• To Reprographers!

    This morning, I received an e-mail from a gentlemen who is actively involved in real estate development and design ….. in Florida. He’s a veteran; he has been in business for quite a number of years. He asked me to share his “concerns” with reprographers. Which I’m going to do, in just a minute.

    He was not a customer of my former company. He inadvertently came across “Reprographics 101” when he was doing a Google-search for information about “reprographics security.” Although it’s been very rare for a “customer of reprographers” to visit our blog, this was one of those times when that happened.

    His concerns, as addressed in the e-mail he sent me, have to do with “security” and “confidentiality” ….. pertaining to “documents” and “files” that reprographers receive from their customers.

    READ WHAT HE SAID, AND THINK ABOUT THINK ABOUT WHAT HE SAID….. IN TERMS OF YOUR COMPANY’S STANDARD OPERATING PROCEDURES REGARDING THE “CONFIDENTIALITY OF” AND “THE SECURITY OF” CUSTOMER DOCUMENTS AND FILES.

    Okay, here’s the body of his e-mail:

    My name is xxxx xxxxx and I am the President of xxxxxx Group in Florida.

    I ran across your blog during a search for “reprographics security.” And … although I did not find on your site, what I was looking for, I did want to take time to mention what a good job you have done. I found it to be interesting reading.

    I also noticed that you mentioned, “This blog is intended for reprographers, for vendors who sell to reprographers and for analysts and investors who are interested in learning more about the reprographics industry.”

    I am not a reprographer but rather a person who routinely uses reprographic services for construction drawings, etc. So – I wondered, if I were to share an issue with you via email, that you might consider mentioning it on your blog. For obvious reasons, I would prefer to remain anonymous.

    My passion is in home design. In addition to home design, my primary background involves Local Area Network Security, Wide Area Network Security and Telecommunications in general.

    Here are my issues:

    Designers, such as myself and architects, are often concerned about what happens to their data once a reprographer is finished with it. Many of the files given to a reprographer are done so with the idea that they are never to distribute them to anyone.

    Unfortunately, that is not the case. Once files are saved, they are vulnerable. By this, I mean that they are open to any one of the following possible security breaches:

    1. Hackers can download client’s confidential work and then exploit it in a number of ways;

    2. Bored or unethical owners or employees can view, print and/or forward a client’s confidential work long after the job has completed;

    3. Retired computer equipment with hard drives that are either sold or set to the curb, continue to store a client’s work and are therefore vulnerable to data harvesting by data brokers (companies who strip data like this in pursuit of valuable information).

    It’s time that the reprographics industry understand this, and takes it seriously, so that, when a client asks them to delete the files afterwards, the client can be reasonably assured that his/her wishes are being met.

    Without self-policing, the problem will only get worse, which will lead to regulations; in fact, all it will take is someone (like myself), to be burned by a reprographer’s lack of security or unkept promise to delete files, and the legislative process will begin. If you agree and would consider weighing in on this through your blog, you may help more than you’ll ever know.

    Thank you for your time.

    ________________________________________

    Blog Author’s further comments:

    To the Reprographer Community, I do want to let you know that I responded to this “customer”, stating that most reprographics companies do have policies and procedures in place about “maintaining the confidentiality” of hard-copy documents and digital files submitted to them by their customers, and that most reprographics companies do have policies and procedures – and systems – in place to deal with security (and hacking) issues.

    But, I did use the word, “most” rather than the word, “all”, because it is highly likely that not all reprographers; (a) have policies and standard operating systems and procedures in place, and (b) even for those that do, there’s the chance that not all of their team members have been briefed on the importance of the issues of “confidentiality” and “security.”

    So, for those of you who have not yet thought through these issues, or, worse yet, haven’t ever thought about them (or are unaware these issues are important to customers!), take note, they are important!

