april 2011 - capital investments

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GRAPHIC ARTS MAGAZINE would like to thank our contributing writers:Diana Brown • Tony Curcio • Peter Dulis • Natalia Gilewicz Andrea Mahoney • Jacky Mao • Myrna PennyKristen Read • Kelley Robertson • Chris Smyth

2011 EDITORIAL BOARD Javad Ahmadi, AliveProStudios.comErnie BardoczDanny Ionescu, HPEvan Cambray, SpicersSteve Klaric, Heidelberg CanadaJana Lucatch, Magnum Fine Commercial PrintingGeorge Mazzaferro, RP Graphics GroupBrian O’Leary, Kwik KopyAngus Pady, Digital SolutionsPaul Tasker, Spicers

GRAPHIC ARTS MAGAZINEis published ten times per year by B.K.L.K Inc. 72 Main St.Mount Albert, ON L0G 1M0Phone: 905-473-9111 Fax: 905-830-9345Outside Toronto: 1-877-513-3999e-mail: [email protected]

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17 Capital investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Chris Smyth

North American investment trends and more

22 For the record . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tony Curcio

This month: Bob Elliott from CPIA

24 Understanding todays marketing landscape . . . . . . . . . Myrna Penny

New media trends and measuring marketing spend

30 On-demand fabric printing . . . . . . . . . . . . . . . . . . . . . . . . . Peter Dulis

Therman transfer, dye-syb, DTG explained

32 For your print information . . . . . . . . . . . . . . . . . . . . . . . . . . Jacky Mao

Ink tack and rub resistance

36 Education and training 101 . . . . . . . . . . . . . . . . . . . . . . . . Diana Brown

Maintaining your skill set in today’s competitive workforce

40 Colour automation tools have more under the hood . .Andrea Mahoney

More functionality with CMYK Optimizer

42 Product Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Diana Brown

This month’s topic: MIS systems

50 11 webinar mistakes you need to avoid . . . . . . . . . . . . Kelley Robertson

Are you guilty of making these common mistakes?

8 Installations & Investments

46 List of advertisers

47 Classified

48 .comments

Publisher: Joe Mulcahy Associate Editors: Natalia Gilewicz Kristen Read Copy Editor: Mandy Bayrami Senior writer: Tony Curcio Columnist: Diana Brown Production Manager: Barb Vowles Account Managers: Maureen O’Sullivan Sandy Lee Tim Mulcahy Classified Manager: Bruce MacLean Creative Director: Javad Ahmadi AliveProStudios.com Layout: George Dedopoulos CTP supplied by: Sina Printing Paper: SNZ Trading Inc. Printing: Sina Printing

April 2011

Capital investments

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At press time, a federal election was imminent. Well, here’s the good news: banners, lawn signs and flyers will need to be print-ed. The possible bad news is that an election may see a delay in the extension (to Dec. 31, 2013) of the Accelerated Capital Cost Allowance (ACCA) which was to be included in the federal budget. “We have been asking the Conservative government to extend the ACCA…..and are extremely pleased that this has been granted,” says Bob Elliott, CPIA President. “However the threat of a federal election…..would potentially put this conces-sion in jeopardy.”

This month’s big show, Grafik’Art 2011, will once again be held at Place Bonaventure in Montreal April 14 – 16 and there are more exhibitors compared to the Grafik’Art 2009 show. It will focus on press and pre-press techniques, sales and marketing and management. Be sure to stop by our booth (#348) and say hello. Next month, on May 11, InterQuest is bringing its day-long Digital Printing Forum to Toronto at Ryerson University’s Hei-delberg Centre in downtown Toronto. Topics will include direct mail and multi-channel marketing and digital book and manual printing. This Fall, Mutoh and Avery Dennison will sponsor a car-wrap training tour. It hits Toronto Sept. 8 for three days with car-wrap specialist Justin Pate in the spotlight.

People and mergers are also making news this month. Hadi Mahabadi, VP and Director, Xerox Research Centre of Canada, Mississauga, has been named the recipient of the Robert F. Reed Technology Medal from the Printing Industries of Amer-ica. Rudi Lenz, President/CEO of Sun Chemical, is now an

Executive Officer of DIC Corp., Sun’s parent company. And Pat-rick Bolan, President and CEO of Avanti Computer Systems, has joined the advisory board of CIP4. Congratulations to all. KBA has partnered with R.R. Donnelley to manufacture and market inkjet products for several specific markets. Barney Printing Ltd. of Woodstock, Ontario and Aylmer Express Graphics Group are joining forces. Barney Printing is a 77-year-old commercial print-er while Aylmer was founded 130 years ago.

In other news, Google’s ambitious plan to digitize every book ever published was nixed last month by a federal judge in New York. Apparently copyright laws were a big part of the problem. Another revenue-producing niche, printed game manuals, is being cut from many new releases of video games to make them more eco-friendly. Finally, Hemlock Printers, based in Bur-naby, BC, has a new logo that now includes the phrasing: “Integrity. Innovation. In Print.”

Hopefully, as you’re reading this, the warm weather we have all been waiting for so patiently will be upon us. As always, stay positive and stay focused.

Joe Mulcahy

Joe Mulcahy

Publisher, Graphic Arts Magazine

[email protected]

Print can do.

Print canfly to Jupiter.

… 3 – 2 – 1 – zero. Start for the world’s most wonderful children’s program. Lift-off begins on page 1. And the rocket climbs higher with every letter. Past the moon and deep into our solar system. Everything looks just as you imagined it would. Your thoughts drift weightlessly until on the last page the rocket comes in to land. The book is finished. But the story goes on.

www.manroland.us.comwww.manroland.ca


We love mathThis is your official content warning: this magazine issue contains articles with numbers and mathematical language. Reader patience is advised! To redeem ourselves, this month’s lead arti-cle, Capital Investment by Chris Smyth, is the result of many requests from readers like yourself for a how-to about the math. In particular, Smyth addresses methods for deciding if you should invest in new equipment. Further, he takes you through different avenues of financing if you have made the decision to buy. Presenting the advice of practitioner Sonya Kopecky Duf-fand, a key account manager at SL Financial Services Canada and academic Dr. Goss, Professor at Ryerson (who in fact is a GCM graduate with roots in the industry—and my old finance professor, but that’s clearly a tangent!) Continuing in the vain of equipment and money, monthly columnist Diana Brown discuss-es a few options for Management Information Systems (MIS). There are of course many more companies delivering MIS solu-tions, however these are highly specialized for the printer and worth investigating.

To help alleviate the math headache, we also have several excel-lent marketing articles this issue. If you are not yet a member of the DIA or missed the recent meeting, Myrna Penny reviews the highlights of the event. The focus of the article is digital media. The event speakers seem to be in agreement that print is not being replaced with digital, and that there is a place for both mar-keting avenues to prosper. Looking into the future however, it is likely that a partnership with digital marketing and printing com-panies would be beneficial.

Continuing the conversation about technology, Kelly Robertson takes your through some tips on common mistakes to avoid in webinars. For example, having the speaker using speakerphone, which I think makes it sound like they’re sitting in a bathroom. On the topic of technology that is more directly tied to print, Peter Dulis writes about fabric printing. In particular, he looks at several digital technologies that are up-and-coming. My favourite is the new direct to garment digital printers that allow you to print your designs right onto the fabric.

Without a doubt this is an educational issue! And if you haven’t had enough, this month’s 101 article is all about training and edu-cation. Diana reviews a great list of books for print beginners, and includes a wonderful list of online resources, ideas for train-ing and associations that can help! Of course that leads me to my last and final note, if you have a print background and adore edu-cation be sure to check out the GCM job posting at www.ryerson.ca/jobs

Happy egg hunting to all!

Natalia Gilewicz

Natalia Gilewicz is a full-time Assistant Professor in the

School of Graphic Communications Management at

Ryerson University. Her teaching concentration is in

areas of prepress, typography, and layout. In her

research, she studies e-print and its applications.

Contact her at [email protected]

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STYLE PRINTAt its fourth store location in Markham, Ontario, Style

Print just installed an Agfa :Anapurna M4f flatbed UV

printer with a roll-to-roll feeder. The company chose

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Agfa account executive, Parker MacDonald, and Style Print’s president,

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CITY OF BURNABYThe City of Burnaby’s in-plant print shop has recently

installed a Ryobi 524GE press, sold by Winnipeg-based

Canadian Printing Equipment. The organization pro-

vides traditional offset, digital and wide format printing

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Dave Moulden, Canadian Printing Equipment; Kevin Burns, xpedx

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Installations & Investments

LVPBased in Terrebonne Quebec, printing firm LVP has

recently installed an HP Scitex LX800 printer. Founded

in 1993, the company specializes in wide-format print-

ing for the promotional and retail sector. The new

investment has allowed the company to provide its cus-

tomers with original and effective solutions. LVP chose

the HP Scitex not only for its cost-effectiveness and

efficiency, but because of the environmental benefits.

PROCESS PRINT AND LITHO A new Xerox 700 digital colour press has recently been

installed at Mississauga’s Process Print and Litho. Pur-

chased from Fujifilm Canada, the printer has a high

speed output at 70 images per minute and also has

scanning and booklet-making capabilities. David

McClure, the company’s second-generation owner,

decided on the Xerox machine for its ability to produce

offset-looking matte finish jobs and capture opportun-

ities he hadn’t been able to before.

David McClure, owner of Process Print & Litho, with the new Xerox 700

digital colour press

Francis Tellier, president of LVP, with the new HP Scitex LX800

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Your perfect connection to the printing and graphic arts industry

3D printer creates human-like earWith the dramatic advancements in 3D printing the world has seen in recent years, it isn’t hard to imagine a future where it’s possible to manufacture human body parts. Researchers at Cornell Uni-versity have taken the first steps in creating a 3D bio-printer that could one day “print” skin, cartilage or even bone.

Almost like an inkjet printer, 3D printers lay down material in thin layers, eventual-ly building up to create a three-dimensional object. These printers have made news lately by enabling art-ists to create 3D models and miniatures

of cars, buildings and other products. Until now, materials like plastics and metals have been used. However, this 3D printing technology is really taking off, and is being applied in all sorts of industries.

A recent story, from Cornell University, takes a look at a prototype bio-printer that could one day make it possible to print human body parts – an ear for example. The bio-printer first starts with a computer file containing 3D coordinates of an ear, but instead of ink, real tissues and cells are “printed.”

Also making news in the same field is the possibility of print-ing internal organs. In new footage from the popular Ted Talks video site, surgeon Anthony Atala demonstrates an early-stage experiment that could someday solve the organ-donor problem: a 3D printer that uses living cells to output a transplantable kidney.

Atala is the director of the Wake Forest Institute for Regener-ative Medicine, where his work focuses on growing and regenerating tissues and organs. His team engineered the first lab-grown organ to be implanted into a human – a blad-der – and is developing experimental fabrication technology that can “print” human tissue on demand.

HP introduces T400 – world’s first 42-inch high-speed digital colour pressHewlett-Packard has introduced its latest technology to the graphic arts industry: the T400 Color Inkjet Web Press. The

company calls it the largest and most productive digital col-our press, “bringing the concept of mass customization to printing.” The press runs at speeds of up to 600 feet per minute.

The T400 can print up to 5,200 full-colour letter-size pages per minute. That’s 44 percent more than the closest solution from competing vendors, according to a press release from HP.

