• New England Engineering firm, Wright-Pierce, issues survey to General Contractors, Sub-Contractors, and Material Suppliers (Plans and Specs on CD-ROM?)

    This large, progressive, regional engineering firm (Wright-Pierce) is in the process of conducting a survey of GC’s, Subs and Material Suppliers. I’ll get back to that in just a minute.

    Wright-Pierce office locations:

    · Middletown, CT

    · Providence, RI

    · Andover, MA

    · Sandwich, MA

    · Topsham, ME

    · Portland, ME

    · Portsmouth, NH

    · Henniker, NH

    If you go to Wright-Pierce’s web-site and click on the “projects to bid” tab, that will bring up a list of engineering projects W-P is currently requesting bids for.

    Here’s one of the “project” pages that came up, after I visited the “projects to bid” page and selected an individual project.

    https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=0B81al4kFAU9JODE1YTRmYjAtMzExZi00NDliLWJiMmQtODBmYmRlOGM3MTky&hl=en_US

    So, if a contractor or sub or material supplier wants to bid, the prospective bidder can place an order for “plans and specs” (PRINTED plans and specs.) W-P lists the cost to purchase a set of plans and specs (for each project out to bid) and also lists the shipping cost. I don’t have any idea who does the printing; could be that the printing is done “in-house” by W-P (either on equipment owned by W-P or on equipment provided by a vendor under an “FM” arrangement) or done by a reprographer, off-site, who’s handling W-P’s off-site reprographics work on an “outsource” basis. The point I’m making, here, is that, up until now, W-P has been “hard-copy” printing bid sets.

    That “standard procedure” may change, somewhat, after W-P evaluates the results of the survey it is conducting. Here’s the survey, take a look:

    https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=0B81al4kFAU9JNzI0ZThhY2UtMDViOS00MWNiLWIzOWYtMTg2M2MwOGUxMzE3&hl=en_US

    In the future, it is likely that some of the GC’s and Subs will want to receive plans and specs on CD-ROM instead of in hard-copy format. Or, maybe they’ll want both!

  • Thursday, August 25, 2011

    Press release from the issuing company

    Venlo, The Netherlands, – Océ, an international leader in digital document management, has sharpened its focus on Business Services with the appointment of a new Executive Vice President Business Services, Mark Euwe. The appointment is effective 1 September 2011.



    Euwe, 48, has held various positions within Accenture. In 1990 he joined Andersen Consulting (later to become Accenture) as a management consultant. He gained considerable experience with various companies in the High Tech sector, both in The Netherlands and abroad. In the course of two decades, Euwe was promoted to the position of Executive Partner, responsible for the Electronics and High Tech portfolio.



    Following a degree course in Industrial Engineering & Management Science at the Technical University of Eindhoven (1990), Euwe did a PhD in Supply Chain Management (1999).



    At Océ, Mark Euwe will strengthen the global management team for the Strategic Business Unit Business Services. The appointment fits within the corporate ambitions and objective to bolster the growth of this sector.

    ____________

    Joel’s comment:

    If Mark has joined OCE’s OBS (OCE Business Services) unit, then it “looks like” OCE has added a very strong player to the OBS team.

    As I’ve pointed out before on this blog, OCE’s OBS segment – in Europe – pursues all types of companies for FM and MPS relationships. But, in the U.S., OCE’s OBS unit has, at least historically, not pursued FM’s and MPS relationships in the A/E/C industry, leaving that business to U.S. reprographers.

    Good luck to Mark on his new gig with OCE.





  • Hey, one of my favorite reprographics industry talents has moved out of the reprographics industry!

    Let’s all of us who know “Tanner Bechtel” wish him the best of luck and every success with his new job and in the new industry he’s moved over to.

    Very bright and energetic young man, and he contributed his time and energy to the IRgA.

    Good luck, Tanner!

    Current Position (New!)

    Account Management

    XPLANE | Dachis Group

    Privately Held; Management Consulting industry

    August 2011 – Present (1 month) Saint Louis, MO

    Founded in 2008 by Jeffrey Dachis, Dachis Group was created to unlock the value of social technologies for large corporate enterprises through Social Business Design.

