NewsNewsNPES THE ASSOCIATION FOR SUPPLIERS OF PRINTING, PUBLISHING AND CONVERTING TECHNOLOGIES

Volume XXXIII, Number 1

FEBRUARY/MARCH 2014

Printing and Mailing Industries Dealt Harsh Blow on Postal Reform as Baldwin Amendment Defeated

The Printing and MailingIndustries were dealt a

harsh blow February 6 whena badly flawed postal reformbill, S. 1486, the Postal ReformAct of 2013, was approvedby the Senate HomelandSecurity and GovernmentalAffairs Committee. This fol-lowed the stinging defeat ofan amendment to the billchampioned by freshmanSenator Tammy Baldwin(D-WI), which would haveprevented the legislationfrom permanently incorpo-rating the 4.3% “exigent”postage rate increase grantedby the PostalRegulatoryCommission(PRC) lastDecember, andfrom shiftingrate-makingauthority fromthe PRC to theU.S. PostalService, anunprecedentedabdication ofregulatoryoversight of thepostal monopoly.

NPES Gov-ernment AffairsDirector MarkNuzzaco commendedSenator Baldwin’s strong

despite those efforts, HomelandSecurity Committee ChairmanSenator Tom Carper (D-DE)and Committee Ranking Mem-ber Senator Tom Coburn (R-OK) prevailed in peeling awaysupport from Baldwin’s amend-ment, which only a week earlierapparently had enough votes toblock the detrimental legisla-tion, by passing an amendmentof their own that only slightlyreduces the underlying legisla-tion’s onerous impact.

“This is a major setback forthe millions of workers in thePrinting and Mailing Indus-tries, as well as the millions ofmail customers who rely onaffordable postage rates tocommunicate with consumersacross the nation,” said NPESPresident Ralph Nappi follow-

Despite the strong support of the Printing and Mailing Industries, the amendment championed by Senator Tammy Baldwin (l) was defeatedby the efforts of Senator Tom Carper (center) and Senator Tom Coburn (r), when their amendment passed instead.

stand for her amendment,which was aggressively sup-

ported by the united Printingand Mailing Industries. But

‘‘“This is a major setback for the millions of workers in the

Printing and Mailing Industries,as well as the millions of mail

customers who rely on affordablepostage rates to communicatewith consumers across the

nation,” said NPES PresidentRalph Nappi.

continued on page 3

ing the Senate Committee ac-tion. “This terribly harmful leg-islation must be turned back; itcannot stand,” he added.

In addition to Printing andMailing Industry opposition,four major postal workerunions—representing lettercarriers, mail handlers andother postal workers—alsooppose S. 1486, but for otherreasons. Those include dislikeof provisions that would: pavethe way for elimination ofSaturday delivery and door-to-door service, reduce retire-ment benefits for new USPShires, and impose a new Fed-eral Employees CompensationAct (FECA) workers’ comp-ensation program on federalworkers—reforms all sup-ported by NPES.

we continually find ways to increase ROI, it isclear that many could benefit from leveragingNPES’ services further. Let’s consider a few ofthe ways that YOU can...

1. The recently released “World-wide Market forPrint” study consti-tutes a comprehen-sive and crediblesource of currentdata that providesa review of grow-ing market andsectors in theworld. Fifty-oneunique countryreports in sevenmarket segments, including print equip-ment and substrate forecasts through 2017. Allthis for FREE as part of your membership!

2. Every quarter, NPES publishes extensivemarket data for 80 equipment categories. Thisdata provides an opportunity for you to bench-mark your sales and market share against theother industry players. All this for FREE as partof your membership!

3. For the fourth year in a row, NPES will bepartnering with Printing Industries of Americafor the PRINT’S VOICE Capitol Hill Fly-In.PRINT’S VOICE ’14 is in Washington, D.C. onMay 6-7. Where else can you engage your con-gressman and senators, WITH customers, to en-

At any holiday gatheringyou may have noticed that

not all the dishes on the tableare always consumed. But isthis because of preference orthe fear of additional pounds,or simply that lovers of Brus-sels sprouts are few and farbetween?

Similarly NPES has a large“table” of offerings of whichmany of our members don’talways avail themselves. As

A Big Table

courage legislative policy that advances in-dustry growth? And many members leveragethe Fly-In with the help of NPES staff for anin-district visit by their representative. Allthis for FREE as part of your membership!

4. In July and November NPES will behosting trade missions to Brazil and Chinato help members capitalize on high growthmarkets. Access to the NPES in-countrystaff provides resources to help you navigateduties and customs, identify qualified dealers,and translate pivotal material. You guessedit…all this for FREE as part of your NPESmembership!

