WOA Offset and Beyond -- Challenges, OpportunitiesApril 2008
Andersen took the helm at IWCO Direct in April of 1999. As an equity partner, Andersen tapped his wide-ranging business experiences in guiding IWCO Direct--experiences that include more than 20 years in the manufacturing industry. He spent 13 years with the former Banta Corp., serving three years as president of Banta Information Services Group and Global Turnkey. Andersen had oversight of 13 manufacturing facilities, including five overseas operations, with gross sales exceeding $330 million.
He also spent eight years with Banta Direct Marketing Group as executive vice president, sales and marketing.
Andersen is one of the keynote speakers scheduled for the upcoming Offset and Beyond conference in suburban Chicago. Below, he discusses IWCO Direct's outlook and what we can expect for the direct mail sector with Erik Cagle of Printing Impressions.
PI: With the U.S. economy pointing toward a recession and the USPS reporting declines in volume, what is the general mood in the direct mail printing community as we speak?
ANDERSEN: If history repeats itself, the mood in the direct mail printing community should be one of (very) cautious optimism. During times of economic slowdown, direct mail is typically impacted less than other segments because its effectiveness is easily measured and return on investment is a simple calculation. We conducted a survey of our top customers and prospects late last year, and the results were encouraging. Eighty-eight percent of those surveyed said their volume would grow in 2008 or remain the same as 2007.
The impact of postal reform has been very positive; the recently announced price adjustment averages 2.9 percent and marketers seem to have planned for it when they prepared their 2008 budgets. While no one is being extravagant in their spending, we are seeing a number of opportunities for new programs that use direct mail for customer retention.
PI: With postal reform at last a reality, what are now the greatest challenges confronting direct mail printers?