“…our inkjet web press systems are changing the business dynamics of applications such as publishing, transpromo and direct mail,” said Christopher Morgan, senior VP, Graphics Solutions Business, HP. “With the significant throughput cap-acity the new HP T400 offers, customers can now break into a world of true mass personalization and customization and take advantage of substantial new growth opportunities.”

While the T400 is scheduled to be available on the market later this year, one has already been installed at O’Neil Data Systems in Los Angeles. The data-driven marketing com-munication firm recently showcased the installation, serving as the world premiere of the new press. Company president, James Lucanish, said, “The HP T400 Color Inkjet Web Press truly is converging on offset speeds while providing the benefits of a digital printing environment.”

New: removable, reusable adhesive paperYupo, a large well-known manufac-turer of synthetic papers, presented its newest innovation at the annual Dscoop 6 conference. Called YUPO Octopus, the synthetic paper adheres to any smooth surface, yet is removable and reusable because of a new micro-suction technology.

The company says that POP materi-als, interactive marketing elements and promotions, and stand-out designs previously unheard of are now possible because of its new product.

Tiny suction cups formed on one side of the paper, nearly invisible to the naked eye, grip any flat surface like an octo-pus’ tentacles. The paper is waterproof and features tear resistance and durability.

“In both senses of the word, the ‘applications’ of YUPO Octo-pus are limitless,” said Bill Hewitt, marketing manager. “Octopus doesn’t adhere to a surface just once – it can be washed off, kept clean, and re-adhered to any other smooth surface as many times as you’d like.”

Though the applications of Octopus can be considered limit-less, the options for printing on it are rather limited. The company says that it is not compatible for use with inkjet or laser printers. It is, however, reportedly compatible for HP Indigo digital printing.

The adhesive paper is compatible on mediums such as glass, PVC, aluminum, coated paper, and other smooth sur-faces. Since it doesn’t rely on magnets or static, Octopus is safe for use on electrical surfaces without adverse effect.

April 2011 | Graphic Arts Magazine 9 Your perfect connection to the printing and graphic arts industry

News and comments

Kristen Read

Be

up

to d

ate


Heidelberg and Ricoh announce new partnershipIn early March, Heidelberg announced a new global strategic partnership with Ricoh, a lead-er in digital production printing. Under the agreement, to commence this month, Heidel-berg will be able to sell Ricoh’s latest colour digital press, The Ricoh ProTM C901 Graphic Arts Edition.

Both companies have agreed to enter into a global distribu-tion contract for Ricoh’s Production Printing portfolio, including Ricoh services and support. The first markets to see the collaboration will be the UK and Germany, and inter-national completion is slated to coincide with drupa 2012.

A growing number of offset printers are considering entry into the digital world in order to expand their businesses.

The press release reported:

Digital printing continues to grow as commercial printers extend their business models to offer marketing services, short run colour, and same-day service. Offset printers are increasingly seeking to complete their portfolios with a flex-ible digital solution integrated into their existing high quality offset environment.

Many opportunities for growth in today’s graphic communi-cations industry lie within digital printing technology. Ever since Heidelberg announced nearly a year ago that it had a digital printing market strategy in the works, the industry has been speculating on the details with great curiosity. The company had previously entered this arena in a partnership with Kodak to develop the NexPress, however, Kodak has since taken over the project.

Now, Heidelberg is making major moves again in the digital direction. In February, the company announced a new agree-ment with EFI, in which Heidelberg USA will distribute the VUTEk GS series of super-wide format digital printers. In late 2010, offset manufacturer manroland made a similar move, partnering with Océ to extend its market reach into inkjet printing solutions.

“In today’s climate it is important that commercial printers have the right tools to be versatile, and meet both long and short run requests,” said Mr. Shiro Kondo, president and CEO of Ricoh. “This partnership demonstrates [Heidelberg’s] con-fidence in our digital technology […] Together, we are in a strong position to support businesses seeking to extend their existing equipment and services with a digital solution.”

Bernard Schrier, CEO of Heidelberg added: “By rounding off our offset portfolio […] with new digital printing equipment, we are providing our clients the combination of best-in-class offset, and now also digital printing technology.”

Heidelberg’s and Ricoh’s future plans reportedly include integration with Heidelberg’s Prinect workflow solution, as well as joint development activities for future printing appli-cations. “With this new partnership we will also address customer demands in the broad spectrum of hybrid print applications, i.e. the combination of offset and digital printing within a single print product,” said Schrier.

Kodak to increase digital and conventional plate pricesIn a recent press release, Kodak has stated that it will increase the prices of its digital and conventional plates as of May 1, 2011 in all regions of the world. “The move is necessitated by the sustained, universal rise in costs for key raw materials and util-

ities used in the production of offset plates,” said the statement.

“Kodak understands the difficulty our customers face with increasing costs for many of the consumables used in the print-ing process, from ink and paper to energy and fuel,” explained Doug Edwards, GM of Prepress Solutions and VP of Kodak. “During a time when all companies are facing added costs of doing business, we will work closely with our customers to ensure that both their plate needs and business requirements are met as effectively as possible.”

Increases for digital plates will be in the range of 5-10 percent.

Increases for conventional plates will be between 15-20 percent.

Kodak said that details of the new pricing structure will be com-municated in April to all customers and dealers. The company also notes that all current contractual commitments will be honoured.

The iPad 2: What’s new?In March, Apple released the long-awaited version 2 of its iPad tablet device. Analysts estimated that close to one million of the touch-screen computers were sold during its debut weekend. By comparison, it took the original version 28 days to reach the million mark. When the iPad 2 hit the shelves in the U.S. last month, retailer Best Buy reported that some outlets ran out of the tablet within 10 minutes. (The iPad 2 release date for Canadian stores was March 25.)

“With more than 15 million iPads sold, iPad has defined an entirely new category of mobile devices,” said Steve Jobs, Apple’s CEO. “While others have been scrambling to copy the first generation iPad, we’re launching iPad 2, which moves the bar far ahead of the compe-tition and will likely cause them to go back to the drawing boards yet again.”

Around this time last year, the original version was released, with many pondering how it would revolutionize technology and communication media. Now, a year later, Apple has launched a thinner, faster product that has some eye-catching new features.

Apple calls it a “magical device for browsing the web, reading and sending email, enjoying photos, watching videos, listening to music, playing games, reading ebooks and much more.”

This version is 33 percent thinner and up to 15 percent lighter than the original iPad, but it still has the same 9.7-inch LCD screen. This model is available in both black and white, and features up to 10 hours of battery life.

The company has also made available two new apps for the iPad: iMovie and GarageBand. With these programs, users can shoot and edit videos on their iPad, and play music on touch-screen instruments.

A pair of cameras – one front and one back – are the hottest addition on the iPad2. This was no surprise to many, as Apple made the same upgrade on its latest iPhone version 4. The front camera brings FaceTime (like Skype) to iPad users. The rear one works like a regular camera.

The iPad 2 starts at $499 USD for the 16GB model.


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QuarkXPress 9: designers can publish directly to digital devicesQuark has recently announced the release of QuarkXPress 9, the latest version of its design software. The company said that the new pro-gram will “allow designers to publish directly to digital devices and increase their productivity with new features for design and automation.”

Set to ship during April, version 9 of Quark’s graphic design and page layout software will sell at $799 for a full product license. QuarkXPress 9 has some new features included that help automate the design process:

• Conditional Styles: This new feature allows designers to automatically style content based on powerful styling rules

• Bullets and Numbering: Compatible with Microsoft Word import and export, the new Bullets and Numbering feature of QuarkXPress 9 makes it even easier to format ordered and unordered lists and complex multi-level outlines

• Callouts: With the Callouts feature, boxes and groups move automatically with text as determined by the designer; call-outs can be positioned relative to the page, spread, text box, paragraph, or character

• ShapeMaker: A wizard for easily creating or modifying hard-to-draw shapes such as waves, polygons, stars, and spirals, ShapeMaker also allows designers to create unique corner effects

• ImageGrid: Allows designers to import and automatically build grids of images with a variety of layout options; also supports image captioning

• Linkster: Enables designers to unlink and relink text boxes

that already contain text, to unlink stories spanning mul-tiple pages, and to link or unlink boxes without disrupting existing text

• Story Editor: Provides a word-processor-like view within QuarkXPress, which is most helpful when text within a lay-out is difficult to read and when reviewing stories that span multiple pages

• Cloner: The smartest and most efficient way to clone design elements, Cloner allows designers to copy items or pages to other pages or layouts and can be used to com-bine layouts or split them apart

Designers can now also publish directly to digital devices such as e-readers, smartphones and tablets – with one tool and without programming code. “Whether a designer needs to publish directly from QuarkXPress to the iPad, create content for an e-book, or reach an expansive audience through the Blio eReader, QuarkXPress 9 can help,” said the press release from Quark.

RR Donnelley and KBA’s new collaborationIt has been announced that KBA is collab-orating with RR Donnelley in an agreement to develop, manufacture and sell what they call “next generation piezo-electric digital inkjet printing solutions.”

Under the agreement, KBA will be able to license and integrate RR Donnelley’s digital imaging technology into the cre-ation of new presses. In turn, the partnership enables RR Donnelley to expand into new markets.


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“RR Donnelley and KBA have long been leaders and innovators in our respective industries,” said Thomas J. Quinlan III, president and CEO of RR Donnelley. “We look forward to having the combined R&D resources of nearly 1,000 engineers and imaging scientists bring forward the next generation of digital imaging technologies.”

The new piezoelectric digital inkjet printing solutions that the com-panies will develop together are going to be be targeted for the packaging, securities, commercial and newspaper industries, according to a press release.

KBA said it spent a year and a half assessing current and future digital printing technologies from around the world. Helge Hansen, CEO of KBA had this to say about the company’s analysis and find-ings: “It was clear that RR Donnelley was uniquely positioned to partner with us from a digital print technology, experience and scale perspective. It’s more than a sales and service agreement for existing technology. We look forward to jointly reinvigorating this industry with new digital imaging platforms.”

Does food sold in recycled cardboard packaging pose a health risk?It seems that several leading food manufacturers are looking at changing their product packaging after heath concerns surfaced about boxes made from recycled cardboard. Researchers have reportedly found that toxic chemicals from recycled newspapers can contaminate food sold in cardboard cartons.

This latest development, first published by BBC News, revealed that printing inks from recycled newspapers are believed to be the cause of the problem. The inks contain chemicals such as mineral oil, exposure to which has been linked to inflammation of internal organs and cancer. Questions are now being raised about the health risks associated with using recycled cardboard with these chemicals for food packaging.

BBC’s article notes that corporations like Kellogg’s and Weetabix are now taking steps to reduce the amount of mineral oil in their packaging, and other major food manufacturers have stopped using recycled cardboard entirely.

“Government scientists in Switzerland found quantities of mineral oils between 10 and 100 times above the agreed limit in foods like pasta, rice and cereals sold in cartons made from recycled card-board,” said the story. A German study conducted last year found that the oils easily passed through many of the inner bags used to keep food dry and fresh. It also seems that the longer a product sits on a store shelf, the more mineral oil it can absorb.

Using virgin fibres to create the packaging instead is expensive and not always available in abundance. Some alternatives that food manufacturers are now considering include: using aluminum-coated or thick plastic bags to protect the food from the package, and using recycled packaging that does not contain recycled newspapers.

