Reprographics 101

Does anyone out there know anyone who has a crystal ball that works? Well, I surely don’t. However, while impossible to accurately predict how companies in the reprographics business will perform in 2009, from what I’ve read and heard, 2009 may well prove to be “the most challenging” year in the business in modern times.

In the reprographics industry “demand” for our services drives all that we do. That “demand” is driven by real estate development activity. The term “Real estate development activity” includes a lot of things, including, but not necessarily limited to, retail development, residential development (apartments, condo’s, single family homes, townhouses, etc.), office buildings, churches, synagogues and mosques, hospitals and other healthcare facilities, sports and other entertainment venues, schools (from elementary schools to Universities), public-sector infrastructure projects (water/sewer treatment facilities, roads, highways, bridges), yada, yada, yada. During different recessions in the past 40 years, some of these sectors have been off while others have remained healthy (at least somewhat healthy.) Now, even with the stimulus bill passed, it still appears that almost every sector will be “off” (and well off) in 2009. When tax revenues decline, cities, counties and states have to limit renovation projects and new construction projects. When there is a severe excess of residential property, lenders won’t lend and residential builders won’t build. And, when commercial and institutional lenders won’t lend, commercial and retail developers won’t develop. And, when endowments decline substantially, Universities will “put on hold” most of the projects they were planning to do; this also exacerbated by declining contributions. Because we are a continually aging population, perhaps the healthcare industry will continue to go forth with projects that industry’s firms started or had on the boards. Greed, excess, or whatever you want to call it, finally caught up with us, and, yes, the proverbial “shit hit the fan” in 2008 …… and the outlook for 2009 looks dismal, by any stretch of the imagination.

But, look at the bright side! With every down-cycle comes an up-cycle! That has always been the case with the reprographics industry and, yes, history does have a way of repeating itself, time and time again, economically-speaking.

The key issue, now, is not that there will be an up-cycle (because that, the next up-cycle, will eventually happen) but whether or not your company will survive to make it to the next up-cycle. Key to this will be “right-sizing” your business. You must do everything in your power to “right-size.” Having been through at least one recession myself, right-sizing isn’t fun. It is a completely agonizing process. Right-sizing may include one or more of the following activities – consolidating locations, laying off people (even good people), salary and wage reductions for those who continue to be employed (including top and middle-management team members), rent reductions (yes, consider asking your landlord to help you though the down-cycle; your landlord will be better off with a tenant who still pays at least some rent than having vacant space and zero rent.) Right-sizing doesn’t mean “crawling into a shell.” You’re not a turtle and you cannot afford to be a turtle. You need to continue investing in “business development and sales” activities, full-tilt.

The world’s largest reprographics company – American Reprographics Company (ARC) – has been working hard at right-sizing its business the past year, and this effort will continue, I’m sure, in 2009. We can all learn from ARC. ARC has assembled one of the finest management teams ever to grace our industry. Follow ARC’s right-sizing initiatives. Stop complaining and whining about deteriorating business conditions and get deep into the process of right-sizing your business. Your survival may well depend on how well you do that. Throw out your “strategic plan” from one, two or three years ago. It is not valid now. You need a completely different “strategic plan” for 2009 and 2010.

Above all, remember, there will be an up-cycle, come hell or high water. The point now is what you do to get through this down-cycle in order to make it through to the next up-cycle.

Several years ago, the reprographics company I was then with hired a “management consulting” firm to help our management team better “understand” how to manage our company. Was hiring that management consulting firm a good use of the company’s money or a useless, wasteful exercise in futility? Well, the answer to that question depended on the perspective of each individual on our management team. For some, especially for those who did not have the opportunity to go to college (and take courses in business and business management) or the opportunity to work for any other company before they joined ours, I guess it was a worthwhile investment. But, for others (I’m in this latter group, which may be a group of one, i.e., just me!), it was a complete was of time, effort and money.

One of the issues our consultant raised was the issue of “consensus decision making” – keyword, consensus. Get a group of management team members together, discuss an issue, take a vote on what to do, how to proceed on that issue, and, then, after the decision is made, everyone on the team is supposed to support (and stand behind) the decision that the group made. Even if the decision is completely off-base, stupid, dumb, not-thinking, baseless! While group discussion and debate should be a part of any business’ planning function – for two heads (or more) are always better than one when airing-out, debating, issues, BUSINESS IS NOT A DEMOCRACY! I have a smart young man (not me, I’m neither smart nor young) to thank for that answer.

