products through the
                                      20YEARS                                 20YEARS                         20YEARS                         20YEARS
                                                                                                                                                                                                    an integral part of       Vistaprint website comes as part of the
        20YEARS                                              20YEARS                                20YEARS                20YEARS                        20YEARS
                                                                                                                                                                                                    the sector.               new strategy.
                                      20YEARS                                 20YEARS                         20YEARS                         20YEARS

        20YEARS                                              20YEARS                                20YEARS                20YEARS                        20YEARS

                                      20YEARS                                 20YEARS                         20YEARS                         20YEARS

        20YEARS                                              20YEARS                                20YEARS                20YEARS                        20YEARS

                                      20YEARS                                 20YEARS                         20YEARS                         20YEARS

        20YEARS                                              20YEARS                                20YEARS                20YEARS                        20YEARS                                                                                      01 august
                                      20YEARS                                 20YEARS                         20YEARS                         20YEARS

        20YEARS                                              20YEARS                                20YEARS                20YEARS                        20YEARS                                                                                      OOH INDUSTRY REVENUE SKYROCKETS
                                            Celebrating 20 Years                                                                                                                                                                                       Out-of-home (OOH) industry figures
                                          servicing the print industry
        20YEARS                                                                                                                                           20YEARS
                                                                                                                                                                                                     28 july                                           are maintaining consecutive surges in
                                  Beware the
                                  Vampires
                                  Factoring companies
                                                                                  Star Business:
                                                                                  Minuteman
                                                                                  Melbourne franchisee
                                                                                                                   Focus: Digital
                                                                                                                   Label print
                                                                                                                   ProPrint looks at the
                                                                                                                                                                                                                                                       revenue after its July earnings trumped
                                  bad news for                                    shows how to grow in             pros and cons of digital
                                                                                                                                                                                                     WALL NEW VISUAL CONNECTIONS                       the previous year’s by 14 per cent. Net
          $8.00 (inc GST)

                                  printers: Kirgan                                tough times                      label printing

                        ProPrint FC template new V2.indd 1                                                                                          2/08/2016 1:15 pm
                                                                                                                                                                                                     PRESIDENT                                         revenue for OOH in the month of July
                                                                                                                                                                                                                              John Wall, president     hit a resounding target of $57.2m, a
                                                                                                                                                                                                                              and director             significant jump from the same period last
                                                                                                                                                                                                                              of Roland DG             year’s $50m. Year-to-date earnings for
                                                                                                                                                                          It has been                                         Australia is the new     the booming industry reached $418.5m,
                                                                                                                                                                         a rewarding                                          president of Visual
                                                                                                                                                                                                                              Connections, the
                                                                                                                                                                                                                                                       tracking up by 18 per cent from last year’s
                                                                                                                                                                                                                                                       $354m. Whilst static print media maintains
                                                                                                                                                                            year and I                                        major suppliers’         its place as the highest earning category
                                                                                                                                                                        would like to                association. He was formerly vice president
                                                                                                                                                                                                     and succeeds Bottcher CEO Mitch Mulligan,
                                                                                                                                                                                                                                                       against digital, electronic billboard revenue
                                                                                                                                                                                                                                                       managed to make up 37.8 per cent, a 13 per
                                                                                                                                                                            thank my                 under a planned move agreed when                  cent increase from last year. The figures
                                                                                                                                                                        fellow Board                 commercial print suppliers association
                                                                                                                                                                                                     GAMAA and wide format suppliers group
                                                                                                                                                                                                                                                       are on track to smash last year’s record
                                                                                                                                                                                                                                                       breaking total revenue of $677.8m, which
                                                                                                                                                                        members for                  Visual Industries merged a year ago.              bulldozed 2014’s yearly revenue by almost
                                                                                                                                                                           their hard                Outgoing president Mulligan says, “It has
                                                                                                                                                                                                     been a rewarding year and I would like
                                                                                                                                                                                                                                                       $100m. Category breakdowns see roadside
                                                                                                                                                                                                                                                       billboards delivering majority revenue for
                                                                                                                                                                                 work                to thank my fellow Board members for              the month at $21.8m, followed by street
                                                                                                                                                                                                     their hard work. We are proud that Visual         furniture, taxis, bus and tram externals
                                                                                                                                                                                                     Connections has united major suppliers            at $17.1m. Several of the OOH industry’s
                                                                                                                                                                                                     across the print, graphic and signage             biggest players are gearing up for a stellar
                                                                                                                                                                                                     industries and continued to contribute            2016 with multiple acquisitions.
                                                                                                                                                                                                     to the sustainability of the industry.”
                                                                                                                                                                                                     Incoming president Wall is looking forward
                                                                                                                                                                                                     to taking on the role and for the year
                            News happens every day at                                                                                                                                                ahead. He says, “What a great first year