    As most every Reprographer knows, the key word in relationships is “TRUST”. If a customer cannot trust that you will keep his/her information confidential and/or cannot trust that you’ve done your homework and put into effect appropriate security procedures/measures, you WILL, eventually, lose that customer.

    Finally, I don’t know which reprographics firm this customer has been using, but it does sound to me like “he’s not feeling the love.”

  • I’ve done several previous posts on Reprographics 101 about Stadium Capital continuing to build its position in ARC shares. Today is yet another “update post.”

    Since the last time I posted about Stadium Capital’s ownership (and purchases) of ARC shares, Stadium Capital has completed one additional purchase of ARC shares. Here’s the latest table reflecting Stadium Capital’s purchases of ARC shares from August 23, 2011 through December 30th, 2011. (Last SEC Form 4 filing was January 10 2012).

    Stadium Capital had amassed 4,646,321 ARC shares prior to August 23rd, and I’m pretty sure that those earlier share purchases were completed when ARC’s stock price was substantially higher than it’s been of late.

    Transaction Date

    Purchase Price

    # of Shares Purchased

    # of shares owned, after purchase

    %age of O/S Stock Owned

    8/23/11

    $3.79

    30,600

    4,676,921

    10.12%

    8/24/11

    $3.88

    17,991

    4,694,912

    10.16%

    8/25/11

    $3.80

    244,000

    4,938,912

    10.69%

    9/2/11

    $3.54

    29,315

    4,968,227

    10.75%

    9/6/11

    $3.45

    1,833

    4,970,060

    10.75%

    9/8/11

    $3.57

    6,591

    4,976,651

    10.77%

    9/9/11

    $3.49

    11,641

    4,988,292

    10.79%

    9/12/11

    $3.54

    17,256

    5,005,548

    10.83%

    9/20/11

    $3.56

    13,737

    5,019,285

    10.86%

    9/21/11

    $3.50

    9,170

    5,028,455

    10.88%

    9/26/11

    $3.47

    5,500

    5,033,955

    10.89%

    9/28/11

    $3.33

    27,524

    5,061,479

    10.95%

    9/29/11

    $3.29

    22,203

    5,083,682

    11.00%

    9/30/11

    $3.35

    41,019

    5,124,701

    11.09%

    10/3/11

    $3.20

    18,348

    5,143,049

    11.13%

    10/17/11

    $3.64

    15,497

    5,158,546

    11.16%

    11/1/11

    $3.89

    2,201

    5,160,747

    11.17%

    11/9/11

    $4.29

    14,605

    5,175,352

    11.20%

    11/15/11

    $4.30

    804

    5,176,156

    11.20%

    11/16/11

    $4.34

    8,304

    5,184,460

    11.22%

    11/17/11

    $4.28

    5,225

    5,189,685

    11.23%

    11/23/11

    $3.99

    10,669

    5,200,354

    11.25%

    11/29/11

    $3.94

    2,517

    5,202,871

    11.26%

    12/5/11

    $4.29

    143,472

    5,346,343

    11.57%

    12/6/11

    $4.14

    1,718

    5,348,061

    11.57%

    12/7/11

    $4.25

    9,169

    5,357,230

    11.59%

    12/8/11

    $4.18

    14,805

    5,372,035

    11.62%

    12/30/11

    $4.60

    9,600

    5,381,635

    11.64%

    1/6/12

    $4.55

    11,104

    5,392,739

    11.67%

  • Graphics Installation Bid Creator

    Easily submit bids to qualified installers by utilizing SGIA’s online Graphics Installation Bid Creator. Simply check all boxes that apply to your specific job, and then, view a list of PDAA installers that match your project needs and are within close proximity. On the final page, you have the option to choose which companies receive the bid request.

    For more information, click on the link below:

    http://www.sgia.org/pdaa/bct/p1.cfm

    Blog author’s comments:

    Well, maybe SGIA’s next “bid creator” project will be a “bid creator” for customers to use to request bids from SGIA members for printing projects!!! I wonder how SGIA members would feel about that! Perhaps the IRgA will undertake a “bid creator” for A/E/C customers to request bids for A/E/C plan-printing projects!

