LPIA inspires

The Label Printing Industries of Americas inspires industry leaders to rejuvenate their businesses for the future, writes Danielle Jerschefske

 A sub group of the Printing Industries of Americas, the LPIA hosted its annual Innovation Conference in San Diego, California in November 2012. Well-planned sessions revolved around this inspirational quote from Albert Einstein: ‘To raise new questions, new possibilities, to regard old problems from a new angle, requires creative imagination and marks real advance in science.’

Andrew Davis, author of Brandscaping and chief strategy officer of Tippingpoint Labs, kicked off the event by encouraging LPIA members to think differently about their own brand promise and how a label business can effectively communicate its promise to customers. New media is a strong form of communication that the label industry has been hesitant to embrace.

Davis said, ‘the most valuable brand asset is the relationship your company has with its customers over time. Brands are people-powered, especially in the B2B world. Embrace your people and allow them to give your brand the voice it needs to create not only great products, but great stories that encompass your core values.’

Google Insights can be effectively used to track trends and chart demand for content in the digital space. Converters should review all possible channels that will ‘help you get closer to the center of your customer’s universe.’

Only a few converter attendees send a regular newsletter to customers sharing details of recent capital investments, success stories and business strategy. John Foley Jr., president of InterlinkOne, a marketing and strategy firm dedicated to the printing industry, supports Davis’ message. Foley said, ‘You have to get your brand out there in the social world to leverage the power it holds. Deliver valuable content. Strengthen your relationships.’

While the audience understood what digital communication brings to consumer-facing businesses, there was confusion around why it is important in the B2B sphere. There were numerous questions about finding new leads and discussions around servicing brands that require non-disclosure agreements. How can converters get Coca-Cola to allow them to use their quality work for promotion on Pinterest? The way the industry currently operates makes this difficult and will require a paradigm shift to adapt to this new wave business phenomenon.

Leverage LPIA’s offerings

The LPIA gives members access to valuable PIA resources including political, economic and human resource experts specific to the industry. Lisbeth Lyons, VP of government affairs at PIA, explained that the printing industry must network with new government leaders in the wake of the latest congressional elections. There are 60 new faces in the House of Congress, so it’s important to educate these new decision makers about the contribution the printing industry makes to GDP and job creation.

PIA chief economist Ron Davis talked about strategies for competing in print. He said, ‘high profit printers are more diversified and are at the same time specialized in niche areas. They have more pricing power and the ability to stretch margins because of their stance and strength.’

He said to expect print to grow at a rate of one percent in the US; fortunately, the labels and packaging market can anticipate a two and a half percent growth rate in this market.

Jim Kyger, assistant VP of human relations at PIA, regularly fields membership enquiries surrounding compensation, benefits and union contract negotiating. He explained that a recent study showed a 40 percent increase in Fortune 1000 companies leveraging the productivity of self-directed work teams. Employee participation is key since they interact with clients daily. This relates directly to sharing brand promise through modern social channels.

Technology

Jim Aust, principal of James P. Aust Consulting, specializes in helping print companies understand their financial spreadsheets and how technology directly affects the figures. The landscape of the printing industry has drastically changed over the last five years. Offset is a commodity business with shrinking profits.

He said, ‘the average offset page is being sold for 0.09 USD while a digital page is sold for about 0.33 USD per page. Printers must accurately explore the cost, revenue and profit position of each of their work centers so better decisions can be made within the business.’

Despite the concerns some print leaders have about digital technology, Aust explained that typically, once the business is evaluated accurately, printers will find a 20-25 percent net profit on the digital side, technology aside and consumable cost included.

Flint Group’s Mike Impastato presented the ink supplier’s latest LED technology for printing packaging, which eliminates worries about harmful migration through the materials. LED technology offers ecological benefits in terms of energy consumption. Impastato predicted that UV LED inks and lamps will be used by 35 percent of the market within the next five years.

Pictured: Flint Group’s Jeff Alexander was inducted into the association’s Hall of Fame

This article was published in Labels & Labeling issue 1, 2013