• Even though the ABI Index report for May is not yet posted on the AIA’s web-site, I found this news release on Reuters.com this morning. Read on…….

    U.S. architecture billings fall, credit still tight
    June 23, 2010, 12:01am EDT
    * April architecture billings index down 2.6 pts
    * New project inquiries also down in May
    * Lenders cautious about making construction loans

    NEW YORK, June 23 (Reuters) – A leading indicator of U.S. nonresidential construction spending fell in May after three months of gains, as lenders remain cautious about making construction loans, according to an architects’ trade group.

    The Architecture Billings Index was down 2.6 points to 45.8 last month, after reaching its highest level since January 2008, according to the American Institute of Architects. A measure of inquiries for new projects fell 4.1 points to 55.5.

    Readings above 50 indicate expansion, while those below 50 to declining demand. May’s results were a surprise, since earlier readings had pointed to recovery, said AIA Chief Economist Kermit Baker.

    “The overriding issue affecting the entire real estate sector is unusual caution on the part of lending institutions to provide credit for construction projects,” Baker said.

    Of four U.S. geographic regions, only the Northeast was above 50 in May, and only the commercial/industrial sector stood above that mark. Categories include institutional architecture, commercial and industrial space and the mixed-practice category, which combines retail and other uses.

    The AIA’s billings index, begun in 1995, is an indicator of construction spending nine to 12 months in the future. It is often cited by companies that sell to the construction sector as a reliable gauge of that market.

    (Reporting by Nick Zieminski, editing by Bernard Orr)

    – – – – – – – – – – –

    Joel’s comments:

    1) Reuters failed to mention that another public company – American Reprographics (NYSE:ARP) – also generates revenue from construction activity. And, of course, all of the privately-held reprographers in the U.S. (and, for that matter, in the rest of the world) generate revenue from construction activity.

    2) I had previously speculated that the ABI Index for May 2010 would hit 50 or above, after nearly two years of being below 50. And, I was wrong. My guess about the ABI Index for May 2010 was as good as the guess that analysts made about sales of existing homes in May. Analysts had guessed 6% growth; actual numbers showed a decline of more than 2%. Apparently, we are in an economic cycle where no one seems to be able to speculate, guess or estimate, with any reasonable degree of accuracy, where the construction economy is headed – up, down, sideways. Some are (and have been) predicting a “double-dip” recession in the residential construction sector. That sector led the country into the downturn in the overall construction sector, and some are saying that the downturn will not end until that sector shows renewed life.

    Update to paragraph 2. This morning (June 23), news came out about an “unexpected” turndown in the new home construction sector. So, it is not just “existing” home sales that are down, but sales of “new” homes as well.

    3) Yesterday, I did a post about “financing related to the Real Estate Development” sector. Previously on my blog, I’ve written and posted articles that point to the FACT (not opinion) that the Real Estate Development industry requires “other people’s money” – financing for projects. If banks and insurance companies are not lending and if the financial/investment community is unable to place CMBS (commercial mortgage backed securities), then Real Estate Developers (with perhaps the only exception being public works developers (Fed, State, County, City projects) won’t a) hire architects to design projects or b) hire construction companies to build projects. Which, in turn, has serious repercussions for sub-contractors, material suppliers, and, yes, reprographers.

    4) While I do hear from many in the reprographics industry that things appear to have “bottomed out”, I’m still not hearing (or seeing) signs of recovery. I don’t think there are any reprographers in the U.S. – (perhaps with the exception of MBE, DBE, WBE reprographers who benefitted from reprographics work generated by projects funded by stimulus money) – who refer to the current recession in the design/development/construction industry as a recession – without thinking that the word “RECESSION” should be replaced by the word “DEPRESSION.”