                            proprint.com.au                                                                                                                                                          for Visual Connections. I am proud to take
                                                                                                                                                                                                     the helm at this juncture and to further the
                            Sign up for our free daily news bulletin.                                                                                                                                work of the association.”
                            Registered users get access to premium
                            content

                            8 ProPrint September 2016                                                                                                                                                                                                                         www.proprint.com.au

Debrief.indd 8                                                                                                                                                                                                                                                                                29/08/2016 3:54 pm
UPDATE

                                                                                         15 august
                                       09 august                                         BJ BALL TO BUY WEST GRAPHICS
                                                                                         BJ Ball is acquiring West Australian graphics
                                                                                         distributor West Graphics Print Supplies,
                                                                                         in a move that will propel the paper giant
              News Corp                                                                  into the Perth inks and consumables
                 booked                                                                  market. The deal comes into effect late
                                                                                         August, and will see the paper merchant            17 august
               US$684m                                                                   offer distribution to the WA market
             for its total             PRINT STINGS NEWS CORP EARNINGS                   through West Graphics of the Huber Group           PERTH NEWSPAPER PRINTER GOES
                   fourth              The newspaper industry is the thorn in            range of inks, and a suite of coatings,            UNDER
                                       News Corp’s side after its global earnings        varnishes, press chemistry, blankets and           Western Australian newspaper printer
                 quarter               were pushed down 28 per cent by print             other specialty products. BJ Ball says the         Sun City Publishing has closed its doors
                   global              publishing, despite best efforts to revive        acquisition will drive increased technical         and appointed liquidators, following a
             earnings, a               the declining sector. News Corp booked            support and sales across its operations in         domino effect of print publishing collapses
             28 per cent               US$684m for its total fourth quarter global
                                       earnings, a 28 per cent plunge compared
                                                                                         Australia – which now includes Perth and
                                                                                         wider WA. It also makes BJ Ball a complete
                                                                                                                                            across the country. Sun City Publishing,
                                                                                                                                            which is based in Yanchep, WA published
                  plunge               to US$945m the prior year. Its overall            national distributor. The value of the             two local newspapers The Sun City
              compared                 advertising revenue also dropped by five          acquisition has not been disclosed, and it         News and Yanchep Times, and offered
             to US$945m                per cent, which the group attributes to           is unknown whether West Graphics will              graphic design and printing services to
                                       ‘weakness in the print advertising market’.       leave its facility in Osborne Park, WA.            the region. Its mastheads were published
                the prior              A breakdown of figures saw the Murdoch                                                               fortnightly to the local Yanchep region on
                      year             empire’s news operations swing a loss of                                                             the coast of Perth, and it also operated
                                       almost US$400m from US$603 to US$213m                                                                online news websites. Liquidators from
                                       in the full financial year, while its saving                                                         Mackay Goodwin were appointed to Sun
                                       grace digital real estate earnings jumped                                                            City Publishing, and calls to its Yanchep
                                       from US$201m to US$344m. “While global                                                               location are going unanswered. The
                                       print ad trends remain challenging at our                                                            business had been advertised for sale in
                                       News and Information Services segment,                                                               July for $220,000.
                                       we are continuing aggressive growth.”

