Expansion Opportunities for Commercial Printers

It doesn’t really matter what word you use to describe the phenomenon: convergence, diversification, expansion. The end result is the same: commercial printers moving into new markets and applications that even a decade ago wouldn’t have been considered part of their proverbial wheelhouse.

In today’s global and internet-driven economy, brands are seeking someone to help them manage campaigns that span multiple mediums, in multiple locations, even in multiple languages — usually simultaneously. And print services providers across the country are stepping up, becoming true partners. Commercial “printers” aren’t just providing printing anymore. And even when they are printing, it’s often not the type of work that would have been considered traditional commercial ouput even a few years ago.

But not all opportunities are created equal. What are the top opportunities commercial printers should be strongly considering today, if they aren’t already offering them? Printing Impressions talked to a few printers who come at the industry from different directions, and who have expanded in different ways, to get their take on the best opportunities out there. Burke Cueny, executive vice president of marketing, Alliance Franchise Brands in Middle River, Maryland; Ken Holsclaw, co-founder and president, Phase 3 in Atlanta; and Todd Matuska, president and CEO of ENPOINTE in Brooklyn Park, Minnesota, all had strong opinions about the opportunities out there for those willing to take the plunge.

1| Wide-format Printing

It should come as no surprise to anyone that one of the top opportunities for today’s commercial printers is a different form of output — wide-format printing. And this category is as broad as the traditional offset space can be: banners, signage, vehicle graphics, wallcoverings, floor graphics, billboards … the list can seem endless.

The trick, when exploring this opportunity, is to first define what type of applications you intend to target, and then invest in the right equipment for that specific niche. LED-UV, dye-sublimation, eco-solvent, latex — there is no wrong answer here, and there are excellent options in every category. It just comes down to what you want to print.

“Good business people get to know their customers and their businesses, and learn about the other opportunities that may be present in those businesses,” Cueny notes. “That can fuel them to view entering a new niche product as being less risky if they know there may be a certain base level of built-in opportunity with current customers for this new sector.”

In short: talk to your existing customers. Find out what wide-format work they are getting done elsewhere, and ask what is working for them — and what isn’t. This will help you tailor your entry into wide-format printing to your existing client base, and make the transition into a new market smoother and less fraught with risk than it might be otherwise.

2| Fabrication

Going somewhat hand-in-hand with wide-format printing is fabrication, such as the frames needed for environmental signage, or creating pieces for an office space where print is one element out of many. This is not print, but it is adjacent enough to printing that it can be a lucrative opportunity if done correctly.

“Fabrication goes hand-in-hand with printing,” Holsclaw says. “It might not be printing, but it is closely related, and they are both within the marketing industry, which is ultimately what printing is: marketing. Print is the execution of marketing ideas, so any expansion outside of print — like fabrication — is still marketing and presents a good opportunity for expansion.”

That said, fabrication isn’t for the faint of heart. It can require a large amount of floor space, with dedicated staff who know what they’re doing. It requires equipment to do things like bend metal, which can be loud and hot. And none of this is likely resources you already at least somewhat have on hand — you can train an offset or digital press operator to run a wide-format machine, but they probably aren’t going to become fabricators, even with training, for example.

Fabrication is a great opportunity for commercial printers to explore, but it requires a large amount of real estate, so make sure you have the space before taking that leap. | Credit: Phase 3

As a result, this opportunity is one that will require a real up-front investment. But it’s also one that can pay off because it enables a provider to offer clients a complete solution from beginning to end, without
the need to bring in outside help to create the structures.

3| Variable Data

Sure, this one has been around for a while, but today’s variable data is more than just digitally printing someone’s name on a postcard. Instead, we’re talking about fully variable pieces, where a run of 5,000 may not have a single piece be exactly the same. This kind of full personalization can help a brand stand out, but it does require commercial and direct mail printers to have the right tools for the job.

“Commercial printing has always been sheetfed and web litho. But in today’s commercial printing world — with the demands for speed to market, smaller print runs, and one-to-one communication — commercial printing now includes high-end digital color for small, large, and web formats,” says Matuska, whose company invested heavily in digital presses to expand opportunities even within the traditional commercial applications.

ENPOINTE now operates five HP Indigo 10000 digital presses as well as an HP PageWide T250 HD inkjet web press to produce the variable, short-run pieces that have created a big opportunity for expansion. | Credit: ENPOINTE

Today, he notes, the operation is about 40% digital, with new investments being made to expand this opportunity all the time. “Customers and the marketplace were looking for speed to market, one-to-one communications, and variable content and imagery, all with high-definition color,” he says, which are all business opportunities in which ENPOINTE was happy to invest.