  • If you are interested in the non-residential real estate development and construction sector of the economy, you should take at least some time, each month, to follow what’s going on in the industry that “finances” non-residential projects. You’ve heard the term “CMBS”, which stands for “commercial mortgage backed securities,” and that market, and that market went dead around September 2008 (if not somewhat before that.) CMBS industry players are represented by, why not, an industry association known as CREFC (the Commercial Real Estate Finance Council.)

    The information I’m going to mention hereafter in this post comes from CREFC’s web-site, which can be found at http://www.crefc.org/

    – – – – –

    First, I’d like to direct your attention to a “Compendium of Statistics”, last updated on June 4, 2010. You can find that report at this Internet address: (copy, cut and paste this into your browser window:)

    http://www.crefc.org/uploadedFiles/CMSA_Site_Home/Industry_Resources/Research/Industry_Statistics/CMSA_Compendium.pdf

    You’ve “just gotta” look at this statistical report, especially the graph called Exhibit 3, CMBS Issuance, year-over-year. Get a real (glaringly clear) picture of how the CMBS (financing market) went dead.

    – – – – –

    Secondly, here’s some of the news reported on the CREFC site:

    …….News reported on Thursday, June 17, 2010

    U.S. banks hiring as CMBS starts to revive (1:30pm ET Thursday –Reuters; Council President, Board Member quoted) 
Banks resume hiring CRE lenders; Wells Fargo building out with Wachovia employees; Just over $1 bln in CMBS loans completed so far this year. 
U.S. banks are accelerating their push back into packaging commercial real estate loans into bonds, two years after the financial crisis ground much of the business to a halt. Wells Fargo & Co is one such bank, and has begun expanding its commercial mortgage-backed securities business, or CMBS, by tapping former employees of Wachovia Corp — one of the segment’s most prolific lenders before the crisis. “I see lots of friends who used to be employed, and weren’t for a while, and are now being rehired by institutions,” said Jonathan Strain, head of debt capital markets for JPMorgan Chase & Co’s CMBS division.

    Bankers and advisers who specialize in commercial real estate-backed mortgage securities said the sector may never fully recover to the peak of $237 billion in originations in 2007. Slightly more than $1 billion in CMBS deals have been completed this year. One banker said the market may eke out $10 billion this year, and ultimately stabilize at roughly $100 billion in annual CMBS deals. This will ease but not solve the funding needs for maturing loans, which top $1 trillion over the next few years, analysts said. “Supply will be far less than what we were accustomed to,” said Lisa Pendergast, Jefferies’ managing director for CMBS strategy and risk. Pendergast also serves as president of the CRE Finance Council, the industry’s main trade group. 



    The ‘Council’ Holds Court This Week-More Optimistic Than In The Recent Past (IFR-ThomsonReuters) 
The semi-annual conference break arrived this week, courtesy of the gathering at the Waldorf Astoria hotel in New York City (June 14-16) via the CRE Finance Council, formerly the CMSA and now affectionately known simply as “the Council” (we like that one). The bringing together of interested Commercial Real Estate parties (dealers, servicers, investors, developers, ratings agencies, et. al) was more upbeat than in the preceding two years as things are said to be “slowly” turning the corner. A mild sense of humor – and not the gallows variety – was often times injected into the proceedings as movie clips (Wizard of Oz, Ferris Bueller’s Day Off, Stand By Me, and the Color Of Money among them) were “sampled” to introduce panel discussions and General Sessions.

  • This article appeared in the Seattle Times on June 12, 2010.

    Did we dodge a bullet on commercial real estate? Maybe or no way…
    By Jon Talton

    Good-news seekers can take some comfort in the fact that, so far, we’ve avoided a major commercial real-estate crash. This is no small thing when measured against economists’ fears of the past two years and a dire warning from bailout watchdog Elizabeth Warren. True, Seattle, like many cities, faces very high vacancy rates and CRE has taken down several smaller Washington state banks. But things could have been far worse.