                                                                                                                  16 august
                                                               The world is moving
                                                                                                                  HANNANPRINT ROLLS OUT NEW DJS
                                                               forward, and for print                             MAGAZINE JONES
                                                               businesses standing still                          A new quarterly magazine for David Jones
                                                                                                                  printed by IPMG-owned Hannanprint
                                                               is simply not an option                            has rolled out across the country, with
             08 august                                                                                            a print run rivalling the highest read
                                                                10 august                                         fashion mags in Australia. Hannanprint
             CIVIC MEDIA PRINT PARTNER FOR                                                                        won the David Jones mag contract in May
             BRISBANE BULLETS                                   EFI BOSS APPLAUDS ONLINE                          following a short tender process held by
             Brisbane digital printer Civic Media has                                    EFI CEO Guy Gecht        publisher Medium Rare, and has finalised
             entered into a partnership with Australian                                  says the rapid           printing of the first edition. The 180-page
             National Basketball League (NBL) team the                                   move to the online       magazine, which is titled Jones, has a
             Brisbane Bullets as its official print partner.                             world represents         print run of 250,000, with copies mailed
             Civic Media specialises in producing banner                                 good news for            through direct mail firm Adsend to select
             mesh, shade cloth, vehicle graphics,                                        print business           customers and David Jones stores across
             banners, billboards, building wrap and POS                                  owners, who can          the country. Its print run more than triples
             signage, and has already printed signage           use digital print to exploit a myriad of          Australia’s highest read fashion magazine
             at the Bullets’ training base and banners          new opportunities. Speaking to ProPrint           Marie Claire’s monthly circulation which
             for club events. The partnership is also           as part of a round of global media phone          sits at around 80,000. A large portion
             being consummated by a large format                calls from California Gecht says that             of the issue is set to be distributed
             sign sitting at the Royal Queensland Show,         printers who recognise the opportunity            through David Jones’ 40 Aussie stores as
             known as the Ekka this year. “We believe           and move with the times can provide               a gift with purchase, and the rest sold
             the Brisbane Bullets’ new look and core            a compelling service to the market. He            over the counter in-store and through
             values of Respect, Inspire and Family align        says, “The rapid move to the online world         newsagents for $9.95. Jones’ inaugural
             with our business values,” says Civic Media        means printers’ customers are demanding                                      issue also features
             managing director Adam Middleton. “Civic           short run, personalised, on demand work                                      71 full pages
             Media will not only be providing signage,          with no waste and no lead time. Digital                                      of advertising
             but also contribute to the family friendly         print is perfectly positioned to capitalise                                  from glamorous
             feeling at Bullets home games. We are              on this, especially in fast growing areas                                    brands such as
             excited to be part of the Bullets’ journey         such as signage, packaging, textiles and                                     Dior and Gucci.
             back to the NBL.”                                  decoration, along with more traditional                                      Hannanprint also
                                                                but still growing print areas such as direct                                 prints Woolworths
                                                                mail. The world is moving forward, and for                                   Fresh Magazine.
                                                                print businesses standing still is simply not
                                                                an option.”

           www.proprint.com.au                                                                                                                                September 2016 ProPrint 9

Debrief.indd 9                                                                                                                                                                    29/08/2016 3:54 pm
UPDATE
           AUGUST TIMELINE

             18 august
                                                              19 august
             ORORA BOOSTS REVENUE AND SALES                                                                     23 august
             DESPITE DEBT GROWTH                              AEC TO RUN PIAA VOTE
             Global packaging giant Orora has booked          The Printing Industries Association of            PERTH 3D OUTFIT FLOATS ON ASX
             a 28 per cent jump for its full year revenue,    Australia’s (PIAA) upcoming election              Perth-based 3D printer Aurora Labs has
             with a net profit of $168m, propelled by US      will be coordinated by the Australian             successfully floated on the Australian Stock
             acquisitions and its land sale in Australia.     Electoral Commission (AEC) following a            Exchange after raising $2.8m through
             The group also posted significant sales          lengthy application process. Historically         its IPO in an Australian first. Aurora Labs
             revenue growth, up 13 per cent from the          the association has run its Board elections       debuted its first day of trading at 54 cents
             same period last year spiking at $3.8bn.         internally, and this year will be the first       per share, rising strongly by almost 25
             After revealing its profitable year, Orora’s     time the Board has requested the AEC.             per cent to close in the afternoon at 70
             shares surged by 10 per cent to an ordinary      According to PIAA chief executive Andrew          cents. The 3D printing start up managed to
             dividend of 5 cents per share, rising by 26.7    Macaulay, the industry body spent the last        raise $2.8m since launching its prospectus
             per cent. Despite soaring growth from all        several months liaising with the AEC after        in June, offering 14 million shares at 20
             angles, Orora still carries net debt, which      applying through WorkChoices in a bid to          cents each. Aurora began two years ago
             climbed three per cent from $607m to             put its elections at ‘arms length’. “Using        as a small start-up and is now headed by
             $630m for the financial year. Orora chief        the AEC for the election in October is part of    co-founder and managing director David
             executive Nigel Garrard says the group’s         the Board’s desire for a new direction with       Budge and executive director Nathan
             generally strong result was bolstered            the association,” says Macaulay. “It shows        Henry. The printers it has developed are
             by a blend of organic growth, its fierce         us as an industry association that operates       now at the production stage following an
             acquisition model and the sale of its land       with transparency as staff and PIAA               extended beta testing phase.
             in Queensland. “The 2016 financial year          members are completely removed from the
             saw a continuation of strong execution           election process. Any other elections held
             of the Orora Way operating model, which          by the PIAA will require a reapplication to
             delivered higher earnings and cash flows         the AEC.”
             and increased returns,” says Garrard.

