PI 400 -- Fast-Track Firms - Some Movers and Shakers
BY CAROLINE MILLER
Acquisitions, new markets and additional facilities are just a few of the ways printers grew their sales last year. Printing Impressions takes a look at how several companies established new sources of revenue.
Challenge Printing, Eden Prairie, MN
Most Recent Fiscal Year Sales: $50.6 million
Previous Year: $42.2 million
Number of Employees: 315
Number of Plants: 2
Diversity is the key to Challenge Printing's success, explains Jay Carroll, Challenge's vice president of sales and marketing. "We really point to our investments into new capabilities over the last few years as the reason for our growth," says Carroll.
Challenge's investment in new capabilities began in 1998, when the commercial sheetfed market started to soften. The Challenge executive management team decided that they needed to diversify into other areas.
So, Challenge invested in flexographic printing gear, eventually spinning that business off this past year into a subsidiary, NuQuest Label Solutions. The company also added an in-house lettershop to drive more direct mail business.
In 1999, Challenge purchased its first UV press, as well as a 64˝, seven-color KBA large-format press to serve its growing package printing and point-of-purchase markets.
And while investing in new technology has led to a growth in revenues, Carroll points to the company's sales approach as having an equally important impact on growth.
The Challenge sales staff includes specialists in each of their major product segments. But everyone is also crossed-trained on all of Challenge's products. "Our salespeople are having good success representing all of our print capabilities to larger accounts that are specifically looking for fewer suppliers who can do more for them," reports Carroll.
ABS Graphics, Addison, IL
Most Recent Fiscal Year Sales: $18.05 million
Previous Year: $14.2 million
Number of Employees: 125
Number of Plants: 1
ABS Graphics is taking the customer relationship one step further.
ABS—which initially began as a brokerage and design house that moved into manufacturing about 15 years ago—has established a number of on-site relationships with clients, according to ABS Graphics President Kenneth Vander Veen.
"I believe that these strategic relationships have contributed to our growth," says Vander Veen.
Not only do the on-site personnel help with preflighting and design issues, they are also there to assist customers as they move into more complex personalization projects.
Because ABS personnel are on-site, they are in a unique position to help their clients build a database, as well as educate them about what directions they can take with their personalization projects.
In a sense, ABS Graphics has become a true partner with the client, adds Vander Veen.
Holden Communications, Minneapolis
Most Recent Fiscal Year Sales: $74.6 million
Previous Year: $61.6 million
Number of Employees: 710
Number of Plants: 9
Holden Communications has always used a tried-and-true formula when it comes to growing its business—focus on internal sales and on acquisitions. It's a formula that has worked well for the company over time, reveals George Holden, Holden's chairman.
Since 1991, Holden has grown from a business forms printer to a full-service communications company. It now consists of two companies: Holden Graphic Services and Holden Direct Marketing Group.
"If you go back 10 years, we were only in business forms. We looked ahead and saw that the business forms industry was changing radically. So, we decided to move into direct marketing, where we could use many of the same skills we already had," states Holden.
The company's transformation from a forms manufacturer to a communications company began when Holden purchased Moody Printing & Mail Marketing. The Moody acquisition brought the direct mail expertise that Holden was looking to add to the company.
Holden expanded again with the purchase of Advance Direct soon after. Building on the same strategy that led to the purchase of Moody, Advance Direct brought billing, answercards and renewal expertise to the company.
Holden added another piece to the company puzzle in June of 2000 with the acquisition of Product Line, which added two call centers and a fulfillment operation to Holden Communications.
Dome Printing, Sacramento, CA
Most Recent Fiscal Year Sales: $25.6 million
Previous Year: $19.4 million
Number of Employees: 140
Number of Plants: 1
The grand plan is alive and well—and most importantly— it's working, proclaims Dome Printing President Tim Poole.
Over the past five years, Dome has undertaken a major initiative to improve its capabilities and enter new markets. The former sheetfed operation has just become a player in the web printing market.
"We saw that in the sheetfed world, there really is too much capacity in our industry. And in northern California, the web market was really the only growth market segment that was available to us," claims Poole.
Dome took a unique approach by betting on longer runs, not short-run work.
"In one aspect, some runs have gotten shorter, but they've also gotten longer thanks to corporate consolidation" he adds. "We've been the benefactors of that trend."
Technology improvements such as a computer-to-plate workflow have also played a major role in Dome's growth. "It still astounds me that so many companies have not embraced the technology the way they should," remarks Poole.
Lithographix Inc., Los Angeles
Most Recent Fiscal Year Sales: $115 million
Previous Year: $96 million
Number of Employees: 475
Number of Plants: 3
It's been a year of acquisitions for Lithographix, notes President and CEO Hebert Zebrack.
The company purchased two small print shops this past year—one in San Francisco, one in San Diego.
The acquisitions were made as a way for Lithographix to expand its geographic reach, as well as to better serve its customers.
"Even before the September 11 tragedy, a lot of our clients were starting to better value their time at home. So we bought these facilities to eliminate travel issues for them," he says.
The Specialty Printing Co., Niles, IL
Most Recent Fiscal Year Sales: $20.2 million
Previous Year: $11.58 million
Number of Employees: 84
Number of Plants: 1
When Adam LeFebvre and his father, Paul, launched Specialty Printing, they weren't planning to grow their new business.
"Our goal was to keep it as small as we could. We were going to have one press, do $1 million a year in sales and be happy with that," remembers Adam LeFebvre, president.
But they weren't happy; in fact, they became really bored. So, the two began adding new production equipment and square footage.
"It was really a capacity issue. The sales were there, we just needed to bring in the equipment," claims LeFebvre.
"Since we've added the additional capacity, we've been able to rekindle some relationships and win a number of big contracts."
Trend Offset Printing, Los Alamitos, CA
Most Recent Fiscal Year Sales: $151.12 million
Previous Year: $121.91 million
Number of Employees: 930
Number of Plants: 3
Trend Offset not only expanded its horizons this year, but also its sales with the opening of its newest full-service facility in Jacksonville, FL, reports President Todd Nelson.
The Jacksonville facility is equipped with computer-to-plate equipment, heatset and coldset web printing presses, and a full bindery complete with mailing and distribution services.
"The biggest reason for our growth is that we were able to pre-book work for the new facility, even before it opened," says Nelson.
The new plant enables several of Trend's customers to consolidate their printing needs in the region and is part of its larger commitment to reinvestment in technology.