    In Fortune magazine, Heidi N. Moore reports that the economy is outrunning the worst, at least for now. “The only question now is how long it can keep up the sprint while the ghosts of boom-time leverage haunt the sector, and $1.4 trillion in loan maturities loom three years over the horizon.”

    Government help for the financial markets has played a big role in maintaining confidence. Here’s the argument of the bulls:

    …investors in commercial properties and buyers of commercial mortgage-backed securities believe that the commercial real estate market will continue to suffer until it hits a bottom, but it will never crash in the way that the residential market collapsed. They believe that commercial real estate will be an example of how a market can take the hits and keep on ticking, that not every spot of trouble results in a crisis, that an industry can actually, somehow, stop a crisis if it acts early enough and has enough support.

    A big unknown remains with commercial mortgage-backed securities (CMBS). A total of $602 billion were written between 2005 and 2007 — 49 percent of all such securities issued over the past 20 years. Moore reports:

    CMBS, however, accounts for only about 20 percent of the total loan market, according to Jones Lang LaSalle’s (Peter) Roberts. The bigger danger to the capital markets — and to banks — are speculative commercial loans, like those in construction and land loans. Those aren’t backed by firm assets and are a key part of the reason that many smaller banks have failed in recent years. It is these loans, in particular, that worry Warren and others, and could yet bring a reckoning to CRE.
    Much of the outcome depends on no further major shocks to economy. And the hope that, unlike the much larger housing bubble, we really have a handle on the interconnected risks associated with commercial real estate.

    UPDATE: A couple of in-the-know locals weigh in. One writes:

    Unfortunately, there are few indications that we have dodged a bullet; it is still headed our way and seems to be gaining speed.
    Banks are working as hard as they possibly can to avoid recognizing their ever-growing mountains of ‘troubled’ commercial real estate debt and the FDIC seems to be actively encouraging this denial of reality. You’ve undoubtedly heard of ‘extend and pretend’ or ‘delay and pray’; these practices are rampant in the CRE world.

    For perhaps a third of our local and regional banks, dealing with their existing non-performing CRE loans (never mind those that are headed for trouble) would result in overnight insolvency — thus their desperate measures to prolong their lives are understandable. For the remainder, such actions are unforgivable. The longer banks delay taking back, then selling, commercial collateral, the larger the backlog of CRE becomes and the worse the repercussions will be when the FDIC is finally forced to mandate the sale of these assets. It seems inevitable that when the dam does burst, we’ll see commercial listings skyrocket and prices will plummet…there is a terrible storm brewing and you will want to keep an extra-close eye on it.

    And

    If you were to call any leasing broker they would tell you that every tenant, even those with many years left on their existing leases, are all out pushing for new lease terms or they will vacate and relocate. In a market with high vacancies the landlords cannot let these tenants out of their buildings because they won’t be able to get anybody to fill the vacant space. This drives down NOI and therefore Indicated economic value. The lenders now have the right to “margin call” the loan as it does not meet minimum loan standards. The landlord tells the bank, “I don’t have the extra money to pay down the loan,” so the bank has to make a decision: Do we pretend/extend or do we go the legal route? It is a mess and will not be solved until a)debt in all markets is reduced; b)we have employment growth; c) we have wage growth; and d) we have reduced or at least stabilized vacancies.

    Values of buildings are falling and therefore prop tax revenues will be falling. It is a bit of a death spiral and not easy to get out of.

  • On April 9, 2010, I posted an article about the closing of Rink Design, a leading Florida architecture firm prior to the depression that clobbered Florida’s A/E/C design/construction industry. Jack Diamond, senior principal of the former Rink Design firm, has announced the starting of his new firm.

    I found two articles about the new firm; here’s the first of those articles; this one comes from the Jacksonville Times Union:

    Jack Diamond starts up new architectural firm
    Source URL: http://jacksonville.com/business/small-business/2010-05-04/story/diamond-starts-new-architectural-firm
    By Kevin Turner

    Jacksonville architect Jack Diamond announced in a release Monday he is starting a new firm, Diamond Architectural Group.