                                      18 august
                                      PRESS SUPPLIERS CREDIT DRUPA TO                  We are market leader,
                                      STELLAR RESULTS
                                                                                       but we can improve our                            24 august
           KBA posted                 The financial results season is upon us,
                  order               and global press suppliers are attributing a     market share                                      AUSSIE MAGS SHOW SORRY FIGURES
                                      booming drupa to strong earnings for 2016,                                                         Australia’s magazine industry is facing
             figures to               with sales and orders representing a huge         22 august                                        similar mass circulation drops as
           the tune of                portion of revenue. Press manufacturers
                                      Heidelberg and Koenig & Bauer Group               SPANDEX APPOINTS NEW BOSS
                                                                                                                                         newspapers, with our highest selling
                                                                                                                                         women’s mags crashing to its worst
            €352.5m –                 (KBA) have credited a highly profitable                                 Spandex has appointed      ever figures. However Roy Morgan
               which it               drupa 2016 to their strong results, booking
                                      millions of euros worth of orders from the
                                                                                                              former Arlon Graphics
                                                                                                              VP David Neidell as
                                                                                                                                         research has found titles with growing
                                                                                                                                         year-on-year circulation tend to be
              says only               tradeshow. KBA posted order figures to                                  its new Asia Pacific       niche market magazines – such as 4WD
            represents                the tune of €352.5m – which it says only
                                      represents around a third of orders actually
                                                                                                              vice president, which
                                                                                        includes running the Australian operation
                                                                                                                                         mag 4x4 Australia with a 26.8 per cent
                                                                                                                                         jump in readership, and food and wine
              around a                taken at drupa. Its half year revenue             from its Sydney base. He replaces former         title Selector Magazine which rose by
                third of              also jumped by 30 per cent to €553.9m.
                                      The press giant says the flow on effect of
                                                                                        boss Alex McLelland who left when the
                                                                                        company – headquartered in Switzerland
                                                                                                                                         48.5 per cent, but their overall numbers
                                                                                                                                         are a fraction of the mass market
                 orders               fulfilling its €639.8m backlog of orders          - was bought by a French private equity          women’s magazines. Glossy mags such
                actually              taken at the international tradeshow
                                      will reap significant benefits for future
                                                                                        group. Neidell has moved from Europe to
                                                                                        take on the role at the company which
                                                                                                                                         as Cosmopolitan, Womens Weekly and
                                                                                                                                         Marie Claire circulation figures all sunk
               taken at               earnings.                                         is Australia’s biggest supplier of vinyl.        by significant amounts this year, Cosmo
                  drupa                                                                 Commenting on Spandex’s position in
                                                                                        the wide format supplies industry, he
                                                                                                                                         feeling the biggest burn with readership
                                                                                                                                         plunging by 44 per cent in only one year.
                                                                                        says, “We are market leader, but we              The Australian Women’s Weekly’s print run
                                                                                        can improve our market share.” He was            fell below 400,000 issues per month.
                                                                                        previously vice president international
                                                                                        for Arlon Graphics in Holland, which was
                                                                                        a supplier to Spandex, who he was with
                                                                                        for five years, and spent 13 years as vice
           News happens every day at                                                    president corporate development at Fellers,

           proprint.com.au
                                                                                        which became the biggest vinyl supplier
                                                                                        in the USA.

           Sign up for our free daily news bulletin.
           Registered users get access to premium
           content
           10 ProPrint September 2016                                                                                                                          www.proprint.com.au

Debrief.indd 10                                                                                                                                                              29/08/2016 3:55 pm
ONLINE UPDATE

