Reprographics 101

(more than you ever wanted to know about the reprographics industry)

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  • AGC (Associated General Contractors) reports that construction spending hit an 11-year low in May 2011

    ….. and that Construction-sector unemployment is down 29% from peak in April 2006.

    Two recent articles on AGC’s web-site:

    HEADLINE:

    Data Digest: Construction spending hits 11-year low; ARRA added jobs, 3 studies find

    July 07, 2011

    Construction spending in May totaled $753 billion at a seasonally adjusted annual rate, the sixth consecutive monthly decrease (following downward revisions to April and March data that initially both showed increases) and the lowest figure since 1999, the Census Bureau reported on Friday.

    Access complete article at this Internet address:

    http://news.agc.org/2011/07/07/data-digest-construction-spending-hits-11-year-low-arra-added-jobs-3-studies-find/

    HEADLINE:

    7/8 Data DIGest: Construction Jobs Dip in June; Reports Vary on Apartment, Office, Data-Center Demand

    July 08, 2011

    Nonfarm payroll employment rose by only 18,000, seasonally adjusted, in June, and the gains for April and May were pared by a combined 44,000, the Bureau of Labor Statistics (BLS) reported today. The unemployment rate edged up from 9.1% in May to 9.2%, seasonally adjusted (9.3%, not seasonally adjusted). Construction employment totaled 5,513,000, seasonally adjusted, down 9,000 from May, up 2,000 from June 2010 and down 2,213,000 (29%) from the peak in April 2006. The unemployment rate for construction workers was 15.6%, not seasonally adjusted, down from 20.1% in June 2010. (BLS does not report seasonally adjusted rates by industry.) The combination of static employment and falling unemployment suggests that discouraged workers are retiring, going back to school or finding jobs in other industries rather than returning to construction—a bad omen for future industry expansion.

    Access complete article at this Internet address:

    http://news.agc.org/2011/07/08/78-data-digest-construction-jobs-dip-in-june-reports-vary-on-apartment-office-data-center-demand/

  • Reprographers……..so, how’d your Q2 2011 end up?

    Hopefully, it was up from Q1 2011 and up from the same period one year ago.

    Two days ago, I heard that one of the reprographics industry’s largest companies cut jobs, just after the end of Q2 2011. If that’s not rumor, but true, that’s not good news; frankly, it’s not good news for anyone in the reprographics industry.

    Sales-wise, my guess is that the “typical” reprographer (if there is such a thing) fared pretty much like this:

    a) Q2 2011 sales, about equal to Q1 2011 sales, even though Q2 sales, traditionally, are almost always higher than Q1 sales.

    b) Q2 2011 sales, a bit behind Q2 2010 sales. No growth in demand for services, bit of a slide because of another fall-off in construction activity.

    But, there are signs of life, at least in some markets, as I recently pointed out about the Boston, MA market area, where developers are resuming plans for projects and where, as a result, A&E firms are getting busier ….. and reprographers should see and feel that upswing in activity.

  • AIA ABI Index for June 2011 retreats further into negative territory and has now been below 50 for the past three months

    According to an article I just read on Reuters.com, the AIA ABI (Architecture Billing) Index reading for June 2011 fell to 46.3.

    See Reuter’s release down below…..

    I’ll repeat what I said last month ….. that’s bad news for the A/E/C Industry, and that’s bad news for reprographers.

    According to the AIA, there is an “approximate nine to twelve month lag time between architecture billings and construction spending” on non-residential construction. So this suggests another dip in CRE (commercial real estate) investment towards the end of this year – and into 2012.

    AIA ABI Index, recent “readings”:

    46.3 – June 2011

    47.2 – May 2011

    47.6 – April 2011

    50.5 – March 2011

    50.6 – February 2011

    50.0 – January 2011

    54.2 – December 2010

    52.0 – November 2010

    48.7 – October 2010

    50.4 – September 2010

    Prior to September 2010, the ABI Index had not been at 50 or above since December 2007.

    Per REUTERS.COM…..

    Wed Jul 20, 2011 8:29am EDT

    * June ABI 46.3 vs. May 47.2

    * Project inquiries index rises to 58.1

    * Institutional sector weakest amid tight govt. budgets

    * Analyst: Construction recovery in 2012 or later (Adds analyst comment)

    NEW YORK, July 20 (Reuters) – A leading indicator of U.S. non-residential construction activity fell for the third consecutive month in June, suggesting an anticipated construction recovery was still several months away.

    The Architecture Billings Index fell 0.9 point to 46.3 points in June, according the American Institute of Architects (AIA). Any reading below 50 indicates contraction in demand for architects’ services, whose revenue predicts construction activity nine to 12 months in the future.