For the time being, however, it doesn’t seem like consumers are in any immediate danger. More research and testing must be done before it is clear that recycled packaging poses a health risk to the public. It is likely that a person would have to consume large quan-tities of mineral oil for a sustained period of time before significant risks arise. Food and Consumer Products of Canada, a major industry association representing food companies, told the Globe and Mail that consumers who eat a balanced diet should be safe. After more research and testing has been conducted, manufactur-ers will be able to determine the necessary course of action.

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Paper Excellence buys idled Canadian Domtar mill

In its latest Canadian expan-sion move, Paper Excellence is buying up Domtar’s Prince Albert, SK pulp mill. It plans to invest $200 million at the former kraft pulp and paper facility. Last year, the com-pany also purchased an idled pulp mill and a newsprint operation in B.C.

Paper Excellence, a unit of Indonesia’s Sinar Mas, plans to invest the $200 million in converting the mill so it can make dissolving pulp, which is used in the production of products such as rayon. It aims to meet rising demand from the textile industry, according to a recent news post from Reuters.

“The deal is the latest to highlight the increasing demand for dissolving pulp, which is a chemically refined, bleached pulp that is composed of pure cellulose fibres and made by only a small number of mills around the world,” said the article.

The Saskatchewan government has reportedly agreed to allocate wood fibre to the mill. The province’s SaskPower utility will purchase surplus electricity to be produced from a biomass generator at the mill.

Insource continues as W+D exclusive Canadian DistributorInsource Corp. of Markham, Ontario has announced the renewal of its strategic partnership with W+D Direct Market-ing Solutions and W+D North America. Insource will

continue to be the exclusive Canadian distributor and authorized service provider of W+D’s inserting machines and parts. Insource, founded in 2005, has represented W+D since 2007. The renewal is also a continuation of Insource’s original relationship with Buhrs ITM, acquired by W+D in 2011.

“Our W+D Inserter customers include leaders in the printing, mailing and bindery industries that focus on the direct, transactional and trans-promo mailing segments,” says Insource president and founder Tim Wakefield. “These cus-tomers have realized outstanding output results, reduced per capita operating costs, straightforward set-up and oper-ation, as well as incredible flexibility in meeting the creative demands of their clients. The renewal is also great news for Canadian customers who rely on Insource for equipment, warranties, on-going servicing and parts,” Wakefield added.

NY Times launches paywall - Canada firstOne of the world’s most well known newspaper publishers has implemented a digital paywall. The New York Times will use Canada as a test market - effective immediately. Users north of the border are being asked to pay between $15-35 per month for access to the newspaper’s online content.

The 160-year-old US newspaper is not the first to launch a paywall for access to its website. UK’s The Times instituted a similar barrier back in the summer of 2010, and announced “encouraging results” several months later. The Wall Street Journal and Financial Times have also implemented paid digital subscriptions.

“Today marks a significant transition for the New York Times as we introduce digital subscriptions,” says publisher Arthur


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Sulzberger Jr. “It’s an important step that we hope you will see as an investment in The Times, one that will strengthen our ability to provide high-quality journalism.”

The paywall will hit Canadian readers first to work out any bugs and “fine tune the customer experience.” The US and the rest of the world followed on March 28. Readers will be able to read a set number of articles (20) for

free, before they will be prompted to pay for continued access.

Interestingly, “readers who come to Times articles through links from search, blog and social media like Facebook and Twitter will be able to read those articles, even if they have reached their monthly reading limit” says an open letter pub-lished online by The New York Times.

Subscribers to the print edition of the newspaper will have access to online content for no extra charge. Digital sub-scriptions start at $15 for a month, for access to the full website and a New York Times smartphone app. Users with iPads will be charged $20, and $35 will buy access across all digital and mobile platforms.

World runs out of Internet IP addresses - now what?Earlier this month, the global warehouse for Internet address-es ran empty after giving out its last 5 batches. IP (Internet Protocol) addresses are numerical labels assigned to elec-tronic devices like computers and printers. The current

system, IP version 4, is limited to only 4.2 billion addresses.

In January, GAM reported that the number of Internet users worldwide had climbed to a whopping 2 billion. With the planet’s population at 6.8 billion and rising, almost one per-son in three is online. Each website on the Internet, and each device that connects to the Internet, needs a unique IP address for identification. Running out of IP addresses is almost like not having enough license plates or phone num-bers for everyone.

The creators of the original IPv4 format, which is still in use today, designed a system that allowed for only 4,294,967,296 unique addresses. With the enormous growth of the Internet and computer technology, it is no wonder that this stash has been depleted.

On February 3rd, the last five blocks of remaining IP address-es were given out to the world’s Regional Internet Registries (RIRs). Below is a map that shows these five regions of the globe. When all of the numbers in these last batches are given away, there will be no more version 4 addresses to replace them with. Due to the technology boom in China, it is expected that the Asia-Pacific region will run out first, some-time in mid-2011.



Eco NewsHeinz, Pepsi and Evian slim down their plastic bottle packagingWithin the last few months, three familiar international food and bev-erage manufacturers have each announced a significant reduction in the plastic content of their product packaging. Evian redesigned its 1.5L water bottle, cutting out 11 percent (3.4g) of plastic. Heinz will launch a new ketchup bottle this summer that contains 30 percent PlantBottle packaging – a material derived from natural sugars found in plants. Pepsi has just announced development of a 100 percent bio-based plastic bottle using agricultural byproducts such as pine bark and corn husks.

EVIANEvian water now has a redesigned 1.5L bottle that’s made up of 50 percent recycled PET. This change means that while the packaging is still fully recyc-lable, it uses 11 percent less plastic than before.

This latest move is part of Evian’s current environmental policy. The company aims to reduce its CO2 emissions by 40 per-cent by the end of this year.

The new Evian water bottle weighs in at 3.4g less than the previous design. The bottles are easier to crush now as well, taking up less space in recycling bins.

“Evian is committed not only to the qual-ity and purity of our water, but also to the reduction of our impact on the environ-ment,” said Jerome Goure, vice-president of marketing for Danone Waters of America. “With the launch of our latest bottle which is lighter and more compatible, we hope that our cus-tomers will feel good about purchasing Evian, and feel encouraged to recycle.”

HEINZHeinz announced in February that it will change its familiar and iconic ketchup bottle – the biggest change to the product in over 25 years. The company has partnered with Coca-Cola, and will begin produ-cing ketchup bottles this year using Coca-Cola’s breakthrough PlantBottle packaging material.

Coca-Cola launched the PlantBottle initiative in 2009. Instead of using regular plastic bottles to package its popular Coke soda drink, the PlantBottle PET bottles are made partially with material from plants, and have a lower reliance on non-renewable resources. Plant-Bottle containers look, feel and function just like regular PET plastic and remain fully recyclable. The only difference is that up to 30 per-cent of the material is made from plants.

A press release from Heinz said:

The plant material is produced through an innovative process that turns natural sugars found in plants into a key component for PET plastic. Currently, PlantBottle is made using sugarcane ethanol from Brazil, the only source widely recognized by thought leaders globally for its unique environmental and social performance.

An initial life-cycle analysis conducted by Imperial College London showed that Coca-Cola’s use of PlantBottle packaging provides a 12-19 percent reduction in carbon impact. In 2010 alone, the use of this new material eliminated the equivalent of 30,000 metric tons of carbon dioxide, or 60,000 barrels of oil. Coca-Cola’s goal is to transition all of its plastic pack-aging to PlantBottle material by 2020.

The new 20-ounce ketchup bottles, though they won’t look any different from the current bottles, will hit the shelves in June with a new label that asks: “GUESS WHAT MY BOTTLE IS MADE OF?” Heinz plans to introduce 120 million of these packages in 2011, and coca-Cola plans to use more than 5 billion of its own PlantBottle pack-ages during the same time. Together, the companies will significantly reduce potential carbon emissions while add-ing more renewable materials to the recycling stream.

“The partnership of Coca-Cola and Heinz is a model of collaboration in the food and beverage industry that will make a sustainable differ-ence for the planet,” said William R. Johnson, Heinz chairman, president and CEO. “Heinz ketchup is going to convert to PlantBottle globally, beginning with our best-selling 20-ounce variety of Heinz Ketchup, which will reach customers this summer.”

PEPSINot to be outdone by its rival Coca-Cola, Pepsi has taken plant-based plastic packaging a step further. In mid-March, it announced develop-ment of the world’s first plastic bottle made entirely from plant-based renewable resources, significantly reducing the carbon footprint of the package.

PepsiCo is calling it the “green” bottle because it is made from bio-based raw materials including switch grass, pine bark and corn husks. In the future, the company says it expects to broaden the range of possible renewable sources used to include orange peels, potato peels, oat hulls and other agricultural byproducts.

“This breakthrough innovation is a transformational development for PepsiCo and the beverage industry,” said Indra Nooyi, PepsiCo chair-man and CEO. “PepsiCo is in a unique position, as one of the world’s largest food and beverage businesses, to ultimately source agricul-tural byproducts from our foods business to manufacture a more environmentally-preferable bottle for our beverages business.”

Combining biological and chemical processes, PepsiCo has identi-fied methods to create a molecular structure that is identical to petroleum-based PET, which results in a bottle that looks, feels and pro-tects its product identically to existing PET beverage containers, said a recent press release.

A pilot production of the new bottle will commence in 2012. Upon successful completion of the pilot, the company says it intends to move directly to full-scale commercialization.


All things considered, now is a very good time to invest in capital equipment in Canada. Economic indicators in North America are showing optimism, and the economy is adding jobs. According to a report from the National Association for Printing Leadership (NAPL), year over year commercial print sales numbers are on their way up, even if only mod-estly (1.1% three months ending October 2010 – NAPL’s State of the Industry 9th edition). As well, a recent report from Dr. Joe Webb, director of WhatTheyThink’s (www.whattheythink.com) Economics and Research Center indi-cates that in the U.S., January 2011 commercial printing shipments were up 2.5% (adjusted for inflation). Canada’s numbers for December 2010 were also up.

It is a good time for other practical reasons, too. The Canadian dollar is valued high in relation to both the USD and the Euro. With major industry manufacturers based out of the United States, or Europe, the improved buying power of the Canadian dollar means there are savings to be had on equipment. Now is a good time to evaluate your current plans, with an eye towards capital needs. Perhaps your strategy includes realizing efficien-cies in production, or expanding products and services to existing customer base, or entering into new markets.

Better decisions will come from planning based on comprehen-sive knowledge and analysis, followed up with actionable plans to implement the strategy. The current economic environment means additional pressures to do more with less. The implica-

INVESTMENTSCAPITAL


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tions of decisions will be felt more finely than before; there is less room for error. A strong plan, well executed and monitored, is a strong predictor of future success.

CAPITAL INVESTMENT TRENDSThe NAPL study, released at last fall’s Graph Expo in Chica-go, painted an overall conservative picture of capital investment plans in the North American industry for the next three years. Perhaps somewhat understandable, given the impact of the economic conditions since late 2009, half of the respondents reported that they expect to invest less in the next three years, compared to what they had invested in the previous three years (the full study is available for pur-chase through the NAPL at www.napl.org).

Generally, following recessions, there is an increase in activ-ity, the result of “pent up demand” that built up during the recession, as organizations and consumers conserved their resources and delayed non-essential spending. This creates a situation in which unrealized demand in the market place contrasts with the existing capacity. Maturing industries, such as graphics communications, typically see an increased level of mergers and acquisitions. This activity acts to take excess capacity, and therefore capital assets, out of production.

