Volume XXVIII, Number 7 August 2009 newsT H E A S S O C I A T I O N F O R S U P P L I E R S O F P R I N T I N G , P U B L I S H I N G A N D C O N V E R T I N G T E C H N O L O G I E S

INSIDE:

Chairman’s Perspective........................... 2

Graphic Communications IndustryRallies for US Postal Serviceat PRINT 09 .............................................. 4

What is Now andWhatWill Be? ............ 4

Market Forces Shapingthe FutureMediaMix .............................. 5

On the Leading Edge…or Behind the Curve?................................ 6

Looking forMarket andTrends Information for thePrinting Industry? .................................... 7

News and Notes ...................................... 8

I’ve been at GRAPH EXPO and heard some people say...“the showlooks smaller this year!” to which I reply...it was a PRINT showlast year and this year it’s GRAPH EXPO. First I get a ‘deer in theheadlights’ stare in response, and then… “what’s the difference be-tween PRINT and GRAPH EXPO?” After all, they’re both in the samecity and the same facility and the show looks and feels the same. Myanswer is that PRINT is bigger, longer and international in scope,and frommy perspective, the key is the international component.

For many years, an organization called EUMAPRINTmaintaineda schedule of major international shows, with these shows plannedyears in advance so they wouldn’t conflict with each other. Drupa,PRINT, IPEX and IGAS were the four major global shows on arotating four year schedule so as not to overlap. Hence in the U.S.,every fourth year PRINT is staged and the other three years areGRAPH EXPOs.

To ensure the international flavor of the PRINT show, GASCmust attract more foreign exhibitors to the show than typically at aGRAPH EXPO. This is achieved by the addition of country pavilionsand larger foreign exhibitors that normally don’t exhibit directly in

GRAPH EXPO reserving theirown booth at PRINT.

More important is attractinga global audience to the event,thus reinforcing the global na-ture of the show. To that end,NPES’ senior managementteam developed a marketingplan that pinpointed the majorregions/countries as the focusof our year-long, pre-show in-ternational PRINT 09 promo-tion efforts. Our strategy was toutilize data from the then re-cently released PRIMIR study,World Wide Market forPrint, as the ‘content’ to rallyprinters, potential exhibitors,association leaders, the graphic

Around theWorld Promoting PRINT 09

arts press, tour organizers and U.S. Commercial Service office aroundthe show. The study also provided a roadmap of the largest print mar-kets in the world and the fastest growing regions and countries,which provided the focus for our promotional efforts. This processbegan in earnest in early 2008 as we planned for the NPES presence atdrupa and the official rollout of PRINT 09 promotion.

Tokyo, Japan: September 2007Even earlier than that, we gained our first opportunity to reach a

major regional audience at IGAS 07 in Tokyo. There we hosted anhour-long press conference attended by over 40 ‘multipliers’(members of the media and industry organizations) where we spent45 minutes sharing the study findings and 15 minutes on detailsabout the show. This format proved to be an ideal formula as thestudy data was unique, fresh and of interest to our attendees. Itclearly illustrated the fact that the U.S. market is the largest in theworld and why PRINT 09 would truly be the epicenter for thegraphic communications industry in 2009. And, while othershows may be bigger—the U.S. is still the largest print market inthe world by far and a major draw for foreign attendees.

continued on page 2

NPES VP Global Programs Kip Smythe addresses Japanese media and industryleaders at a press conference at IGAS 07 in Tokyo’s Big Sight.

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Hank A. Brandtjen, IIINPES ChairmanPresident, Brandtjen & Kluge, Inc.

The Road Ahead: SmallSteps a Journey Make

This pastweekendwefinally had rain,so a portion ofour indoor timewas spent look-ing through oldphotographs.Walking downmemory lanecan be a verypleasant thingto do. You get

to relive enjoyable moments in your life and sharestories with family. You also get a reminder of whatis important to you. To paraphraseWinston Churchill,thosewho forget the past are doomed not to do thosethings they love again in the future.

Among our family photoswere some pictures ofthe trips we took to the mountains. It waswhile look-ing at pictures of a recent hiking trip that my daughtermade an observation about the importance of a photo-graph. She said that while hiking, shewasmainlyfocused on the ground in front of her so as not to tripand fall. But that it was in stopping that the beauty ofthe surrounding scenery could really be enjoyed.

Her rather profound insight mademe think aboutmy focus as president of my company. When timesare tough and I find myself on a rugged path, myfocus is on our day-to-day survival. Every turn, andevery step it seems, brings a new challenge and itcan become a struggle to just survive. I have to stepcarefully or, as my daughter says, I may trip and fall.