                THE PROPRINT ONLINE POLL
                                                            I prefer paper so I'm
                Is it fair for                                                                   social media
                                                    I only happy to pay 4%
                businesses to
                                                  receive
                charge for                         online                                                 LinkedIn
                paper bills?                          bills                                               www.proprint.com.au/LinkedIn
                                                                                                 » Members 2,629
                                                         10%                                     NOTABLE POSTS:
                                                                                                 » Marketing Deconstructed -
                                               Yes,                               No, it         Communications: The Death of the
                                                                                                 Traditional/ Digital Divide - Kieran
                                             paper                                makes          May
                                              costs                               no sense
                                            money                                 63%                     Twitter
                                                 23%                                                      www.twitter.com/proprint
                                                                                                 » Followers 3,306
                                                                                                 NOTABLE MENTIONS AND RETWEETS
                                                                                                 » Ciconi - Fantastic article, simply
                                                                                                 proving #print matters. RE: Census
                                                                                                 disaster highlights power of print @
                                                                                                 proprint
                                            Total votes: 52                                      » Yvonne Parkinson - Still takes 2-4
                                                                                                 days for local letter delivery -funny
                                                                                                 that RE: Aus Post spends $100m on
                                                                                                 international deal @proprint
                                Both can                                              Do you
                               be trusted                                               think             Facebook
                                        19%                                       people will             www.facebook.com/ProPrintAustralia
                                                                                                 » Likes 1,210
                                                                 Yes 32%              always     TOP POSTS
                                                                                                 » Fuji Xerox opens Luminate in Perth
                                                                                   trust print   And they wondered why I went
                   Both have                                                             over    with a different brand and not
                                                                                                 another Xerox when I replaced my
               disadvantages                                                          online?    machine when they are only down
                                      22%         No, online is
                                                                                                 the street. They don’t see that there
                                                                                                 is any conflict being a supplier and
                                                                                                 a competitor! They have undercut
                                                  the future                                     me on a number of jobs. - Graham
                                                  27%                                            Martindale
                                                                                                 » Real estate signage going digital
                                                                      Total votes: 37            Matt was interviewed today by
                                                                                                 ProPrint Magazine about the increase
                                                                                                 in digital signage use in the real
                                            Not sure how I would balance it                      estate industry! Enjoy the read......-
               Would you                    with running a business 12%                          Aria Digital Signs
               ever be
               interested in                                                                              Web comments
               becoming a                                                                                  www.proprint.com.au
                                                                                                 » The real story is that a huge
               PIAA Board                                                                        number of Australians are CHOOSING
               director?                   I would                                               paper because they intend to submit
                                                                                                 the forms without their names on.
                                        consider it                               No 41%         The whole thing has become a farce,
                                                    17%                                          a dangerous expensive farce. -
                                                                                                 Commenter Scottmac on Census print
                                                                                                 run slashed
                                                                                                 » I sympathise with the employees,
                                                                                                 however I have no sympathy for
                                                          Yes 29%                                suppliers that continue to support
                                                                                                 the poison in our industry. Suppliers
                                                                                                 need to grow up - Commenter PJE on
                                                                                                 Chaos at Printcentre
                                               Total votes: 41                                   » I am lucky to be in the position
                                                                                                 where I can just get rid of customers
                                                                                                 who don’t pay on time –Commenter
                      Get involved. Have your say. Join the debate. Vote now.                    SeeWhyI’mOkay on Factoring
                     This week’s poll is up on the proprint.com.au homepage.                     vampires

           www.proprint.com.au                                                                                   September 2016 ProPrint 11

Update - Poll, Social Media.indd 11                                                                                                      29/08/2016 3:58 pm
UPDATE COMMENT

                Tricky business

              Kirgan says you cannot ignore a sales
              downturn and hope things turnaround,
              better to get out there spruiking new sales

          Kirgan confronts a print market that seems to have
          virtually stopped since the new financial year started

              BADEN KIRGAN                                     And it does not look like it is just    years looking for overflow.
                                                            Sydney. I do not have any connection to      And then the financial year ended
                                                            the Melbourne market, but the number       and our own sales dropped off a cliff. I

          A
                    re the bad times back? Last             of collapses going on down there brings    had two to three weeks of the slackest
                    month I mentioned in passing            to mind the tough times of a few years     sales I have ever had, coming off three
                    that there seemed to be a mini-         ago, when it seemed like every week        months of being the busiest I ever had.
                    recession going on in our trade,        another printer fell over, whether they    The doldrums did not worry me – the
          at least in the Sydney market. So many            were good or bad.                          time has allowed us to finally get to
          people I know seem to be struggling at               I cannot complain though, and I kind    work on our Xmpie installation. But
          the moment, with low sales, slow                  of feel guilty about that. The year just   knowing what I knew about how my
          payments and a weird general malaise.             done was a record for us, coming off       competitors were travelling, I did not
             I have seen several businesses that            another record in 2015. We had the         want to take any chances, so I dusted
          have been around for a while slip                 biggest quarter we have ever had in the    off my suit and started doing sales calls.
          quietly onto the market. A few have               dag end of 2016.                             I have managed to avoid spruiking
          been genuine sales with good books,                  It was during this busy period that I   for new sales for two years now –
          but more have been last ditch efforts to          started to really notice the decline       things have been going well organically
          get out before they either have to shut           around me. Paper reps would come in        and frankly I just did not need to
          the doors or call in the receivers.               and tell me a lot of other shops were      expend the effort. But this weakness in
             Some of the owners I have known for            struggling, or complain about the lack     the market and the disasters in
          a long time and could talk frankly to             of quotes they were getting. This is       Melbourne have got me very nervous
          them. For the ones who are jumping                nothing new – I have long thought          and my new-financial-year resolution is
          before they are pushed, there are all the         when you are busy and a rep tells you      new clients, new sales. If I am right
          usual reasons. A bad piece of gear here,          everyone else is slow, it is just them     about where we are heading, and I
          a lost client there, and every once in a          trying to flatter a sale out of you.       hope I am not, I would advise you all to
          while a dodgy partner. But for all of                But I keep in good contact with lots    do the same.
          them the final straw seems to be this             of other printers and a lot of them were
          downturn that is going on in the                  very slow. I was getting phone calls              Baden Kirgan is managing director
          Sydney market.                                    from printers I had not heard from in                    of Jeffries Printing Services