    A separate index of project inquiries rose, however, to 58.1 from 52.6 in May. This measure is typically higher as multiple architecture firms compete for the same work.

    “While a modest turnaround appeared to be on the way earlier in the year, the overall concern about both domestic and global economies is seeping into design and construction industry and adding yet another element that is preventing recovery,” AIA chief economist Kermit Baker said.

    Demand is weakest in the institutional sector that includes government buildings, reflecting depressed government budgets, according to the monthly survey of architecture firms.

    “The threat of the federal government failing to resolve the debt ceiling issue is leading to higher borrowing rates for real estate projects,” Baker said. “Should there actually be a default, we are likely looking at a catastrophic situation for a sector that accounts for more than 10 percent of overall GDP.”

    Commercial property values fell to new lows in April and office vacancy rates are well above pre-recession lows, JPMorgan analyst Ann Duignan said in a note to clients.

    “The recovery has yet to find solid ground and that the non-residential construction environment remains challenging,” she said. “We believe it is more likely that non-residential construction will not recover until 2012+.”

    A depressed construction market has been a headwind for manufacturers of construction machinery and components that make up buildings’ infrastructure, such as electrical, cooling and security systems.

    Most diversified industrial companies get at least some revenue from the non-residential construction sector, which includes office buildings, retail and warehouse space, and institutional buildings such as schools and hospitals.

  • Service Point Solutions (its Holmbergs operation) opens hi-tech digital print and infologistics centre in North Europe

    Service Point Holmbergs opens new hi-tech production centre in Malmö, logistics gateway to Scandinavian market New 4000m2 centre is the most modern digital print centre in Europe, including warehousing, fulfilment and distribution facilities

    Warehousing and distribution capacity is key to Toyota (ITP) contract, where Service Point Holmbergs can print and deliver car manuals within three hours

    19 July 2011 – Service Point Solutions (ticker: SPS.MC) is opening a new print production centre in Malmö which is not only the most modern in Europe, but is capacitated to provide automated warehousing, fulfilment and distribution services, thereby consolidating the company’s position as the number one print and document management supplier in Europe.

    In an important step towards the company’s goal of taking its Scandinavian operations to a €100M turnover in 5 years, the production centre in Sweden will house state-of-the-art equipment capable of producing the highest quality printed communication materials in the market. But for the innovation-led Swedish management team this is not enough.

    “Printing is not enough. Clients want complete solutions which solve all their problems. That is why we developed our “infologistics” concept,” says Jimmie Holmberg, Managing Director of Service Point Holmbergs.

    The information logistics concept, whereby information is printed, stored and distributed according to demand, eliminates the need for client’s to keep large stocks and warehousing space within their own installations. Information is printed only when it is needed.

    This just-in-time print and logistics model fitted in very well with Toyota’s (ITP) production system, and Service Point Holmbergs is currently printing car manuals for all Toyota cars which enter the Nordic market.

    Preem, the biggest oil company in Sweden, with 470 petrol stations and two refineries, is another company using the infologistics model, keeping their graphic materials in the new warehousing facilities in Malmö, and having Service Point distribute according to orders received directly from the petrol stations via a web-to-print system.

    By developing a very strong offer within the Scandinavian market, Service Point is investing in the strongest GDP-growth economies in Europe, with the highest adoption of web-based transactions in the world and fertile ground for new innovative solutions like infologistics.Service Point Solutions

    (www.servicepoint.net) provides an all-in-one managed solution for clients wishing to have their information processed, communicated or managed by a true service-focused partner. Our 2,300 professionals, based in nine countries (UK, US, Spain, Germany, Netherlands, Belgium, Norway, Hong Kong and France) provide products and services across a network of 127 service points and 794 Facilities Management programs. SPS is headquartered in Spain and listed on the Madrid and Barcelona stock exchanges (ticker: SPS.MC).

    For further information:

    Service Point Solutions, S.A

    Pablo Divasson del Fraile

    pablodivasson@servicepoint.net

    Tel +34 93 5082400

  • New York area reprographics company acquired?

    I’m hearing rumbles that one of the five largest reprographics companies in the U.S. very recently reached an agreement to acquire a well-established New York area reprographics company.

    Rumor or Fact?
    More on this as the news unfolds.