    Former Positions (Reprographics-Industry-related positions)

    Global Solutions Executive

    American Reprographics Company

    Public Company; Information Technology and Services industry

    September 2009 – August 2011 (2 years)

    ARC (ARC) is the world’s largest global provider of content-enabled technology solutions and cloud computing solutions for the architecture, engineering, and construction industry. ARC is a public corporation, ARC on the NYSE.

    Managing Director

    ReproMAX Technologies

    Privately Held; Printing industry

    July 2008 – September 2009 (1 year 3 months)

    ReproMAX is the largest worldwide network of independent reprographic print and digital document management companies. Over 300 locations in the US, Canada, United Kingdom, France, Belgium and the Netherlands

    Director of Technology & Marketing

    ReproMAX

    Construction industry

    August 2004 – August 2007 (3 years 1 month)

  • Toll Brothers is certainly one of the U.S.’ major home builders (and I have long been a huge fan of Toll Brothers; they design and build incredibly beautiful homes.) Here’s a story, out this morning, about Toll Brothers’ results:

    NEW YORK (Dow Jones)–Toll Brothers Inc.’s (TOL) fiscal third-quarter earnings jumped 54% with a boost from a bigger tax benefit, yet the luxury home builder saw a double-digit drop in revenue as home deliveries fell.

    The housing market is facing continued challenges: Unemployment remains high, bargain-priced foreclosures pose stiff competition and burned lenders have tightened mortgage requirements. Annual new-home sales are on track to hit another record low.

    While there’s concern recent financial volatility could deliver the hard-hit sector another blow, Toll said it is too early to gauge the effects. “While late summer is generally not the best time to sell homes, in the short run, the stock market gyrations, the budget impasse, and the U.S. Government bond rating downgrade are certainly not helping consumer confidence,” Chief Executive Douglas C. Yearley Jr. said in the pre-market release.

    For the quarter ended July 31, Toll Brothers reported a profit of $42.1 million, or 25 cents a share, up from $27.3 million, or 16 cents a share, a year earlier. The current-year period included pretax write-downs of $20.2 million, while the year-ago period included pretax write-downs and charges totaling $13.2 million.

    Revenue declined 13% to $394.3 million. Analysts polled by Thomson Reuters expected earnings of 3 cents a share on $404 million in revenue.

    Gross margin slipped to 13.8% from 14.2% a year earlier.

    Toll, one of the nation’s largest home builders, delivered 693 homes, a 14% decrease from a year earlier. The average price of net signed contracts was $570,000, roughly the same as the prior-year period.

    The cancellation rate, defined as cancellations divided by signed contracts, was 7.4% versus 6.2% a year earlier.

    Contracts climbed 2% from the prior year, missing some analyst estimates.

    Demir Gjokaj, a senior analyst with ITG Investment Research, viewed Toll’s results as worrisome for the sector.

    “I’m not liking what I’m seeing,” he said. “If Toll’s getting weak, and they’ve always been located in the strongest regions and have the strongest buyer segments, it definitely casts a shadow on the rest of the group coming into the third quarter.”

    Toll Bros.’ shares were up 4.2% at $15.36 in recent trading.

    -By Mia Lamar and Dawn Wotapka, Dow Jones Newswires; 212-416-3207; mia.lamar@dowjones.com

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  • Interesting article on http://thewebandprint.com, that I’d like to bring to your attention ……

    Can I Charge My Customers for Web to Print?

    On August 15, 2011 by Jennifer Matt

    Remember a decade ago when we were talking about how to capture all the revenue from customers changes? I think that’s what printers are thinking – we’re investing our time and labor into something (a private web to print storefront) therefore it should be charagble. We’re thinking about it from our perspective instead of the customers – value has migrated from manufacturing to the ease of order entry – you have to invest where the customer value focus is!

    After speaking at several venues over the last few months, the one question that gets asked every time I’m talking to printers about web to print is:

    “Can we or should we be charging for our web to print solutions?”