    Under Diamond Architects and Rink Design Partnership, Diamond has had a hand in a number of recognizable Jacksonville structures. According to his release, those include South Central Office Operation Center for the Prudential Insurance Company of America, Southern Bell Tower, SunTrust Tower (formerly the Jacksonville Center), Christ Episcopal Church, renovations to Trinity Church in New York City, Jacksonville Federal Courthouse, Times-Union Center for Performing Arts, Vicar’s Landing, Glenmoor at St. Johns Life Care Community and multiple projects at the University of North Florida and Florida State College-Kent Campus.

    Diamond, former senior principal of Rink Design Partnership, recently wound that company down under a dark financial cloud, the Times-Union reported last month. An attorney for Diamond said bankruptcy was not an option for that company.

    The Diamond Architectural Group has opened an interim office at 1650 Prudential Drive, Suite 300.

    Here’s the second of the two articles I found about the new firm; this one comes from the Financial News & Daily Record of Jacksonville, FL:

    Architect Diamond launches new firm
    Jack Diamond, a 40-year Jacksonville resident and veteran architect most recently with Rink Design Partnership, has formed Diamond Architectural Group on the Southbank.

    05/04/2010
    from staff

    Jack Diamond, former senior principal with the Rink Design Partnership, has formed Diamond Architectural Group.

    Diamond, a former Jacksonville Regional Chamber of Commerce chair and an architect known as “Mr. Downtown,” has opened an interim office on the Southbank. Diamond will operate in Suite 300 at 1650 Prudential Drive, in the Dupont Center. He said it was time “to draft a new kind of design platform for a new century.”

    Diamond wants to capitalize on digital communications and to align architects and firms across the country.

    He said it was also time, “in my opinion, to demonstrate that succeeding in today’s complex business environment requires a true commitment to sound core values, to the willingness to take risks, to the ability to adapt to new business practices and to the courage to find alignment between professionals who have the tenacity to weather the many changes that are part of our world today.”

    Diamond, 65, has designed many of the city’s signature structures, including the South Central Office Operation Center for the Prudential Insurance Company of America, Southern Bell Tower (now the AT&T tower), SunTrust Tower (formerly the Jacksonville Center), the Bryan Simpson U.S. Courthouse and the Times-Union Center for Performing Arts.

    He also has designed projects at Vicar’s Landing, Glenmoor at St. Johns Life Care Community and multiple projects at the University of North Florida and Florida State College at Jacksonville Kent Campus.

    Diamond also has worked on the last three master plans for Downtown as well as the City Hall at St. James building. He came to Jacksonville in 1970, where he worked for KBJ Architects for 27 years, including the last 14 years as its president. He has served as chair of the Jacksonville Regional Chamber of Commerce, the University of North Florida Foundation, the Boy’s and Girl’s Clubs of Northeast Florida, the YMCA of Florida’s First Coast, Visit Jacksonville and the United Way campaign.

    Diamond started Diamond Architects 13 years ago before merging with architect Jim Rink and Rink Design Partnership. That firm has been winding up operations.

    “Going forward, my commitment to my current clients as well as our future projects is to bring bold innovation, quality design and practical business acumen combined with the same commitment to responsibility and outstanding service that has marked my career,” said Diamond.

    Diamond will be tapping the talents of Craig Davisson, Jason Faulkner and others with whom he has worked through the years.
    Diamond will be honored by OneJax Thursday for his involvement in making a difference in the quality of life in the Jacksonville community.

    “I sincerely look forward to the commitment of creating socially significant projects that make a difference in each community and meeting the creative expectations of each client in the years to come,” said Diamond.

    – – – – – – – – – –

    Blog author’s comment:

    To Jack Diamond: Jack, congratulations on the opening of your new firm. We wish you every success with your new venture!

  • This is a very interesting development, read on…..

