NewsNewsNPES THE ASSOCIATION FOR SUPPLIERS OF PRINTING, PUBLISHING AND CONVERTING TECHNOLOGIES

Volume XXXIII, Number 3

JUNE/JULY 2014

PRINT’S VOICE ‘14—Unified, Clear and LoudCAPITOL HILL FLY-IN URGES POSTAL, PATENT, TAX AND TRADE REFORMS

Sixty Members of Congressor their staffs, including

nearly one-third of the U.S.Senate, heard the printingindustry speak with one clearand loud voice during thePRINT’S VOICE ‘14Capitol Hill Fly-In.

Over 50 industry leadersgathered on Capitol HillMay 6-7 calling on Congressto enact urgently neededpostal and patent reformbefore the end of 2014. Theyalso stressed first-year ex-pensing of capital equipmentpurchases as an essentialelement of comprehensivetax reform, and that advertis-ing costs should remain fullydeductible as an ordinaryand necessary business ex-pense. Congress was alsopressed to enact internationaltrade legislation and ratifyinternational trade agree-ments that foster U.S.manufacturers’ ability tosuccessfully compete in theglobal marketplace.

NPES member, DavidCurrie, Senior IndustryConsultant, Natomas ESLLC, gave this report onhis experience at the two-day event.

“This year’s Fly-In waswell planned and well struc-tured. The NPES and Print-

the industry, the need forproper patent reform legislation,and his intimate understandingof the need for a strong, viableU.S. Postal Service.

U.S. CongresswomanTammy Duckworth (D-8-IL)who, beyond her inspiring lifeas an Iraq War veteran, spokeof her active support of postaland patent reform. Her dis-trict has more NPES members(21) than any other in thecountry.

U.S. Congressman MichaelMichaud (D-2-ME), a co-

ing Industries of America Gov-ernment Affairs staffs arrangeda significantly greater numberof meetings with House andSenate members and staff thisyear than last year. We hearddirectly from:

U.S. Senator TammyBaldwin (D-WI) on her strongbacking for postal and patentreform, as well as the supportof over 200,000 jobs in her stateof Wisconsin directly related toprinting and paper production.She is leading the effort in theSenate to craft a postal reformbill that will properly balancethe interests of all mailing in-dustry stakeholders.

U.S. Senator Patrick Leahy(D-VT), Chairman of the Sen-ate Judiciary Committee, whocomes from a family of printers,spoke of his strong support for

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founder of the CongressionalPaper Caucus and a strongsupporter of economic develop-ment, is the third generationmember of his family involvedin the paper industry and un-derstands the need for a viableprinting industry. Postal reformis high on his agenda and hispresentation to the groupconfirmed his commitment.

U.S. CongresswomanCathy McMorris Rodgers(R-5-WA), Chairman of theHouse Republican Conference(4th highest ranking Republican

NPES Board Members and association staff on the steps of the U.S. Capitol at thePRINT’S VOICE ’14 Capitol Hill Fly-In.

Senate Judiciary Committee ChairmanPatrick J. Leahy (D-VT) was thefeatured speaker at the PRINT’SVOICE ’14 U.S. Senate Luncheon.

Adaptation has never beeneasy for people or animals.

Usually it happens by neces-sity rather than choice.Charles Darwin noted in histheory of evolution that “Itis not the strongest of thespecies to survive, nor themost intelligent that survives.It is the one that is mostadaptable to change.”

We have been seeing thatsame theory of evolutionoccur substantially in our in-dustry for the last six to seven

Adapt and Survive!

ISSUE HIGHLIGHTS

One on One with Gordon Kaye........................ 4

PRINT’S VOICE ‘14 Photo Gallery ..................6

Apprenticeships: Beating the Skills GapGrow Your Own Talent! ......................................8

PRIMIR Summer Meeting ................................9

India——Pathway to EmergingAsian-Pacific Print Market ............................ 10

It’s a Fact: Packaging Will Continueto Be Strong into 2017 ....................................12

New GAERF Board Appointees ......................12

Calendar ............................................................ 12

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PRESIDENT’S PERSPECTIVE

Ralph Nappi, NPES President

years. In 1998 there were 32,600 commercialprinters in the U.S.; today, that number is lessthan 26,000. Medium-sized companies buy upsmall companies, andbig companies buyup medium companies.Corporate Darwinismat its best!