Of equal importance though is stopping to lookaround. Where hasmy company been, where arewenow, andwhere arewe headed? Do I know the corestrengths that comprise the foundation of our com-pany—and arewe continuing to build upon thosestrengths? What looms in front of us, just around thecorner—and arewe prepared for it? Wherewill ournext steps take us, andwill this path be the right one?

As the current chairman of NPES, I am fortunateto have personal contact with many of my peers inour great industry. I know I'm not alone in finding theexisting markets a struggle. Cash is tight, sales canbe hard to come by, and difficult decisions—some-times painful decisions—must bemade. But I also

chairman’s perspectiveknow that by stopping, listening and lookingahead there are opportunities to be found.

On our immediate horizon is the all-impor-tant PRINT show. Whatwas once far in thedistance is nowmere days away. Will atten-dance bewhat we hope for? In talking aboutthe PRINT showwith TomDevito, President ofGMS, hemademe realize that it is not the vol-ume of visitors that matters but the quality.He elaborated by saying that he knows therewill be attendees interested in his products,and hewasmaking sure today to take thecorrect steps to ensure that at the show hewill meet their expectations. Tom is positivePRINTwill be a success for him.

Managing a company is a journey. Thenext important 'mountain' wewill climb isPRINT. Like Tom, our company is taking thenecessary steps to ensure that attendeeswho are interested in our products get thereception they deserve. Will this be our'destination'? Of course not, since after theshowwemust complete the vitally importantfollow-up in order to meet our promises andour customers' expectations.

Before the summer is over, Isabel and Ihope to take another hiking trip. Pictures of ourpast trips tell us what we like to do; our experi-ence tells uswhat we can do. Step by step,then, wewill take the next journey. This timewewill be sure to look around us, and forwardtoo, as we create newmemories. It’s funnyhow by reflecting on life’s lessons they canapply to work and vice versa.

Thank you Isabel and Tom.

Dusseldorf, Germany: May 2008After IGAS, our PRINT 09 promotion world tour

shifted to Germany and drupa where we hosted aluncheon for the press and major exhibitors. To drivehome the meaning of our ‘myPRINT’ theme, whichfeatures personalized marketing to 11 key marketsegments, we created a variable data giveaway—beerbottles with VDP labels so that during the showevery attendee who visited our booth received abeer bottle with their own name on the label. (Arunaway hit by the way!)

Sao Paulo, Brazil: September 2008Brazil is both the 10th largest market and the 10th

fastest growing print market and, at over $12 billion,a sizeable market too. Accordingly, NPES PresidentRalph Nappi visited AFEIGRAPH to deliver the PRINT09 message to over 150 printers and association lead-ers during three meetings in Sao Paulo.

Toronto, Canada: October 2008Next stop...our trading partner to the north, Canada.

At the Print World show in Toronto, NPES Interna-tional Trade Director, Mike Hurley, was there to delivera PRINT 09 presentation at their annual “Printer ofthe Year” dinner attended by over 200 printers.

Paris, France: March 2009The International Color Consortium (ICC) meet-

ings in Paris, France provided the perfect oppor-tunity to promote PRINT 09 at the “Digital PrintDay” session before a captive audience of over 100potential show attendees.

Prague, Czech Republic: March 2009The relative close proximity of France to the Czech

Republic afforded a timely opportunity for a mini-trade mission and a PRINT 09 promotion luncheon.With the assistance of the U.S. Commercial Serviceoffice in Prague and the leading publication for theprinting industry in the Czech Republic, Svet Tisku,we hosted 30 top industry leaders.

NPES Chairman Hank Brandtjen withfellow hiker, daughter Isabel.

Around the World continued from page 1

We targeted thelargest and the

fastest growing markets.We visited four continents,every BRIC country and theemerging markets in EasternEurope and the Middle East.”

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Around the World continued from page 2

Guadalajara, Jalisco, Mexico: April 2009South of the border, Mexico is one of the fastest growing markets

at 34% over the 2006—2011 timeframe and also the 11th largestprint market in the world. Because it is imperative that PRINT 09draw a significant audience from this market, GASC VP Chris Priceand I co-presented a PRINT 09 preview at the Expografica show inGuadalajara, Mexico to over 50 leaders of the Mexican printing in-dustry. Based on the positive response we received from this wellattended event, we are optimistic that the outcome will be ‘missionaccomplished.’

Dubai, United Arab Emirates: April 2009In conjunction with the Gulf Print show, NPES President Ralph

Nappi addressed an influential audience in this exciting, developingmarket where the World Wide Market for Print study predictedthe gulf region will grow by over 50% by 2011, offering tremendouspotential for NPES members and PRINT 09 exhibitors.