  • Bid Opportunity from the Georgia Procurement Registry


    Bid Title

    Plotter and Scanner Services

    Bid Number

    48400-110-0000000028

    Agency

    48401-TRANSPORTATION-2, DEPARTMENT OF

    Contact Person

    Charles Nixon

    Contact Phone Number

    404-631-1582

    Contact E-mail Address

    cnixon@dot.ga.gov

    Bid Process

    RFP

    Purchase Type

    Agency Contract

    Category Type

    Services/Special Projects

    Date Posted

    Jul 8, 2011

    Bid Closing Date/Time

    Aug 10, 2011@2:00 PM

    Bid Status

    Open

    Government Type

    state

    Fiscal Year

    12

    Prebid Conference Attendance

    Mandatory

    Prebid Conference Date/Time

    Jul 26, 2011 10:00 AM

    Prebid Location

    Room 401 and 402

    Prebid Street

    600 West Peachtree Street, NW

    Prebid City

    Atlanta

    Prebid State

    GA

    Prebid Zip Code

    30308

    Prebid Comments

    Print and bring your own bid documents.

    Description:

    The objective of this procurement is to establish an open agency contract for the lease services of digital plotters and scanners, associated software, peripherals, supplies, and miscellaneous accessories. The lease services shall include all maintenance, service calls, repairs, parts (including drums), technical assistance, licensing fees, and perishable items. Additionally, lease services may include an option for paper and printing services (print room).

    Link to procurement:

    http://ssl.doas.state.ga.us/PRSapp/PublicBidNotice?bid_op=124840148400-110-0000000028

  • Related to the Recession still continuing in the residential construction sector

    So, yesterday afternoon, I watched a video that was an interview of Warren Buffet, sitting with, being peppered with questions by, a smart young reporter from either Bloomberg or the Washington Post. The interview session was nearly 30 minutes long and was quite interesting.

    During the interview, Buffet essentially said (what I’ve been saying for maybe over two years by now) that for our economy – and our job market – to really experience recovery (and, I’d put it this way … to really experience a very meaningful recovery), there has to be a recovery in the residential real estate development (residential construction) sector of the economy. That sector of the economy employed a very significant number of workers, not to mention the significant number of workers who were employed in industries related to the residential construction sector (think home improvements, flooring, furniture, interior design, landscaping, etc., etc. – and reprographics too!)

    “They say” we excited “recession” two years ago, but, given the fact that the official jobless rate is on the rise again and the fact(?) that the real unemployment rate is likely over 15%, did we really, truly exit the recession? Or, was that “exit” just a technicality?

    The purpose of today’s post was to let you know about the Buffet video interview I watched and to share with you two very interesting articles that relate directly to the economy and to the situation in the residential construction sector.

    The first article I’m suggesting you read is this one…..

    “How the Bubble Destroyed the Middle Class” “Commentary: Sluggish growth is no mystery: No one has any money”, by Rex Nutting, MarketWatch, published July 8, 2011

    Here’s a link to access that article (I copied it into my Google Docs library):

    http://tinyurl.com/3cj6vuc

    And, the second article I’m suggesting you read is this one…..

    “How Underwater are American Households?”, by “a political junkie”, published June 9, 2011

    Here’s a link to access that article (I copied it into my Google Docs library):

    http://tinyurl.com/6xzf8yy

  • The End of Blueprints (to share a long, eloquently written, comment with you)

    On July 6th, I put up an article on Reprographics 101 about an article titled “The End of Blueprints”. Here’s a link to the post I did on July 6th.

    http://reprographics.blogspot.com/2011/07/end-of-blueprints-what-did-he-say.html

    Today, via e-mail, I received a long comment on that article, and, since what the “commentor” (Vern Kellie) had to say was so eloquently put, I wanted to share (and I have his consent to share) Vern’s full comment with you, so here it is……

    “Hello Joel,

    Was just catching up on your blog this morning and would like to offer a few comments on the article “end of blueprints”… Houston Neal serves up some rather capricious and deleterious remarks regarding the paper industry in general, and the reprographic industry in particular; suggesting that an “end to blueprints” would save 42,000 trees (and thus, help save the planet)…what Mr. Neal conveniently neglected to mention were a few facts about the paper-making industry (which hold true for “blueprinting” paper as well):

    Most of the trees “harvested” for the production of pulp (paper) are from Tree “Farms”. Trees are cut for pulp, new trees are planted (like crops for food)…re-forestation and sustainable initiatives abound within the paper industry…non-profit groups like the Forest Stewardship Council (FSC) a world-wide consortium, and North American groups SFI (Sustainable Forest Initiative) and AFF (American Forest Foundation) offer a collaborative forum for supply-side paper mills, industry, environmental and governmental representatives, etc. to all engage in proper dialogue with the single mission to ensure proper replenishment and sustainability of the world’s forests. And re-forestation needs to happen.

    Forests are a natural carbon “sink”…that is, through the process of photosynthesis, carbon dioxide is taken from the air, oxygen is returned, lovely trees accomplish this for us…For a tree to make a lb. of wood, 1.5 lbs. of carbon dioxide is taken from the air, and 1 lb. of oxygen is returned…what does this have to do with re-forestation? Young, growing trees “photosynthesize” at a faster rate than do older trees, thereby taking more CO2 from the air and giving back more oxygen… a positive environmental impact!

