Fast-Track Firms -- On the Move

AS AN economically unstable 2008 gives way to a poten- tially more tumultuous 2009, printers from the Sunshine State to Washington State are tightening their belts, digging in and preparing for the worst. Even the firms that forged through the mess and found success, including those named as 2008 Fast-Track Firms, are hoping for a better new year. According to current Printing Impressions 400 revenues data (which mostly reflects companies’ 2007 campaigns), the sales statistics speak volumes about the current state of the printing industry. Here’s a sobering fact: More than 100 printing companies reported decreased revenues in 2007 vs. 2006, with their change rates registering as high as -34 percent. That’s fully one-quarter of the Top 400 incurring sales losses.

But, printers have been here before. Uncertain financial times are part of the landscape for any manufacturer. Printing is an age-old profession that has survived longer than many market segments have been around. The demand for printed material may be leaner during turbulent economic times, but there will always be a need for print.

While most of the printers ranked on the Printing Impressions 400 were struggling to stay profitable during the 2007 beginnings of the current economic rumble, some companies thrived and prospered.

Here is a quick look at three very different triumphs of this year’s Fast-Track Firms.

GLS Cos.
Brooklyn Park, MN
Most Recent Fiscal Year Sales: $65.4 million
Previous Fiscal Year Sales: $44 million
Change: 49 percent

Gary Garner, founder and CEO of GLS Cos., is amazed every day at the success of his company. And, it’s no wonder. He started the business 24 years ago with a couple of his buddies and a small SBA loan. Back then, success was something he could only dream about.

Today, the prosperity of his printing operation is something that brings him great pride and joy. Garner and his executive team have grown GLS’ sales from less than a million in its first year (1984) to generating a million a month (1996) to the $65.4 million mark in 2007. Current clients include a mix of Fortune 500 companies, ad agencies and small- to mid-size businesses.

The company has two facilities. One offers sheetfed and digital printing, creative, data processing, personalization, IT, complete bindery, mailing and distribution services. The other houses a 40? UV sheetfed press, along with a six-color, 38? heatset web press with in-line finishing and sheeting capabilities, supported by high-speed saddle- stitching and perfect binding.

This diverse range of capabilities came about after the printer’s strategic acquisitions in 2000 (Heartland Graphics, sheetfed) and 2006 (Litho Inc., web and sheetfed), which fit nicely into its business mix. “We also focused on cross-selling the blended capabilities of the two facilities, dramatically improving margins and significantly reducing outside supplier expenses,” Garner says.

In 2008, Garner and his executive team focused on the company’s short- and long-term strategies to expand and strengthen the business through organic growth and strategic acquisitions. Those strategies have been successful in the past, and GLS believes they will continue to be blockbusters in the future—even during trying economic times like these.

Branch Smith Printing
Ft. Worth, TX
Most Recent Fiscal Year Sales: $19.3 million
Previous Fiscal Year Sales: $13.7 million
Change: 40 percent

While some printers evolve into publication printing, Branch Smith Printing was created for that purpose. The company was established in 1910 by newspaper editor Aaron Smith, who began his career publishing his own newspapers. He later published magazines, and the rest, as they say, is history.

David Branch, president and fourth-generation owner, explains that keeping up with technological advancements is one of the key reasons Branch Smith has been in business for nearly 100 years and has experienced continued success.

The operation specializes in books, association journals, catalogs, city magazines, business-to-business magazines, corporate newsletters, special-interest periodicals and academic publications. “Our niche is small quantity, bound products, and our sweet spot is in runs of 2,000 to 10,000,” Branch reports. “We typically print four colors, two sides, and we operate roll-to-sheet sheetfed presses, running magazines one after another.

“We stay within our niche, and that’s how we’ve been able to build our business,” he adds. “We only take short-run products that also require prepress and binding work, and often mailing.”

In 2007, Branch Smith invested in large-format sheetfed printing with the addition of an eight-color, 51? KBA Rapida perfector. The new capability didn’t come as a standalone; to accommodate the larger press format, the printer had to invest in a slew of compatible equipment, including a platesetter, cutters, folders, saddlestitchers, perfect binders and a skid turner.

As Branch Smith was adding large-format, it was approached by an OEM customer that needed 6x9?, black-and-white books (in repeat runs of up to 20,000), which required special cutting, kitting and barcoding. To handle the project, the printer invested in a two-unit Hantscho coldset web press, as well as a high-speed perfect binder with five-knife trimmer, a banding machine, a barcoding system, a shrink wrapper and a laminator.

“The additional capabilities really drove our sales growth,” reports Branch. “When we installed all of the automated equipment, we became extremely efficient, which improved our overall production.”

With the economic downswing of 2008, Branch Smith’s volume has subsequently dropped, but David Branch knows his recent investments will eventually pay off—and become a profitable revenue stream. “We have great hopes for the future,” he maintains. “We need to retain our capabilities; they are ultimately opportunities. The demand is already coming back.”

Mercury Print Productions
Rochester, NY
Most Recent Fiscal Year Sales: $28.5 million
Previous Fiscal Year Sales: $22 million
Change: 29 percent

The slogan “No Child Left Behind” takes on new meaning for Mercury Print Productions. It’s the name of the printer’s YouTube video, which has a link from the company’s Website. Using a YouTube video to promote its niche business—short-run, digitally printed, state- and region-specific educational textbooks—is a direct reflection of how this innovative company operates.

The video goes inside Mercury Print’s manufacturing facility, with cameras filming the on-demand, variable data production of textbooks, in every type and size, at incredible speeds—each personalized to meet state and regional requirements. As the camera moves to the bindery, the host points out all of the binding and finishing possibilities.

This modern marketing strategy is indicative of the entrepreneurial spirit of the company’s CEO and president, John Place. “We have focused on diversification and going after niche businesses, utilizing our current assets and experience,” he says, noting that Mercury also offers conventional sheetfed offset printing and a full-service bindery.

“The increase in our sales can be attributed to our niche in short-run, digital textbooks. We have established ourselves as a leader and respected authority in that market.”

Mercury Print recently developed another niche, Turning Pages, a fully automated, Web-to-print photo book, calendar and photo prints solution. Launched in November, Turning Pages captures memories and places them into customized photo books and calendars.

In addition to its Print and Books divisions, Mercury created a wholly owned subsidiary, Electronic Media Solutions (EMS), that offers CD-ROM and DVD manufacturing and replication, kit building, mailing services and customized packag- ing, as well as product fulfillment.

Place admits, there is one other area of innovation where Mercury Print Productions excels: In its customer service and business relationships—that are based on personal trust and professional expertise.

“By partnering with our customers, and providing true end-to-end solutions,” Place says, “we have developed a relationship that goes beyond the job-by-job handoff.” PI