Warsaw, Poland: April 2009One of the keys to delivering global attendance to the show is the

assistance of the U.S. Commercial Service. PRINT 09 is recognized byits International Buyers Program, which elevates the show to a highpriority for every Commercial Service office around the globe. And inPoland, two major events took place that provided outstanding visi-bility for the show. Every year, Commercial Service officers conveneat an event called TradeWinds; GASC and NPES became sponsors ofthe event which gave us the opportunity to share our message anddefine what we needed from each and every Commercial Serviceoffice in Europe. We met with all 27 commercial service officers andgained their commitment to promote the show to all attendees ofthe 2005 event—plus all printing companies in their databases. Next,we proceeded to the Poligrafia trade show in Poznan, Poland wherePRINT 09 was prominently promoted in the Vidart magazine booth.

Beijing, China: May 2009Our next target was the 3rd largest print market in the world

with a forecasted growth rate of 60%. The China Print 09 show inBeijing was no disappointment with over 1.1 million net square feetof exhibits, over 160,000 attendees and 1,284 exhibitors accordingto the organizers. PRINT 09 was the focus of the NPES booth at theevent, and NPES President Ralph Nappi presented to over 100 leadersof the Asian printing industries, driving home the message thatalthough China is growing faster, the U.S. is still the largest, mostdiverse printing market in the world.

St. Petersburg and Moscow, Russia: May 2009At two separate events, Ralph Nappi addressed over 150 ‘multi-

pliers’ in the Russian market. Although the global downturn hasaffected some aspects of this market, digital presses and wideformat are still of keen interest, and the huge digital presence ofthe PRINT 09 show was a major selling point at these events.

Tokyo, Japan: June 2009The summer meeting of the International Color Consortium (ICC)

in Tokyo provided another timely opportunity to promote PRINT 09,this time to the second largest print market in the world. At almost

$85 billion, Japan is akey target for both at-tendees and exhibitors.Our luncheon presenta-tion, which was at-tended by over 35editors, potential ex-hibitors and large print-ers, afforded theopportunity to previewthe many new showfloor features and specialattractions to be un-veiled at PRINT 09. Wereceived extensive pub-licity in newspapers, magazines and the trade publications as a resultof this program which should help ensure significant attendancefrom the land of the rising sun.

Mexico City, Mexico—July 2009The summer meeting of UILMAC afforded GASC VP Chris Price a

second opportunity to excite the Mexican printing industry aboutthe show. UILMAC is the organization representing the unionizedlithographic printers in Mexico—they include the 100 largest Mexi-can printers as members. Chris hosted over 275 individuals at thisevent, which was the largest promotional event we produced andwell worth the trip.

GASC VP Chris Price (l) and NPES VP Global Pro-grams Kip Smythe (r) promote PRINT 09 in Aprilat U.S. Commercial Service’s Trade Winds event.

In summary, NPES and GASC have left no stone unturned in ourefforts to steer significant foreign attendance to the show. We targetedthe largest and the fastest growing markets. We visited four continents,every BRIC country and the emerging markets in Eastern Europe andthe Middle East. From our closest trading partners in Mexico andCanada to the farthest away in China and Japan, every significantmarket was visited. One thing is clear from our participation in thisglobal effort, the PRINT brand is well known throughout theworld...and its significance is probably better understood there thanhere in the States. People around the world recognize the importanceof the U.S. printing industry—and to them the PRINT 09 show is theglobal event for the U.S. market.

People around theworld recognize the

importance of the U.S. printingindustry—and to them thePRINT 09 show is the globalevent for the U.S. market.”

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The United States Postal Service (USPS) is a critical cog in the nation’swheel of commerce, and the graphic communications industry israllying to its side during PRINT 09 at Chicago’s McCormick Place,September 11-16, as USPS faces the dire prospect of running out ofoperating funds before its current fiscal year ends on September 30. Theresult would be that USPS would fail to make its $5.4 billion annualretiree health pre-funding payment required by law under the PostalAccountability and Enhancement Act (PAEA) of 2006.Although the Postal Service is expected to save some $6 billion this

year by implementing cost-cutting measures, the extraordinarily costlymandatory retiree health benefits payment schedule, combined with aprecipitous 12.6 percent drop in mail volume this year alone has resultedin a $2.4 billion third quarter shortfall for USPS, and a projected $7.1 billionloss for the year. The dramatic decline is attributed to the current severerecession, as well as rapidly changing patterns of communication, advertis-ing and bill presentment and payment in the Internet era.Led by NPES The Association for Suppliers of Printing, Publishing and