We are seeing ourcustomer base shrinkand the demand for ourequipment do the same—if the U.S. is the onlymarket for your equip-ment, or if commercialprint is your only sector.But the most adaptable have managed to“double down” in international markets thatexpect growth to surpass the U.S. Countries

like India, South Africa, Indonesia, Poland,China, Brazil and Romania all show growth

trends of 3% or moreannually through 2017(see Exhibit 1).

When we move tosectors, it will come asno surprise that thoseinvolved in packagingwill do well. Packagingworldwide is expected togrow at over 4% annuallybetween now and 2017,boosted by economic re-covery in developed coun-tries and rising prosperityin emerging markets.

While packaging is the fastest-growing sub-segment today, there is still room to tap into theU.S. $14.1 billion smart packaging market

Exhibit 1:

‘‘Packaging worldwide is expected to grow at over

4% annually between now and 2017, boosted by economic

recovery in developed countries and rising prosperity

in emerging markets.

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(see Exhibit 2). The recent“World-wide Market for Print”study reminds us that emerg-ing countries are catching upto developed countries inways that affect demand forthe written word throughrising income, rising literacyand improved access tocities that give rise to higherconsumption.

We also know that anincreasing push from publicand private sectors for eco-friendliness, as explored inExhibit 3, will put downwardpressure on business andtransactional printing, butwill also lead to greater salesof more sustainable sub-strates, inks and equipmentthat foster ecofriendly print.

All this provides as muchopportunity as threat to theadaptable company. It isclear that the technologydeveloped, manufacturedand sold by U.S. companiesis highly sought after aroundthe world if delivered with alocal mindset.

Adaptation and evolutionis never easy, but it certainlybeats the alternative!

Exhibit 2:

Exhibit 3:

Emerging countries are catching up to developed countries in ways that affect demand for the written word through rising income, rising literacy and improved access to cities that give rise to higher consumption.‘‘

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Back in 1990, just as our print-centricworld was racing into the “digital age,”what (on earth!) inspired you to leave asuccessful career in law to becomepublisher of Graphic Design USA?

It is less a mystery than a love story.Yes, I had an interesting law career; firstworking for a large Wall Street law firmrepresenting publishing and advertisingclients. Then I moved in-house at NBC, thetelevision network, practicing media, com-munications and entertainment law, aswell as appearing on the set at 30 Rock tovet Saturday Night Live for potential legalproblems. On paper (and at cocktail par-ties) my legal career looked pretty good.But here’s the rub. Starting in the early1950s, my father worked at or owned

various design, printing and ad industry magazines. Evenas a young child, I came to love the feel and smell ofprint, its beauty and power. And though my father wasnot a designer, nor am I, we both shared a respect—make that fascination—for the ability of graphic artiststo tell a story, sell a product, advance an idea. I never gotover that feeling, and most days as a lawyer I fantasizedabout being a publisher. On the other hand, participatingin a small family business is fraught with problems, andso I pursued my own career. Then, for good or ill, my dadhad serious personal struggles and his ventures hit hardtimes; by 1990 his business was essentially a shell. Ijumped in to try and turn things around—maybe for ayear or two, with no particular skills, just a passion forprint. Luckily, passion—and lots of sweat—has beenenough. Nearly a quarter century later, I wake up everymorning anxious to get to work because publishing isfun, challenging, stimulating, meaningful. How manylawyers do you know who feel that way?

Another enigma: Graphic Design USA continues todemonstrate—by its sheer weight—the enduringdemand for print. To what do you attribute themagazine’s continuing success?