    Press Release from ABC Imaging:

    ABC Imaging & Raak GmbH sign agreement to promote and implement FM operations in Germany
    Washington, DC—June 16, 2010—ABC Imaging and Raak GmbH and its affiliates today announced that they have signed an operating agreement enabling Raak to represent ABC Imaging in Germany as of September 1, 2010.

    The agreement allows ABC Imaging to provide on-site printing and document management services to clients in Germany. Raak, located in Frankfurt am Main, will provide staff, resources, and industry contacts to support these sites.

    “The agreement gives us presence in an important European market,” said Medi Falsafi, President and CEO of ABC Imaging. “It’s another part of our goal of increasing our global reach.

    Raak provides printing and printing services to medium and large clients in Germany. Like ABC Imaging, Raak promotes the service-side of their business providing logistical support to clients as well as printing.

    “Our goals were to continue to grow and to expand our services, for example, with facilities management,” said Alexander Raak, Managing Director for Raak GmbH. “Therefore, we looked for a strategic partnership. We identified a co-operative agreement with ABC Imaging as the best opportunity to reach our goals.”

    Mr. Raak offered that despite the current difficult economic and market situation, Raak GmbH has continued to grow. This accomplishment matches the performance of ABC Imaging, which has continued to sign enterprise-wide contacts with major clients the last several years.

  • Service Point, the second largest reprographics services enterprise in the world, just issued a press release to announce its newest innovative product line – The Concept Store!

    Here’s a portion of the press release:

    15 June 2010. – The Norwegian subsidiary of Service Point Solutions, S.A. (stock market ticker: SPS.MC) has inaugurated an innovative digital print centre called the Concept Store in downtown Oslo. This centre provides new digital printing services combining all manner of materials.

    The Concept Store is a new class of service centre that puts digital printing at the service of individual creativity. “We are using technology to make the world more personal, more creative,” says Joan Carles Peiró, COO of Service Point, “Customers coming in to print or photocopy on paper are leaving with personalised tiles, lamps and cushion covers.”

    The Oslo centre is serving as the pilot for Service Point’s plans to launch more Concept Stores in other operating markets, most imminently the UK, German and Spain, under the umbrella of a diversification strategy designed to leverage innovation to extend traditional B2B (Business-to-Business) services to the B2C (Business-to-Consumer) channel.

    Service Point’s goal is to open 15 new Concept Stores in Norway by year-end. This new business line is expected to generate revenue of roughly €500,000 in 2010 alone.

    According to Joan Carles Peiró, COO of Service Point Solutions, “We are focusing strategically on innovation. “And innovation is not only about technology: it is an attitude. The idea is to enable the customer to attain his or her goals more efficiently and effectively. We have selected Norway as the pilot market for this business model because of the recurring nature of our earnings in this country, where our brand recognition is excellent. In 2010 Norway is expected to be the biggest contributor to Group cash flow generation and profits.”

    You can access the Press Release at this Internet address:
    http://www.servicepoint.net/es/press/docs/PR_Oslo_150610.pdf

    – – – – – – – – – – – – – – –

    Joel’s math:

    500,000 Euro x 1.25 = approximately $625,000 USD

    $625,000 USD / 15 stores = $41,667 USD (Average Revenue per store expected in 2010 from the 15 new stores expected to be open in 2010) Rock and Roll!

    Okay, I know what you’re saying, “Joel, these 15 new stores will all be in their “start-up” phase in 2010, so it’s not fair to compute average store revenue as you’ve shown it.”

    Joel’s comment:

    There is that old saying, “nothing ventured, nothing gained.” But, after reading the press release, I could not help myself from asking, “WHAT? HUH?”

    At least I know where I’ll be able to get a personalized lamp-shade when I visit Norway early next year. For that matter, maybe a couple of personalized photo-realistic pillows. Or, how about some ceramic tiles – showing images of me skiing the slopes in Aspen – for my bathroom renovation project? Waaaay cool, huh? As the COO said, it’s all about attitude and creativity. Express yourself? I hope they set up a web-site for ordering over the Internet!