4| Creative Services

This is another opportunity many commercial printers probably are probably already taking part in, at least to some extent. But beyond just having a small team that checks files or fixes minor design issues, consider expanding to a full-fledged design and creative team, so you can offer your customers the ability to walk in the proverbial door with an idea, and walk out with a finished product.

“Everything is designed,” Holsclaw notes. “It is idea to execution. We want to sit in front of the customer and say we can come up with the idea, and then execute it in any channel that makes sense, all in-house. By providing more of a single-source solution, we have become a more comprehensive, value-laden offering to our clients.”

Offering the creative and design services in-house also helps makes customers more “sticky” — it is much harder for them to go to the competition down the street offering to print for a few pennies less when the rest of the project, including all of the digital assets and data, is with you. It makes for a much stronger relationship on both sides, which will pay dividends long-term.

5| Mailing and Fulfillment

Finally, if you aren’t currently offering any mailing or fulfillment services, it might be time to take another look. This is another space where it isn’t going to be a small investment — either in capital equipment or in the space needed — but, like with many of these opportunities, it offers a chance to build a closer relationship with your customer base, and keep more of their business within your sphere of influence.

“Many of our franchise members have branched out into other services, including direct mail," notes Cueny. "They have upscaled their finishing services with special coatings [and embellishments] to enhance the work they already do. Mailing, in particular, is a big opportunity. Mailing drives printing.” Offering this service can help increase the amount of print work you capture as well.

6| Other Revenue Opportunities

Of course, these are just a few of the top opportunities commercial printers should be exploring right now — it doesn’t mean they are the only ones. Here is a quick look at a few other niche options that might be right for your business expansion:

• Promotional products. Far beyond the traditional ballpoint pens, today’s promo products industry has become massive, and offers an interesting opportunity for commercial printers to expand what they actually print on or just pass along with a markup.
• Digital textiles and apparel. Whether it’s fabrics for interior design applications or T-shirts for a local high school sports team, there is opportunity here for print providers with the right capabilities. That said, make sure you do your homework, as not all
  fabric-based printers are right for all applications. This is one area where making the right investments up front can mean the difference between a successful expansion and a disaster.
• Packaging. While it’s unlikely any commercial printer is going to be able to compete with the massive package printers that handle the big national brands, there is a lot of room here for small- and mid-sized operations to step in. Smaller, local brands often need much shorter and more targeted runs, which is easy to do on the equipment a commercial printer might already have in-house. Another opportunity here is package prototypes, where a brand wants to test a few different options before they commit to a longer run.

Let Your Clients Help Guide Your Decisions

Commercial printing has evolved beyond its roots, and to continue to stay relevant and profitable today and in the future, every provider will need to find new ways to expand and grow. These are just a few ideas to get you started. It’s worth stressing again that you should let your customer base drive some of these decisions.

If you start your expansion efforts with applications and services that already have a built-in customer base, you will have a lot more leeway for trial and error, and tweaking to find the right mix, than you would going all-in with something entirely new that you have to build from scratch. Not to say that’s not a viable path as well — some of the most successful opportunities are the ones that allow you to completely overhaul your business and grow in new and exciting ways, after all — but don’t be afraid to start small and grow into new markets over time.

Above all, Matuska says, “make the change now. Look at options to create an offering that fits customer demand outside of traditional offerings. Traditional commercial printing will remain on the decline unless you diversify your business.”

Pitfalls and Challenges to Keep in Mind

When expanding into new opportunities, it’s worth sitting down ahead of time to think about the potential challenges you might face, so you can plan accordingly. Here are just a few things you might want to consider before starting to make various types of investments:

Space: How much space is this new venture going to require? Do you just need to clear enough room for the footprint of a new press? Do you need warehouse space? Will it need special electrical, humidity, or other requirements? Make sure you know where this new business is going to go and what you need to get the space ready.

Sales: Who is going to sell this new service or application? Is it something your existing sales team can be trained on, or will you need to bring on specialized salespeople to handle and support this side of the business?

Training: Can your existing workforce handle production of the new applications and services, or will you need to expand your team? What kinds of additional training opportunities will you need to offer?

Cost: Let’s face it, most new opportunities are going to require capital investments of some kind. Whether that is a small investment or a large one greatly depends on the opportunity you want to pursue, and your current capabilities. Don’t discount a new venture just because of a high cost to entry, but make sure you have a good idea up front of what to expect so there are no surprises.