Book Printing Outlook : Trade, Higher Ed Better

December 2009 By Erik Cagle
Senior Editor

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eBooks No Eliminator

As the Amazon Kindle came into its own and other technology providers began to unveil their versions of the electronic reader, the traditional book market was of two minds. One, the e-reader is here to stay. Secondly, as currently configured, the reader stands as a complementary technology as opposed to a cannibal.

Worldcolor’s Kevin Clarke makes an excellent point: People will purchase products they want, delivered in the way they want them, and in the time they want them.

“We have positioned all aspects of our organization to embrace the technology and understand that content is king. Our ability to provide more options in the whole stream of that process is part of the mantra that we have to blend the newest and best technology with digital print engines,” Clarke says. “Our new hybrid equipment has the ability to run shorter quantities effectively, and has the horsepower, width and speed to run millions with the least amount of labor.

“As the business moves in this direction, we will benefit at every one of the points where people are requiring service—be they traditional print, logistics and all the things that used to go into a book. We benefit from the dynamics of a changing market, and that’s not by accident.”

One area where electronic readers could presumably make inroads on market share is in the higher education realm, where the cost of textbooks is high and the shelf life of an edition often short. Courier’s Peter Tobin has followed the Kindle with interest, noting that several universities have experimented with using the device, with mixed results. The novelty soon wore off, he says, and, in the end, students preferred the printed text.

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IT IS fascinating to note what market influence the recession has visited on the book market, beyond the tempering of consumer confidence. The 2009 campaign's slump has not only impacted how much we read, but what we read. But even in an atmosphere of printing platform right sizing and other business-related reconciliation, it is difficult to take any view but an optimistic one of the past year and the coming fortunes in 2010.

Some of North America's largest book manufacturers have instituted programs, installed equipment and forged partnerships with technology providers in an effort to stay several steps ahead of the needs of their clients, despite downward pressure on capex funds. These efforts seemed to have cushioned what could have been a truly atrocious 2009.

RR Donnelley of Chicago uses its domestic and Asian platforms to play ball in the trade and education sectors. According to Ed Lane, president of Book & Directory, the company enjoyed a solid performance in the trade realm. While Harry and his wizard friends didn't drive the trade sector's growth this year, the Windy City printer enjoyed work from the wave of vampires and werewolves that have caught the public's attention.

Needs Are Being Met

"We saw publishers requiring capabilities that coincided with our platform's strengths," Lane notes. "For example, inventory management is playing a greater role in helping to contain costs. The ability to respond quickly when titles take off, and the flexibility to use an international production resource in order to optimize cycle times and costs, are especially at a premium."

Lane feels the biggest book segment victim of the 2009 economy was the elementary-high school (el-hi) sector, with state budget shortfalls either delaying or eliminating adoptions. Increasing college enrollment enabled the overall higher education sector to enjoy growth, while the general economic doldrums retarded the growth rate of Asian production for RR Donnelley.

A range of one- and four-color digital solutions buoyed the printer's conventional offerings and allowed it to offer customers the ability to produce quantities from one to a million units as publishers sought to improve their turnaround times and reduce inventories. Included in these initiatives was the exclusive agreement with Muller Martini to create the first high-speed, in-line ink-jet printing and book binding system. RR Donnelley will take delivery of the first six integrated systems in the United States in 2010 and 2011, according to Lane.

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Courier Corp.

Quebecor World

RR Donnelley

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Book Printing Outlook : Trade, Higher Ed Better