Converting Technologies, the thousands of graphic communications pro-fessionals who will assemble in Chicago for PRNT 09 will be urged to sign apetition addressed to President Barack Obama, Speaker of the House NancyPelosi (D-8-CA), Republican House Leader John Boehner (R-8-OH), SenateMajority Leader Harry Reid (D-NV), Senate Republican Leader MitchMcConnell (R-KY) and all other members of the 111th Congress urgingpassage of legislation before the end of September that would allow theUSPS to meet its immediate need for financial relief. The industry petition canbe found online at: www.npes.org/government/postal-relief-petition.html.Additionally, the petition will call upon all stakeholders in the mailing

and fulfillment industry, and the millions of businesses that depend oncommercial mail advertising, to come together to craft a new businessparadigm for the USPS of the 21st century.With the prospect of the USPS running out of money before the end

of FY2009 in sight, in January U.S. Representative John McHugh (R-23-NY)introduced H.R. 22 designed to temporarily assist the Postal Service inpre-funding its retiree health benefits at the unusually high amount of$5.4 billion a year, far more than required by any other governmentagency or private employer.A companion measure, S. 1507, was introduced in the Senate in July by

Senator Tom Carper (D-DE), which was favorably reported by the Commit-tee on Homeland Security and Governmental Affairs, but with the additionof an amendment by Senator Tom Coburn (R-OK) that has drawn the ireand opposition of postal employee unions. The Coburn amendment wouldmandate consideration of the USPS finances in any decision rendered by anarbitrator in resolving Postal Service collective bargaining disputes.While this amendment was approved by a strong bipartisan vote in the

committee mark-up, subsequent strong objections by postal employeeunions have caused some supporters to back away from retaining therequirement in the legislation. Regrettably, this has lead to a legislativesituation that could jeopardize the underlying relief effort that heretoforehad been supported by the broad cross-section of mailing industry stake-holders. “The need for this legislation is urgent and it is imperative thatthe President and Congress lead and act before the USPS runs aground”said NPES President Ralph Nappi, adding that “it is equally important thatall stakeholders remain at the table to negotiate a new business model forthe USPS going forward.”For more information contact NPES Government Affairs Director Mark J.

Nuzzaco at phone: 703/264-7235 or e-mail: mnuzzaco@npes.org.

Graphic Communications IndustryRallies for US Postal Service at PRINT 09

What is Now andWhatWill Be?NPES Members Now Benefit fromExpert Economic Analysis and Forecasts

As the number of economic indicators showing that we mayhave reached the bottom of the recession (or are even begin-ning to climb out the other side) continues to grow, our attentionshould turn to what steps to take now to capitalize on the opportu-nities presented by the recovery. It is also instructive to review ourlessons learned from this experience so that we are better preparedto deal with the next downturn.

To effectively accomplish both of these goals, you first needaccess to some crucial information: when the recovery will pickup steam, how long it will last, how strong the economy willultimately get, when to expect the next downturn, and whatimpact the recovery will have on key print equipment andsupplies segments. To help you explore those questions, NPESis pleased to offer members access to expert economic analysisand forecast reports by the Institute for Trend Research (ITR), thecompany led by Alan Beaulieu.

Alan has twice been a keynote speaker at NPES Annual Confer-ences, and both times his informative and insightful economicforecasts have been the highlight of the meetings. As Alan was oneof the few experts to correctly predict the timing and severity ofthe downturn, NPES members immediately saw the value in theinformation he could provide and requested that NPES work withhim to provide forecasts for our industry.

The quarterly Economic Outlook Reports provided by ITRoffers analysis and forecasts for the overall U.S. economy and sixkey industry product segments: total equipment, total pressroomequipment, sheetfed offset presses, total bindery, total graphic artssupplies, and direct to metal printing plates. They also provideupdates on key leading economic indicators that members can useto predict their own future activity.

These quarterly reports, with an annual value of nearly $20,000,will be provided at no cost to those NPES member companies thatparticipate in the NPES Market Data Program. Those membercompanies that do not participate in the Market Data programwill receive a limited report with the basic information on totalequipment and supplies.

“This is a tremendous newmember benefit,” said NPES Presi-dent Ralph Nappi, “and I am excited that we are able to offer thisvaluable service to our Market Data program participants. TheNPES Market Data program provides participants with un-paralleled actual industry numbers that they can use to uncoverindustry trends and gauge their own performance. The ITRquarterly reports, which are based on our NPES numbers, takethat information one step farther by offering expert analysis offuture trends. This is just one more key decision–making toolthat NPES Market Data participants can use to evaluate what theyneed to do now to be successful in the future.”

If you do not currently participate in the NPES Market DataProgram and would like to receive these valuable reports, contacteither Curt Alt or Rekha Ratnam at phone: 703/264–7200 to signup. There is no cost to participate and, in addition to the quarterlyITR reports, participants also receive detailed quarterly shipmentsfor 80 different industry product segments.