  • This is my stab at an index for the U.S.A. A/E/C reprographics industry for 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 l/f 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 (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

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

    Q2– 1.06——-1.18——-0.98——0.65——

    Q3– 1.08——-0.97——-0.85——0.57——

    Q4– 0.89——-0.93——-0.64——0.49——

    Based on this index, the sales volume of “printed plans on paper” was off 45% in Q1 2010 compared to Q1 2006.

    Your comments and questions are invited.

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

  • You can access the next report at this internet address:

    http://www.federalreserve.gov/fomc/beigebook/2010/

    If you are in the A/E/C reprographics business and prefer to keep your head above the sand (rather than have your head buried in the sand), you should take the time to read the Fed’s June report, due out on June 9th.

    If you are not familiar with the Federal Reserve “Beige Book” report, it is published 8 times each year, and it contains comments and observations on economic conditions in each of the Federal Reserve “Districts”. It is a USA-wide economic conditions summary, broken-out District by District. Every district normally makes comments on these issues that are important to A/E/C reprographers; what’s going on with residential development activity, what’s going on with non-residential development activity, and conditions in the lending market (such as financing, or lack thereof, for real estate development projects.)

  • In the “Deals and Dealmakers” section of the Wall Street Journal on May 21, 2010, Michael R. Crittenden (I think he is a WSJ staff writer) authored an article titled, “Problem Banks up to 775”.

    Within that article, he states that, as of the end of Q1 2010, 775 banks in the U.S., or roughly 10% of the U.S. industry, are “problem” institutions …. “as bad loans in the commercial real estate market weighed on bank balance sheets.” (At the end of 2009, 702 banks were listed as problem institutions, and, at the end of 2009, 252 banks were listed as problem institutions.)

    FDIC Chairperson, Sheila Blair, was quoted in the article, saying “the banking system still has many problems to work through, and we cannot ignore the possibility of more financial market volatility.”

    Further on in the article it says, “banks, squeezed by problem loans and continuing economic struggles, responded by reducing their lending. The industry’s total loan balances grew by 3% in the quarter (Q1 2010), but the increase was due to accounting changes that required banks to bring securitized assets back onto their balance sheets. Without those accounting changes, lending would have declined for the seventh straight quarter.”

    – – – – – – – – – – – – – – – – – – – –

    My comments about this ….

    This situation, banks restricting commercial lending, has to be fixed (i.e., improve) before there can be any “robust” recovery in the A/E/C industry and that, of course, applies to the recovery of the A/E/C reprographics industry as well. I’ve mentioned this same issue in previous posts on my blog, as well as ….companies in the reprographics industry know (or should know) that real estate developers commit to projects when they (the real estate developers) have access to “other peoples’ money” (commercial real estate loans, primarily from banks and insurance companies) to finance their projects, and, when commercial real estate loans are difficult (or impossible) to get, they will not commit to projects. I would think that this is one of the reasons why the AIA ABI Index has shown declining demand for many, many months in a row.

  • Well, the annual IRGA Convention ended late this afternoon, and although the number of attendees was still down from two, three, four, etc years ago, attendance at this year’s convention appeared to be about the same as last year. Next year’s IRGA convention will be held in Las Vegas. Hopefully, the recession the reprographics industry has been enduring will be over by then and that plus the location of Las Vegas will attract a higher number of attendees.

    About this ‘wrap-up’ I’m about to type; I am not a good note taker (when I take notes during an event, I lose track of what I’m listening to, so I prefer to do my write-ups from ‘memory recall’ rather than from written notes.) So, pardon me if my write-up misses some of the stuff that happened at the convention. (Those of you who wish to do so can submit your own ‘wrap-up’ by posting “comments” to this post.)