Regardless of the size of the group invited to discuss and debate a matter or issue, one person, repeat, one person, has to have the final say …. and the right to overrule the decision that the group came up with. In some companies, that’s the role of the CEO and in others that’s the role of the COO. Regarding the formation of groups (invitations to debate and discuss issues) it is certainly (and, I think vitally) important that those who participate must be subject matter experts (or, through tons of homework and study about the business and industry, be working hard towards becoming subject matter experts), for, if some participants have little or no subject matter expertise, what’s the point of allowing them to debate in the first place.

At this particular company, we had “outsiders” among the individuals on our Board of Directors, one of whom was a Harvard Business School MBA grad (a brilliant young man.) At a break during one of our B of D meetings, I asked him, “what do you do when you are the leader in a room of people and your people vote and come up with the wrong decision” (vis a vis “consensus decision making”). His response, “Joel, business is not a democracy. When you know the group came up with the wrong decision, the boss has to step in and say ‘no, that’s wrong, thank you for contributing, but here’s what we’re going to do.’”

There is an old saying that, I think, well applies here. It’s the old saying that “the buck stops here.” While leaders should invite and value the opinions of those on their management teams, one person has to make the final decision. Therefore, the idea of consensus decision making, while it might sound like a cool thing, is pure B.S.

I’m an older guy. That should make you fully aware that I’m somewhat “technically challenged” when it comes to setting up, using, or posting to a blog. I did want to mention on my blog that there are other blogs, either partly or totally dedicated to talking about the Reprographics business and industry, live and in color on the Web. Below, I’ve listed the ‘reprographics-industry-related’ blogs that I’m aware of. If you know of other blogs, ones that I’ve not mentioned below, I’d be happy to add them to this list. Please let me know.

The “Reprographics Industry” is a sub-industry within the much larger “Printing and Graphics Industry.” The Reprographics Industry is not well known by most people. (As an example, I was in the reprographics business for many years, and my wife still doesn’t know what I did for a living.) Although the reprographics industry primarily serves customers the A/E/C community (Architects, Engineers, Construction Companies, Real Estate Developers, etc.), companies in the reprographics industry also provide services that appeal to non-A/E/C customers.

In mentioning the blogs of others, please note: I am not including these blogs for promotional purposes, nor is my inclusion of these blogs on my blog an endorsement of the individuals or companies mentioned. Quite frankly, I expect that I will have very different opinions about most subjects. Without further adieu, here’s a list of the other ‘reprographics-industry-related’ blogs that I’m aware of:

John Cronin’s blog (The Blueprint) can be found at:
http://theblueprint.typepad.com/
John is the CEO of PLP Digital Systems, Inc.
PLP’s web-site provides this information about PLP: For more than a decade PLP Digital Systems has helped companies produce, manage, distribute and track technical documentation. With a broad suite of software solutions and world-class customer support, our mission is to improve our customers’ profitability by decreasing operating costs and by creating new revenue opportunities with innovative products. Our powerful software, strong customer service model and progressive philosophy have made PLP the partner of choice for more than 1,100 companies in 30 countries. PLP is headquartered in Arlington, Virginia.

Curtis Thornton’s blog (ReproTrends) can be found at:
http://www.reprotrends.blogspot.com
Curtis is a member of the Thomas Reprographics team. Thomas Reprographics is based in Dallas, TX. When one consolidates the annual sales revenues of all of the reprographics companies controlled by the Thomas family, Thomas Reprographics is ranked among the top 5 reprographers in the U.S. Thomas Reprographics is a member of the ReproMax organization.

Jared Willis’ blog (BuildIt) can be found at:
http://buildit.typepad.com
Jared is a member of the Barker Blue Digital team. Barker Blue Digital is based in San Mateo, CA. Barker Blue Digital is a member of the ReproMax organization.

Tanner Bechtel’s blog (The Rockpile) can be found at:
http://www.tannerbechtel.com
Tanner is associated with the ReproMax organization.

After spending (investing!) nearly all of my adult life (39 years and counting) in and around the reprographics business and industry – – and being one of the most opinionated people in the reprographics industry (at least that I’m aware of), I’ve decided to start a blog to share my opinions.  (One of my ex-partners said, in the past, that I’m not “opinionated” but, rather, that I’m “arrogant”.  My take is that he said that because he doesn’t know the difference between being “arrogant” and being “highly opinionated.”)  Whatever.  I should not fail to mention that my favorite comedian is Lewis Black.  That should give you some sense of my sense of humor. Although I’m intending to use this blog to share my thoughts and opinions about the reprographics business and industry, it is highly likely (if not a given) that I will rant and rave about other topics.