However, undercapitalization can be a concern in companies of all sizes, and at different stages of their development. Managers should plan to regu-larly reinvest in the company, at a minimum this should be equal to their annual depreciation. In bad economic conditions, some companies avoid reinvestment, which helps them appear more economical in the short term. However, this approach is obviously detrimental in the long term. If it’s applied continuously, it undermines the base of the company, and makes it even harder to finance the necessary capital investments.

EVALUATING CAPITAL PROJECTSDetermining if a capital investment project makes sense for a company should be a finan-cial decision, not an emotional one. Finance theory, using a simple return on investment (ROI) can quickly demonstrate the benefit you get from buying a new press, or other desired equipment.

An ROI analysis compares the gains against the costs of the capital investment, project, or new pro-gram. A simple ROI can be calculated by taking the gains – capital investment costs/investment costs = ROI per-centage. Anything greater than 0.0% is a positive project.

However, relying purely on a simple ROI can mean bad deci-sions. According to Dr. Alan Goss, an assistant professor of finance with the Ted Rogers School of Management at Ryerson University, using straight ROI can lead companies to miss valu-able opportunities. Over time, this approach tends to make companies more conservative in their capital/project plans, because it ignores the relative risks associated with the poten-tial investments.

Companies analyzing their capital options should work with the “Time Value of Money” also known as Net Present Value (NPV), or Discounted Cash Flow analysis. This approach is based on the reality that a sum of money in the future is valued less than money today. A dollar today is worth more than the same dollar a year from now, because today’s dollar could be invested, or spent.

The cost of a future cash outlay, or value of a future cash

income, given in today’s dollars is referred to as its “present value.” The percentage rate used to calculate the value of money through time is called a “discount rate.”

NPV calculations allow companies to compare alternative pro-jects vying for capital resources; it allows a common metric to help determine which project makes the most sense from an economic standpoint for investment.

Companies should develop a “required rate of return” percent-age, an internal hurdle rate, to help evaluate potential capital decisions. The rate serves as the bar to determine if an invest-ment makes sense for the company, or not. This hurdle rate is calculated from the company’s cost of capital, and it also includes an adjustment for “risk factor.”

This risk factor allows companies to calculate a risk adjusted rate of return – the more risk there is to actually receiving the

’’‘‘there is an increase in activity, the result of

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future benefit (profit), the less value the profit has in terms of today’s dollars. Companies can use their internal hurdle rate as their discount rate to compare projects.

SENSITIVITY ANALYSISThese calculations are, by their nature, based on assumptions. How much revenue is the new equipment expected to bring in, or how much will it save in operations? Goss explains that per-forming a “sensitivity analysis” is critically important in making a capital investment decision.

Managers should review each assumption, and adjust the num-bers, up and down, to gauge the relative impact of that assumption on the overall decision. This can be quickly done in a spreadsheet, and a quick search online will turn up several excellent Excel-based templates for more sophisticated evalua-tions (adjusting multiple variables at the same time).

Scenarios can be developed, and perhaps categorized as con-servative, moderate, or aggressive, with their relative assumptions adjusted and their impacts on the NPV of the pro-ject evaluated. Goss explains that this analysis, by nature, removes the emotion from the decision, and allows for a “what if I’m wrong?” review.

RATIOSManagers, financial analysts, and lenders can use a variety of financial comparisons (ratios) to determine the overall health of a company, and compare it to similar firms. If candidates don’t “hit their ratios,” they can be declined lending, or be in a breach of a previous lending agreement. Ratios can be used to measure a company’s relative liquidity, profitability and solvency (debt).

Two commonly used liquidity ratios are the current ratio and the quick ratio.

Current ratio is defined as current assets/current liabilities .The current ratio is a measure of the firm’s ability to pay off cur-rent liabilities, as they become due.

Quick ratio, or “acid test” is more conservative than the current ratio and is calculated as quick assets/current liabilities. Cash and accounts receivable are used to determine a company’s ability to meet its short-term obligations.

In both cases, the higher the ratio, the better position the com-pany is in.

FOR MEASURING PROFITABILITY, SOME POPULAR RATIOS INCLUDE:Return on assets (ROA) = net income/assets. ROA is a quick measure of the return on money provided by both owners and creditors; it reveals how efficiently all the resources are managed.

Return on equity (ROE) = net income/equity. This is a meas-ure of the return on money provided by the firm’s owners.

Gross margin = gross profit/sales. Gross margin measures the profitability by using variable costs, and is a measure of the percentage of revenue that goes to fixed costs and profit.

COMMON SOLVENCY, OR DEBT, RATIOS INCLUDE:Debt total assets = total liabilities/total assets, this quickly lets people determine the percentage of a business currently financed by creditors.

Debt to equity = total liabilities/owner’s equity. This ratio will provide a percentage showing how much of the business financed by creditors for each dollar of equity.

This is quick overview; there are a multitude of other ratios that can be calculated to measure and contrast a companies overall health.

FINANCING SOURCESYou’ve based your decisions on an analysis of your customers, your company’s core competencies, and your overall goals and objectives for the future. Once the decision has been made to invest, sources of financing must be arranged. This can be done through reinvestment of existing capital into the company, or through external financing.

Types of external financing include loans and leases, and sources of external funding include traditional banks, manufac-turers, or asset based lending companies.

BANKSGoss explains that, with the current low interest rates, the general market for borrowing money is competitive. However, Sonya Kopecky Duff, a key account manager with SL Financial Services Canada, cautions that today, for small- and medium-sized com-panies (half a million to 15 million in sales), lenders now want to see very strong credit. This is not particular to graphic communi-cations companies, Kopecky Duff continues, that “since the meltdown,” the general criteria for lending have become more stringent across all industries; “anyone who has not been to mar-ket since June 2008” will find it is a very different environment.

Regardless of the source or previous relationship, small- and medium-sized company borrowers should now expect to be thoroughly reviewed, complete a full credit application and give up their financial statements. In addition, lenders are now typically requiring a personal guarantee in support of the application; they will run a credit bureau check to make sure the actual borrower has a good personal credit history.

’April 2011 | Graphic Arts Magazine 19 Your perfect connection to the printing and graphic arts industry


Kopecky Duff explains that banks are now in effect, enforcing conditions that were always in place. In the past, if there was an existing relationship, and a borrower didn’t hit the pre-determined ratios, it was not always acted upon.

Financers can review three levels of statements for private companies. First level statements are built from ongoing transaction records that are generated internally (revenues in, expenditures out, how much money was spent to make money). These are taken to an accountant and put into a for-mat consistent with preparing financial reports, a report that is referred to as a Notice to Reader statement.

The next level of financial statement is a Review Engagement Report (RER), where the accountant reviews the details from the Notice to Reader statement, and may (or may not) format it according to Generally Accepted Accounting Principles (GAAP), a standard for financial reporting. Kopecky Duff explains that it is often worth the additional time and expense to have an RER created, as the additional assurance can allow lenders to offer companies lower borrowing rates.

The final option is more time consuming and expensive, and requires that financial auditors come into the com-pany, and perform a complete audit.

VENDOR FINANCINGVendor financing is a loan between companies, which is used to buy goods and materials from the company providing the loan. It allows the vendor to increase sales, while possibly earning interest, or even acquiring an interest in the customer com-pany. Vendor financing is generally at higher rates than “traditional” channels. Effectively the lend-ing company is increasing its sales through buying its own products.

Graphics manufacturers can offer their own financing, or have a third party underwrite it on their behalf. They could underwrite the credit risk without the customer being aware of it. One benefit is that manufactures could allow for more flexibility in financing, allowing customers to build up the market with their new equipment.

Manufactures are a questionable source of infor-mation for companies evaluating capital investment projects; it’s a bit like going to a mech-anic and asking if your car needs to be repaired.

In general, manufactures are feeling the effects of the economy as well, and are less directly involved in financing now.

LEASING ALTERNATIVESLease costs are generally less than borrowing costs, and are calculated from the purchase price, the interest rate applied, the residual value and the length of the term of the lease for the asset.

A capital lease, or finance lease, is an arrangement between two parties, where the lessee (the one borrowing the funds) works with a lessor, who actually buys the asset from the manu-facturer. The lessee pays a series of monthly payments – length of terms vary depending on the amount of financing, and nature of the asset. Regardless, the lessee obtains full use of the asset for the term of the lease, as well as accepting the risks of owner-ship. Generally the equipment is leased for most of its useful life, and the lessee has the option at the end of the arrangement to acquire ownership.

A company that acquires an asset through a finance lease enters

it on their balance sheet as a leased asset, and the payments become a liability.

Capital leases tend to have lower costs related to them, in part because there is a lower risk premium included with them by the lessor, to account for the disposition of the asset and the end of the lease.

For tax purposes, purchases and finance leases allow for a Cap-ital Cost Allowance (CCA) tax deduction, as well a deduction can also be claimed for a calculated interest expense.

’’‘‘In general manufactures are feeling the effects of the economy as well, and

are less directly involved in

financing now.


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However, there is also an operating lease, which is generally used when the length of the lease is shorter than the expected useful working life of the capital asset. This is also referred to as an “off balance sheet lease.” Operating leases do not appear on a company’s balance sheet (although they may be included in the notes), the related payments are recorded as an operating expense. For income tax purposes, with an operating lease, the user of the equipment deducts the lease payments as an expense.

This financing technique allows companies to acquire capital assets without leveraging their balance sheet, which can be desirable if additional debt has the potential to challenge an existing bank covenant. This is not as big an advantage as it may have once been, as lenders tend to be reviewing full financial hist-ories now.

The difference between a finance/capital lease and an operat-ing lease is important for accounting purposes. Accountants review the lease, and ask the following questions. If the answer is no to all four, then the lease is considered an operating lease. First, is the lease term more than 75 percent of the equipment’s anticipated useful life? Next, does the lease include an option for the lessee to purchase the asset at less than its fair market value? Third, does actual ownership of the asset get transferred to the lessee at the end of the lease? Lastly, does the net present value of all the lease payments work out to greater than 90 percent of the fair market value of the equipment? (www.canadianequipmentfinancing.com/equipment-leasing/operating-lease-versus-capital-lease).

ALTERNATIVE LEASING OPTIONSLending decisions are based on a company’s current cashflows, not the expected future ones from the investment. This creates an “incremental volume problem” for borrowers. Finance com-panies specializing in leases can arrange for modifications, which can appeal to companies in specific situations. These alternatives include the opportunity to have deferred payments, or stepped payments, which increase at a future point in time (to account for set up and efficiencies).

Industry specialized financing companies can also have practical knowledge of equipment capabilities, lifecycles and market values. This puts them in a position of being able to arrange financing for second hand equipment, offering further savings opportunities.

DEPRECIATION, TAX ADVANTAGES, AND CCACapital Cost Allowance (CCA) is a yearly deduction that business-es can claim on their income taxes, to account for the fact that capital assets decline in value as they are used. The percentage amount depends on which Canada Revenue Agency asset class the equipment belongs to (for example, Class: 43 is manufactur-ing and processing machinery and equipment and has a CCA rate of 30 percent).

Companies making capital investments can also use a NPV analysis, as they did to evaluate potential projects, to determine the relative cash flow advantages by comparing total cash out-flows between leasing and purchasing options.

There are a variety of methods to calculate the amount of depreciation, and therefore the amount of CCA that can be claimed. Straight line is a basic method, and is determined by tak-ing the purchase price, subtracting the salvage value and dividing this across the equipment’s useful life.