5. Throughout the year, NPES memberswork on an international stage creating stan-dards for the safety, manufacture, efficiencyand sustainability of printing equipment.These members at the “table” have thebenefit of crafting these standards with theirproducts in mind. All this for FREE as partof your membership!

You get the picture—and there are an-other dozen services on the “table” that de-liver the same “picture.” So don’t let yourcompetitors take advantage of these serviceswhile you sit on the sidelines. If you wantmore information, please contact me directlyas I would really like to see you on this shortlist of members who are engaging and takingfull advantage of all we offer!

ISSUE HIGHLIGHTSFuturecast: Print’s 2017Global Market Share ........................................ 3

Plotting a Course toInternational Business? .................................... 4

One on One with Deirdre Ryder...................... 5

Equipment and Supplies ShipmentsTrend Upward in 2013........................................6

Standards: Setting the Bar Higher ..................7

My Standards Journey ......................................8

PRINT’S VOICE ’14 ............................................9

Does Value-Added Really MeanAdding Value? .................................................. 10

NPES Welcomes Greg Safko ..........................11

GASC Expands Pre-Show AttendeeOutreach & Education......................................12

Calendar ............................................................ 12

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PRESIDENT’S PERSPECTIVE

Ralph Nappi, NPES President

When PROFIT Opportunity Knocks…Open The Door to International Markets!

NPES Membership is YOUR Passport to Success!

Expand into the International Marketplace Meet Potential Business Partners Create Brand Awareness Reach NEW Customers Increase Sales

Discover How To…

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The USPS financial situation re-mains dire and demands that Con-gress act to put in place a sustainablePostal Service business model forthe future. With this backdrop andbefore the Senate Homeland Secu-rity Committee took action, in lateDecember 2013 the PRC grantedthe Postal Service’s request for the4.3% exigent rate increase, com-bined with a 1.6% annual ConsumerPrice Index (CPI) raise that waseffective January 26. The MailingIndustry staunchly opposed theincrease, arguing that ultimately itwill drive mail out of the system at asubstantially accelerated rate andresult in the loss of even more pri-vate sector jobs. The Postal Servicehad wanted a permanent increase tocompensate for what they assertedwere recession-related losses, butonly got a temporary two-yearexigent rate increase. Both mailersand the USPS have appealed thePRC action to the District of Colum-bia U.S. Circuit Court of Appeal, asS.1486, which would enact the rateincreases permanently into law, ispending in the Senate.

Postal reform legislation is alsoon hold in the U.S. House of Repre-sentatives, after the Committee onOversight and Government Reformreported H.R. 2748, the PostalReform Act of 2013 last year. NPESand its Mailing Industry allies sup-port that measure because it pro-vides reforms they believeindispensable to preserving thePostal Service, a vital means of dis-seminating printed communication.

For more information contactNPES Government AffairsDirector Mark J. Nuzzaco atphone: 703/264-7235 or e-mail:mnuzzaco@npes.org.

According to the newly updated, landmark “World-wide Market for Print” study, the global printing

industry is highly fragmented, with the four largestprinting companies accounting for just 17.6% of theindustry’s revenue. The rise of emerging markets as adriving force in the printing industry will result in astill fragmented market, but one which is centered ondeveloping countries rather than developed ones.

Emerging markets will become 37% of the globalmarket in 2017, a leap from 22% in 2007. The averageprint market growth rate between 2012 and 2017 innon-OECD (Organisation for Economic Co-operationand Development) countries will be 7.3%, whereas itis expected to be just 0.8% in OECD countries. Theconcentration of the print market in the countries withthe largest markets will remain a trend in the future:the top 20 markets in 2007 were 89% of the market.By 2017, they will be 92%. China, an emerging mar-ket, is expected to grow immensely during the periodthrough 2017 and is expected to overtake the U.S. asthe largest print market in 2016.

Futurecast: Print’s 2017 Global Market Share

PRINTING continued from page 1

US$ 557bnUS$ 557bn US$ 668bnUS$ 668bn

MEA, 0.7MEA, 0.7South America, 3.5South America, 3.5Central and EasternCentral and Eastern

Europe, 3.9 Europe, 3.9

Asia Pacific,Asia Pacific,29.0 29.0

Western Europe, 31.2Western Europe, 31.2

North America, 31.8North America, 31.8

Global print marketGlobal print market(%)(%)

20072007MEA, 0.6MEA, 0.6

Central and EasternCentral and EasternEurope, 3.1 Europe, 3.1

South America, 4.3South America, 4.3

North America,North America,24.8 24.8

Western Europe, 26.7Western Europe, 26.7

Asia Pacific, 40.5Asia Pacific, 40.5

20172017

Source: NPES 2013 study “World-wide Market for Print: Identifying Global Opportunities for the Print Industry” by Economist Intelligence Unit

‘‘The rise of emergingmarkets as a drivingforce in the printing industry will result in a still fragmentedmarket, but one which is centered ondeveloping countriesrather than developed ones.

