Unimac Graphics -- Closing the Loop

By Erik Cagle

Senior Editor

George Amann knows a trend when he sees one. Being a mere six or seven miles away from Manhattan has a way of keeping a commercial printer like Unimac Graphics in touch with the largest agencies, publishers, pharmaceutical and health care companies in the country.

Amann built then-Union Graphics from the ground up, literally, from his basement in 1979. In 1981 he rented out 2,000 square feet of space, took on some partners and dove head first into print work for trade and commercial accounts. He bought out his partners in 1985 and rode a boom in growth through 1995 while producing general commercial printing for the aforementioned markets.

Amann then made a bold move by acquiring MacNaughton Einson Graphics in 1999, which grew the company in a number of ways. For one, it catapulted Unimac Graphics into the $35 million sales range. Secondly, the MacNaughton end of the equation gave the newly christened company another capability: large-format printing such as posters, banners, billboards, point-of-sale and point-of-purchase.

The marrriage was complementary; Union Graphics boasted a strong prepress department that MacNaughton didn't possess.

Unimac took another key step with the addition of a 64˝, six-color KBA Rapida 162A sheetfed perfector with in-line UV coater in 1999. But when Amann installed a 40˝, six-color KBA Compacta 215 16-page heatset web offset press, the company came full circle. It is the first such KBA web press to be installed in the United States—it came online in February of 2003—and is churning out book covers, direct mail, posters, publications and pharmaceutical materials to go with its roster of traditional products such as financial printing, point-of-purchase retail and high-end corporate communications.

Web vs. 40˝ Sheetfeds

"We believed it was a marketplace that was going to grow—as the 40˝ sheetfed market deteriorated, people would get more involved in web printing," Amann says of adding the Compacta 215.

"Webs have become so technologically advanced that startup costs on each job are minimal. Both web offset and digital printing are cutting into the 40˝ sheetfed market."

Not that Amann is worried in that regard; he has all of the bases covered. In the summer of 2002, Unimac created Strategic Content Imaging (SCI), a digital division for on-demand and variable data printing in up to six colors, as well as distribution and Internet-based inventory access. It has provided another tool for Unimac in a regional market that demands a large tool belt.

"There are lots of opportunities in the tri-state area, but there's also intense pricing pressure," Amann says. "It seems every company is re-evaluating its print needs or repurposing its business. (With SCI) we learn about our customers' product mixes and show them how they can take a database and, instead of printing it on a traditional offset machine, print it on a digital press on-demand to create zero obsolescence.

"We're on the cutting edge, from digital, variable printing all the way up to full-web and 78˝ sheetfed printing," he adds. "We are a solutions-based company. We don't walk into clients' offices and ask for a quote. We try to understand their needs, globally, then we provide solutions to help them reduce their printing costs and obsolescence, and literally help them control their graphic expenses."

Currently, the company generates $63 million in annual sales backed by an employee work force of 225. Unimac boasts 146,000 square feet of manufacturing space at its Carlstadt, NJ campus, which has served as the company's home since September of 1999.

Sudden Impact

It's hard to ignore the impact that the new Compacta 215 web press has had on Unimac Graphics—a $10 million spike in business, by Amann's estimate. Beyond that, the full-web press has given the company a high profile in an arena where it previously only boasted half-web printing capabilities.

"The press has been running for about a year now, and we're operating it five, six days a week," notes Steve Rickett, vice president and director of manufacturing. "Our level of work has required that. The press is a very quick makeready machine that allows us to be highly competitive in a very tight New York-area marketplace."

The Compacta has enabled Unimac Graphics to trounce on some of the more dynamic growth markets, including direct mail, pharmaceutical, retail and consumer goods, says Vice President of Marketing Charlie Amann.

"The 215 has enabled us to fulfill our strategy of providing a total service solution for our clients," Charlie Amann remarks. "We have one of the most unique mixes of equipment under one roof on the East Coast. This truly allows us to differentiate ourselves from the competition and compete on larger, more sophisticated projects and product launches."

The web press installation was a bright spot in a difficult year for the printing industry, on the whole, though it proved to be a hard-earned victory for Unimac Graphics. Some of the company's key markets, including advertising, direct mail and financial, fared poorly. However, the printer was aided by success in the cosmetic, pharmaceutical and retail sectors.

"We had a good year in 2003, even with the intense pricing pressures," George Amann says. "We maintain loyal customers and we had to make sure our efficiencies and production were top-notch. The best way to increase profits is to reduce expenditures. Maintaining a technologically-advanced plant with the fastest and most quality oriented machinery allows for increased production, which lowers cost."

Process Improvement

Enhancing manufacturing and quality processes is an ongoing quest for Unimac, which is ISO 9001:2000 certified. The company has positioned itself to "turn on a dime," according to Amann, with little bureaucracy and immediate answers to client questions.

The forecast for the remainder of 2004 looks very much like its predecessor, which is fine with George Amann. "We're not focusing on sales growth; we're focusing on becoming the best printing company we can be," he says. "Before we take on new business, we will make sure our loyal clients are getting the best quality, at reasonable prices, on time."

Even so, Amann is keeping his eye on the future of new equipment, sending a crew of five to the Drupa exhibition in Düsseldorf, Germany, next month in search of the latest technologies. Future acquisitions would likely revolve around web or large-format sheetfed presses, and he is intrigued by the thought of a webfed digital press.

"We are a very strong company financially, so when we see a machine that can create new opportunities for our clients, we have the ability to purchase it," he says.

Charlie Amann feels the key for 2004 is seeing advertising rebound to its previous levels. "People said that the Internet and e-commerce were going to spell the end of printing; we don't see that or believe it will ever be the case," he says. "But, when the economy is tough and companies need to cut back, printing is one area that has been sacrificed," he adds.

"As the economy gets stronger, we hope that customers will once again realize the value of printed products. We can help clients fill a special niche they may not have seen previously. We try to better understand their businesses, and strive to find ways to help them increase the efficiency of their communications and reach larger audiences."