A more accurate method is the “declining” balance approach, which is calculated yearly by taking the capital cost of the equip-ment and subtracting the CCA claimed in the previous years. This is a more conservative approach, and takes into account that equipment loses more value in its earlier years.

It’s important to note that the Federal Government offers an Accelerated Capital Cost Allowance (ACCA), which is currently set to expire in December 2011. This program allows for a 50 per-cent straight-line accelerated CCA rate for capital investments in manufacturing or processing equipment. This allowance was designed to encourage capital investment, and makes it more attractive for businesses to write down their investments in new equipment. Several groups are lobbying for an extension in the next Federal Budget, due this spring, including the CPIA and the Canadian Manufacturers & Exporters.

While the economy since late 2009 would lend itself to a con-servative approach to capital investing, current interest rates, the strong Canadian dollar, potential tax advantages and strategic choice for working through changing markets make this an excel-lent time to make the capital investments in the new equipment required to deliver on your new strategies.

Mangers should carefully review potential projects; evaluate the likelihood of their success, and engage the support and advice of their accountants and financial partners. Most importantly, they should set clear targets to measure progress and strengthen their post-investment evaluations to ensure that the project is a success.

’April 2011 | Graphic Arts Magazine 21 Your perfect connection to the printing and graphic arts industry


Chris Smyth is an Assistant Professor with Ryerson

University’s School of Graphic Communications

Management, in Toronto, Canada. He is a member of the

Ghent PDF Workgroup, and a past co-Chair of Magazines

Canada’s Technical Standards sub Committee.


Tony Curcio

[email protected]

Fo

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Bob Elliott

Tony Curcio

For the record

With the flat economy still adversely affecting the graphic arts sector, key industry organizations have ramped-up their activities to promote and advance the causes of Can-adian printers . I spoke to Bob Elliott, President of the Canadian Printing Industries Association (CPIA), to get an update on what his organization is doing .

What’s new with CPIA right now?

As part of our commitment to provide information on the industry at large, we have just completed a survey of the state of the printing industry. Working with Industry Canada and our partners in the U.S. – Printing Industries of America (PIA) – we surveyed over 4,000 printers and will be writing a report outlining where the industry has been, where it is today and where it might be headed over the next couple of years. We consider reports like this as part of our role in pro-viding important industry information. We also publish our annual Industry Profile and write the annual Forecast issue for the magazine published by PIA. We have also just been asked by Environment Canada to co-chair an industry advis-ory committee to provide feedback to that department on its plans for a VOC agenda for our industry.

How has the association fared over the past few years of economic instability?

The tough times that our members and the industry have faced have also had an impact on CPIA. I wish I could say that membership numbers held their own, however, they have actually declined. Printing companies were faced with tough decisions and in some cases that meant having to drop a membership that they had held for many years. Similarly, the landscape made it tougher for us to recruit new members. Additionally, the economy had a significant effect on the suc-cess of the Graphics Canada show in which CPIA had been a sponsoring partner for many years. The bottom line, as our members are aware, is that we have struggled over the past few years. However, this hasn’t stopped us from successfully performing most of our traditional activities, and continuing to offer a array of benefits that provide exceptional value to our members.

CPIA has been strong in promoting networking and oppor-tunities for pre-press and bindery as well as print providers. However, your focus on government representation seems to be at the top of your list. Why is that, and can you give me some examples of recent successes?

CPIA has long acted as the “watchdog” if you will, for our industry when it comes to federal government policies, regu-lations and legislation. If there was no organization like CPIA to work on Parliament Hill on behalf of the printing industry, we would risk being told what we have to do – instead of hav-ing the opportunity to provide feedback in advance so that our perspective is taken into account as key policies, regula-tions and legislation are being developed. We have had many successes over the past several years, but our most recent is the Accelerated Capital Cost Allowance (ACCA) that CPIA has been advocating for many years. This was passed in 2007 and provides printers with the ability to write off their capital equipment and software purchases over a much shorter time frame of 2 years, rather than what was permitted previously. The federal budget released on March 22 called for a further 2-year extension. However, we will see what happens if and when an election is called. Also, in 2010, we worked with other interested groups to ensure that Canadian companies would continue to be able to insert mail directly into the U.S. Postal System. There was strong opposition in some circles and it took about 5 years to finally convince the government that this was critical to our industry.

I understand CPIA will be launching a new membership campaign. What are your plans?

Our plans are to involve more printing companies in CPIA. There are 8,000 – 9,000 printing companies in Canada employing about 65,000 people. CPIA’s role on behalf of the industry in federal government affairs alone is certainly valu-able to every one of those companies. When you consider the other services we offer, including membership in the Printing Industries of America, I feel that perhaps we haven’t managed to explain effectively what we do to a majority of those printers. So, we plan to do a much better job beginning with this campaign, in the hopes that increasing our numbers will carry more influence when we do speak to government on behalf of our members.

For more information, please visit CPIA’s website at www.cpia-aci.ca.

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The Digital Imaging Association hosted a panel of market-ing professionals who addressed where dollars are being spent today, why, and how effective the move is to the Interactive Media Mix.

Panelists included: Sue Britton, vice-president, Pareto; Vijay Saxena, marketing manager, Graphics Communications & Professional Colour Solutions, Xerox Canada; Tony Karg, Sr. director of business development & marketing, Fujifilm; and Maura Hanley, president, BigReach Learning. Moderator Doug Picklyk, DIA’s technical committee chair, fielded questions.

Attendees came away with an overview of the following:

• Hottest new media trends• Perceived strengths and weaknesses of print as a com-

munications medium• Defining and measuring marketing spend• What constitutes great results• Mobile advertising

THE FACTSTony Karg presented independent data from recent reports that show where marketing dollars are flowing.

Karg’s first stats were gathered from the Print Industries Mar-ket Information and Research Organization (PRIMIR). PRIMIR performed research surveys to assess where spending dol-lars will go. DIA attendees saw results demonstrating future

marketing spending in selected channels. PRIMIR surveyed 100 media buyers and thought leaders to capture information about where they considered the demand for different types of print material was going to go. The survey also identified the positioning of the Internet and other online channels. Additional information showed specifically where marketing dollars were going to be spent out to 2012. Overall spending is growing for the Internet and mobile. The survey also showed continued spending with other forms of media such as promotions, out of home, television, merchandising, pack-aging, direct mail, radio, telemarketing, sales collateral, magazines, trade shows, catalogues, directories and news-papers – in other words, a vast array of media to select from and to strategize choices for supporting selections. Karg’s assessment of this data is that there are significant spends with Internet, mobile, and out of home – and still a significant amount of spends with print media.

Ipsos Reid statistics on the consumer viewpoint, Karg told the DIA audience, demonstrate some interesting facts about response to email marketing. Recent figures show a high number of people who sign up for marketing email, and a high response rate. What is most significant is the willingness of people to continue to receive these messages; the Ipsos Reid study shows this percentage to be high. The same sur-vey shows a noteworthy percentage of people who search for a specific company, product or brand online and a high percentage of people who click on search engine page ads.

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While consumer gravitation to mobile marketing is increasing, the actual response to this type of marketing is still low. And most significantly, the willingness of consumers to continue to be engaged on their mobile device tracks extremely low. From these stats, Karg extrapolated that print remains a strong media of choice; print isn’t going to be replaced by digital media, he said – not yet.

Karg also reviewed a Chetan Sharma Technology & Strategy Consulting study that demonstrates a significant slant toward digital media, showing the efficiency of mobile and Internet against TV, print, radio and outdoor. When relating time spent with the various media against the ad spend, Internet tracks best, but print, TV and radio still rank very well. The choices are dependent on the product and the target audience as it’s very segment specific.

REAL WORLD EXAMPLESPareto is Canada’s market-leading shopper marketing com-pany. Sue Britton explained its function is to enhance shopper experience and influence shopper behaviour, help-ing their clients sell more. Britton defined shoppers not as consumers, but as people who have just started to make pur-chasing decisions.

Pareto has seen – recession and post recession – manufactur-ers and retailers increasing their marketing expenditures to entice consumers to buy their products. In a retail environment, 80 percent of the purchase decisions are made in the store; and still the best way to market to the consumer in-store is through promotional POP – print-based media. That doesn’t mean there aren’t digital channels being used, but Pareto sees digital deployed to build awareness and to get people into the store. Essentially, though, digital for a lot of retailers and manu-factures is still in the cool-factor phase.

BigReach Learning is a marketing communications training company, offering workshops and seminars on integrated communications planning, media management, advertising performance measurement, online advertising, social mar-keting and mobile marketing. BigReach President Maura Hanley has seen that media buyers are becoming more focused on digital media. Doug Picklyk asked if Hanley was seeing a shift from other forms of media toward digital, and,

in general she has – slowly. Hanley thinks that what a lot of marketers are struggling with is that some of these digital opportunities are efficient in terms of a low cost per thou-sand, or a low cost of production. But, marketers are asking: how do I scale it up to enough people that I know are inter-ested in my product versus what I can do through mass media?

BigReach sees that television is still the biggest piece of the pie for media spend, and the biggest bang for the buck in terms of reaching people. Sue Britton, however, did not agree and raised the question: how many people do you get into a Wal-Mart in one day versus the number of people watching the Super Bowl? You get more eyes on the in-store printed media than on the television commercial. Conversely, said Hanley, there is a different dynamic with the decision to go forward with something more service-based, such as finan-cial products or services. BigReach clients are becoming more disciplined at looking for the best opportunity to shift interest to a sale.

DIA’s presenters agreed that the decisions are complex. Television can provide strong brand awareness while in-store print offers information to consumers when they are ready to buy. Print has high value in certain segments to drive market-ing fulfillment. Additionally, there are certain products that are highly driven toward digital delivery.

Then there’s Social Media. Vijay Saxena talked about the key difference between Facebook and Google. Google is based on search results and ranking. Facebook relies more on word-of-mouth and reference marketing. If your Facebook friends recommend something, it influences your own buying decision.

Picklyk sees a focus on the ability to measure the marketing spend and to capture its ROI. But, lots of things can lead up to the buying decision. There is considerable data available though not necessarily real ROI. Just because you have data, advised Hanley, doesn’t mean the cause and effect of a mar-keting effort can be definitive. In retail, Britton added, there are so many tools being used to capture a buyer’s attention. The increase in sales can certainly be measured, but it’s against the entire marketing activity, not just one element.

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Myrna Penny

The speed at which technology is advancing forces traditional marketing and promotional tools to become less relevant in today’s marketplace, even those seen as revolutionary only a few years ago.


WHAT IS THE HOTTEST TREND TODAY?For digital, it keeps changing. Britton talked about Wag Jag and Groupon as “flavour[s] of the day.” What will it be tomor-row, and how do marketers select the options that will capture the most attention? Many choices represent an addi-tional tactic, not something, in Britton’s opinion, that will replace other forms of marketing, except for perhaps some radio and TV. But as long as business sees more return on marketing spend, they will do more marketing; therefore, increasing budgets.

One of Xerox’s objectives is to assist customers in being more profitable. Saxena told listeners that Xerox often works with their customers to add, as an example, a QR code to a

simple black-and-white printed price tag to engage shoppers by taking them to a digital experience. The combination of the multi-media is gaining momentum and also driving addi-tional spending to make sure information does not remain static – therefore more print, more changes to websites, more direct mail – and so on. There is opportunity for both the service provider and its customers to drive more revenue.