‘‘4

Plotting a Course to International Business?HOW TO AVOID THE PITFALLS

Are you frustrated knowing that NOW isthe time for your company to launch, or

grow its existing business internationally, butfind sifting through the myriad of informationdaunting? Whether you are an experiencedexporter with your eye on promising newemerging markets, or a relative novice won-dering just where to start, NPES can help!

markets have a huge opportunity to gain acompetitive edge.

NPES International Trade Programs arehere to help as your “one-stop shop” forindividualized information, guidance anddirection for successful entry into keyindustry markets. NPES effectively opensdoors for members by:

• Delivering essential data and information• Facilitating new business connections• Expediting entry into international

business communities; and,• Providing invaluable guidance on local

customs and traditions.

Dollars and Sense On your own, developing long-term trade

and investment opportunities can be costlyto pursue. NPES’ established framework ofprograms and events provide the most cost-effective way to pursue these opportuni-ties—from coordinating your visit to aninternational tradeshow, to facilitating yourparticipation in an NPES Trade Mission andensuring that your goals are met, to also wel-coming your company to booth share withNPES at some of the biggest print tradeshows in the world. Each of these initiativeswill help you directly connect with key deci-sion makers who are actively seeking yourproducts, your expertise, and your solutions.NPES will even work with you to find thebest options for your business.

• ExpoPrint Latin America 2014: Booth

Share with NPES and TradeMission: The quadrennial Expo-Print Latin America show is thefifth largest print fair in the world.Featuring the latest technology forpre-press, printing, packaging andfinishing, it takes place in a countrythat’s become a huge investmenthub for companies from aroundthe world.

What’s in it for YOU?1. Booth share with NPES, a

cost-effective way to connect withmore than 45,000 ExpoPrint visitors

2. Network with key potentialsuppliers, customers and partners;and,

3. Make face-to-face connectionson the NPES Trade Mission andPlant Tours.

For complete information contactPernilla Jonsson at phone: 703/264-7200 or e-mail: pjonsson@npes.org.Stay up to date on all NPES Inter-national Trade events and activitiesat: www.npes.org.

BUSINESS IN BRAZIL IS BOOMING!Today’s Brazil is a “hot spot”of commerce with recordlevels of foreign investment,millions of people elevatedfrom poverty, and a boomingmiddle class that has createda vibrant new marketplace forglobal commerce.

Brazil is the sixth largesteconomy by nominal GDP inthe world, and seventh largestby purchasing power parity.

Brazil has made importantsteps toward fiscal sustain-ability, as well as measuresto liberalize and open theeconomy, significantly boost-ing the country’s competitive-ness, ensuring an improvedenvironment for private-sector development.

Expanding and diversifying our markets are the keys to our continued success. NPES International Trade programshave been instrumental in helping our company to

strengthen and explore new business relationships; we cutthrough the noise and hit the

ground running.”— Stephen Metcalf, President & CEO,

Air Motion Systems, Inc.

Did You Know? American companies enjoy a huge advan-

tage when entering international markets, asthey are generally perceived as “world class.”American businesses that have the know-how and resources to enter new emerging

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VITS International has grown from asheeter supplier to providing webhandling, cutting and stacking solutionsfor the printing, packaging, digital andconverting industries. From whichcustomer segments are you seeing themost demand today, and why?

As a result of the continued stabilityand growth in the consumer packagingsegment, VITS continues to see robustresponse and growth from packagingcustomers that require sheeting. We arevery strong in this marketplace with wellover 40 sheeters in this field.

Our other area of solid demand comesfrom the high-speed digital finishing arena.As digital press suppliers continue to in-crease the speed and capability of theirpresses, there is an identifiable weaknessin available options for finishing—thatweakness is speed. While there are severalsuppliers that are already well establishedin the digital finishing market, none of them

have the experience of VITS International when it comesto high-speed finishing. High speed as we define it is1,000 fpm and above. We have the knowledge and expert-ise to take digital printers to the next level of high-speeddigital finishing.

VITS International provides U.S. manufacturedsolutions for a global customer base with installa-tions worldwide. From this experience, what advicewould you offer industry suppliers who are nowexploring opportunities in the global marketplace?