    First and foremost the easiest answer to this question is; you can of course charge for anything you want as long as you have a customer base that is willing to pay you.

    I could see it in the audience’s reaction – they so much wanted me to give them a clear/definitive answer to this question. I could not deliver on that because the fact that we are asking this question reveals a lot about where we are as an industry.

    We don’t get it. (yet)



    I encourage you to click on this link so that you can read the complete article, including comments posted to that article:

    http://thewebandprint.com/web-to-print/can-i-charge-my-customers-for-web-to-print/?utm_source=whattheythink&utm_medium=email&utm_campaign=WhatTheyThink+Daily

  • If you are considering / evaluating the purchase of ARC shares (now that they are nice and low), remember that, when you purchase shares of ARC, you are, in essence, gaining ownership of all of these formerly independent companies, all for the current price of ARC.

    The other day, I purchased a new mouse, and I decided to give it some “cut and paste” exercise. You’ll see, below, that I’ve put the company names in alphabetical order (at least, A-Z). For the most part, the company names in the first part of the list appeared in ARC’s last-filed 10-K Annual Report to the SEC. (The list does not include any acquisitions completed by ARC since December 31, 2010.) I’ve added some, from memory, that did not appear in the 10-K.

    If I missed a few, excuse me. If anyone wants to add any missing companies to the list, e-mail me.

    Formerly independent companies, now all operating as “ARC”:

    Atlas Blueprint

    Advance Reprographics

    A&E Supply Company

    A-C Reproduction Company

    A-Plus Digital Reprographics

    AEC Systems

    American Draftsource

    Blair Graphics

    Blue Print Service Company

    BPS Reprographics (same as above)

    BRAT Blueprinting

    Brownie’s Digital Imaging

    Blueprints Plus

    The Blue Print Company

    Best Digital

    Central Valley Reprographics

    City Digital Imaging

    Consolidated Reprographics

    Crest Graphics

    Dunn Blue Print

    Dieterich — Post

    Digital Reprographics

    Dayton Blue Print Company

    DBS Engineering Repro Systems

    Detroit Reprographics

    Elite Reprographics

    Engineering Repro Systems

    eBlueprint

    Ford Graphics (Micro Device, predecessor of ARC)

    Gwyer Reprographics

    Georgia Blue

    Hudson Reprographics (Blueprint)

    Imaging Technologies Services

    IT Plus Technologies

    Independent Printing Company

    InPrint

    KV Blueprint

    Kestrel Blueprint Company

    Kansas Blue print

    Letter Perfect Design

    LDO

    Leet-Melbrook

    MBC Precision Imaging

    Mercury

    Mossner

    Mathias Reprographics

    Metro Digital Imaging

    Mix Imaging

    McKee Enterprises

    Mirror Plus Technologies, Inc.

    NGI Digital (National Graphic Imaging)

    OCB

    Orlando Reprographics

    Olympic Reprographic, LLC

    Peninsula Digital Imaging

    Pikes Peak Reprographics

    Queen City Reprographics

    Reprographics Technologies (RTI, formerly Rowley-Scher Reprographics)

    Reliable Graphics

    RK Digital

    Resource Imaging Supply

    Reprographics Northwest

    Rapid Blueprint Supply Co.

    Reprographics Arlington

    Reprographics Dallas

    Reprographics Fort Worth

    Reprographics Roanoke

    Rhode Island Blueprint

    Ridgway’s

    Ridgway’s Digital Imaging of Destin

    RCMS Group

    Superior Reprographics

    StratoGrafix

    Tacoma Reprographics

    Tampa Reprographics

    Torrence Document Service

    T-Square Express

    University Imaging

    Veenestra

    Western Blue Print Company

    Other ARC operating companies:

    American Reprographics Co.