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influences on consumer discretionary spend-ing and media consumption, including rapidadoption of online activities. As of 2007,35% of America’s population was part of aminority, which is significantly higher thanCanada’s 16%. Aging populations are also afactor, with 12% of North Americans over65. That figure is expected to increase aboutone percent per year through 2030. Thisolder group is Internet enabled, with 45% ofthose aged 75+ actively online and the per-centage is steadily increasing (the proportiondoubled in just three years).2. Economic conditions that began erod-

ing in late 2007 unfolded into a global reces-sion by late 2008. Recessionary conditionsare expected to continue throughout 2009and potentially linger into the first portionof 2010. Economic pressures on marketingexecutives are driving efforts to capturemedia and marketing communicationsefficiencies in every channel, with greateranalytical efforts to determine effectivenessand return on investment.3. Rapid and far-reaching expansion

of digital technologies by media and con-suming audiences are creating Internet-dependent lifestyles that are reshapingcontent consumption practices and creatingnew content delivery opportunities. Exam-ples include the digital conversion oftelevision broadcasts, the expanded cover-age of digital outdoor signs, increasing

The graphic communications industry cananticipate a dynamic and evolving mediaand marketing communications landscape overthe next three years, according to a new PRIMIRstudy entitled “Media Mix and the Impact onPrint.” By the end of 2007, total U.S. media andmarketing communications spending levels ex-ceeded $779 billion, with a five-year compoundannual growth rate of 2%. Advertising mediaspending accounted for only 32% of this total,with a softening of spending levels in 2007 andoverall declines in 2008 and 2009. In contrast,non-media spending channels continued to growat a 3% compound annual growth rate, fueledby steady investments in promotional programs.However, print’s role in this media and mar-

keting communications mix has been in declinefor the past six to seven years. Executives andexperts interviewed for the PRIMIR study antici-pate spending declines in newspapers, inserts,directories and catalogs, but expect relativelysteady spending for on-demand sales collateral,packaging, direct mail and custom publications.At the same time, they plan to steadily increasespending levels into an expanded array ofonline/Internet-delivered communication aswell as mobile vehicles.According to the study, six notable market-

place forces will be the primary drivers behindmedia and marketing communications spendingthrough 2012:1. Increasing diversity and growth in the 65+

population segment represent more important

Market Forces Shapingthe Future Media Mix

household penetration of digital video recorders, steadygrowth in household broadband access and onlineactivities ranging from viewing videos to handlingpersonal finances. Internet-dependency will grow ascontinuous expansion of Wi-Fi connectivity makes Inter-net access more ubiquitous. Concurrently, traditionalmedia, especially printed media, are aggressively tryingto build online audiences and ad revenues to offsetcontinuous declines in their off-line audiences.4. Notable within the context of digital media

expansion is the mushrooming adoption rates forInternet-enabled mobile devices in particular. This trendis expected to gain momentum, especially as recessionpressures ease, driving a new wave of convergenceacross electronic devices that generate new behaviors foroverall media consumption. Devices in the future willlikely represent a hybrid combination of features fromlaptops, netbooks, mp3 players, GPS navigators, videorecorders and ‘smart’ phones.5. A critical shift toward consumer control over media

consumption and message delivery accompanies thesedigital innovations. As Internet-enabled devices convergein the coming years, a sizable and ever-increasing pro-portion of consumers will exert much greater controlover when, where, what and how media is consumed.6. The ultimate by-product of all these market forces

is the continual fragmentation of audiences. It will beincreasingly difficult to cost-effectively transmit marketingcommunications that reach a critical mass of target con-sumers. Not only will marketers and media outlets refinetheir thinking about integrated communications pro-grams, but they will also evaluate the individual compo-nents of 360-degree communications plans (the practiceof using multiple media channels to surround targetaudiences with advertising message exposure oppor-tunities) to ensure effectiveness and the accountablecontribution of each.There remain opportunities in the printing industry,

but aggressive efforts to build market share to offsetoverall business declines from key customer segmentswill be necessary. Global opportunities exist in selectedcountries where traditional print media have yet toexperience severe contractions, but these too may beginto erode on a longer term horizon as digital media andproduction processes gain a stronger foothold. Economicexpansion will help rebuild demand for print industryproducts and services but only in the more stable printmedia categories.Firms in the printing industry supply chain will need

to innovate and explore opportunities to develop newsources of revenue outside their existing core businesses.In addition, the development of new ancillary productsand services will not only expand the customer base butalso strengthen existing customer relationships.NPES members will receive an Executive Synopsis of

the study in early September and, to request a free copyof the complete study, may contact Aaron Allenza atNPES headquarters at e-mail: aallenza@npes.org orphone: 703-264-7200.