The global marketplace can be a difficult arena in whichto establish your company. To balance our strategy, wehave taken a multi-pronged approach that utilizes directsales, OEM relationships, and agents. Cultural differencesand language barriers can be difficult to overcome, so inthese cases we like to use agents. Our OEM relationshipsallow us to have a secondary salesforce promoting ourproduct and get us involved in the sales process when nec-essary. Of course direct sales are the best, when possible,which allow us to convey our message unfiltered to thecustomer in the manner that we believe is most effective.

Initially starting out in the market of variable data finish-ing, also referred to as "digital" print finishing, we had oneor two powerful installations that we could promote, andhaving the customer who is willing to discuss our product,service, and company is the best advertisement possible.No matter how many times the manufacturer says some-thing it always is more credible coming from a user. Next,we have established relationships overseas to help identifyopportunities. You can’t be everywhere and a good networkof information is priceless. Lastly, we execute. We followthrough on what we say we can deliver, and when we dohave difficulties with an installation (and everyone does)we stand behind our product and make it right. We buildour equipment with an eye on exceeding performance andcustomer expectations, which typically makes for success-ful customers and builds loyal relationships.

Looking ahead, what do you see for the industry inthe next three to five years?

For suppliers, we see continued consolidation or,unfortunately, some going out of business. Ten years ago

you could have three to four suppliers pro-viding the same type of product; today thatis not possible—that’s the downside. On theupside, I think the industry will be left withstronger suppliers that have the ideas andtechnology to move the industry forward.Digital will continue to infiltrate all areas ofprinting and, as suppliers, we will have tocontinue adapting to the new challengesthat are presented to us. We see thePrinting Industry as making itself leaner,more efficient, and adaptable to its cus-tomers’ wants and needs. There will alwaysbe Print. How it is bought, sold, produced,and used is what we all must try and stayahead of as it changes!

Having been a long-standing NPESmember, and most recently experiencingthe NPES 2013 Annual Conference, whathave you found of most value? Whatother Association programs or serviceswill your company engage to drive itsfuture success?

We had attended past NPES conferencesand printing tradeshows internationally, sowere familiar with what to expect. We cameback because of the interaction with othersuppliers, to hear how they are approachingthe market and to learn how VITS can workwith other suppliers to mutually promote ourbusinesses. Over the past ten years the print-ing industry has changed drastically, andthere are no longer as many venues to inter-act with suppliers and customers. We feelthose venues were very important in develop-ing relationships which, in turn, tend to beimportant and mutually advantageous forcompanies that want to remain successful.While we all have lean budgets, we feelin-person networking in a large group setting,such as the NPES Annual Conference orGRAPH EXPO [PRINT] as examples, are imper-ative for nurturing customer relationships.

One on One with DEIRDRE RYDER

Deirdre Ryder is president and CEO ofVITS International and oversees theday-to-day operations of the company.A 12-year veteran of the company,Ryder started with VITS in 2002 asManaging Director, helping build thecompany by facilitating a high rate ofexpansion during a period of industryweakness. Purchasing the businessunit in 2012, her unique blend ofstrategic vision and global teambuilding allowed VITS to innovateagain toward the future, developingthe first high-speed digital pressfinishing system.

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Equipment and Supplies Shipments Trend Upward in 2013NPES MARKET DATA REFLECTS DIGITAL-ANALOG DIVIDE

At the end of 2012, shipments for printingequipment and graphic arts supplies fell

-7% and -5%, respectively from 2011 levels.Equipment actually saw growth in 2011, butdecreased again in 2012 ($460 million versus$497 million). Shipments of supplies also fellin 2012, however with less of a decreasethan equipment supplies ($700 million versus$739 million).

NPES tracks monthly shipments across80 different categories of printing equip-ment—imaging/prepress, pressroom andbindery/finishing—and graphic arts sup-plies—film, plates, proofing products andthe related chemistry.

Production digital color press data, addedfor the first time in 2010, includes light andheavy production equipment sold to thecommercial and in-plant printing industry,but does not include sales of productiondevices to the office market unless it goesto the in-plant printing facility within theorganization. In 2012, while the market forproduction digital presses decreased 4% tonearly $1.2 billion, this was still higher than2009 and 2010 levels. The total market(traditional printing equipment, graphicarts supplies and production digital colorpresses) also decreased 5% in 2012 to nearly$2.4 billion. Figure 1 illustrates more detailson the total market by year.