Thank you for noticing. While many publications areshrinking or stopping, we are generating lots morepages, on heavier paper stock, with better design thanever. I have no deep pockets and no secret sauce. Isimply start from the fundamental belief that people stilllove print for its classic strengths—touch, feel, perma-nence, portability—and that a magazine can stand outfrom the digital noise IF it delivers relevant content andhigh production values. Of course, in 2014 no magazinecan stand alone; our company lives because we alsodeliver information and have income streams from web-sites, e-newsletters, an app, several design contests,and other activities. Integrating print with digital mediais absolutely necessary. But, honestly, the print magazineis the brand; it gives us the gravitas and provides theauthenticity. I am investing more in design and produc-tion elements because the brand matters, and theexperience of receiving GDUSA had better be specialand memorable. My advice to brand owners of any kind:invest more in print because it has transcendent value.

Graphic Design USA hosts several “bestin industry” design contests, and youare also a judge for GAERF’s 2014 Stu-dent Design Competition. From this per-spective and in today’s multichannel,mixed-media environment, how havedesign client expectations changed?

I know what design clients should want:effective, expressive and strategic commu-nications; aesthetically presented and pro-duced; and delivered across multiple mediacalibrated to meet the needs of the project.Professional graphic designers and com-mercial printers understand this instinc-tively. My fear is that clients—battered bytight budgets, under pressure for quickturnarounds, steeped in a digital culture,and less educated in the craft of graphicarts—too often understand the cost ofeverything and the value of nothing. In con-tests, I look for the pieces, projects andcampaigns that define the design problemand craft a thoughtful, strategic and rele-vant solution. If we’re lucky, it might evenbe beautiful. Such projects exist; you justhave to look harder. Such clients exist; youjust have to look harder.

Looking ahead, what do you see for theindustry in the next three to five years?And why are you optimistic about thefuture?

Earlier this year we conducted GDUSA’s51st Annual Reader Survey. Several pointsmake me feel reasonably optimistic. First,hype aside, the survey finds that printremains crucial as to how professionaldesigners make a living. More than 9 in 10designers work in print as part of their mix,nearly 3 in 4 projects involve a print com-ponent, and roughly 9 in 10 buy printingand specify paper. Second, the resultsaffirm a key point made earlier: designersstill value print for its classic strengths.

One on One with GORDON KAYE

Gordon Kaye is editor and publisher ofGraphic Design USA magazine. Hejoined GDUSA in 1990 after a first ca-reer as communications attorney for aprivate law firm, and then for the NBCTelevision Network where assignmentsincluded NBC News and Saturday NightLive. He received a B.A. from HamiltonCollege, and a joint degree in Law andPublic Policy from Princeton Universityand Columbia Law School.

NPES News 062014_Layout 1 6/20/14 10:06 AM Page 4

there are very important lawsbeing considered by Congressthat will absolutely impact ourindustry.

• Be part of a tradeassociation that lobbies inWashington. I highly recom-mend NPES or PrintingIndustries of America.

• It’s easy to be involved.In my case, it was easy, be-cause NPES arranged every-thing. I showed up, got a greateducation, and quickly foundmyself on Capitol Hill talkingabout these issues.

• Invite a congressmanor congresswoman to yourbusiness. Your stories willspeak louder than the largevolume of statistics that politi-cians already have access to.”

Both NPES and PrintingIndustries of America lookforward to continuing thesynergy of their PRINT’SVOICE Fly-In partnershipin 2015, with the goal offurther expanding industryparticipation. For moreinformation contact NPESGovernment Affairs DirectorMark J. Nuzzaco at phone:703/264-7235 or e-mail:mnuzzaco@npes.org.

in the House), spoke of herbelief in the American Dreamand the need to assure thateveryone has opportunity.

U.S. Congressman ReidRibble (R-8-WI), a co-founder of the CongressionalPaper Caucus, spoke of howimportant it is for Membersof Congress to hear directlyfrom constituents, and praisedthose in attendance for theircommitment to good govern-ment and the well-being oftheir industry.