  • Per earnings release on Wednesday, Jan 11, 2012:

    Lennar, the homebuilder, reported a profit of 16 cents a share in the fourth quarter (Lennar’s Q4 ended 11/30/11) missing by a penny the average estimate of analysts, but topped analysts’ views for revenue.

    The company said revenue (for its Q4) jumped 11% from last year to $952.7 million, beating analysts’ estimates of $914 million, according to Thomson Reuters.

    A year earlier, Lennar earned 17 cents a share on revenue (for its Q4) of $860.1 million.

    The company also reported that new orders rose 20% to 3,027 homes, while the Miami-based company’s backlog, an indication of future business, grew 35% to 2,171 homes.

    Gross margin on home sales also improved, rising to 19.4% from 17.7% a year earlier.

    Lennar shares were falling 0.2% to $20.71 in early trading.

    Compiled by Reprographics 101:

    (in millions)

    Lennar Corp (NYSE: LEN)

    Annual Sales

    Year End 11/30/06

    $16,266

    Year End 11/30/07

    $10,187

    Year End 11/30/08

    $4,575

    Year End 11/30/09

    $3,119

    Year End 11/30/10

    $3,074

    Year End 11/30/11

    $3,095

    Stock price highlights:

    Lennar’s stock price on July 29, 2005 – $67.05

    Lennar’s stock price on November 21, 2008 – $3.64

    Lennar’s stock price at market close on January 11, 2012 – $22.25 (up $1.49)

  • Upcoming IRgA Event:

    Due to the success of the reception at the SGIA, the board agreed to offer another networking reception to be held in conjunction with the International Sign Association (ISA) Show, March 21 – 23, 2012 in Orlando, FL.

    The reception will be held at the Orange County Convention Center.

    Please stay tuned for more information on registration and schedule.

    For more information on ISA’s Sign Expo, ISA link below:

    www.signexpo.org

  • Press Release from Photizo Group:

    By: Misty Gonzalez | January 10th, 2012 |

    January 10, 2012 — Midway, KY and Newton, MA — The imaging industry’s largest dedicated team of analysts was created today, as Photizo Group announced its acquisition of Lyra Research. The acquisition unites the two market leaders, creating the broadest, most comprehensive line of market intelligence and consulting services in the imaging industry to date.

    “We’ve worked hard to develop our reputation as thought leader in the rapidly-evolving managed document services market space,” said Ed Crowley, CEO and founder of Photizo Group. “Lyra’s twenty-year history of providing our industry with thoughtful, in-depth analysis of imaging companies and their products makes them the perfect addition. Clients of both firms will see a vastly enhanced level of value from the new combined company.” Crowley will continue as CEO of the new entity.

    Photizo Group helps organizations understand the unique requirements of the services industry and build a successful business. Lyra Research is a major provider of market, product and technology information and analysis. Both firms focus on the print and imaging markets. The new organization will continue to operate from existing offices, with headquarters located in Midway, Kentucky.

    More Value for Current Clients

    “Over the past couple of years, several industry clients and contacts actually suggested the idea of our companies getting together, with the goal of offering a more complete slate of services and broader industry focus. We are very excited to now bring this idea to fruition with the union of our two companies,” said Frank Stefansson, CEO and Executive Vice President of Lyra Research. He will become Chief Operating Officer of the combined organization.

    Photizo Group and Lyra have cooperated on several projects in the past, and currently, the only overlap is in their client base. However, Photizo and Lyra have typically worked with different groups within an account. Current client contracts will be fulfilled and met with additional capabilities and services.

