Open Enrollment | Subscribe to Printing Impressions HERE
Connect
Follow us on
Advertisement
 

R.R. Donnelley--Calling the Shots

March 1999
Robert Pyzdrowski, president of Magazine Publishing Services at R.R. Donnelley & Sons, analyzes industry consolidation, the management chain, digital prepress, the potential impact of electronic commerce—and the relationships that keep Donnelley such a deity.


BY RANOIA ALONSO


Robert Pyzdrowski is very approachable; he is charming, friendly, distinguished—everything a top executive at R. R. Donnelley & Sons should be as Printing Impressions readies to fire a series of industry-oriented questions his way on this particularly crisp winter afternoon.

Pyzdrowski is a professional's professional. An executive's executive. He believes the publications market—the market he governs over as president of Magazine Publishing Services at R.R. Donnelley & Sons—is not going bullish into the thick of 1999.

Caution, Pyzdrowski advises, is in the wind for the publication printing segment of commercial printing throughout this year. Still, overall, Pyzdrowski predicts that 1999 will see a publication market with some growth, albeit flat to nominal, as the year 2000 promises to carry the printing industry into the next millenium of service, supply—and demand.

Recently, Printing Impressions had the good fortune of getting this Donnelley executive to share some of his views on massive industry consolidation, digital technologies, customer relations and more. Although he may come across as conservative in some respects, Pyzdrowski is unquestionably seasoned in the ups and downs of life in the magazine publishing industry.

See for yourself . . .

PI: The first quarter of a new year is a good time to reflect on the past and look toward the future. What role has consolidation played in the printing industry, and will it continue?

Pyzdrowski: "In 1992, Donnelley and our three primary competitors combined for a 49 percent market share in the long-run magazine and catalog printing industry. By the end of 1997, just five years later, these four companies had a 78 percent share of the market. This concentration of share is the result of organic capacity expansion (adding new equipment) and industry consolidation.

"Organic capacity expansion has resulted in capacity exceeding supply; thus, the focus is now on consolidation to leverage scale, synergy and efficiency. I believe that the pace of consolidations will accelerate, at least over the short term."

PI: In fact, Donnelley has disposed of some non-core businesses in the past couple of years. Why has the company done this, especially when the entire industry seems to be consolidating?

Pyzdrowski: "Donnelley has disposed of non-core businesses we had acquired in the past. You could say we have gone through a 'de-merger' stage—consolidating to our core of putting ink on paper.
 

COMMENTS

Click here to leave a comment...
Comment *
Most Recent Comments: