Expected Fallout From Quad, Worldcolor Deal —Michelson

The biggest driver of the merger, and impending plant shutdowns, is most likely the new company's desire to remove excess printing and binding capacity from the marketplace. Unfortunate for Worldcolor employees—even though its CEO is heading the integration and consolidation committee—is the reality that Worldcolor facilities seem most vulnerable for possible closure. Quad/Graphics plants, as a whole, are known for their industry-leading productivity rates and efficiencies, the result of Quad's dogged commitment to equipment automation and process control. Although Worldcolor has attempted in recent years to upgrade its web press technology platform, its plants far lag those of Quad/Graphics' in the implementation of "lights-out" automation, robotics and processes designed to reduce human touch points. Quad is revered for the technical innovations developed in-house by its QuadTech subsidiary, which has enabled the printer to maximize some equipment capabilities beyond manufacturers' rated speeds, manning requirements and typical web printing/finishing makeready waste percentages.