U.S. Congressman LeeTerry (R-2-NE), Chairmanof the House Energy andCommerce Subcommittee onCommerce, Manufacturingand Trade, stressed the impor-tance of manufacturing to theU.S. economy.

PRINT’S VOICE showsthere is a strong and continu-ing effort within the industryto put appropriate effort intoenacting needed legislation.”

In addition to featuredprogram speakers, Fly-Inattendees also met with othersenators and representativesin scores of congressionaloffice visits.

Before the office visits,attendees were briefed on theprinting industry’s govern-ment affairs priorities byseveral panels of issue expertsdrawn from congressionalcommittee staffs, Washingtonthink tanks and industryexperts. (See issue briefs at:www.npes.org/PV14_Policy-Briefs.)

Co-sponsored by NPESThe Association for Suppliers

of Printing,Publishingand Con-vertingTechnologiesand PrintingIndustries ofAmerica,PRINT’SVOICE,now in itsfourth year,has grown into a signatureevent that brings printers andsuppliers together for a power-ful program of public policyeducation, issue advocacy, andinteraction with Members ofCongress. This year’s Fly-Inwas also supported for the firsttime by the National Associa-tion of Printing Ink Manufac-turers (NAPIM) and theAssociation of IndependentMailing Equipment Dealers(AIMED).

Fly-In participants gave theprogram high marks, citing itseducational value and the op-portunity to advance industrypriorities by meeting directlywith elected officials and theirstaffs. NPES member and Fly-In participant Greg Salzman,CEO at Aleyant Systems,LLC, shared his enthusiasmfollowing the event:

“My time at PRINT’SVOICE ’14 was a fascinatingglimpse of the “sausage mak-ing” that occurs in Washing-ton. Overall, I was struck bythese key points:

• It’s important to beinvolved! It’s all too easy tonot think about the laws beingpassed at a federal level, but

This year's Fly-In was well planned, well structured...with a significantly greater number of meetings with House and Senatemembers than last year. —David Currie, Senior Industry Consultant, Natomas ES LLC ‘‘Foremost among these

strengths is touch—thepromise of the tangible,sensual, physical, real.Print works, they say, be-cause it creates a humanconnection missing from thevirtual world. Third (and thisis important!), designerssense that the pendulumswing away from print com-munications has gone a bittoo far. Their premise isthat, in the digital clutter,effective printed piecescan be fresh, surprising,welcome, personal, special.Fourth, print’s evolutionto a smarter and leanerprofile—think, for example,digital printing and sustain-able paper making—ishelping keep the mediuma relevant option whenhard choices are beingmade about economics,effectiveness, and ethics.Fifth and finally, our readersexpect print to continueto be important in themedia mix becausedesigners and printersare increasingly adept atutilizing it in ways thatcomplement and enhanceintegrated marketingprograms. One of thesurvey respondents sumsthe point up nicely: “Printis far from dead. It justrequires more creativesolutions than designersand printers have given itin the past.”

PRINT’S VOICE continued from page 1

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NPES and Printing Industries of America Government AffairsChairmen Ron Rose (l) and Brad Thompson (r).

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U.S. Senator Barbara Boxer (D-CA) flanked by California constituents David Currie (l)and Nick Bruno (r), with NPES and Printing Industries of America leaders, left to right:Ralph Nappi, Brad Thompson, Ron Rose, Jeff Ekstein, and Michael Makin.

Congresswoman Cathy McMorrisRodgers, (R-5-WA) Chairman, House Republican Conference, addressesPRINT’S VOICE ’14 Fly-In participants.

NPES President Ralph Nappi (l) introduces U.S. Senator Tammy Baldwin (D-WI) (c) at the PRINT’S VOICE ‘14 Senate Breakfast. Baldwin, a leading advocate of postal reform, is a champion of the paper, printing and mailing industries, all of which have a hugepresence in Wisconsin.