    First, I’d first like to mention Mike Cully. Mike Cully is the outgoing IRGA President. Mike is an outstanding guy, and I’m sure that everyone appreciates the personal time Mike has devoted to the IRGA. I absolutely love Mike’s sense of humor, and I am positive that Kevin Cully, his brother and partner in Air Graphics, has had an influence on Mike’s sense of humor. (Kevin is a great guy, just like Mike.)

    Second, I’d like to mention Gary Wilbur (of RS Knapp / Napco), who will be the IRGA President after Mike Cully leaves office. Like Mike, Gary has devoted a ton of time and energy to the IRGA, and I wish him success as the next President of the IRGA. If you are an IRGA member, support Gary’s efforts, and one of the best ways of supporting Gary (and the IRGA Board) would be to encourage your local competitors to join the IRGA this year.

    Third, Steve Bova and his SmithBucklin Group team members did another outstanding job organizing this year’s convention.

    Fourth, I am compelled to mention that this years Convention Education Program Chair, Casey Simpson (who is a member of ARC’s Global Solutions team), did a truly outstanding job. The educational breakout sessions were excellent – thought provoking – actionable – etc. The Open Space Technology session held this afternoon was Tanner Bechtel’s idea, and my own personal opinion of this method of collaboration and networking …. it was excellent. (Tanner is also a member of ARC’s Global Solutions team.)

    Now, on to the convention “wrap-up” …..

    Last year, I said that K.P. Reddy’s presentation (about BIM) was ‘worth the price of admission.’ (KP Reddy is President of RCMS Group and he is an expert in BIM technology. Last year, RCMS Group was a private company; but at the end of September last year, RCMS Group became an ARC-owned enterprise. KP is now part of ARC’s management team.) My “nod” for this year’s ‘worth the price of admission’ presentation goes to Henry Givray, Chairman and CEO of SmithBucklin Group. The subject of his presentation was “The Passion of Leadership”. Only one word can truly express my opinion of Henry’s presentation – AWESOME! There are many of us who think we know all there is to know about “leadership”, so “why bother to hear another presentation about that subject?” After all, many of you own businesses and “what can anyone tell us that we don’t already know?” During Henry’s presentation, he points out the differences between “management” and “leadership” and points out that the two don’t necessarily go hand in hand. (One of my ex-partners, Martha Korman, has, for many years, said that “managers transact, but leaders transform.”) For those of you who “think you are leaders”, I invite you and suggest to you that you dwell hard on the presentation that Henry gave today, for there are many of us who think we are leaders even though we’ve not yet gone beyond being managers. In Europe, I have the privilege of working with a young man who is a natural born “leader”, not to mention an exceptional “manager.” In spite of his abilities, he would have paid very close attention to Henry’s insightful presentation this afternoon. Actually, he would have been ‘riveted’ to his chair, like I was. (For those of you who attended Henry’s presentation but were dawdling with your iPhones, iPads, Blackberries and other gadgets while Henry was giving his presentation, you missed one of the best presentations about leadership and management that I’ve ever heard …. and at 63 years old, and considering that I’ve read a lot of books on that subject and attended lots of events where that subject was discussed ….. I think that’s saying something. Henry’s presentation was not just excellent, it was extremely well organized and given with, yes, PASSION. Thank you, Henry.

    Most of this year’s educational breakout sessions were very informative and thought provoking. But, I’d like to make special mention that it was nice to see Jim Ryerson (of Sales Octane) back for a second time. If you want to stoke the fires of your sales managers and sales team members, Jim lights fires as well as anyone I’ve ever met. His presentations are not just chock full of actionable information, but fun to listen to.

    During my explorations in and around the trade show, I discovered a company called “ReproConnect”. They were demonstrating and will soon be releasing on the market a software program called “ROCR” (pronounced “rocker”). Well, all I can say is ‘rock and roll’, the guys/gals on this team have come up with an automated way to rename and index files after documents have been scanned. Sounds like an excellent software product to me; one that will save time and allow reprographers to give better, more accurate, faster service to their customers.