Developing content is becoming more diverse. It is either professionally made, or often consumer generated, thus engaging the customer more directly with the brand. You-Tube is a digital space that enables utilitarian content to effectively achieve market reach. Most significantly, Hanley advised the DIA audience, if you are going to develop a “place” for people to go, you need to be sure the content is ever-changing so they have reason to go back.

Mobile is still in the early stages and is also fragmented because of the immense number of apps, making the reach of any one app tiny. Advertisers are looking for scale to be able to reach the largest number of people possible and that is very difficult to get right now with mobile, though there is a lot of developmental work going on.

The key point is to develop a marketing plan based on your audience and then devise your tactic specific to that plan. The challenge is to select the appropriate channels to be in.

WHO’S DRIVING THE SHIFT IN MARKETING SPACE?Vijay Saxena advised that Xerox has recognized it is largely the new generation driving the shift toward digital. In 2008, Xerox changed its logo not only to expand its image, but to also represent a change in the company’s go-to-market approach.

Saxena explained a targeted marketing campaign Xerox did last year, which allowed the DIA audience to see the statis-tical outcome derived from each of the media spaces used. One was a direct mail package. The piece included a call to action and a giveaway for respondents. It did not drive the response Xerox had hoped for. They also used social media, partnering with a company to select social media spaces to deliver content and drive “click-throughs” to a Xerox web page. They also developed an article that was placed on a number of blog sites. The response statistics showed cam-paign results with and without the use of social media. They got the traction out of the social media exercise they wanted – more than what was generated by the direct mail piece. They found that not only were they delivering new content and new value to selected printers, but they were also get-ting exposure through a media space that developed more interest in what they had to say.

The “New Xerox” now hands out a social media business card that shows how to connect to Xerox Canada through Twitter, LinkedIn, Facebook, Digital Printing Hot Spot Blog and YouTube. The card also includes a QR code that con-nects to a Xerox YouTube video. The number of followers within these social media spaces is growing month by month. The next steps might be to develop additional content that could interest the followers in a community building endeavour.

WHERE ARE MARKETERS FINDING INFORMATION?Xerox is utilizing a research portal that delivers information from industry studies that demonstrate where the market is going, thus enabling Xerox to align its marketing accordingly. The market data communicates the facts. Karg advised that there are many resources that are free such as Twitter, LinkedIn and blogs. And there are other resources and aggregate resources available at various cost levels. Karg further advised the printers in the audience to call on their vendors who have already gathered data they would be will-ing to share. Marketing bureaus and associations and industry magazines are valuable resources as well.

WHAT ARE THE KEY STRENGTHS OF PRINT AS A MARKETING VEHICLE?Any service provider needs to target its identified market and sell its value proposition. All the presenters at the DIA meet-ing concurred that printers can no longer just sell print unless they want to sell it as a commodity. Pareto partners with print-ers to collectively develop a strong deliverable. Conversely, printers can partner with other service providers to expand their own marketplace strength. Service providers need to be relevant to their customers. They need to fundamentally understand the business their customers are in and what their customers’ needs and marketing objectives are – and then deliver relevant solutions.

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Become a member of the Digital Imaging Association today. Membership

enables companies to send employees to each informational session at no

additional charge above the low cost of membership. Contact Marg Macleod,

Association Manager 416-696-0151 or [email protected]. As a

member of the DIA you become part of a network of professionals dedicated

to the strength and future of the industry.

Myrna Penny

Mobile is still in the early stages and is also fragmented because of the immense number of apps, making the reach of any one app tiny. Advertisers are looking for scale to be able to reach the largest number of people possible...



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The traditional textile market produced over $43 billion in worldwide billings last year, apparel textiles made up the lar-gest portion of that amount at almost 90 percent of the total. Also included in this number are automotive trimmings and carpets, according to a recent I.T. Strategies report. The digit-al garment printing industry is starting to make its stamp upon this industry, with significant growth in recent years. And it looks like its set to grow even further in the future.

Wherever you look, custom apparel, in-store advertising, trade show exhibits and custom products are all covered with an array of digitally-printed fabrics. While historically these results were achieved using screen presses, the in-vogue method of choice is now digital printing.

Brazilian-British duo Basso & Brooke were the first brand to create a fashion collection relying entirely on digitally-printed fabrics back in 2004, and now many other designers are get-ting in on the act. There are many online services springing up, like Karm a Kraft, Fabric on Demand and Spoonflower to name but a few. They all have similar product offerings in which customers submit their own artwork online or work from a series of pre-designed templates, select their choice of material and finally order as little or as much of the printed fabric as they need.

Recent statistics appear to back up the trend. According to InfoTrends and Fespa’s World Wide Survey, the fastest grow-ing application in wide-format digital printing is textiles with 93 percent of printers polled stating that they expect to see growth in this market.

Which type of method should you use for imprinted apparel?

In the digital world, there are three options we would like to look at, each with its own strengths and weaknesses.

Thermal Transfer PrintingThermal transfer printing has been around for a while and involves the smallest initial investment. You simply need a conventional inkjet or colour laser printer with the proper transfer paper and a heat press. The most common com-plaints about thermal transfers are cost per print, inconsistent wash results and potential peeling or cracking of the transfer; however, the newer transfer papers on the market today can minimize the outline of the transfer paper by using a two-step process to virtually eliminate the outline completely. Because the inks are translucent, the thermal transfer printing method is limited to white or lighter garments.

Dye-Sublimation Transfer PrintingDye-sublimation transfers differ from thermal transfers because the dye actually transfers from the carrier paper to the garment. A dye-sublimation printer employs a printing process that uses heat to transfer dye onto materials such as a plastic card, paper, fabric and many other materials. Dye-sublimation produces a print that has virtually no feel on the garment, but is more expensive than thermal transfer printers.

Unlike thermal transfers, screen-printing and direct-to-gar-ment printing, dye-sublimation printing needs a synthetic substrate to effectively transfer onto. Dye-sublimation is def-initely the process of choice for decorating non-textiles such as mugs, plates, brass and aluminum, and produces very vibrant prints when printed on the correct type garment. Typ-ically, their wash fastness is excellent, however, they do tend to fade with exposure to sunlight, so they are not the best solution for garments that will be worn extensively outdoors.

Direct-to-Garment Digital Printing (DTG)The Decorated Apparel Industry was taken by storm in late 2004 when some of the first commercial based direct-to-gar-ment (DTG) printers were released. DTG digital printing involves the use of a modified inkjet printer with specially for-mulated water-based textile inks which are heat set with a heat press or textile dryer. Unlike screen-printing, DTG out-put does not require separations, films and screens. Once your artwork is ready on the computer, it is output directly onto the garment. DTG digital garment printing does not com-pete with simple one or two colour screen print jobs when quantities exceed three or four dozen; however, it does fit in nicely for larger runs of more complex full colour graphics.

With the advent of white ink for DTG printers, new opportun-ities have sprung up for DTG printing with short-run and custom dark shirts. DTG printing, with its full colour palette, is the wave of the future for garment imprinting as the price comes down.

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Ink TackInk tack is a crucial aspect in the printing process that needs to be constantly monitored for quality control. When we talk about ink tack, it refers to the stickiness of ink or the force required in splitting an ink film from one surface to another. Proper ink tack needs to be achieved in order for the ink film to transfer from the ink train to the printing units and onto the printed substrate. It is important to understand the factors that affect ink tack and this will provide us better insight into tack-related problems and how they can be solved.

In offset lithography, inks are formulated to have a high degree of tack to avoid emulsification by the damp-ening solution. The vehicles used during ink formulation determine ink tack and viscosity. Offset inks should be as tacky as possible without picking the surface of the paper. It should also be noted that to some extreme, picking caused by high tack inks might even tear the substrate. To achieve proper ink trap in multi-colour printing, the first ink should have the highest tack value that won’t disrupt the sub-strate surface when printing. The succeeding inks should have progressively less tack. Increased or insufficient ink tack also influences the reproduction of solids, sharp lines and may cause improper dot gain.

Ink tack can be influenced by several factors: ink viscosity, press speed and ink film thickness. In flexographic and roto-gravure printing, low-viscosity inks are used to accommodate high press speeds. If high-viscosity ink is used on a high-speed press, it will result in high ink tack and can cause picking. By maintaining optimal press speed and roller tem-perature, ink tack can be controlled.

Rub ResistanceOften during the shipping or handling process, printed prod-ucts will be exposed to a degree of abrasion to its surface. Regardless of quality or perfection of the printed product, a scuffed, rubbed off or scratched surface would render it a print defect. Because commonly printed products such as magazines, newspapers and brochures are handled very often, the ink on the substrate needs to be formulated to have some degree of rub resistance. By adding components such as waxes and/or hard-drying oils, an ink’s rub resist-ance can be improved.

Waxes are often added to printing inks to improve rub and scuff resistance. Waxes can be Polyethylene or PTFE-based. The amount of wax added can affect the characteristics of the ink. If there is too little wax, little rub resistance will be obtained. If there is too much, it can soften the ink and lead to rub problems. Since lithographic inks need to emulsify with a certain amount of water, excessive wax content in ink

can also render it too waterproof. This can cause problems during printing because the ink will begin to adhere to the non-image area, causing scumming or catch up.

Linseed oil is sometimes added to improve an ink’s drying property and bonding of pigments to paper. Linseed oil works both as a binder and a varnish and it creates a protect-ive coating against scuffs that holds this pigment onto the substrate surface after drying. Linseed oil also has the ability to reduce ink tack. When using linseed oil, precautions should be taken because the amount added could affect the overall attributes of the ink.

We should also be cautious as to how much oil or waxes are added to the ink formulation. These additives may change the properties of the ink and may lead to other print-related problems. This is why it is crucial to understand how certain additives behave when they are added to printing inks. The right balance is needed to achieve high quality print as well as an abrasion resistant surface.

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As our economy is more dependent than ever upon intellec-tual capital (versus physical buildings or machines), the role of continuous education and training is all the more relevant and necessary to succeed in today’s business world.

In speaking with Scott Millward, instructor at the School of Graphic Communications Management at Ryerson University, he shares a similar view that continuous education plays an integral role in today’s marketplace.

“Technology and research in the graphic communications industry is constantly changing and growing, making continu-ous education in the latest trends and theories a must. Formal academic education provides learners groundwork in theory and practice for a wide range of relevant, cutting edge topics in the business and technology of the industry. Training programs developed by industry leaders and organizations offer a place to specialize and gain a deeper understanding of a specific area of interest.”

Scott also sees the value in training outside of the classroom. “Vendor training presents the opportunity for specific know-ledge in operation and use of a product or technology.”

There is no one-scenario-fits-all training solution, and it is often a broad spectrum of educational outlets that helps promote learning. Training doesn’t have to be formal and expensive. The following options provide perspective on the diverse opportun-ities for continuous education, and they will hopefully provide you with inspiration to learn something new!

• Viewing free online videos on YouTube• Following relevant blogs of industry professionals and

corporations• Joining related networks and participating in discussion

boards on websites like LinkedIn.com• Gathering online professional resources from organiza-

tions like the Printing Industries of America (www.printing.org)

• Subscribing to industry-related magazines• Attending webinars, like those available from Paper-

Specs (www.paperspecs.com)• Participating in public workshops for entrepreneurs (Ex:

Mars & PodCamp Toronto)• Attending industry conferences and trade shows (Ex:

Print World & Graph Expo)• Attending topical seminars (such as those offered by

Adobe Systems Incorporated) • Participating in customized, one-on-one training with

suppliers, that may include using training simulation software

• Joining relevant associations• Participating in hands on training, like courses available

at the Heidelberg Print Media Academy (www.print-media-academy.com)

• Enrolling in continuing education courses (Ex: Ryerson University)

• Achieving advanced degrees, such as a Masters in Print Media from Rochester Institute of Technology (RIT)

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Participating in continuing education courses is more feasible than ever before. Educational institutions understand the time constraints in the lives of busy professionals, but at the same time, understand the value in offering continuing edu-cation courses. As a result, many courses are offered online and can be completed within the comfort and flexibility of your own schedule. This also opens up the opportunity to participate at a distance, whether national or international, making it all that much easier to find a course that is the per-fect fit for your needs.