U.S. Senator Tammy Baldwin (D-WI) , with Wisconsin constituents, left to right: Michael Aumann, Brandtjen & Kluge; Pat Henderson, Quad/Graphics, Inc.; John Berthelsen, Suttle-Straus, Inc.; and, Mark Kannenberg, RBP Chemical Technology, Inc.

NPES Executive Committee member,Chris Payne, Director & Vice President,Commercial Marketing, Eastman KodakCompany poses a question in one of thecongressional briefing sessions atPRINT'S VOICE ̕14.

NPES Board member Mark Kannenberg, RBP Chemical Technology, Inc. (l), with Congressman Michael Michaud (D-2-ME) (r), co-founder of the Congres-sional Paper Caucus, during the PRINT’S VOICE ’14 Congressional Reception.

NPES Board member, John Copeland,President & COO, Toyo Ink Americagains an update on key industry issues during a congressional briefing.

PRINT’S VOICE ‘14 PHOTO GALLERY

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NPES member Alec Rogers,Manager, Government Policy –Xerox Corporation, explainsthe importance of protectingintellectual property while alsocombatting the abuses ofpatent trolls.

Tom Mahr, Policy Director, Office of Democratic WhipSteny Hoyer, briefs Fly-In participants on the importanceof trade legislation pending before Congress.

Angela Ellard, Majority StaffDirector/Chief Trade Counsel,House Ways & Means Sub-committee on Trade, briefs participants on Trade Promotion Authority.

NPES member Ashley Lyons,Washington Legislative Representative – PitneyBowes, explains issues included in postal reform legislation.

Curtis Dubay, Senior Policy Ana-lyst, The Heritage Foundation,explains the economic power ofrapid capital cost recovery, andthe need to include expensing ofcapital investment in tax reform.

SEE MORE PHOTOS AT: www.npes.org/PV14_photos

NPES Chairman Mike Ring, Xeikon America, Inc. introduces his congresswoman, Tammy Duckworth (D-8-IL), the featuredspeaker at PRINT’S VOICE Congressional Reception.

NPES member Nick Bruno (r) advocates for policy reform with an aide (l) during a congressional office visit.

NPES Chairman Mike Ring (center left) and NAPIM President Brad Bergey (center right)meet with U.S. Senator Mark Kirk’s (R-IL) legislative assistant, along with (left to right) NPES Government Affairs DirectorMark Nuzzaco and NPES members John Copeland, Greg Salzman and Todd Blumsack.

Congressman Lee Terry (R-2-NE), Chairman,House Energy & Commerce Subcommittee onManufacturing and Trade addresses participants.

Congressman Reid Ribble (R-8-WI), co-founder of the Con-gressional Paper Caucus, speaks at the CongressionalReception on the importance of constituent advocacy.

I concluded immediately that I will attend this event next year. The issues at hand are too important to our industry not to. Please consider joining us next year!

—Greg Salzman, CEO, Aleyant Systems ‘‘

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Apprenticeships: Beating the Skills GapGrow Your Own Talent!Manufacturers in today’s increasingly tech-

nically sophisticated and automated facil-ities are coping with a shortage of skilledworkers, not only in our industry, but acrossthe board. Contributing to this skills gap is the“re-shoring” of jobs returning to the UnitedStates from other countries, and the economicrecovery that’s generating the need for morehighly skilled workers.

Some innovative graphic communicationsindustry companies are facing this skills gaphead-on turning to apprenticeship programsas a solution—growing their own talent.

Apprenticeship in our industry has a longhistory. In 1908 RR Donnelly established aSchool for Apprentices, modeled on a similarendeavor begun by a French printing firm in1863. After a seven-year course of training,including a five-year apprenticeship underthe guidance of master craftsmen, apprenticesgraduated with a diploma, a journeyman’scertificate, and were offered full-time positionsin the company.

Nowadays colleges across the country offergraphic communications degree courses,among them Cal Poly, Clemson and RIT, with

We need to reach down to the high school level featuring ‘mechatronics’ as a lead-in to attract young people to our industry and company.

