BY SCOTT POLK As printers continue to determine how to capitalize on the Internet to further business, perhaps no segment may be affected by cyberspace more than direct mail. A projected 100 million people will be connected to the Web within five years, and direct mail will play an important role in guiding those people to the Internet. According to a study by the Printing Industries of America, dotcom startup companies looking to establish brand equity will account for much of that business. By 2003, however, the study cautions that the direct mail industry will begin to encounter considerable competition from electronic media.
Lehigh Press
Chicago—Pressroom personnel and suppliers from across the United States, and as far away as Germany and Switzerland, gathered here recently at the 25th annual R&E Council Pressroom Conference to hear the latest news about technologies affecting the pressroom. Hosted by the Research & Engineering Council of the Graphic Arts Industry, this 25th in the series of annual meetings focused on improving productivity in the pressroom. Among the technical topics discussed at the meeting were soft proofing, closed-loop color control, and coating and curing. In addition, a significant portion of the meeting was devoted to personnel recruitment, retention and management issues, and to
BY ERIK CAGLE Total direct marketing sales in the United States will clear the $2 trillion mark in five years, with nearly $765 billion estimated for business-to-business sales in the year 2000, according to findings made by the Direct Marketing Association (DMA). Thus, on the whole, the industry appears to be in good shape. That statement is not entirely accurate, though. Even with a double-digit compound annual growth rate, there are key issues that will influence the market, particularly business-to-business considerations for those who profit from the manufacture of direct mail. Top 10 Direct Mail Printers CompanySegmentSales(millions)Total Sales(millions)1Quebecor World*Montreal$554.00$6,160.002Banta Corp.Menasha, WI$254.00$1,340.003R.R. Donnelley & SonsChicago$250.00$5,000.00 4Mail-WellEnglewood,
Broadview, IL—Lehigh Press has made what it calls a major equipment addition at its Lehigh Cadillac Direct direct marketing division here. The installation is a custom-built, full-size, six-unit Heidelberg M-1000 web press. Raymond A. Frick, CEO and president, points out that under the leadership of Lehigh Cadillac Direct President Paul Palmer, the division's revenues grew more than 20 percent in 1998. To drive the division's continued growth, Lehigh Press has launched a $14 million, corporation-wide, capital investment program concentrating on the installation of cutting-edge technology including presses, digital prepress and finishing systems. "The added press capacity is just the start," Frick reveals. "It immediately expands our
BY ERIK CAGLE Every time there was an executive meeting at Lehigh Press and the topic of direct mail came up, Ray Frick's name invariably would follow. And why not? Frick had constructed a direct mail empire at two very high-profile commercial printing giants, Banta and Quebecor, taking both companies to the top spot in the market. Bill Love, chief financial officer at Lehigh Press, remembers Frick's name being bandied about during those executive meetings, and the theme of the discussions wasn't how to best the man or imitate him. Lehigh Press wanted Frick, and in May of 1998, they got their man.
The trading card has ignored its humble beginnings. Thin, gray stock has been replaced with the latest in printing technology innovations. BY ERIK CAGLE The year was 1977. The baseball player in question was Rick Jones, pitcher, Seattle Mariners. Jones never made a name for himself in the bigs—he was a mere footnote in the expansion era and not even as memorable as Toronto Blue Jays slugger Steve Bowling. But it was Jones' mug on the front of his 1977 Topps card that arguably hastened a new era in card printing technology. You see, Jones' image was not a photo but a painting, a
BY ERIK CAGLE Let's face facts. Paper is not exactly chic these days. There is nothing more appalling than a printing commodity strutting around while wearing last year's price tag. Unless, of course, you're a paper purchaser for a commercial printer. Unchanged prices make this person the most popular man/woman in the eyes of estimators and the person drawing up the next budget. That explosion you heard was definitely something else, not an increase in paper prices. Uncoated free sheet experienced a first quarter boost in some circles, but a number of observers wonder if they will take hold. In short, nothing's changed since
Cherry Hill, NJ—Growth and success have been a consistent part of the Lehigh Press tradition since the company was founded, and are the sources for its confidence in a dynamic and expanding future. They are also bottom-line issues that are changing the direction of an industry leader. Lehigh operates in four industry sectors, including direct marketing, book components for EL-HI publishers, electronic prepress, and pharmaceutical inserts and labels in Puerto Rico (JV). Lehigh is currently ranked 50th among the nation's top 500 printers by Printing Impressions. Under new management since May 1998, the company grew 20 percent in its direct marketing print operations
Consolidators, independents discuss merits of selling the business to a roll-up company. BY ERIK CAGLE To sell or not to sell? A difficult question with no easy, or clear-cut, answers. The last 15 years have been marked by considerable growth in the commercial printing industry. That growth has been bolstered by awe-inspiring advances in technology: computer-to-plate, offset press automation and digital prepress advances, which have all streamlined production processes and decreased turnaround time. By building a better mousetrap, printers large and small have made their industry highly competitive. While the National Association of Printers and Lithographers projects industry growth in the 4 percent range
BY ERIK CAGLE The world of direct mail is an exclusive one in terms of overall printing sales figures. According to the annual ranking of the 500 largest companies done by Printing Impressions, the top two North American direct mail printers—Quebecor Printing, headquartered in Montreal, and the Banta Corp. of Menasha, WI—topped $600 million in combined sales. The third and fourth largest companies on the top 10 list—Wallace Computer Services of Lisle, IL, and World Color Press, Greenwich, CT—combined for roughly half of that figure. Top 10 Direct Mail Printers CompanySegmentSales(millions)Total Sales(millions)1Quebecor PrintingMontreal$382.80$3,480.002Banta Corp.Menasha, WI$228.00$1,200.003Wallace Computer ServicesLisle, IL$176.80$1,360.004World Color PressGreenwich, CT$140.00$2,000.005The Instant Web CompaniesChanhassen, MN$89.60$112.006Japs-OlsonSt. Louis Park, MN$66.00(E)$110.00(E)