A WORKING EXAMPLEA unique example of an on-the-job training program is with Gannett Co. Inc., a media and marketing solutions company. The company owns printing facilities and print Rochester, New York’s Democrat & Chronicle (D&C), among many other publications. Gannett’s print training program is so unique because it maintained a small training press that mimicked its full-web newspaper presses. Printers would participate in extensive training on the smaller press before moving up to

the “big leagues” on the large production presses. This train-ing program is no longer available due to the expensive up-keep of the program, but this demonstrates the type of comprehensive and practical training programs that exist within our industry.

10 Printing Associations in North America (in non-specific order)

1. The Technical Assocation of the Graphic Arts (TAGA) 2. The Flexographic Technical Association (FTA)3. International Association of Printing House Craftsmen

(IAPHC)4. Ontario Printing and Imaging Association (OPIA)5. Canadian Printing Ink Manufactures’ Association (CPIMA)6. Canadian Printing Industries Association (CPIA)7. Printing Industries of America (PIA – formerly PIA/GATF)8. The National Association for Printing Leadership (NAPL) 9. The Association for Suppliers of Printing, Publishing and

Converting Technologies (NPES)10. International Prepress Association (IPA) and IDEAlliance

BOOK RECOMMENDATIONSPocket Pal 20th Edition by International Paper

Pocket Pal is in its 77th year of publication and is the “handy book of graphic arts production.” First published in 1934, this comprehensive guide provides information about the history

of printing, prepress, typography, printing processes, post-press, paper, quality control and more. It is the per-fect reference guide for the print professional who needs to have quick access to terminology to maintain their industry lingo.

4 ½ stars from 3 users on Amazon.com

5 out of 5 maple leaves on Chapters.Indigo.ca

Retail price $24.95 CDN

Getting It Printed: How to Work With Printers and Graphic Imaging Services to Assure Quality, Stay on Schedule and Control Costs (Getting It Printed) 4th Edition by Eric Kenly

Getting It Printed is a practical insight into what customers expect from their print shop, including plan-ning a print job, timely scheduling, planning workflows and more. Where Pocket Pal was a quick reference guide, Getting It Printed is a hands-on guide to working with printers. This is an excellent resource to use as a reality check for your printing business to ensure you are in-line with customer expectations and industry norms.

4 stars from 19 users on Amazon.com

Not yet rated on Chapters.Indigo.ca

Retail price $35.99 CDN

ONLINE RESOURCESWEBSITE – Printing Industries of America (www.printing.org)

This website has a user-friendly interface with fantastic industry tools such as a comprehensive upcoming industry events calen-dar and professional resources divided by workflow area (ex: pre-press, sales & marketing, etc). There is also an online storefront with books, magazines and down-loadable products for every print professional.

BLOG – The Print Chef: Printing, Marketing and Cooking Blog (http://printchef.blogspot.com/)

This may not be the most recognized or followed blog, but it sure gets my vote for creativity! Hef Matthews, a proud print-ing guru in Nashville, Tennessee, uses cooking comparisons to explain printing topics in a clever way. “While I consider printing to be very intriguing, I realize that the print industry

isn’t the most glamorous field to special-ize in. I want to change that, so I created The Print Chef to make printing fun…” Recent posts include: Sticking to the Main Thing: Better Ingredients, Better Pizza and Sell Like Groupon.

The key to success is maintaining your skill set and learning about the most recent trends in our industry. Building this knowledge is not only important to advance your career as a printing indus-try professional, but overall success is also dependent upon how well you can use all resources to your greatest advantage. If you’re not always one step ahead, you can be sure that your competitor is. Knowledge is power.

Ma

na

ge

me

nt

Diana Brown is an account executive in the Trade Book

Publishing division with Toronto-based book printer,

Webcom Inc.

[email protected]



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CMYK Optimizer – more under the hoodThe automated colour tool CMYK Optimizer performs simple, yet accurate colour transformation tasks using Alwan Dynam-ic Device links. With the ability to reduce Total Area Coverage (TAC) by performing Grey Component Replace-ment (GCR), the following beneficial side effects occur: ink savings, dollar savings, improved grey balance, faster make-ready time and easier proof matching. This product comes with Alwan ColorHub, which handles the input, output and error reporting. The ColorHub can also perform ICC Profile Processor tasks to convert profiles within PDF files. The ICC Profile Processor is another module in Alwan’s set of colour tools.

The return on investment for the CMYK Optimizer is based on the main tasks of creating optimized CMYK colour separa-tions. Upon investigation there are many more interesting functions, including tools to help with soft proofing using Acrobat as well as options that can help inkjet, digital and online workflows.

If you are using Acrobat to soft proof PDF files, CMYK Opti-mizer can improve this workflow for you. When a PDF contains multiple embedded profiles inside your customer’s document, Acrobat will colour manage them for you on screen. This may not be the way the RIP will convert each image; the RIP will use its system to convert from each embedded profile to the output profile.

Instead of allowing multiple ICC profiles to be managed and then reconverted by your RIPs, bring them all to the space you use for your press before the soft proof. Optimizer can convert from the embedded profiles to one standard colour space allowing the soft proof to display the images without additional colour management on individual images.

Soft proofing colour, plus the addition of transparency to the mix causes another issue. Transparency flattening when per-formed by the RIP can cause colour shifts when multiple colour spaces and overprints are involved. CMYK Optimizer

has built-in transparency controls. It takes into account sensi-tive overprints, gives a choice to handle complex transparencies only or to completely flatten. With these options, soft proofs can be flattened and correctly optimized to one colour space for printing before approval of a soft proof.

This soft proofing benefit alone is enough reason to take a look at CMYK Optimizer. The ColorHub provides FTP in and FTP out to provide complete control to single customers or for an entire product line for do-it-yourself soft proofing. Hot folders are created automatically and error reports are gen-erated as well. The Optimizer at the front of the workflow makes this a powerful preflight tool to manage colour and flattening.

The special colours feature deals with vector items, like lines and type. Text that is RGB black (0,0,0) can be changed to 100 K throughout the PDF with a special colours setting. You can even set a range of three to get multiple shades of RGB black. For some workflows, converting a device N greyscale solid to 100 K will solve an issue as well. This special colors option can also be used for Rich Black mapping, changing flat tint values or fixing screened text.

A sharpening feature is built in and can be customized. It has a radius and amount setting and gives you a preview image to see the results before setting. Another option available is for spot colours. This allows you to map spot colours inside vector art to match specified values; you can also import existing spot colour values. Colour in vector art can be col-our managed like the images in the file or left alone; the setting defaults to colour managing like in the case of bit-maps. It can also be viewed online at http://www.tribay.ca/Alwan/PGL_Alwan_EG_v3_rvb.pdf.

Te

ch

no

log

y

Andrea Mahoney

Andrea Mahoney designs and installs automated

workfl ows for all types of printing professionals. Tribay,

a workfl ow automation company, off ers the tools,

training and setup for successful automated workfl ows.

Visit www.tribay.ca and/or email Andrea at

[email protected].

Colour automation toolsColour automation toolshave more under the hood



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Welcome to the (sometimes complex and intimidating) world of Management Information Systems (MIS) for the graphic arts industry! With so many options to choose from (and so much techo-babble to wade through), it can be difficult to narrow down the features and benefits of each system’s offerings. Today’s examination of four MIS providers includes HIFLEX, Avanti, EFI and Prism. This is meant to be a brief overview of each company’s product and their capabilities. The focus is on the products’ unique position in the marketplace, and not a comprehensive examination of each system. Although I can provide a concise explanation of each solution, I cannot do any company justice in one article. Therefore, there is a web address beside each explanation where you can find a great deal more informa-tion about all of the solutions available.

HIFLEX www.hiflex.com

HIFLEX is an MIS and Web2Print auto-mation solution for the graphics industry, which uses the power of a JDF workflow to take functionality to the

next level. HIFLEX MIS systems are extendable, which allows for superior connectivity to existing technology. Graphics industry users of HIFLEX systems vary across a range of appli-cations, including commercial printing, newspaper and packaging. Information gathered by the system is displayed on the dashboard in visual graphs and charts for quick reference.

This helps all members of the production team complete their jobs to the best of their abilities. Systems can be integrated throughout a business allowing for increased continuity and simplicity. Measuring performance by key success indicators (output, profit margin or value added, for example) is critical to understand the business and plan for success. The HIFLEX sys-tem enables transparency for better production planning to be proactive in a market that too often is reactive, and as a result, HIFLEX systems have won 10 CIP4 Innovation Awards.

Avantiwww.avantisystems.com/Print_MISAvanti’s management software for print shops allows integration from order input, through the management of the print shop floor, to invoicing. Avanti’s mission is “to help our customers streamline their workflow and increase their revenue through the implementation of our print MIS software.” Avanti’s 25-year history has allowed the company to create a comprehensive JDF-enabled workflow, custom-ized to various equipment and processes in the graphics industry (from sheetfed offset to screen printing to bindery). Their dedicated partnerships to the world’s leading equip-ment and software manufacturers (including Xerox, HP and Microsoft) enable integrated MIS functionality. End-to-end solutions and depth of experience provide Avanti with its greatest advantages.

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EFI www.efi.com

EFI’s MIS and ERP software systems are uniquely designed to custom fit individual system needs. EFI invests a great deal in research and development and is therefore able to provide solutions to changing MIS and ERP system needs over time, as tech-

nology changes. EFI asserts that its systems will be relevant long after the average system (which is approximately 10-15 years after implementation) and its strong research and development focus helps EFI to create this exceptional long-term value. The company’s solutions range from small-scale copy centres (PrintSmithEFI) to large global operations (Mon-archEFI) with a variety of scalable options. These options aim to fulfill a number of functions including, but not limited to, removing paper-based processes, maximizing resources and capturing key business data to make better-informed deci-sions. EFI’s product line also incorporates JDF automation allowing its MIS products to communicate with other JDF-enabled systems, permitting complete automation from start to finish. EFI maintains 26 offices globally and with over 10,000 print MIS and ERP installations, EFI is leading the way in business solutions management for the graphic arts industry.

Prismwww.prism-usa.com Prism’s MIS and ERP systems have been available in the mar-ket for 25 years, including options for packaging, commercial print and others around the world. The company employs

particularly strong solutions for printing facilities with a combin-ation of conventional and digital equipment, due to its enhanced system configurability using a common database. Prism has partnered with numerous equipment and systems manufacturers (including Heidel-berg, Goss, Kodak and Agfa, as well as CIP4 for JDF capabilities), ensuring full integration of its product into specific workflows. With 7,000 users of Prism WIN MIS and Prism QTMS worldwide (and offices around the world to sup-port the installations), the company is a global organization in which “innovative products are modular and fully integrated and will manage all or any part of your business with unrivaled accuracy and flexibility.”

