BY ERIK CAGLE
Ray Frick, CEO and president of Pennsauken, NJ-based The Lehigh Press, recalls a time not long ago when in-line finishing could not match the speed of web offset presses. It was simply impractical. "For many years, the conventional wisdom in our business stated that in-line finishing, as a process, was slow," Frick notes. "There really wasn't a need to purchase new high-speed equipment, only to throw a ball and chain around it, so to speak, with respect to a finishing line and its auxiliary components."
That is no longer the case. The rotary cutter, formerly the culprit behind the slowdown in the delivery system, has realized increased speeds. Now printers like Lehigh (at its Lehigh Cadillac Direct facility in Broadview, IL) are retrofitting older web presses with the latest in-line finishing technology, enabling them to meet the challenging demands of their customers. In adding this in-line finishing technology, Frick says, printers are adding value and profitability to an equipment portfolio that, in some cases, was not entirely current.
Increased productivity and creativity, balanced with waste control, has been vital to the success of Lehigh Cadillac Direct. The comp any's newer presses produce in-line finished products at the high rate of more than 50,000 impressions per hour (iph). Lehigh has turned to some of its more mature presses, and has embarked on an aggressive remanufacturing program to bring them up to speed, so to speak.
"The same press that could barely run 35,000 iph a year ago now looks showroom new, is loaded with new technology—particularly state-of-the-art electronics—and runs better than OEM ratings," Frick remarks.
Among recent additions/enhancements made by Lehigh Cadillac Direct: four new gluer/coaters that enable printers to apply adhesives and scratch-off coatings at high speeds with improved laydown, less misting and less down time. Over a three-year period, the printer has also acquired four variable rotary cutters, enhanced slitting ability, increased diecutting capability and hot melt gluing equipment.
Frick believes the additions have played a vital role in the growth of the company over the past year, as Lehigh enjoyed a 20-percent increase in sales. "By increasing our throughput, we also increase our market opportunity," he says. "We're still not satisfied, but these equipment additions are having a very positive impact in terms of the quality and the volume of pieces that we produce."
Frick also counts 1999 as a banner year for new customers and markets. Kiss-cut diecutting capabilities helped key growth in the first two quarters while perforated stamp sheets excelled in the second half, buoyed by enhanced coating and perforating capabilities. Demand for kiss-cut pressure-sensitive labels was also considerable, aided by the company's hot melt gluing and diecutting expertise.
Frick feels there are several reputable auxiliary equipment providers meeting the needs of direct mail printers, including Scheffer and Versatech (formerly Baldwin In-Line). Another provider of technology for Lehigh is Western Printing Machinery (WPM). The Schiller Park, IL-based manufacturer has long been known for products such as its diecutter or rotary cutter, the Rota-Cutter, but has beefed up its offerings and become a more well-rounded finishing hardware and software provider with the acquisition of two businesses: MRG Technologies and AGM in-line products. Both additions came within the last two years and have served to heighten WPM's aggressive approach toward the market.
In Control
Until the acquisition of AGM in 1997, WPM had been the former's exclusive sales representative, selling in-line equipment. Michael Musgrave, president of WPM—which has been owned by the Musgrave family for more than 40 years—saw the need not only to complement his company's offerings, but also to bring quality control of all products in-house. The acquisition of Leicester, UK-based MRG also gave WPM a physical presence in Europe to support its current and future customers.
With ever-evolving markets, WPM saw these moves as opportunities to better position itself, according to Kim Markovich, North American vice president of sales and marketing. "In the past five years, changes in direct marketing, direct mail and the finishing business have been phenomenal," Markovich says. "Given the growth customers have had in the direct mail business, it's probably the fastest-growing market segment, the one seeing the best margins. The focus on manufacturing in-line finishing equipment for that market has been fairly high."
According to Frick, Lehigh Press has found WPM equipment to be reliable, consistent in run ability and a good value overall. "It is the point of view of our manufacturing management that WPM makes a rotary cutter that is second to none," he says. Frick also notes the level of customer service, backed by industry veterans such as Jim George, vice president of international sales, as another asset.
The diecutters and rotary cutters have long been the bread and butter of WPM's offerings. Unlike most market contemporaries, WPM cutters boast the ability to deliver contoured, or scallop, cuts. Musgrave believes these cutters have buoyed the company's growth over the past 10 years. "Customers would say that when the name WPM is mentioned, diecutter and rotary cutter would be the first things that come to mind," he says. "That's really where the company has based its history and has focused its future."
A new innovation from WPM is the Fast-Track tape delivery system. Fast-Track can handle a variety of product sizes and is said to provide consistent laydown and delivery. The transition wheel and headstop heights are adjustable, and product sizes can be changed without adding makeready time.
Frick points out that after Lehigh Press installed Fast-Track and plant operators became familiar with the system, they came forward with concerns and suggestions on how it could be improved. WPM responded with a redesign that has greatly improved performance and ease of operation.
Markovich says WPM's plans are to complete the integration of the systems approach to manufacturing. He expects the growth that yielded solid performances in 1998 and 1999 in regards to manufacturing and engineering will continue in the future.
"WPM has always been a leader in in-line finishing and cutting technology, and we continue to focus the goals of the business on being the leader," he states. "It's a question of growing this business to be a major player in both in-line and off-line finishing."
- People:
- ERIK CAGLE
- Frick