Printing Equipment SnapshotOverall, printing equipment shipments

for the first three quarters of 2013 are down-7% compared to the same period in 2012($300 million versus $323 million). Declines areevident in all areas of the printing equipmentarena with the exception of pressroom

NPES tracks monthly shipments across 80 different categories of printing equipment—imaging/prepress, pressroom and bindery/finishing—and graphic arts supplies—film, plates, proofing products and the related chemistry.‘‘

Figure 1: Total U.S. Market Shipments 2007-2012

Figure 2: Total U.S. Market Shipments Year to Date 2012 vs. 2013

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equipment, which increased+10% over the same time pe-riod in 2012. Despite this onearea of growth, traditionalequipment shipments are stillnowhere near the levels ofprevious years.

Graphic Arts Supplies Snapshot

For the first three quartersof 2013, supplies shipmentsdecreased on a dollar basis to$490 million, a -7% decreaseover the same period in 2012($529 million). Typically, salesof film, plates, proofing prod-ucts and chemistry are alldirectly correlated to ship-ments of printed products.In addition, the continuingshift of some offset work todigital presses has impactedplate volumes with lithoplates down -5%. Until printvolumes increase, supplyproducts will continue theirstruggle to see growth.

Digital and Total Market Snapshot

Shipments of digital pressesfor the first three quarters of2013 are up +12% comparedto the same period in 2012($957 million versus $853 mil-lion). Shipments are up in2013 YTD due to strongvolumes in the second andthird quarters. The totalmarket for equipment andsupplies is also up +3%,mainly due to the increase indigital presses, while ship-ments of analog printingequipment and graphic artssupplies continue to decline.(See Figure 2).

According to the Standards Boost Business web

resource, www.standardsboostbusiness.org, from

the American National Standards Institute (ANSI),

“Companies that participate actively in standards develop-

ment activities reduce costs, increase efficiencies, facilitate

and maintain market access, and gain a more competitive

advantage than those who do not participate. From a market

share point of view, it’s likely that your competitors are

actively engaged in standardization. Without your influence

and input, competitors can dictate the way you will be doing

business through the content of a standard. Worse yet, they

can even include language that effectively standardizes

your product off the market.”

NPES has been at the forefront of national industry

standards development since the 1980s providing lead-

ership under the auspices of two committees accredited

by ANSI:

• The B65 Committee—develops safety standards

for printing presses, bindery machines and other printing

equipment, and

• The Committee for Graphic Arts TechnologyStandards (CGATS)—develops standards relating to pal-

let loading of printed materials, metrology, terminology,

plates, process control, electronic transmission of publi-

cation ads, digital data exchange, color data definition,

design workflow for packaging, and ink and color char-

acterization for packaging.

Additionally, NPES administers the US TAG (Technical

Advisory Group) to ISO Technical Committee 130 (Graphic

Technology). Within ISO/TC 130, NPES administers the

following five working groups and related task forces:

• WG2: Prepress Data Exchange

-- WG2/TF1 (TIFF/IT)

-- WG2/TF2 (PDF/X)

-- WG2/TF3 (PDF/VT)

-- WG2/TF4 (XMP)

• WG5: Safety and Ergonomics

• JWG7: Colour Management (joint with ICC)

• JWG9: ISO 12640-5 (Scene SCID)

• WG11: Environmental Impact of Graphics

Technology

NPES encourages members to keep up to date on

applicable standards, and also makes it easy to par-

ticipate in the standards development process. For

more information, contact Debbie Orf, Assistant Di-

rector, Standards Programs at phone: 703/264-7200

or e-mail: dorf@npes.org.

Without your influence and input, your competitors can dictate the way you will be doing business through the content of a standard.— www.StandardsBoostBusiness.org, ANSI

Setting the Bar Higher

NEW STANDARDS• ISO 12640-5:2013, Graphic technology —

Prepress digital data exchange — Part 5: Scene-referred standard colour image data (RIMM/SCID)

REVISED STANDARDS• ISO 12647-1:2013 Graphic technology —

Process control for the production of half-tone colour separations, proof and production prints — Part 1: Parameters and measurement methods

• ISO 12647-2:2013 Graphic technology — Process control for the production of half-tone colour separations, proof and production prints — Part 2: Offset lithographic processes

• ISO 12647-2:2013 Graphic technology — Process control for the production of half-tone colour separations, proof and production prints — Part 3: Coldset offset lithography on newsprint

These standards are available for purchasefrom NPES; member companies receive a10% discount.More information on the standards

activities administered by NPES is availablefrom the NPES Standards Workroom at:www.npes.org/ programs/standards-workroom.aspx.