Printed MediaChannelNewspapersPre-Printed Inserts/SupplementsDirectoriesCatalogsMagazinesPre-Printed Sales CollateralSolo Direct Mail1

Printed Outdoor MaterialsCustom PublishingPackaging/Product MessagingOn-Demand Sales CollateralInternet/Online Channels (All)

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Spending Outlook2009-2010

Spending Outlook2011-2013

Source: PRIMIR study “Media Mix and the Impact on Print”1. Includes stand-alone postal mailings by a single company and catalog mailings, excludes routine customer communication and transactional communications.

Are you sure you’re doing all you can togain and maintain your competitive ad-vantage? Of course, you are spending a greatdeal of effort on increasing efficiency, reduc-ing costs, and looking for that one little‘thing’ that differentiates you from yourcompetitors and lures customers and newprospects your way. But are you ‘on the lead-ing edge’ or ‘behind the curve’? The NPESStandards Program can help.

The Economic Benefits of Standardization

The German Institute for Standardization(DIN) commissioned a research study todetermine the value of standardization tocorporations. The study was developed fromquestionnaires sent to over 4,000 companiesin 10 industry sectors, selected at random, inGermany, Austria and Switzerland. The finalreport on that study, entitled “The EconomicBenefits of Standardization,” was published inAugust 2000, and the findings continue to ringtrue…maybe even more so, in today's competi-tive economic environment.

One part of the report focused on both thebenefits of standards for business and on thebenefits for the economy as a whole. In com-paring both company-developed standards,and industry-wide standards, the report statesthat “…company standards have the greatestpositive effect on businesses, for they help im-prove processes. When it comes to the relation-ship with suppliers and customers, however,industry-wide standards are the main instru-ments used to lower transaction costs andassert market power over suppliers and cust-omers. In fact, industry-wide standards play avital role in our increasingly globalized world.”

The report further notes that “…it is signifi-cant that standards make a greater contribu-tion to economic growth than patents orlicenses, that export-oriented sectors of indus-try make use of standards as a strategy in open-ing up new markets, and that standards helptechnological change.”

Strategic Significance of Standardization“Companies are generally unaware of the strategicsignificance of standardization.”

Although the persons involved in the stan-dards development process are aware of thesignificance of the standards to their company’ssuccess, often this awareness does not extendto the corporate decision makers. In addition,

the decision to participate in the standardiza-tion process is often made only on the basis ofhow time consuming and costly this will be.The economic payback of participation instandards development is not always obvious,but the survey showed that companies activelyinvolved in the standards process are morelikely to see both short- and long-term costbenefits than those that do not participate.

Potential Competitive Advantage through Standards“Having influence in the content of a standard is animportant factor in gaining competitive advantage.”

It is often said that you can be part of the so-lution, or live with the solution developed byothers. Being part of the standards develop-ment process allows the company to gain ‘in-sider knowledge’ and to exert greater influenceon the substance of the standards.

down the value-added chain. Businessesare, therefore, able to use standard tobroaden their potential markets. Companiesalso have increased confidence in thequality and reliability of suppliers whouse standards.

Standards and the Formation ofStrategic Alliances“…it is clear that cooperation between compa-nies in matters of standardization is advanta-geous, for the resulting synergy can help reducecosts and increase profits.”

In the survey, respondents rated the ef-fect of standardization on cooperation withcompetitors as positive, indicating thatstandardization encourages cooperation be-tween businesses that are at the same stagein the value chain.

Standards and Research Development“Businesses not only reduce the economic risk oftheir R&D activities by participating in stan-dardization, but can also lower their own R&Dcosts.”

The economic risk of research and devel-opment is lowered when a company can in-fluence the content of standards to itsadvantage. In addition, the expense of R&Dcan be reduced when participants in stan-dards work make their results generallyavailable, eliminating duplication of re-search efforts.

Product Safety and Liability“Lower accident rates are partly due to stan-dards. Participation in the standardizationprocess increases awareness of product safety.”

The development and implementationof safety standards contributes to the reduc-tion of accident rates, and raises awarenessof safety features and practices. Representa-tives of consumer organizations see their in-volvement in the standardization process ashaving increased the industry’s awareness ofthe importance of product safety.

“Because standards reflect the currentstate of technology, they can help busi-nesses reduce their liability risk.”

NPES makes it easier for you to becomepart of the standards development process.For more information about the NPES Stan-dards Program, refer to the brochure en-closed with this edition of NPES News orcontact Debbie Orf at e-mail: dorf@npes.orgor phone: 703/264-7200.

