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NPES News Is Published Dollars—A Little Over $11,000 Denmark, Switzerland and April 21-24 • Poznan, Poland Monthly by NPES

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NPES News Is Published Dollars—A Little Over $11,000 Denmark, Switzerland and April 21-24 • Poznan, Poland Monthly by NPES Volume XXVIII, Number 2 February 2009 news THE ASSOCIATION FOR SUPPLIERS OF PRINTING, PUBLISHING AND CONVERTING TECHNOLOGIES Turkey—Bridging Eastern Europe with the Middle East hen thinking of Turkey, Wtwo things come to About Turkey mind...the song “Istanbul not Constantinople” and the movie Located in both Europe and Asia, Turkey has borders to Greece, Bulgaria, “Midnight Express.” Georgia, Armenia, Iran, Iraq and Syria, You too may recall the 1978 and coastlines to the Black Sea and the movie portrayal of the book of Mediterranean Sea. The climate varies the same name adapted into from Mediterranean to continental. screenplay by Oliver Stone With an area of 779,452 square kilo- about Billy Hayes. Hayes was a meters (300,948 square miles) Turkey young American student sent to is one of the largest countries in Europe. a Turkish prison for trying to Its current population is approximately smuggle hashish out of Turkey. 74.1 million, approximately four million According to Wikipedia, the of whom live in the capital Ankara and in its portrayal of Turks, to me smile and remember my movie deviates from the book’s 8.8 million live in Istanbul. The life such a level that many have childhood and my wonder - expectancy is 67.5 years for men and account of the story, especially criticized the movie version, ment about what I thought 72.1 for women. including Billy Hayes him - was a truly exotic place to INSIDE: Turkey declared itself an independent self. Later, both Oliver Stone visit. The lyrics remind the republic in 1923 with the break-up of President’s Perspective ........ ............. 2 and Billy Hayes expressed listener of the change in the Ottoman Empire. Its current consti - their regret about how the name of the city tution dates to 1982 and proclaims For Members Only: Research Turkish people were por - Constantinople to the Turkey’s system of government as Publications Discounts ........................ 4 trayed in the movie. I’m glad Turkish name Istanbul and democratic, parliamentary and secular. The New Era of to hear that, since my mem - also mentions the fact (not It provides for a president who is the Sustainable Print ............................ 4 ory of the movie doesn’t known by many of us or head of state and whose powers are not inspire me to visit the coun - long forgotten) that New strictly defined, but tend to depend in NPES 2009 Industry Summit .......... 5 practice on the force of personality of try or to promote it as one York City was originally the incumbent, selected by the parlia - How to Defend your Prices of the fastest growing world named New Amsterdam. in Difficult Times ................................ 6 ment for a seven year term. The prime markets for printing equip - Just to continue this nostal - minister heads the council of ministers New Customs Rules Impact ment and consumables. gic stroll down memory lane, and both are responsible to parliament. NPES Member Importers .............. 7 On the other hand, the Istanbul (not Constantin- Parliament is the unicameral Grand NPES Members Craft swing-style song written by ople) was originally recorded National Assembly with 550 members International Standards for Jimmy Kennedy with music by a Canadian group called who serve a five year term. Current Printing and Publishing .................... 7 by Nat Simon that sounds The Four Lads on August 12, office-holders are the 11th president, very much like the tune of 1953. This recording first Abdullah Gül since August 28, 2007 News and Notes .................................. 8 “Puttin’ on the Ritz” makes reached the Billboard maga - and the Prime Minister Recep Tayyip Erdo ˘gan since March 14, 2003. continued on page 3 Innovation is Key president’s perspective Clearly, graphic communications vendors have fewer printers, and printing plants, to sell to. For printers, industry consolidation may mean fewer— Recession Busting Survival Strategies but stronger—competitors. As we move further into 2009 then, innovation is key to success. Now that we are well and proofing materials) hit their peak in 1999, with vendors First, think digital. For vendors, digital tech - into the first quarter of reporting sales of nearly $2 billion that year. These revenues nologies and supplies offer growth opportunities 2009, our survival instinct have fallen steadily since then—by 2007, they accounted for in an otherwise stagnant, even declining, market. is kicking into gear, chal - $1.2 billion of total vendor revenues, nearly half of what they For printers, digital production processes will help lenging us to use every once were. streamline operations and maximize efficiency, business trick in the book Research on graphic communications consumables con - while digital offerings—in the vein of multi-media to make the business ducted by NPES’ sister organization, PRIMIR (Print Industries products such as CD-ROMs or multi-media services work! Now that the reality Market Information and