          12 ProPrint September 2016                                                                                        www.proprint.com.au

Kirgan page.indd 12                                                                                                                         29/08/2016 3:59 pm
ProPrint Jobs Online
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               JOB TITLE                           COMPANY                                AREA

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               Digital Print Operator              PhotobookShop, full time              Reservior, Victoria, Australia

                                                   Marvel Bookbinding & Printfinishing   Heidelberg West, Victoria,
               Printfinisher
                                                   Pty Ltd                               Australia

                                                         RECENT JOBS

               Sales Representative                Super Labels Pty Ltd                  Nerang, Queensland, Australia

                                                                                         Sydney, New South Wales,
               Inkjet Operator                     Ligare Pty Ltd
                                                                                         Australia

               Digital Print Operator              PhotobookShop, full time              Reservior, Victoria, Australia

                                                   Marvel Bookbinding & Printfinishing   Heidelberg West, Victoria,
               Printfinisher
                                                   Pty Ltd                               Australia
                                                                                         Riverwood, New South Wales,
               Customer Service Representative     Ligare Pty Ltd
                                                                                         Australia
                                                                                         Rosebery, New South Wales,
               Sales Manager, Film Product Group   Jet Technologies
                                                                                         Australia
               Mailing and Print Machine                                                 Minto, New South Wales,
                                                   The Camerons Group
               Operators                                                                 Australia
                                                                                         Dandenong South, Victoria,
               Service Technician                  Spicers
                                                                                         Australia

               Print MIS Support & Development     Pemara Labels Pty Ltd                 Notting Hill, Victoria, Australia

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PP September 2016 Job ad.indd 1                                                                                           29/08/2016 12:08 pm
UPDATE COMMENT

         Transforming our business
         Sarah Leo, general manager at printer Openbook Howden
         shares the transformation journey the company has been
         through from printer to services provider
             SARAH LEO                                                      Our market has shifted quite               opportunity to remind themselves of
                                                                         dramatically over the past couple of          the fundamentals, learn new ideas and
                                                                         years, and the pace of change is              approaches, and to refocus on the really

         “L
                    ike many companies in the                            accelerating all the time. It is a constant   important things, like communication
                    graphic communications                               challenge to manage the practical             skills and time management. The
                    sphere, Openbook Howden                              aspects of meeting the market, and            benefits of the training are also being
         is faced with the constant challenge of                         finding new resources to help us was          felt more widely than the student
         coping with change. Purposeful                                  the reason we first became involved in        cohort itself.
         training like that offered through the                          Future Print.                                    As is so often the case with training,
         Future Print Business Transformation                               We have always been happy to invest        we are seeing flow-on benefits for the
         Project has become a key part of our                            in professional development, but              whole team. People bring their new
         response. Over the years Openbook                               opportunities for subsidised training         ideas and energy back into the business
         Howden has seen market demand                                   are rare – so when we found the right         and it reminds us all of critical issues –
         change dramatically. In response, the                           kind of training courses, offered by          like the need to set aside time to
         company has grown into much more                                quality providers, under the Future           properly plan and manage change.
         than a print service provider, today                            Print scheme, we grabbed them with               When things are changing so rapidly,
         offering a suite of print, design,                              both hands. In the past, we have              everyone is consumed with what is
         interactive and e-comms solutions, as                           focused mainly on reskilling and              happening at the coal face – whether
         well as stock management, distribution                          upskilling production staff, but this was     that is bringing business through the
         and mail services.                                              the perfect opportunity for us to extend      door, keeping the figures straight or
            This customer-driven progress can                            that opportunity to our sales and             planning production schedules. It is
         be challenging to manage successfully,                          management teams.                             easy to put off change until another
         so accessing the right resources and                               Already, eight staff have completed        day, but in today’s market, that just
         training to ensure staff are properly                           the Sales course and three of the             does not cut it.
         equipped is a key to success.                                   Leadership cohort are about to                   You have to make the time to remain
            Purposeful training is a key part of                         graduate. Two more have recently              responsive and agile, because if you are
         our company’s response and, recently,                           started the Leadership Management             not forging ahead, you are falling
         13 sales and management staff                                   course. All have been exceptionally           behind. Future Print is right on the
         undertook courses with Leadership                               well received. Even though many of our        mark with its focus on helping
         Management Australia (LMA),                                     team were already familiar with some          businesses assess their performance,
         accessed under the Future Print                                 of the material covered, without              identify areas that need change and
         Business Transformation project.                                exception they appreciated the                providing the training required.”