On the Leading Edge… or Behind the Curve?

…you can be part of

the solution, or livewith the solution developed by others.”

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Cost Reduction through Standardization“Standardization can lead to lower transaction costsin the economy as a whole, as well as to savings forindividual business.”

The interviews with representatives of majorfirms as well as small- and medium-sized com-panies revealed that the costs of developingstandards are not easily quantified. However,the businesses interviewed rated the positiveeffect on transaction costs as positive, notingthat transaction costs drop considerably as aresult of standards since they make informationeasily accessible to all interested parties.

Effects of Standards on the Supplier-Client Relationship“Standards have a positive effect on the buyingpower of companies.”

Standards can encourage competition withinthe marketplace, and can be used by businessesto exert market pressure on companies further

SNAPSHOT: PRIMIRComprehensive research reports on emerging industry trends.

What: PRIMIR develops, conducts and publishes six to eightmajor market research studies each year. These studies providea thorough evaluation and understanding of the topic areaand include relevant data, qualitative analysis and forecasts forseveral years into the future,encompassing all sectors ofthe graphic communicationsindustry and focused on:• Emerging Technologies• Print Processes• Equipment• Supplies and other Consumables

• End-use Print Markets

Who: PRIMIR membership is open to any firmengaged in the manufacture or distribution of equipment,software, materials or supplies to the graphic communicationsor converting industry, or any firm or corporation engaged inprinting by any and all processes.

How: PRIMIR member representatives are actively involved inthe organization via participation in task force activity, wherethey work in concert with outside industry experts/consultantsto direct and conduct research for a specific topic area. Topicsare recommended via surveys of PRIMIR and NPES members.Completed published reports are provided to PRIMIR members;additionally the findings are presented at regular PRIMIR meet-ings. Note: several studies are provided to NPES members eachyear with an Executive Synopsis of each report provided to NPESMember Delegates who may, at no cost, request a copy of thefull research report.

Eligibility: Any firm eligible for corporate membership in NPESand any printer firm, trade shop, dealer and paper company orother chemical suppliers may join PRIMIR.

Cost: Annual PRIMIR dues range from $416 to $8,100, basedon global sales volume; NPES members receive a 50% discount.

Benefits: Each year, PRIMIR publishes market researchstudies valued at nearly $600,000 that PRIMIRmembers receive at no cost. (NPES members receive onlystudies earmarked as an NPES deliverable for that year.) Noother industry organization provides this level of return oninvestment for information on emerging technologies and futuretrends, which will ultimately impact the graphic communicationsindustry—and is crucial for identifying trends and new opportu-nities to position your company for a profitable future.

SNAPSHOT: NPES MARKET DATA PROGRAMBenchmarks equipment and supplies shipments.

What: The NPES Market Data program trackscurrent shipments information for 80 distinct equip-ment and supply product categories, allowingparticipating member companies to monitor marketactivity and the size of the current marketplace.

All NPES members receive basic summary marketdata information through:• NPES News summary articles• Quarterly Institute for Trend Research expert forecasts for total equipment and total supplies

• Quarterly Marketing Information updates via DeWolf forecasts for total equipment and total supplies

• Monthly DeWolf Economic Forecast Letters

NPES members that participate in the free NPESMarket Data program by submitting monthly datareceive:• All of the basic market data information listed above, plus

• Quarterly detailed industry shipments reports with actual shipments data (in dollars and units) for 80 distinct product categories

• Complete detailed quarterly Economic Outlook Reports from the Institute for Trend Research with expert analysis and forecasts for the US economy and six key industry market segments

Looking for Market and Trends Information for the Printing Industry?Your competitors use these resources to their advantage—and so should you! Get the Picture?

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• A 20% discount on equipment purchase and financing data services from Equipment Data Services (EDA)

Who: All NPES full Membersare eligible to participate inthe program.

How: Participating compa-nies provide completelyconfidential monthly ship-ments information to anindependent third–partyvendor under contract toNPES. Strict disclosure andconfidentiality guidelines arein place to ensure that indi-vidual corporate informationis never divulged – onlyaggregate industry informa-tion is reported back to theparticipants. The informationtracked and reported by theprogram is driven by theneeds of the participatingcompanies, and the productcategories included in theprogram are continuallybeing evaluated to ensurethat the information is timelyand useful.

Eligibility: All NPES fullmembers are eligible toparticipate in the program.

Cost: FREE

Benefits: No other sourceprovides such complete,comprehensive industryshipments informationand expert analysis andforecasts for free. Thisinformation is crucial for un-covering market trends andgauging your own corporateperformance.