    About HP, I am a huge fan of HP’s “latex” printing technology. If you did not take the time to check that out, you must do so.

    The opportunity to “network” at the IRGA is simply outstanding. And, it is one of the reasons why I said, in a post I did last year or the year before, that those of you who do not attend the IRGA convention are idiots. The opportunity to learn from others in the industry (and to share successes and failures and wins and losses) and to discuss and debate industry and business issues is ALWAYS worth the price of admission to an IRGA convention.

    Based on conversations I had at the IRGA convention with vendors who sell to the reprographics industry and with reprographers from all across the U.S., it appears that reprographers in the U.S. have finally hit bottom and that an upturn is going to be happening in the not too distant future. Therefore, I’m sticking to a prediction I made in a post I did not too long ago – that by Q3 2010, most reprographers will finally see a year-over-year improvement in their numbers.

    And, I say that in spite of one of the more interesting presentations given at this year’s convention. The presentation I’m now mentioning was this one: “Paperless and Virtual – Future of the AEC Industry and Reprographics” – presented by Bob Middlebrooks, Industry Programs Manager, Autodesk. Prior to joining Autodesk, Bob was a practicing Architect, so he is very familiar with the reprographics industry …. what reprographers do, where reprographers fit in the food chain, and the challenges that reprographers face. During his presentation, he suggested several ideas for diversification; basically, services reprographers might want to consider offering in the future to help replace revenues from declining prints-on-paper volumes. If you did not attend Bob’s presentation, then you might want to buy the tape recordings of the IRGA convention, but I’m going to warn you; if I were to “sum up” in just a few words what Bob’s suggestions amounted to (and using the phrase “few words” and “Joel attempting to doing that” is an oxymoron at best), if you follow Bob’s suggestions you will be in a different business than reprographers have traditionally been in. Kind of like suggesting that, since reprographers have ‘relationships’ with A/E firms and GC’s, we can rent them cars or sell them furniture. At the end of Bob’s presentation, he called for questions from the audience. At first, there was a “stunned silence.” Bob said things that reprographers just don’t want to hear. I totally agree with Bob that changes are already underway (in the A/E/C industry) that will lead to declining prints-on-paper volumes over the years to come. But, I don’t agree with several of the suggestions Bob made to reprographers, about new services they might consider adding. But, ‘what do I know’, anyway?

    Okay, that’s it for my post-convention write-up.

    Except to say, that those of you who’ve been reading my blog know that I attended the GGN conference in Rome last month. That conference was attended by European reprographers. To the European reprographers who read my blog, consider attending the IRGA convention next year in Las Vegas. For those who attend, I’ll buy the “first round.” Although I found the GGN conference to be well run and informative, there is, in my opinion, nothing that matches the networking opportunity offered by an IRGA convention. I encourage my European reprographer friends to also consider joining the IRGA as members.

    One final “special” mention about a gentlemen most reprographers know, John Cronin, CEO of PLP. In all my years in the industry, I’ve never met an industry vendor who was as “participative” as John is. In many (I think I should say, “most”) of the customer proposals I developed over the many years I was actively involved in the reprographics business in the U.S., I said, “we are very aware that our success depends on your success; we will do everything in our power to help you make your business more successful.” John Cronin exemplifies that phrase. John is always asking questions. John knows that asking customers questions is paramount to his company’s success. John is always full of thought provoking ideas and suggestions. If you’ve never done business with John, you are missing out on a valuable experience. Although many will consider my comments about John to be sort of an advertorial for PLP, they are not meant to be, or intended to be, that. I’ve made these comments about John because he is that good to work with, and because I think his contributions to the industry have been significant.

    Next year in Vegas ….. certainly hoping that the industry will see a very nice rebound by then!