Reprographics 101

Per the AIA press release….

“Architecture firm billings declined for the ninth consecutive month in November. (2020).  The ABI score of 46.3 for the month indicates that the pace of the billings decline accelerated from October, after moderating in September and October (any score below 50 represents a decline in firm billings). The recent increase in COVID-19 cases over the last several weeks seems to have put a damper on the nascent recovery, and also appears to be reflected in a decline in the value of new design contracts in November, following their first increase since February last month. In addition, while inquiries into new work continued to rise, the pace of that growth slowed substantially from the previous two months. Together, these signs indicate that client interest in new projects has started to wane after more encouraging signs last month.”

“Business conditions also remained soft across much of the country in November, with billings weakening most noticeably at firms located in the Northeast, which were also hardest hit earlier in the pandemic. However, architecture firms in the Midwest saw their billings rise slightly for the first time since January. In addition, this month firms with a multifamily residential specialization saw modest growth for the fourth consecutive month, as that sector remains the one bright spot amid the pandemic-induced downturn. But billings continued to decline at both firms with commercial/industrial and institutional specializations, with firms with a commercial/industrial specialization seeing a less dramatic decline, likely due to increased demand for distribution, logistics, data centers, and other industrial facilities recently.”

“However, firms remain modestly optimistic about 2021”

_____________

Blog publisher’s comment:  I am extremely concerned that a nine-consecutive-months decline in the AIA ABI Index could reasonably be construed as predicting a “no recovery” situation (i.e., there will be no recovery) for reprographers in 2021, at least with respect to revenues generated from A/E/C reprographics services.

From an article on CNN on the Internet, Jan 14, 2021…..

Costco is closing its photo centers at all of its roughly 800 stores next month, ending a number of services that have a decidedly retro vibe.

Four services will no longer be available to shoppers when the centers will shut down on February 14, including ink refills, the ability to take passport photos, photo restoration and a service that transferred home videos from VHS tapes to DVD or USB devices. 

 

However, Costco isn’t shutting down its online photo center. Customers can still print photos and access other perks on Costco’s website, the company said.

 

Costco (COST) didn’t immediately reply to CNN Business about the closures. But a letter obtained by a photo blog reportedly sent from Costco to its customers explained that the “need for printing photos has steeply declined”since the introduction of high-quality cameras on smartphones and social media. 

 

Once a staple at grocery stores and pharmacies, photo centers have become increasingly extinct as more people choose to share their photos online rather than print them out.

 

What do you do to replace lost revenues from customers not printing as much to hard-copy as they used to print to hard-copy?

The on-again, off-again deal is apparently a go once again.

By Eric Volkman (this article was published on the Motley Fool on Nov 16, 2020)

 

On Monday, Simon Property Group (NYSE:SPG) and peer Taubman Centers (NYSE:TCO) announced in a joint press release that they’ve amended the terms of their merger agreement.

Under the new terms of the deal, Simon will essentially acquire Taubman, paying $43 per share for an 80% stake in its fellow retail real estate investment trust (REIT). That price is the most notable term of the modified deal, as it’s down from the originally agreed $52.50.

Since it was originally announced in February, the merger has assumed the dimensions of a soap opera. With the coronavirus pandemic and its devastating effect on the retail sector, Simon tried to back out of the deal entirely. In return, Taubman sued its would-be acquirer to prevent this. That lawsuit has been settled, both companies said.

A rapid decline in fortunes could be a major reason why the two REITs again found common ground. In its most recently reported quarter, Taubman suffered a 16% year-over-year decline in its total revenue, while its adjusted funds from operations (FFO, considered the most important profitability line item for REITs) fell a steeper 29%. 

Simon’s recent declines are even sharper. In its latest published quarter, the company’s top line eroded by 25%, and FFO decreased by 33%.

ABI October 2020: As the decline in billings continues to slow, architecture firms report an increase in contracts signed for new work.