    “Clients will benefit from enhanced capabilities in terms of forecasting, consulting, research, competitive analysis and publications. The combination of these companies creates a very comprehensive view of the market—from hardware to supplies to services and document management. We can provide a full view of the industry and its future to clients,” said Charles LeCompte, Founder and President of Lyra Research. LeCompte will continue to play an active role in the company as a senior analyst and spokesman.

    Other details about the acquisition:

    Each organization will keep its brands intact and associated with its respective products.

    There is significant value in the Observer brand and it will be leveraged across all media to provide a complete view of the imaging market.

    Photizo Group’s conferences as well as Lyra’s Imaging Symposium will remain intact, and the companies will evaluate the best way to approach the conferences as a single entity in 2013.

    About Photizo Group

    A leading transformation firm, Photizo Group assists clients in transforming from a product-centric company to a services-centric company. Utilizing industry research, market intelligence, education and media, Photizo helps organizations to understand and build a successful services business. They have been the market’s main source for ongoing business intelligence about the rapidly growing opportunity of managed print services (MPS). The firm also offers proprietary studies and custom consulting. Vendors, dealers and enterprises can find more information about the evolving markets and resources at www.photizogroup.com.

    “Photizo”, “Partner Transformation”, “Success Framework”, “POWRR Assessment”, “MPS Insights PRO” are trademarks of the Photizo Group. All other trademarks are the property of their respective owners.

    About Lyra Research

    Lyra Research collaborates with imaging industry decision makers worldwide, enabling clients to strengthen their market position and achieve profitable growth. Lyra’s expert analysts and editors help clients devise and implement creative solutions to business challenges, providing them with competitive intelligence, strategic and tactical advice, news and analysis, and market forecasts. Since 1991, Lyra’s custom research and consulting, advisory services, award-winning journals, and innovative events have set the standard for analysis of imaging hardware, consumables, and digital photography markets. Visit www.lyra.com to learn more about how Lyra can be your strategic business partner.

    Media contact:

    Misty Gonzalez
Director of Media & Publishing
859.846.9830 ext. 109
mgonzalez@photizogroup.com

  • For those of you – in the U.S. and perhaps in Europe as well – who have excess wide-format digital printing equipment, you might be interested in reading this post.

    Yesterday afternoon, I noticed a post in the IRgA Group on LinkedIn by a guy by the name of Bob Aspland who is in the business of selling “used” wide-format imaging equipment in China and Hong Kong. Below, I’m going to re-publish the comment he made in his post:

    Bob Aspland • “This survey is a great idea. What might be of interest is to share the most profitable way members are selling their used (off-lease) Wide Format Printers and other items. Would not be a bad idea for IRGA members to come together to organize selling these Wide Format Printers at an increased profit. My main customers are in Mainland China and Hong Kong – they are the real buyers of your equipment, not the brokers in America (both Chinese and American). There are at least three layers of distribution with the middle-men making the lion-share of the money. 
Suggestion: I am back in the states, let’s set up meetings with all members in one location Chicago, New York, Dallas or Los Angeles. I will provide actual invoices from the brokers I buy from and the actual invoice prices my customers in China pay. You know what you get – now you can see how you can increase your profits. Plan Long Term. Work as one team; sell directly to the Chinese – I will only be your agent and we all see how much each of us makes – with increased profits. Any Answers? 

Bob”

    When I first read Bob’s post, I had no idea he existed, who he was, or what he did. So, I went on to look at his LinkedIn profile, which is as follows:

    Bob Aspland, President of Largest Importer of Off Lease Wide Format Printers from US into China, China International Trade and Development

    INTRODUCTION:
Then years ago Aspland International introduced DIGITAL ES into China, which began a great relationship between Tom McNew and Aspland International. Digital ES had no experience selling into PR of China and we (Aspland International and Digital created the market). Digital bought the WFP from you and I built the distribution channel in China. Several times Tom said, “Bobby you support 5 families here and if it weren’t for you, I wouldn’t have a business”. That is great teamwork. 
My first trip to Mainland China was a state sponsored speaking tour in July of 1997. I made the move to Hong Kong and Shenzhen almost 4 years ago. I am the only Westerner in the Wide Format business who lives and operates with a Chinese Staff out of Shenzhen and Hong Kong. I have incorporated in Hong Kong, SAR because it has the rule of law. I have my staff in Shenzhen because that is where business happens. My staff is small, I keep overhead low and we create American jobs. Aspland International is the largest importer of Wide Format Printers into Mainland China and is now developing new markets in the Middle East and India.