             Thoughts from an eleventh drupa
             T
                  he show is over. The exhibitors have      logistics, and, of course, their exhibits.         groups for which I made
                  left the buildings. The pundits have         Put a value on the public relations.            presentations if any were going to the
                  chimed in. The drupa 2016 is now          Graphic communication media from all               show. Most of the hands went up.
             history. The every-three-year cycle idea       over the world were there — plus analysts            The US Print show does not get that level
             was quashed and we are back to the four-       and consultants and other industry                 of international attendance. It does not
             year cycle. I remember when it was every       hangers-on. I attended 31 press                    get the media attendance. Few exhibitors
             five years. So, we will all meet in 2020.      conferences, nine briefings, and 12 one-           bring their really big iron. And dealing
             Well, maybe all of you. I may be 79.           on-one meetings. Sure, some of the                 with McCormick Place personnel is like
                Sales statistics were impressive — big      smaller exhibitors got lost in the crowd,          dealing with the Taliban, even though
             orders, big bucks. Every exhibitor sold        but the PR exposure was tremendous. I              there were negotiations a few years ago to
             something. No one does a total, but my         was in an exclusive group of six journalists       lessen the burden.
             guess is that there was over half a billion    who had attended 10 or more drupas.                  Plus, Print comes close to drupa
             dollars in business.                              Add it all up and I think it puts the drupa     timewise so many exhibitors feel that they
                Add in the cost of just being there.        value closer to a billion dollars.                 have already gotten the exposure from
             Dusseldorf hotels jack the price to usurious      The billion dollar drupa, if you will.          media and major buyers so they downplay
             levels. My hotel (Holiday Inn Express) went       Why is drupa so big? (Even though it was        their presence. Printing shows in China
             from 60 Euros to 350 Euros. But AirBnB and     smaller than the last one). First, there is its    and all of Asia are growing. This will
             other websites found lots of less expensive    immediate market: Germany and the                  impact all other international shows,
             housing. My hotel was not filled, nor were     European Union. Plus Russia and the UK. It         including drupa and Print.
             many of the others. Exhibitors spent a         is a gigantic printing market. When I was            All in all, drupa 2016 was a most exciting
             fortune on housing, transportation,            in Australia, Brazil, and India, I asked the       event. I said that about drupa 1972 as well.

         14 ProPrint September 2016                                                                                                         www.proprint.com.au

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COMMENT UPDATE

         reader reaction                            LEON GETTLER
         Would you use a factoring company for

                                                    Working websites
         your invoicing? If so, why, and if not,
         why not?

                         Sharon Sewell
                         Director
                         Varsity Graphics
                                                    Leon Gettler says attention to detail will
                                                    make your website a winner with customers
                          “Considering we are a
                          small business it would