NPES STANDARDS UPDATE‘‘

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My Standards JourneyThe Beginning

In the late 1970s the printing and pub-lishing industry in the United States hadno formal (ANSI) standards activitiesand, although there had been some earlieractivities to start an ISO committee it hadbecome dormant and essentially ceased toexist. The industry did use some of thestandards developed by the photographicindustry—specifically densitometry,sensitometry, and viewing conditions. Butthese were not optimized for graphic artsuse. The prevailing attitude in the industrywas standards were “lowest common de-nominator” and no one printed that way.

The Wakeup CallIn late 1979 Scitex introduced the first

graphic arts image manipulation system.Such systems were called CEPS or ColorElectronic Prepress Systems. The Scitexannouncement was quickly followed bysystems from Hell, Eikonix, Crosfield,and Dainippon Screen. Such systems were“practical” because the available computerprocessors and memory had finally becomepowerful enough to support the imagemanipulation required by the graphicarts industry. Then, and now, a typicalgraphic arts 8½ x 11 inch image is about300 MB. These early systems all costabout 1.5 million dollars, had 2-4 MHzprocessors and less than 100 MB of onlinestorage. Although such systems tookabout 20 minutes to rotate an image,they worked.

The user community was immediatelyfaced with two issues. First, each of thesesystems stored data in a different formatand orientation. Secondly, the only mediaavailable to move data between systemswas 8-track magnetic tape. Those tapes

Exchanging data seemed to be the key to taking advantage of the computer revolution and the step that would allow the graphic arts industry to move into the world of electronics.‘‘

carried no standard header or otherinformation about the format of thedata encoded on the tape. Therefore,these systems could not easily ex-change data and the industry re-mained isolated islands of electronicdata manipulation that continued touse film as its exchange media.

The industry desperatelywanted to be able to exchangedigital data between systems, andmore importantly between organiza-tions. Because this involved multiplecompanies in both the vendor anduser communities, standards seemedto be the logical direction to take.An ad hoc industry group wasformed called DDES (Digital DataExchange Standards) in an effortto start the dialogue betweenvendors, and between users andvendors. This was the nucleusaround which ANSI Image Tech-nology Committee 8 (IT8) wascreated and chartered with NPESas the sponsoring organization.

The first approach was to simplyrationalize and document the variousformats being used and to developstandardized file headers to identifythe contents of an individual tape(ANSI IT8.1 to IT8.5, which becameISO 10755 through 10759). Thiswas followed by the development ofmedia independent file formats,based on TIFF, called TIFF/IT(ANSI IT8-8, ISO 12639). TIFF/ITwas subsequently replaced by thePDF/X data exchange file formats(ISO 15930).

What Does the Data Mean?As long as halftone film was the

principal exchange vehicle for printing"data," there was usually a close couplingbetween the organization preparing thefilm and the printing organization. Theonly major exception was the magazinepublication industry, which had verytight specifications on the preparationof hardcopy proofs that were the formalagreement between the advertiser,publisher, and printer. The proof was thereference for printing.

Exchanging data seemed to be thekey to taking advantage of the computerrevolution and the step that would allowthe graphic arts industry to move intothe world of electronics. However, wequickly realized that there was no pointin moving data between systems if youdid not know what the data meant andhow to consistently reproduce the imagesthat it represented.

This led to a whole host of additionalstandards to define the meaning of thedata and its reproduction, and the creationof the ANSI Committee for Graphic ArtsTechnologies Standards (CGATS) forthose standards that werenot file format related.

Read the full story at:http://qrs.ly/tg3u8yc

Longtimecolumniston standardsfor theSociety forImagingScience andTechnology’sIS&TReporter,David Q. McDowell has announced plans toretire later this year. In this final columnfrom the Standards Update, he recollectshis journey through the history of graphicarts standards development.

David Q. McDowell

Let Your Voice Be Heard

Learn Together with YOUR Printer and Manufacturer Peers

Participate in Top Level Industry Networking on Capitol Hill

PRINT’S VOICE ’14 Capitol Hill Fly-InMay 6-7, 2014 • Washington, D.C.Jointly sponsored by NPES The Association for Suppliers of Printing, Publishing and Converting Technologies and Printing Industries of America

BEFORE Congress Determines the Fate of YOUR Business and YOUR Industry

QUESTIONS?Contact: Mark Nuzzaco

NPES Director of Government Affairs

Phone: (703) 264-7200E-mail: mnuzzaco@npes.org

REGISTER NOW! WWW.NPES.ORG/PRINTSVOICE14

ON HOW TO:

Meet Face to Face with Lawmakers Who Impact YOUR Business

■ Restructure the U.S. Postal Service to continue affordable, reliable delivery of printed communications in the 21st Century

■ Stop abusive Patent Troll practices

■ Stimulate U.S. economic growth by eliminating onerous government regulations, and ■ Facilitate exporters’ greater access to international markets