AIA ABI Billings, October 2020, 47.5

Previous month was 47.0

AIA ABI Design Contracts, October 2020, 51.7

Previous month was 48.9

Seeking older OCE Colorwave 900-910 systems …. Oce TDS-700 – 750 – TDS-600 – Plotwave’s. 

 

Jon Lazar – WTC, 919-605-4534 

Email  jlazar477@gmail.com

Link to September 2020 AIA ABI article:

 

http://content.aia.org/sites/default/files/2020-10/RP20_382260_10-16_ABI_infographic-September19–September20.pdf

 

FROM AN ARTICLE PUBLISHED ON CNBC —–

PUBLISHED WED, OCT 21 202012:53 PM EDTUPDATED WED, OCT 21 20201:30 PM EDT

 

KEY POINTS:

 

·       White House economic advisor Larry Kudlow maintained that the U.S. is in a V-shaped recovery.

·       Multiple indicators show that the belief in a sharp rebound isn’t so, according to Ron Insana.

·       Consumers are substituting goods and services, causing imbalances across the economy, Insana said.

Link to full article:

https://www.cnbc.com/2020/10/21/commentary-kudlow-is-wrong-this-is-not-a-v-shaped-recovery.html?recirc=taboolainternal

I keep hearing Larry Kudlow talk about the “V-shaped” recovery the U.S. is now (supposedly)in the midst of.  

UH, WHAT IS HE TALKING ABOUT!!!???

Right now, the U.S. is experiencing…..

–       Record unemployment

–       Record deficit spending

–       Record national debt

–       Record number of small businesses closing

Article appearing on “FinancialPost.com” this morning….

“Bond defaults deliver 99% losses in new era of U.S. bankruptcies”

Bankruptcy filings are surging, and many lenders coming to realization their claims are almost completely worthless.  

(

Bloomberg News. Jeremy Hill and Max Reyes, Publishing date:Oct 26, 2020)

Copied from that article….

“Bankruptcy filings are surging due to the economic fallout of COVID-19, and many lenders are coming to the realization that their claims are almost completely worthless. Instead of recouping, say, 40 cents for every dollar owed, as has been the norm for years, unsecured creditors now face the unenviable prospect of walking away with just pennies — if that.

While few could have foreseen the pandemic’s toll on the economy, the depth of investors’ pain from corporate distress was all too predictable. Desperate to generate higher returns during a decade of rock-bottom interest rates, money managers bargained away legal protections, accepted ever-widening loopholes, and turned a blind eye to questionable earnings projections. Corporations, for their part, took full advantage and gorged on astronomical amounts of debt that many now cannot repay or refinance.

The pandemic is upending industries like retail and energy, making it unclear how much assets like stores and oil wells will be worth in the future. The underlying problem for many companies, though, is that they have astronomical levels of debt after borrowing with abandon over the previous decade, then topping up with more to get them through the pandemic.”

Link to complete article:

https://financialpost.com/news/fp-street/bond-defaults-deliver-99-losses-in-new-era-of-u-s-bankruptcies

	ARC				2020 to 2019	2020 to 2019
	2018	2019	2020		$ change	% change
Q1	$      97.71	$      97.10	$     88.40		$         (8.70)	-8.96%
Q2	$    104.19	$      98.90	$     64.30		$      (34.60)	-34.98%
1st H	$    201.90	$    196.00	$   152.70		$      (43.30)	-22.09%
Q3	$    100.47	$      94.10	$     70.00		$      (24.10)	-25.61%
9 Mo	$    302.37	$    290.10	$   222.70		$      (67.40)	-23.23%

 

All figures are in millions (so, $97.17 = $97 million).

Green shaded-cell contains ARC’s estimate of Q3 Net Sales (per press release on Oct 19, 2020.)

 

Women in Wide Format Awards

Each year for the past five years, Big PictureMagazine recognized six successful business women in the wide-format digital print industry. 

 

Congratulations to all!

 

Link to Bio’s of the awardees

https://www.bigpicture.net/channel/term/article-type/women-print