                                                    A
         be highly unlikely we would use a                    website can increase sales by                              There are several questions you
         factoring company. We are very lucky                 giving the business a                                   need to ask when assessing your
         that we have systems in place so our                 presence. By boosting traffic                           website: Does your website make it
         debtors and payments to suppliers                    to the website, the printer is                          immediately clear what your
         are under control. We find this quite      gathering information, generating                                 company does and whom it serves?
         important to have a sustainable            leads and turning visitors into clients                           Does your website quickly
         business, especially on the Gold           and customers. But printers have to                               communicate your company’s unique
         Coast. I feel if a business like ours      know how to turn their website into                               selling proposition? Is it easy for your
         needed to use a factoring company          an income generator.                                              prospects and customers to find their
         we would be on a downward slope.”             First, it is important to place                                way around your website? Does your
                                                    contact info and phone number at                                  website back up its claims? Does your
                                                    the top, right corner of the page,                                website explain the additional
                         Ewen Donaldson             where it is expected. Also, make sure                             resources you can provide to
                         Managing Director          to include your phone number as a                                 prospects and customers? Does your
                         Vivad                      HTML, not an image. That way, a                                   website contain lots of offers
                                                    mobile user can tap the phone                                     designed to engage prospects and
                         “We wouldn’t consider      number link and launch into a call                                start sales-winning relationships?
                         using factoring at         immediately.                                                      Does your website make it easy for
         Vivad. Our business is built on               It is important to have a                                      prospects and customers to take the
         relationships. Inviting a factoring        responsive design that works on                                   next steps in their consideration or
         company to a new relationship is like      tablet or smart phone. If it does not                             buying process? Does your website
         taking a chaperone on a date. Every        work on a mobile device, it is not                                make it easy to place an order? Are
         business relationship is different, but    worth having. That might take some                                there multiple ways for prospective
         once you factor you lose the ability to    work because it is difficult to create                            customers to request assistance or
         negotiate debtor days with your            a single website design that works                                additional information about your
         clients’ debt now the debt is owed by      for every device out there. It is not                             company and its products or
         the factor company. For example:           plug and play. But it’s important to                              services? Do you have processes in
         let’s say you invoice $100K worth of       have it.                                                          place to trigger immediate follow-up
         work on 30 day terms to a good client         If you count your cost in time,                                to these requests?
         of 15 years who always pays on time.       responsive design is a little more                                   The search box should be designed
         The factoring company gives you            expensive. If you count your cost in                              so that it is different from other
         $80,000 straight away. Then for the        customers, it is cheaper. With a                                  forms or boxes on the website’s
         first time your client has trouble         responsive design, you can                                        home page. It should look nothing
         getting paid by his client. He knows       automatically approach customers                                  like, for example, the newsletter
         that it is coming but he has asked an      from all kinds of places, on all kinds                            subscribe box. The bottom line is that
         extension of credit. But since you         of devices. If you target the desktop                             site visitors expect to easily find the
         have factored this invoice then they       user only, you will be focusing on less                           search box so they are likely to
         won’t be negotiating that with you, it     than 50 per cent of potential                                     abandon your site if they cannot find
         will be with the factoring company.“       customers. So it might cost extra but      Company website:       it. That means you should highlight
                                                    then make a lot more later on.             crucial for business   the search box prominently on every
                                                                                                                                      webpage. Another good
                                                                                                                                      way to get people to
                         Anonymous                                                                                                   pay more attention to
                                                                                                                                     the search box is to
                        “I cannot answer the                                                                                         name the button that
                        question with just 80                                                                                         begins the search
                        words, as we have set                                                                                        process something like
                        up our business to not                                                                                       Search, Find, or Go – or
         have many customers over 7-14 days.                                                                                         use an icon such as a
         We would not consider a factoring                                                                                           magnifying glass, which
         company at all, as the margins are far                                                                                      is clearly recognisable to
         too low to use them. We are very                                                                                             visitors. Also make blog
         strict with payments and liken it to                                                                                        posts, community
         an account customer getting free                                                                                             forum posts, and videos
         credit. They cannot buy a Big Mac                                                                                           searchable.
         from McDonalds on 30 days’ credit.                                                                                             A website is a
         Most print is commodity, as                                                                                                 significant investment.
         customers keep pushing (price, price,                                                                                        But these days, no
         price), so pay up front or at                                                                                                business can afford
         collection.”                                                                                                                to be without one.

         www.proprint.com.au                                                                                                          September 2016 ProPrint 15

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UPDATE DOWNTIME
                                                                                           WE WANT YOUR STORIES

          Galley Club drupa event
                                                                                           Any special dates coming up?
                                                                                           Are you celebrating any milestones?
                                                                                           Planning an industry function?
                                                                                           Anyone raising money for a charity?
          The printing and publishing members’ organisation Galley Club
          gathered at Sydney’s Occidental Hotel to hear presentations on                   If you have something that fits the
          the latest trends shown at drupa.                                                bill, please email in to make sure it
                                                                                           gets a write-up on ‘Downtime’.
                                                                                           Email wayne@proprint.com.au
               1                                                                           or call (02) 9806 9344

                                                                                                                         2

           3
                                                                                           1. Rayne Simpson, Currie Group with Owen
                                                                                           Mostert, HP, Phillip Rennell, Currie Group and
                                                                                       4   Anthony Parnemann, EFI
                                                                                           2. Roy Chen with Jon MacDonald, XOU Creative
                                                                                           3. Carrick Wilkie, Opus Group with David Henley,
                                                                                           Xoum
                                                                                           4. Michael Schultz, SOS Printing

          Asian Pulp & Paper journos tour
          The world’s biggest papermaker invited leading journalists to
          assess its Indonesian operations, April Glover went for ProPrint.

                                                                                  27

               1
                                                                                           1. How big! Journalists check out rolls coming of
                                                                                           one of the papermaking machines
                                                                                           2. Aida Greenbury, managing director
                                                                                           Sustainability at APP (centre) hosts April Glover
                                                                                           (fourth from left) and the rest of the reporters
                                                                                           3. Papermaking at APP begins in the lab, with
                                                                                           each seed planted by hand in optimum growing
                                                                                           conditions before going to the nursery and then
                       37                                                                  onto be planted in the forest
                                                                              4            4. Glover gets a birds eye view of the plantations

          16 ProPrint September 2016                                                                                www.proprint.com.au

PP Downtime September 2016.indd 16                                                                                                     29/08/2016 4:03 pm
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