■ In Meetings with YOUR Elected Representatives

■ During offi ce visits with Senior Congressional Leaders & Staff

■ Through Briefi ngs on key Printing Industry Government Affairs Initiatives by Policy Experts

■ What to Watch for in 2014 Congressional Mid-term Elections

■ U.S. Senate Briefi ng Breakfast ■ Policy Luncheons■ Congressional Reception ■ Welcome to Washington Dinner

10

Does Value-Added Really Mean Adding Value?NEW PRIMIR STUDY EXPLORES VALUE OF VALUE-ADDED PRINTING & FINISHING

New research from PRIMIR revealsthe effectiveness and usage trends for

numerous print application enhancements.The new study, “Value-Added Printing &Finishing for Improved Profitability,” addresseshigh-end color, new finishing products andtechniques, special coatings, foiling, laminat-ing, scented inks, raised inks, brand protec-tion and security, metallic inks, metalizedsubstrates, stitching and die-cutting, andmore. The study explores use and effective-ness and identifies how brand ownersincorporate these enhancements into theirproduct advertising and packaging.

Conducting the research for PRIMIR,Hal Hinderliter, Hal Hinderliter ConsultingServices explained that, “Adding value toprint is often touted as a way to improvethe profitability of print service providers,but until now there has been no definitiveresearch on the topic. The study’s cross-sectional survey of print service providers,print buyers and brand owners, along withindustry experts and leading vendors, pro-vides a complete picture of the current stateof adoption for value-added features andservices. The future direction of many ofthese value-added enhancements is bright,providing a buffer from potential threatsfrom disruptive technologies.”

In addition to a series of interviews withvendors, printers, trade shops and brand

NPES members should become informed about the many value-added enhancements:which applications are best suited for each, and which of their printer customers have a need to bring these value-added enhancements to market.‘‘

owners, findings were derived fromnearly 600 survey respondents, morethan 50% of which were print buyersand brand owners.

Although monochrome and com-modity CMYK printing is in thecrosshairs for digital replacement,print buyers and brand owners say itis difficult or impossible to replaceprint where value-added enhance-ments provide added benefits, func-tionality or visibility that helps themattain their marketing goals. Studyresults plainly demonstrate that printbuyers and brand owners appreciate

Figure 1: Reported Attitudes on Cost-Effectiveness of Value-Added Printing and Finishing

the benefits of value-added enhancements,and consider them to be cost-effective.

Printers must make their customers awareof new ways to improve print’s effectiveness,and vendors should help printers evangelizethe benefits of value-added print and finish-ing. Marketing investments are desperatelyneeded—not only to inform customers ofnew or underutilized options, but also tocreate and execute marketing campaignsfor the printers themselves. Buyers cansense when the salesperson is advocatingan untried solution; instead, printers needto “walk the talk” by proving the benefitsof these value-added enhancements in

Source: PRIMIR “Value-Added Printing & Finishing for Improved Profitability” study by HHCS.

Responses from Print Buyers and Brand Owners

The study findings are clear: Print that includes value-added

enhancements delivers positive ROI!

11

their own marketing campaigns.Changes in sales strategy are also

required to change the discussion from“price per unit” to the superior ROIprovided by value-added print; ratherthan acting as order-takers, printer salesreps must become more proactive indemonstrating solutions that improve ef-fectiveness. One brand manager describedher consultative relationship with a value-added print provider: “They were veryproactive and opened my eyes, and said,‘Did you think about this?’”

Unfortunately, not all forms of value-added print and finishing are appropriatefor all end-use applications or brand own-ers. However, limited growth is more asymptom of a decline in overall print thana statement about benefits of a particularenhancement. To stem this decline, print-ers and their vendor partners must de-velop an effective means to demonstrateprint’s unique and enduring value.

Clearly there is a role for NPESmembers in securing print’s value. NPESmembers should become informed aboutthe many value-added enhancements:which applications are best suited foreach, and which of their printer customershave a need to bring these value-addedenhancements to market.

In fact, the research uncovered in-stances in which printers indicated anunwillingness to offer any value-addedenhancements that cannot be performedin-house. In 80% of cases, printers andtrade shops refuse to outsource the value-added components of their production.Correspondingly, 38% of the print buyersand brand owners indicated that they ex-pect all services to be performed in-house.Given the growth potential for many ofthese value-added enhancements, vendorswho can provide the market support,equipment and supplies to facilitate theseofferings have untapped opportunity.

Source: PRIMIR “Value-Added Printing & Finishing for Improved Profitability” study by HHCS.

