Production Dealers Share Insight Into Additional Segments that are Flourishing

The beauty of production print is its veritable smorgasbord of offerings. It can serve the high-output needs of end-user offices, or provide spectacular, super-sized imagery for marketing and artistic endeavors (among others). It can be down-and-dirty applications in print shops and textile settings, or utility purposes for labeling and barcoding. Take one, take all—it’s arguably one of the dealer space’s top differentiators

We open this month’s State of the Industry report on production printing by delving into the wild, wonderful world of ancillary offerings that are often categorized under the production flag, from labels and packaging to textile applications and wide-format output. Our dealer panel provides insight into the factors that are driving that interest.

Two areas that Adam Silk, CEO of Digital Print Solutions in Macedonia, Ohio, feels have unlimited potential are labels and packaging. His company is currently experiencing tremendous growth in wide-format. Despite the long and storied existence of these offerings, there’s no market saturation that’s tempering adoption.

If it’s not a best-kept secret, perhaps it’s an ignored one. “These segments have always existed and are continuing to grow,” Silk said. “The companies that sell into these markets haven’t had much competition to date.”

Interesting Substrates

Jeff Presnall, production specialist for Datamax of Texas and Arkansas, notes that textile printing and packaging are the largest growth areas within the markets the dealer serves. Hardly a day goes by when he isn’t knee deep in a conversation about direct-to-garment applications. Similarly, short-run variable packaging is enjoying sold growth.

“Being able to produce tailored materials based both on content and customer characteristics are great areas for increased margins and are becoming much more available to our customers,” Presnall noted.

Wide-format devices continue to add revenue for Doing Better Business of Altoona, Pennsylvania. Some of the most fruitful vertical targets are architecture, engineering, construction, education, healthcare, hospitality and corporate environments. President and CEO Deb Dellaposta notes that organizations are churning out much more than the traditional engineering drawings. From signage, graphics, branded environments and wayfinding systems to event materials, wall graphics and interior visual communications, there’s no dearth of applications that extend beyond the traditional client persona.

“Every organization is under pressure to become more productive with the people they already have,” she said. “We’re also seeing increasing interest in integrated workflows where production print connects directly with document management, digital signage and business process automation.

“Customers increasingly want one partner that understands the entire workflow—not just the printer.”

Another dealer that is seeing strong interest in wide-format graphics and specialty print applications is Les Olson IT of Salt Lake City. Owner Troy Olson believes the ongoing uptick is a factor of organizations preferring in-house sourcing for output including signage, posters, displays and graphics production.

“Customers are looking for ways to diversify their services while creating new revenue opportunities,” he said. “Digital technology allows them to produce customized work quickly and economically, making these markets increasingly attractive.”

Gap Filler

One of the markets that makes wide-format particularly compelling is the print-for-pay space, according to Ray Bullins, vice president of sales for Systel Business Equipment of Fayetteville, North Carolina. He notes that the volatility of volume for that sector—months of being inundated with work followed by lean months—welcomes the consistency wide-format can offer.

“If you’re an owner, that can be a tough model,” Bullins said. “The nice thing about products such as yard signs, banners and the like tend to offer a higher profit margin. They’re more one-off by nature, but the better margins compel them to bring on more of those types of jobs.”