Research organization), supports the such as digital asset management—have the poten- of a recession looms for an idea that digital processes continue to make inroads at the tial to increase business from existing customers. extended time we need to expense of analog. As just one example, the report found that Second, think finishing. As consumers grow consider the business and of the 1.1 billion sq. ft. of lithographic printing plates consumed savvier, printers will need to offer creative finishing prospects in a very differ - annually in the U.S. and Canada, 730 million sq. ft ——a good options to standard print pieces, be they elabo rate ent way. 2/3 of the overall plates consumed ——were digital. Given the diecutting and folding added to point-of-purchase What’s new about this purpose of this particular report to benchmark consumables Ralph Nappi displays or interactive additions to print advertising. recession is that it occurred usage for the year 2006, we can expect that computer-to-plate NPES President And indeed, postpress equipment, for which pur - at a time of unprecedented (CTP) has made even more significant inroads in the prepress chase was traditionally influenced by the economy , technological change in our industry. As digital technologies continue to area since then. will enjoy some growth as demand in creases for improve, printers will show an ever-increasing willingness to go digital. Thanks to CTP, in fact, lithographic plates will offer customized and ornately finished pieces. Accord ing At the same time, we will continue to witness the consolidation that has marginal growth within the supplies category and will to our research, revenues from this area of post - marked this industry for the past several years. These factors have the essentially balance out any losses from other supply areas press equipment will remain significantly above potential to significantly impact the graphic communications industry in over the next few years. By 2010, we can expect that GDP levels for the next several years. 2009 and beyond, far more than a recession would on its own. digital products will account for more than 95% of all Third, think sustainability. Organizations that graphic communications supplies revenues. find ways to offer products and services that Traditional Offset vs. Digital Presses address this fast growing and extremely impor - Neither vendors nor Following the trends we see in the graphic communications tant issue will thrive. The days of talking about supplies category, digital presses are rapidly gaining ground environmental responsibility are past. Suppliers printers have the within equipment sales, which covers imaging/prepress, press and printers must demonstrate an affordable luxury of sticking with the and bindery/finishing equipment. Though initially marketed as commitment to this trend. variable data printing engines, digital production presses have Fourth, think partnerships. For vendors who same old strategies, as digital more recently been considered as an addition to, and in some cannot justify the research and development cases a replacement for, traditional offset lithographic presses expenditures required for entering into new mar - technologies and consolidation as cost per page has decreased, image quality has improved, kets, partnering with another supplier may offer continue to shape the industry.” and consumer demand has mandated quick turnaround and significant benefits with relatively few downsides. shorter run lengths. And, partnering also means partnering with cus - According to our research, about 34,000 sites in the U.S. tomers. Whether you are a printer or a supplier, Start of Our Industry’s Recession and Canada owned a sheetfed offset press or duplicator in ask your customers what they need help with and see if you can offer them the solutions they Industry economists tend to agree that the recession in the printing 2006. The majority of these sites were commercial printers seek. Put more into every interaction with every industry began sometime in late 2007 or early 2008. Within the econo - with fewer than 20 employees. Compare that to the nearly customer. You may just find opportunities to win my at large, real GDP grew by less than 2% and unemployment rose to 28,000 sites that operated a color or monochrome digital a larger share of your customers’ business. 6% during the first three quarters of 2008. production press, and we see there isn’t a lot of difference Ultimately, think differently. Innovation in From the supplier side, sales began slowly eroding a couple of years between installation of sheetfed presses and their digital coun - terms of the technology we sell and the business ago. Data from NPES’ vendor members indicates that, after a strong terparts. The majority of digital press sites, by the way, were mindset with which we approach our operations 2006, aggregate revenues slipped by 17% in 2007. By the close of last in-plant printers… and printers with fewer than 20 employees. will be the one sure way to survive the recession year, 2008 revenues were expected to come in around $2.5 billion, 10% Presses account for somewhat less than 2/3 of equipment and ultimately benefit from the changing forces lower than in 2007.
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