All Respondents

Figure 2: Fastest-Growing Value-Added Printing/Finishing Enhancements NPES Welcomes Greg Safko, VP of Market Dataand ResearchNPES ispleased toannounceGregory M.Safko hasjoined the staffas Vice Presi-dent of MarketData and Re-search. In thiscapacity, Safkowill oversee the association’s market data,standards and international programs. Hewill also serve as Managing Director for thePrint Industries Market Information andResearch Organization (PRIMIR), the marketresearch association of the graphiccommunications industry.

Safko has 20+ years of experience in thenational association, non-profit sectors inpositions of: president of a national cancerresearch, education and advocacy organiza-tion; president of a national medical certifica-tion and facility accreditation board; and,senior director for member resources andeducation of a national trade associationrepresenting the metalworking industry. Healso was an executive branch governmentofficial, in a deputy secretary role, for theMaryland Department of Labor, Licensingand Regulation, and additionally has anextensive history of service on numerousprofessional and community boards.

Receiving his bachelor’s degree in communi-cation arts from James Madison University,Safko also earned a master’s degree inassociation management from GeorgeWashington University.

Gregory M. Safko

12

CALENDAR

NPES News is published bi-monthly by NPES.

Publisher:Ralph J. Nappi

Director of Communications:Deborah Vieder 703/264-7222

Managing Editor:Jane Pratt 703/264-7200 x242

Correspondents:Jackie BlandPernilla JonssonMark Nuzzaco

The Association for Suppliers of Printing, Publishing and Converting Technologies

1899 Preston White DriveReston, VA 20191 USA703/264-7200e-mail: npes@npes.orgwww.npes.org

DID YOU KNOW?

In a study of 6th graders reading e-books and paper-based books, researchers found that the students who read print books had “better reading comprehension of the text, performed better on quizzes

about the content of the material, and suffered less eye fatigue.” Students

also expressed a preference for paper-based books.—Study by Hanho Jeong,

Chongshin University, Seoul, South Korea, 2012

March 2014ICC MeetingMarch 3-5 • Tokyo, Japan

Printing South China 2014 - NPES BoothMarch 3-5 • Guangzhou, China

TC130 Working Groups Meetings March 23-28 • London, United Kingdom

IPEX 2014March 24-29 • London, United Kingdom

May 2014PRINT’S VOICE ’14 Capitol Hill Fly-InMay 6-7 • Washington, D.C.

June 2014ICC MeetingJune 23-25 • Heidelberg, Germany

July 2014ExpoPrint Latin America 2014 - NPES Booth and Trade MissionJuly 15-22 • São Paulo, Brazil

August 2014KIPES 2014August 27-30 • Goyang, Korea

September 2014EXECUTIVE OUTLOOK Conference September 28 • Chicago, Illinois

GRAPH EXPO 14 and CPP EXPO September 28-October 1 • Chicago, Illinois

Debbie OrfRekha RatnamDeborah Vieder

New for 2014 is a pre-show “hot topic” webinar series designedto educate, entice, and drive the greatest numbers of “alumni”and new attendees to GRAPH EXPO 14.‘‘GASC Expands Pre-Show Attendee

Outreach & EducationNEW FOR GRAPH EXPO 14: MARKET-SPECIFIC WEBINAR SERIES

GASC innovates again! Even beforeGRAPH EXPO 14opens this Fall in Chicago. Even before the full complement

of seminars and show floor theater learning sessions begin atMcCormick Place. Even before the first attendee registers!

New for 2014 is a pre-show “hot topic” webinar seriesdesigned to educate, entice, and drive the greatest numbers of“alumni” and new attendees to GRAPH EXPO 14. Eachfast-paced session in the series will be sponsored and led byindustry authorities in each of 12 market segments.

Kicking off the series on Tuesday, March 4 at 1:00 pm willbe the first session titled “PacesetterPresses—Technology & Enhancements,”co-sponsored by News & Tech.

THE FUTURE OF PRINT MANUFACTURING(Newspapers & Semi-Commercial)

• Webinar #1: Tuesday, March 4, 2014Pacesetter Presses—Technology & Enhancements

• Webinar #2: Tuesday, June 3, 2014PostPress Panache—Technology & Enhancements

• Webinar #3: Tuesday, August 5, 2014High-Performance Prepress & Workflow

Each webinar in the new GRAPH EXPO 14 series isFREE to participants and 60 minutes in length (including Q& A). Watch for new updates to the 2014 schedule at:www.GraphExpo.com.

GAERF 2014 Student Design Competition

The package printinginspired GAERF 2014Student Design Competitionlaunched February 10.Watch for noteworthyentries from studentsseeking careers ingraphic communications.