Management Information Systems require meticulous research and consideration to ensure the best possible solu-tion for your specific needs. There is only so much insight you can gain from reading product brochures, so speak to your colleagues and industry contacts to discover what has worked well (and what has not worked well) in their experi-ence. Only after you clarify your most important non-negotiable items for a MIS will you be able to sift through the information and find the right fit for your business.

Pro

du

ct P

rofile

Diana Brown

Diana Brown is an account executive in the Trade Book

Publishing division with Toronto-based book printer,

Webcom Inc.

[email protected]

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Sherbrand Industries Tel: (519) 621-1729 • 866-621-1729 • Fax: (519) 621-1936 E-mail: [email protected] • www.sherbrand.ca

SHEET FED PRESSES1988 HEIDELBERG 102-ZP, TWO COLOR, 28” X 40”2002 HEIDELBERG CD-74-5-LX FIVE COLOR 23” X 29” AUTOMATED-COATING1989 HEIDELBERG MOSP-H, SIX COLOR, 19” X 25”, CONSOLE2000 HEIDELBERG QMDI46-4+, 3+ MILLION IMP, AIRTECH DRYER, PDR SPRAY, HARLEQUIN RIP1994 RYOBI 3302, 2 COLOR, CRESTLINE DAMPS, POWDER SPRAY, UV, SUPER BLUEWEB & FLEXO PRESSKOMORI-CHAMBON 8C ROTOGRAVURE PRESS # 3 (1994-98) 8 UNIT PRESS, 28”APECO WEB O PRESS16 UNIT PRESS, 16”DIDDE/ TANDEMERE MODEL# 176-597 14"W. 8 1/2 TO 17" CUTOFF, ROLL TO SHEETMARK ANDY 820, 7”, 3 COLOR, FLEXO PRESSKIWI CASE PRINTER MODEL 2482 W/ TOP & BOTTOM FLEXO PRINTERCUTTERSMANDELLI 45” CUTTER , GERGEK COMPUTER1998 POLAR 137 ED CUTTER W/ POLAR(TR 1ER 145-4 UNLOADER2000 LAWSON 60" MPU CUTTER ,LAWSON COMPUTER, DOUBLE END PULL1986 LAWSON MODEL MPU100, 70" GUILLOTINE CUTTER, WITH LAWSON DIGITAL SPACER;85” SEYBOLD HYDRAULIC GUILLOTINE CUTTER, MICROCUT COMPUTER, AIR TABLES100” SEYBOLD CUTTER, MICROCUT COMPUTER2000 LAWSON 110 ‘ MILL TRIMMER (CUTTER), LAWSON MCC COMPUTER, SAFETY LIGHTS,1987 LAWSON 87: CUTTER, MICROCUT COMPUTERSCHNEIDER CUTTER 34” #35162BINDERY1989 NORMBINDER BINDER NB2,20 CLAMPS, 24 STATIONS, 3670 THREE KNIFE TRIMMER, 1504 ASTRO STACKER, 3 PUMPS 1997 MULLER MARTIN PRESTO STITCHER, 4 POCKETS, COVER FEEDER, TRIMMER, BELT DELIVERY, 10+ HRS2005 BOURG COLLATOR 2 10 BIN TOWERS,STITCHER, FOLDER, SHEETER, STITCHER, FOLDER, SHEETERSTAHL FOLDER , 20” W/ R ANGLE, KNIFE FOLD UNITSULBY VACUUMATIC PAPER COUNTER

2000 DIGICOIL 4.25 X 5” X 14.5” X 12”, COIL AND PUNCHMID 1990’S MOLL REGAL FOLDER GLUER W/ VERSA FOLD UNIT, 4 GUN HOT GLUE SYSTEMLATE 1980’S MOLL MARATHON FILE FOLDER GLUER W/ 2 COLD GLUE HEADS2008 STAHL PHARMACEUTICAL FOLDER TI36-4-4P WITH GATE FOLD ATTACHMENT2000 TIGRA MODEL 1570 PERFECT BINDER, REFURBISHED IN 2004, ESPRIT MODEL 1576 THREE KNIFE TRIMMER, GATHERING MACHINE MODEL 1571 (WITH ASIR), KAESER AIR COMPRESSER MODEL SK19 + TANK, CRISS-CROSS III DELIVERY MODEL 1536, CONVEYOR MODEL 1541DIE CUTTERSHEIDELBERG 10 X 15 WINDMILLHEIDELBERG 10 X 15 WINDMILL W/ FOIL1996 BLUMER PB-18-1 LABEL HIGH DIE CUTTER, FEEDER, BELT CONVEYOR DELIVERY, COMPUTERIZED1978 BOBST 102E,2 CHASES,2 PLATES,NICE MACHINE2005 BRAUSSE CLAM SHELL DIE CUTTER 50” X 60”1994 THOMSON DIE CUTTER 29”X 41”, CLAM SHELL DIE CUTTER1999 FIPI (SIMARD) AF4.77/T1600 HYDRAULIC DIE CUTTER BEAM PRESS 60"WIDTH X 24"LENGTH, 77 TONSSHEETERS & SLITTERSBECK 45 SHEETER, W/ LAYBOY DELIVERY1998 JAGENBERG SYNCHRO-SPRINT 65” SHEETER, 2 SHAFTLESS UNWIND STAND, SLITTING,COATERS2005 SAKURAI SC 28/4011 28” X 40” SILK SCREEN PRESS. SPOT & FLOOD COATING, UV DRYER, DS 48 STACKER, 20 SCREENS, 2006 DOUTHITT SCREEN MAKER (MAGIC 83, TYPE D MZ SIZE 56 X 61)PRE-PRESSHEIDELBERG PROSETTER 52. HEIDELBERG'S VIOLET CTP DEVICE. THE PROSETTER COMES WITH A 30MW LASER CAPABLE OF IMAGING SILVER HALIDE AND PHOTOPOYMER VIOLET PLATES @ 20PPH. IT IS ALSO FIELD UPGRADEABLE TO A PROSETTER 74."HEIDELBERG DELTA WORKFLOW INCLUDING P/S LEVEL 3 RIP, ROOM SOLUTION, SCREENING TOWER, IBM PC SERVER AND COLOUR MANAGEMENT SOFTWARE.HP 5000 INKJET PROOFING/ POSTER PRINTER.

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48 www.graphicartsmag.comApril 2011 | Graphic Arts Magazine

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.comments The latest activity at graphicartsmag.com.comments.comments The latest activity at graphicartsmag.com.comments

Kristen Read

Talkback Topics - check out what the industry is saying about some of the latest news:

Re: How “print-ready” are your customers’ files?“It is kind of sad to read that after so many years there are still so many issues with print ready files. Especially sad because all the tools are available… But printers need to communicate this to their customers instead of complaining about files not being print ready! So: use and promote the existing tools/settings files. Problematic PDFs will probably harm your bottom line. Unless you are able to charge the total amount of time you spent on fixing them…but, be honest: do you really charge for that? -Eddy

“I guess we prepress developer folks should be thankful - people still need to modify pdf files before they can print them, so we still can make a living.” -Michael

10 Tips: How to get the most out of your next conference

#1: Pre-planPrepare beforehand. Get a hold of the conference agenda and go through it thoroughly. Don’t attend sessions on topics you’re familiar with - you’ll get bored. Figure out what you want to see before you get there so you have a schedule in mind.

#2: Maximize networking opportunitiesStay at the conference’s assigned hotel. You never know who you could meet in the lobby or elevator or bar. Position yourself where you are most likely to expand your network.

To read the rest of these tips, scan this QR Code with your smartphone

What’s hot? Check out the top 5 most read stories from graphicartsmag .com:

1 Heinz announces big change in its ketchup bottle packaging

2 3D printer creates human-like ear

5 Does food sold in cardboard packaging pose a health risk?

4 Kodak to increase digital & con-ventional plate prices

3 Heidelberg and Ricoh announce new partnership

We’d love to hear what you think. Feel free to leave your comments

and opinions at graphicartsmag.com and

don’t forget to vote on our weekly web polls!



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Webinars have become a low-cost way for people and com-panies to promote their products and services. In addition to using them frequently in the last year, I have also attended many webinars on a variety of topics. However, I have noticed that many webinar organizers, hosts and panelists, create a variety of mistakes that reduce the effectiveness of their program.

e Requiring too much information. I don’t mind giving my name, email address and company name when registering for a webinar. However, I don’t like giving my address, telephone number and five other details. I know that you want to collect data, but the more information you ask for, the less likely I will register for your program.

r Asking mandatory questions. Most webinar technol-ogy allows organizers to ask registrants several questions when they register. However, making these questions mandatory can work against you, especial-ly if the question is irrelevant. Many people will refuse to answer these questions and back out of the webinar.

t Unfamiliar with the technology. A fatal mistake is to familiarize yourself with the webinar technology only shortly before the program begins. I admit to include myself in this category. A few years ago, I agreed to deliver a series of webinars for a client and unfortu-nately, my contact person was unfamiliar with the technology. As a result, we had several glitches and problems that reduced the overall effectiveness of the program.

u Using a speaker phone. I recently attended a webinar and it appeared that one of the panelists spoke from a speaker phone or computer microphone. This cre-ated a vacant echo which became distracting whenever she spoke. It is critical that you have a good connection to the call and many companies suggest that you use a landline to ensure that you have a good connection with minimal interference.

i Poor PowerPoint slides.

Death by PowerPoint! My belief is that webinar slides should reinforce your key point, not make them. Too many people use too many bullet points or try to cram too much information on a single slide. Improve your effect-iveness by creating a better PowerPoint show. Check out Slide Share for some examples.

o Taking too long to get into the program. I have attended countless webinars where the first five to seven minutes is absorbed by self-promotion, intro-duction of the presenter or guest expert, or information that was irrelevant to participants. Although sponsoring companies want adequate air-time, it is essential that you manage their expectations and keep the introduction brief and concise.

p Too much promotion. Many of the webinars I have attended have been a thinly-disguised attempt at sell-ing a product or service. I understand the importance of generating sales, but if your webinar is promoted or sold as an “educational” session and you spend most of your time talking about your product or company, participants are likely to quickly disengage.

a Failure to deliver high-quality content. A webinar should deliver value for attendees. Unfortunately, too many programs give “here’s what you need to do” information without explaining how to actually apply the concepts. It is better to delve deep into a topic than offer three dozen ways to improve without pro-viding substance.

s Failure to deliver value. This ties in with the previous point. A successful webinar provides high value to the participants, regardless of the price point. Enough said.

d The webinar is too long/short. The length of webinar is irrelevant. What’s important is the value that is deliv-ered during the program. You can’t stretch a short program into a long one and an intense, lengthy ses-sion cannot be condensed into a short webinar. Whether you are the host, organizer, or guest expert, make sure that you allot the appropriate amount of time for your particular program.

f Not allowing questions. I made this mistake during my first few webinars. Participants have questions and they want to have the opportunity to ask them. Increase the value of your webinar by giving people ample time to ask questions and allot time for these questions so that you are not racing through the final six or seven minutes of your presentation.

Webinars can be an effective marketing vehicle and a great way to generate sales leads. Improve your results by avoiding these common webinar mistakes.

Sa

les

...too many programs give “here’s what you need to do” information without explaining how to actually apply the concepts

Kelley Robertson

© 2010 Kelley Robertson, All rights reserved. Kelley

Robertson, professional speaker

www.kelleyrobertson.com

905.633.7750

11 webinar mistakes you need to avoid

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