    Riot Creative Imaging

    Licensing Services International, LLC

    ARC BIM Services Group

    ARC Document Solutions

    Planwell, LLC

    The PEiR Group

    The above lists intentionally exclude ARC’s non-U.S. acquisitions or operations

    Some of the older reprographics companies acquired by companies acquired by ARC, prior to ARC beginning its acquisition program (i.e., names from the old days):

    AB Camp Reproduction Company

    Blodgett Reproductions

    Engineering Graphics

    A&E Blueprinters

    Max Scher Blueprints

    The Sepia Shop

    Heller Reproductions

    K&E Cooper-Trent

    Allied Reproduction Service

    Hot Off The Press

    White’s Blueprint Service

  • I think I forgot to report about this, OCE’s results for Q2 2011, which were released in late July 2011….

    From the headline section of the report:

    Océ Q2 2011 impacted by challenging conditions Highlights second quarter (ended 30 June 2011):

    • Net loss: € – 14 million (2010: € – 11 million)

    • Normalized operating income: € – 7 million (2010: € 20 million)

    • Organically, total revenues – 4% to € 626 million (2010: € 676

    million); non-recurring revenues – 12%; recurring revenues –1%

    Comments by Rokus van Iperen, Chairman of the Executive Board, included:

    “Revenues continued to decrease in the challenging second quarter due to several circumstances. The construction markets in the USA and Europe showed an even further decline compared to last year. This had an impact on the development of the total results of Wide Format Printing Systems.”

    Later on, in the body of the report, where OCE talks about the performance of its individual business segments:

    Wide Format Printing Systems (WFPS)

    The construction markets in the USA and Europe showed an even further decline compared to last year. This had an impact on the development of the total results of WFPS. Printer sales in WFPS developed positively driven by targeted action plans, strengthening the competitive position of the Océ sales companies.

    Display Graphics Systems maintained its revenue growth. In the quarter the Océ Arizona 360 GT and XT flatbed printing system was launched at the annual Fespa trade fair, held this year in Hamburg in May. Customer deliveries started in the second quarter and will accelerate in the second half of the year.

    Revenues in WFPS amounted to € 186 million. Organically, revenues increased by 2%. Non-recurring revenues amounted to € 73 million. Organically, revenues rose by 8%. Recurring revenues amounted to € 113 million. Organically, revenues declined by –1%.

    Normalized operating income amounted to € 5 million (2010: € 13 million).

    Océ Business Services (OBS)

    In the quarter, OBS continued to grow revenues in higher value-added services like records management, litigation support and business process outsourcing. These increasingly substitute commodity services and therefore generate higher margins.

    OBS was recently, for the fifth consecutive year, named in the International Association of Outsourcing Professionals’ Global Outsourcing 100 list. Customers are increasingly consulting this list to partner with service providers who have achieved solid outsourcing results.

    In Europe, OBS won a significant contract with the UK subsidiary of the international insurance company AEGON. In Spain, OBS signed a new contract with leading household appliance provider Bosch Siemens. Throughout Europe, OBS registered a growing customer demand for its value-added services.

    Revenues at OBS amounted to € 113 million. Organically, revenues increased by 1%. Normalized operating income amounted to € 5 million (2010: € 6 million).

    You can access the complete report by visiting OCE’s web-site. I’m not going to bother to post the report in my Google Docs library, unless I get a request to do so.

  • I’m *amused by the reports that Google Analytics generates about visitors who find their way to “Reprographics 101”. I check the statistics about once a week (when I have absolutely nothing better to do.) (*Yes, you are correct, it does not take much to amuse me, as I have a weird sense of humor.)

    For your mutual enjoyment, I’ve placed, in my Google Docs library, a copy of two different reports (both reports are based on visits made to Reprographics 101 during the most recent 30 day period):

    Visitors by State:

    https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=0B81al4kFAU9JZjZjNTE3YjMtMGFjYi00ZmFhLWI2M2MtYmVjMTdhOTAzZjM0&hl=en_US

    Visitors by Country:

    https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=0B81al4kFAU9JNDhhM2IzODEtM2ZhMS00NDllLWFlNDUtODFhNDBjYzk1YTFi&hl=en_US

    To me, the most amusing report is the one that reports “visitors by country.”