    Specialties: International Trading of Wide Format Printers

    Experience: Owner/President

    Aspland International Ltd (Hong Kong)

    International Trade and Development industry

    January 2001 – Present (11 years 1 month)

    Currently Trading Wide Format Printers (Oce), Kip, HP and others for sale to Hong Kong, China, Thailand, Viet Nam and others –

    Above, Bob mentions Tom McNew and his company, Digital ES. Inasmuch as Tom has been an exhibitor at many past IRgA conventions, I’m sure that most reprographers know who Tom is.

    Bob Aspland’s contact info: info@bobaspland.com

  • Do you have the need to ship large-format color print jobs, and, if so, how do you handle packaging your stuff?

    Even though it happened many, many years ago when I was still very young in the reprographics business, I still remember a customer’s comment about how our “shipment” looked when it arrived at his office. It was the kind of “comment” that was a “lesson to be learned.” For that particular customer, we had shipped a bunch of plans and specs. Whereas the plans were neatly rolled and covered with kraft paper, the specs were another matter. We used a bunch of used Xerox boxes to pack the multitude of specs we had to deliver, and they were heavily (and “messily”) taped ….and not in great condition. The customer I’ve referred to was a “design” architect, one who was always concerned with appearance (the “appearance” of everything!) His complaint was simple. “Joel, your driver just delivered $15,000 worth of plans and specs and the boxes containing the specs are in our lobby, where clients come in to our office, and they look like a mess! (even though he did say that the spec job, inside the boxes, was nice and neat, well done.) From that day on, we tried our best to always “think twice” about the appearance of a shipment.

    Do you have the requirement to custom-make boxes to fit and ship large-format color print jobs? And, if so, how does your packaging look? Good, fair, bad or ugly?

    This morning, I received an e-mail from a guy who developed and offers a software program (by subscription) that calculates and provides instructions to flat-bed cutters. Make your own corrugated paper boxes, 1-2-3. (That’s provided you’re willing to invest in a flat-bed cutter!)

    Which brings to mind this question: Is there money to be made in offering custom-box-making services in your market area? Use your system for your own needs, and use your system to earn profits from others who need custom boxes?

    Here’s contact information for the software program I mentioned above:

    Darrell E Deschler

    www.sweetcutspro.com

    Phone: 262-412-4191

    Also, you can find information about flatbed cutters at Zund.com. I saw a couple of Zund flatbed cutters when I attended the Graphics of Americas show in Orlando last year. Cool systems.

  • I’m very sad to bring you the news that Bill Wheaton passed away on Saturday, January 7th, after an unsuccessful bought with pancreatic cancer. R.I.P. My condolences to Bill’s family.

    I first met Bill, at an IRgA Convention, when he was working for Dietzgen. Several years later, he purchased Torrence Reprographics in Charlotte, NC. Fantastic guy. Bill sold Torrence to ARC in early 2007.

    I did not know Bill well, but I have many industry friends who were very close to Bill, and I’m positive that those who had the pleasure of being friends with Bill, would echo the sentiment of an e-mail I received from one of Bill’s former team members at Torrence.