    In short, paper is an environmentally sound, renewable and recyclable resource…cutting down 42,000 older trees to make paper makes way for 42,000 younger ones to be planted.

    And another point to consider: while the author was busy with his calculator determining trees per blueprint rolls, and waving his “environmental finger”, possibly some introspection is in order.

    It takes power to run computers! While Mr. Neals calculator was out, possibly he should have calculated the annual power consumption of a “server farm” to keep that “cloud” from bursting. Where do you think those kwh’s come from? Don’t think there’s an environmental impact? Think again…Point being, whether we are tilling the earth’s soil for crops, fishing the oceans, making a roll of paper or turning on a computer – we are, to some degree, extracting the earth’s resources…It’s how efficiently we use, manage and replenish those resources that makes the difference and determines the world we choose to live in.

    The “end of blueprints?”, I’m sure repographers ponder that question more than the author realizes…in my view, however, his article is just “barking up the wrong tree”.

    (Please feel free to post or comment on as you see fit, always enjoy your commentary…keep up the good work!)

    Vern Kellie

    Sales/Marketing

    205 West Wacker Drive, #322

    Chicago, IL 60606

    312.251.1962

    www.imaprintcorp.com

  • Printing Industries of America Decries Obama Administration Characterization of Print (PART 2)

    On Monday, June 27th, after learning that Mr. Makin (CEO?, President?, Executive Director?) of the Printing Industries of America had issued a Press Release to criticize President Obama – a criticism I thought was totally unfounded and completely unwarranted – I did a brief post on Reprographics 101 about that and provided a link to the Press Release that the Printing Industries of America released earlier that same day (or it could be that the Press Release was issued a few days earlier, but who really cares about that; when, exactly, the press release was issued is really an insignificant point.)

    You can find my previous post about this at this address:

    http://reprographics.blogspot.com/2011/06/printing-industries-of-america-counters.html

    After that article was posted, I found that Cary Sherburne, a frequent contributor to the web-site of www.whattheythink.com, wrote a more in-depth article about Mr. Makin’s comments, after doing some research of her own. Here’s the beginning of the article she recently posted on whattheythink.com. I encourage you to read the full article (I’ll be giving you the link, later.) And, I encourage you to read all of the comments that were posted on whattheythink.com about the article that Cary Sherburne put up.

    Commentary & Analysis

    Printing Industries of America Decries Obama Administration Characterization of Print

    By Cary Sherburne
Published: July 7, 2011

    On Friday, June 24, 2011, Michael Makin, President & CEO of the Printing Industries of America distributed by email a “Special Announcement.”

    In it, Makin says, “In Obama’s announcement, he equates the printing and mailing of the Federal Register as a stack of ‘expensive doorstops’ and ‘stupid spending’ that ‘doesn’t benefit anybody.’ By dismissing pint as ‘pointless waste’ that ‘no one reads,’ one may infer a negative perception of a stalwart industry or mistakenly assume that printed material is a dying and irrelevant relic.

    “

WhatTheyThink did extensive research to uncover the full story, and as a result feel that this letter to the President was an overreaction and that the President’s comments were taken out of context. We have included references in the article that you can check for yourself to make your own decisions.

We also spoke with Makin prior to publishing this article, and his comments are included below.

    Here’s a link to the full article Cary Sherburne wrote, and you’ll also be able to see all of the “comments” that have been made, so far.

    http://whattheythink.com/articles/51550-printing-industries-america-obama-characterization-print/?utm_source=whattheythink&utm_medium=email&utm_campaign=WhatTheyThink+Daily

    Joel’s final comments about this:

    a) I complete agree with the opinion that Cary Sherburne expressed

    b) At what point in our lifetime did it become mainstream habit to politicize even the most minor of comments that a President makes? Have we really become that silly, that stupid? Is it something in the water? The air?

  • Happy 65th Birthday wishes to George W. Bush

    I may not have agreed with all of his policies, practices and decisions, but you have to give the guy credit – he was and is a true patriot and strong supporter of our democratic way of life. I don’t think he once doubted that everything he did, every decision he made, every action he took, was in “our” best interests. He volunteered his time to be the 43rd President of the U.S.A. Even in the best of times, that’s certainly an incredibly difficult commitment, a commitment that only a select few, selfless citizens are willing to make. To George; while I may not have been one of your fans, I do appreciate the commitment you made, and I do consider you a patriot and a strong supporter of our democratic way of life. A toast to you to celebrate your 65th birthday – – – bottoms up, Happy 65th ….. and may you have many more in front of you.