    Admittedly, I do know people in the reprographics business in Europe, so I’m not surprised that Repro 101 is visited by people located in The Netherlands, The Czech Republic, Spain, France, Russia, Hungary, Croatia, Sweden, Norway, Finland and Poland and by people located in the U.K.

    But, I’ve never been to Jamaica, and I don’t know any reprographers in Jamaica, so, when I see that someone from Jamaica visited Repro 101 and spent 26 minutes on the blog (reading three articles on the blog), I have to assume that the person who visited the blog from Jamaica was a U.S. guy (or gal) on vacation in Jamaica (and the weather must have been lousy that day.)

    Likewise for the visitor from Morocco who spent 17 minutes on the blog (reading 4.5 articles on the blog). A U.S. reprographer on vacation, and his/her spouse was sleeping-in-late and not ready to go touristing or shopping? That would be my guess.

    Visitor from Sri Lanka? One of my ARC friends on vacation visiting with family?

    I don’t profess to be an expert in Google Analytics – how it works, how it captures information , and whether that information is reliable, or not reliable. But, it’s free to use, so I use it.

  • On May 21, 2007, someone at seekingalpha.com wrote an article about ARC and provided this “headline” to his/her article about ARC……American Reprographics: A Compelling Value Story”

    This article was written when ARC shares were trading at just under $30.00 per share. I think what provoked the author to write the article was that ARC shares had been trading higher (previously traded at close to $38.00 per share) and that down at $30.00 per share, the shares, and ARC, were a “compelling value story.” Here’s how that article begins, then, afterwards, my follow-up comments:

    American Reprographics: A Compelling Value Story

    American Reprographics (NYSE: ARC) is the undisputed leader in the $5bn reprographics industry. Reprographics services typically encompass the digital management and reproduction of construction documents or other graphics-related material and the corresponding finishing and distribution services. The business-to-business services ARP provides to its customers includes document management, document distribution and logistics, print-on-demand, and a combination of these services in its customers’ offices as on-site services, often referred to as “facilities management.”

    The company serves 73,000 active clients through a network of 230 branches and 3,015 facilities management contracts with a total staff of 4,500. ARP generates 65% of its revenue from the non-residential construction sector with the balance coming from residential construction (15%) and general commercial printing (20%). The Company’s flagship PlanWell software that allows for the creation of online planrooms is well positioned to become the industry standard for managing and procuring reprographics services within the AEC industry. American Reprographics, whose headquarters is in Glendale, California, generates just under half of its revenue within its home state.

    Key Trading Highlights

    –Market Cap as of 5/19/07 stood at 1.3bn; Current stock price is at $29.62

    –The stock has traded in a 52 week range between $28.38 – $38.59

    –The stock is currently trading at an attractive 10.7x LTM EBITDA multiple. On a 2007 multiple, the stock current trades at 9.0x Consensus EBITDA and 18.4x consensus GAAP Earnings

    –The obvious negative to the Company is that it is tied to a cyclical sector – i.e., Commercial Construction. However to the Company’s credit, during the previous 2001-2003 downturn, ARP was able to preserve margins while revenues remained flat. The Company’s overseas expansion strategy should be able to smooth out some of that volatility and add a more secular theme to the story.

    Catalysts

    –Continued top line growth with organic growth levels returning to 7-8% range

    –Ability to continue to target accretive acquisitions

    –Significant free cash flow generation raises the possibility of future buybacks

    –Attractive take-over target for both strategic (Iron Mountain, Pitney Bowes) investors and financial sponsors

    Joel’s comments:

    Well, that was then and this is now. It’s now 4+ years later, and, yesterday, ARC’s shares closed at $3.86.

    If ARC was a “compelling value story” when its shares were at $30.00, I would imagine that the author of that article would find ARC shares to be an “unbelievable, outrageous bargain” at $3.86 per share!

    Perhaps the investment managers at Stadium Capital Management, currently ARC’s largest “institutional” shareholder, read that article from May 21, 2007, before they took a plunge and became ARC’s largest institutional shareholder?

    If you are the nostalgic type, you can access the full article at this Internet address:

    http://seekingalpha.com/article/36093-american-reprographics-a-compelling-value-story