    Here’s the e-mail I mentioned above:

    Joel,

    I have followed your blog almost since it’s inception and was fortunate enough to enter the business with the help of the Hackworth’s in Va back in 1995 a year after graduating from college. My career then led me to Ridgways, working with Mike Canino, as a sales executive, then finally to Torrence, where I was able to work for a legend in the business, Bill Wheaton. There are very few things in life that you get to experience, that change you as a person truly for the better but being employed by Bill was one of them. Not only did the man have the deepest respect of his peers he was lightyears smarter than most anyone I have ever come across. The reason he enjoyed the business was the same reason as I, it was a family you got to see everyday. He always treated us with so much respect, overpaid us for what we did for the company and brought a since of life, and how the world works style everyday; I had the chance to interact with him.

    I recall when ARC came to Charlotte, NC looking for another firm to purchase how Bill first asked the employees if they were interested in buying him out, even offering to finance a good portion of the business. We all passed reluctantly ( as we knew it would not be the same without him) but it showed where is loyalties were…. However, we also got to see what made Bill so smart as a business man and how we could always maximize situations better than anyone, always with a smile….. When we were purchased we had annual sales around 4mill and as i recall and he sold the business for 3.5mil…. One savvy move however was that Bill owned the building right in the heart of the Queen City Downtown and he negotiated the second highest rent per month that ARC paid nationally right behind its Boston location. I recall Bill saying he made more profit after the transaction than he ever did before and locked that price in for a long time thereafter…..again a little tid bit but he was so darn likable you almost give away the farm just to hear the man talk about business and reprographics to anyone who would listen…

    I just wanted you to know about him if you did not, and that his passing this Saturday ( of pancreatic cancer) cut short a much deserved retirement but he touched alot of us and I truly give him a lot of credit for making me the man I am today…..

    If you could share to all the RSA, IRGA and others who Bill may have known I would be grateful. Having grown up in Holland Michigan and starting his career with FORD, then in Chicago working for DIETZGEN (which opened his eyes to the world of blueprinting) in it’s hay day, Bill bought Torrence a few months before Hurricane Hugo hit NC hard….in the late 80’s, and never looked back… I admire him and miss him and he truly one of the great ones in the world of reprographics ….

    Shawn Dees

  • This is the 4th Quarter 2011 update to the index of the U.S.A. A/E/C reprographics industry’s sales revenues of “plans-printed-on-paper”.

    The A/E/C Repro PPoP Index …..

    This index does not attempt to track “total sales” of A/E/C reprographers. It attempts to track only sales of “plans printed on paper,” which, traditionally and even nowadays, is the core (main) revenue generator for all A/E/C reprographers.

    And, by “plans printed on paper”, I mean A/E/C “plans”, large-format, b/w and color, unbound or bound, full-size, half-size, whatever large-format size.

    There will be a recovery in the A/E/C industry and thereby in the A/E/C reprographics industry. However, some are saying that even though there will be a recovery in the A/E/C industry, the recovery of sales revenues from “plans printed on paper” may not mirror the A/E/C industry’s recovery, since some are expecting (I guess I should say, some are saying) that revenues from printing plans on paper are being negatively impacted by customers distributing CD’s (or files) instead of distributing “hard copy” plans.

    For this index, Q1 2006 is the ground-zero (base) point.

    YR– 2006—–2007—–2008—– 2009—–2010——2011

    Q1– 1.00——-1.09——-1.10——0.65——0.55—–0.65

    Q2– 1.06——-1.18——-0.98——0.65——0.60…….0.61

    Q3– 1.08——-0.97——-0.85——0.57——0.60…….0.62

    Q4– 0.89——-0.93——-0.64——0.49——0.58…….0.64

    Note that the index reading of .64 for Q4 2011 is an excellent improvement over the index reading of .58 for Q4 2010 and an improvement over the index reading of .62 for Q3 2011. The results of our recent “reprographer survey” show evidence that the A/E/C reprographics business hit bottom, not too long ago, and that, now, the industry as a whole has begun to recover. Let’s hope that’s accurate (or close to accurate.)

    (This index is based on A/E/C Repro Vendor sales to A/E/C Reprographers)