NAICS 3335, Billions of $

NPES News is published monthly by NPES.

Publisher:Ralph J. Nappi

Managing Editor:Deborah Vieder 703/264-7222

Correspondents:Curt AltJackie BlandMike Hurley

Circulation:Darcy Harris 703/264-7217

The Association for Suppliers of Printing, Publishing and Converting Technologies

1899 Preston White DriveReston, VA 20191 USA703/264-7200e-mail: npes@npes.orgwww.npes.org

Mark NuzzacoKip Smythe

news and notesNPES CALENDARSeptember 2009

PRINTSeptember 11-16 • Chicago, Illinois

GASC & GAERF Board of Directors MeetingsSeptember 12 • Chicago, Illinois

TC130 Working Groups & PlenarySeptember 21-26 • Beijing, China

October 2009NPES 2009 Annual Conference

REGISTER NOW AT WWW.NPES.ORG“Recovery 2010: Strategies for the

Economic Upturn”October 24-26

Fairmont Turnberry Isle Resort & ClubAventura, Florida

November 2009ICC Meetings

November 5-7 • Albuquerque, New Mexico

March 2010ICC Meeting

March 2-5 • Tokyo, Japan

May 2010IPEX

May 18-25 • Birmingham, UK

June 2010ICC Meetings

June 21-24 • Bressanone, ItalyNPES Member Booth and PavilionEXPOPRINT Latin America 2010June 23-29 • Sao Paulo, Brazil

September 2010Central and Eastern European

Print Industry SummitSeptember 9-10 • Warsaw, Poland

October 2010GRAPH EXPO

October 3-6 • Chicago, Illinois

November 2010ICC Meeting

November 4-6 • San Antonio, TexasICC DevCon

November 8 • San Antonio, Texas

September 2011GRAPH EXPO

September 11-14 • Chicago, IllinoisNPES Member Booth and PavilionInternational Graphic Arts ShowSeptember 21-27 • Tokyo, Japan

September 2012GRAPH EXPO

September 30 - October 3Chicago, Illinois

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HURLEY’S TRADE-WISE DO TELL INTELGlobal Challenges Overcoming the Great Recession

From a global perspective,it is clear that the current cri-sis—coming to be known asthe Great Recession—isfar from over. Already, how-ever, it has provided many im-portant lessons and motivatedimportant changes in atti-tudes, organizations and ac-tions.In particular, there is little

doubt about the striking de-gree of inter-dependence thatlies at the heart of the globaleconomy. It has become clearto all that overcoming thecrisis requires a more col-laborative, multilateralapproach to economicand financial issues in thefuture if global growthpotential is to be realizedfully and if stability is to bereestablished and sustained.The unprecedented

anti-crisis action that hasbeen driven by the G20Leaders’ Summit processis beginning to producepositive effects. For thenear-term, the Interna-tional Monetary Fund(IMF), for one, has been em-

phasizing the following threeessential messages:First, the restoration of

financial sector functionalityin the advanced economies is anecessary condition for re-newed growth. The principalgoals are the restructuring ofimpaired financial institutionswhere needed, and the rapidthawing of frozen markets.Even taking into account thestrenuous efforts that havebeen implemented in many af-fected markets, additional ef-forts will be needed if success isto be achieved, even thoughthe decisions that will be re-quired will be neither easy norpolitically popular.Second, sustained fiscal

effort remains necessary. On apositive note, the discretionaryfiscal stimulus being applied in2009 is unprecedented in bothscale and scope, totaling about2 percent of GDP for the ad-vanced G-20 economies, ap-proximately the same degreeof fiscal stimulus that is beingapplied in Asia. This is exactlythe degree of action that theIMF had suggested would beappropriate. Moreover, the im-pact of this effort is being mul-tiplied by its simultaneity. IMFanalysis indicates that fully one-third of the expansionary im-pact of the fiscal stimulusreflects spillover effects from

stimulus-driven trading partnerdemand.The third message is that con-

crete action is needed imme-diately to insure that emergingmarket and developing economiesare cushioned from the doubleblow being delivered by the simul-taneous drop in international capi-tal flows and in external demand.The current crisis has culmi-

nated in the risks and hardships ofthe Great Recession. Serious chal-lenges remain just ahead, andthey must be overcome.

To address the challengesahead requires a spirit of in-novation backed by action.Last month the World BankGroup joined forces with theEuropean Bank for Reconstructionand Development (EBRD) and theEuropean Investment Bank (EIB)to support the banking sec-tors in Central and EasternEurope, with a funding pack-age of up to €24.5 billion. Sources: World Bank, International Monetary

Fund, NPES Global Programs

REGISTER TODAY! WWW.NPES.ORG