—Nick Bruno, CEO, Harris & Bruno International‘‘varying versions or elements of on-the-jobinvolvement. Despite the availability ofcreative opportunities for many graphicscommunications graduates, attractingthose for whom a career in manufacturingwould be a better fit is more difficult.

Roseville, CA-based Harris & BrunoInternational began its own communityapprenticeship program because of ashortage of qualified “seasoned” electricalengineers and other skilled experiencedprofessionals. President Nick Bruno saysthat some “70% of high school studentswill not get a four-year degree. We needto reach down to the high school levelfeaturing ‘mechatronics’ as a lead-in toattract young people to our industryand company.”

Benefits to any company may taketime to be seen, but overall, according toBruno, “Our apprenticeship programtends to generate longevity with the com-pany. Young people tend to think aboutthe future and that helps us to keep mov-ing forward.” He adds, “We have a vari-ety of opportunities for them to enter and

grow within thecompany.”Furthermore,“The programmakes our com-pany very com-petitive due tothe low wagesfor these entrypositions andour factory isopen sevendays a week,so there arenumerous

potential open-ings, but wemust ensurethat systems,procedures, andvideo trainingare very welldocumented.”

Bruno takesa personal inter-est in the Harris& Bruno pro-gram, leading tours of the facility for highschool and college students. The companyalso participates in orientation/recruitmentactivities in the community. “Because wecannot find seasoned electrical engineers,we have to draw them in from high schools,junior colleges…and from engineering col-leges by networking with instructors to getthe cream of the crop. What we’ve alsofound is that if we mention ‘print,’ the inter-est drops, so we’ve learned to brand ourcompany at these events as a ‘manufactur-ing company that does a lot of exporting’.”

For those selected, Bruno adds, “Ini-tially, there is a lot of turnover—weedingthrough those with the attitude that ‘justgood enough’ is okay. We talk a lot aboutwork ethic and as CEO, I try to instillWHY we come to work every day.”

Walter Siegenthaler, Executive VicePresident of Max Daetwyler Corporation,Huntersville, NC, found that, “Unfortu-nately a lot of students and parents have astigma against apprenticeships. They feelthat manufacturing is low pay, dirty jobs,and very little opportunity to make a ‘real’career out of it. Our challenge in recruitingis to overcome this stigma. We spend a lotof time interacting with high schools to

Nick Bruno

On-the-job training with a master craftsman is an essential requirement for a successful apprentice participant in the Daetwyler apprenticeship program.

ations, mostlybecause of the ITboom as well as the‘four-year degree isa must’ ideologycoming from mostparents these days.This new pool oftalent will be welleducated, and inter-ested in a career inadvanced manufacturing, ready to produce andimprove our company’s bottom line.”

Bertoncino sums it up aptly: “The [NCTAP]program is a tailor-made resumé build. If theapprentices do not accept the offer from theirhost company, they should have no troublefinding a job in manufacturing with their FREEcredentials.”

Bertoncino estimates, “We will spend fouryears paying for the apprentices’ wages and thelost efficiency from the trainer, as well as cover-ing their tuition payments. The investment iscalculated at well over $140,000 in wages/tuition. However, the program allows us tocreate the talent we need from the ground up.”

For more information about the programsmentioned herein visit:

www.apprentice2000.orgwww.nctap.orgwww.harris-bruno.com

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introduce our program and show careercounselors, students and parents that ad-vanced manufacturing is high-tech, cleanand exciting.” Daetwyler is one of the co-founders and a main driving force behindthe Apprenticeship 2000 program in theCharlotte area.There is a rig-orous selectionprocess for thefour-year pro-gram and initialrequirementsinclude a mini-mum GPA of2.8 with astrong empha-sis in science,technology, engineering and math. Forsuccessful participants the process is 8,000hours in all—divided into 6,400 hours ofhands-on training and 1,600 hours ofclassroom/community college. Participantsgraduate with an Associate’s Degree inMechatronics.

Siegenthaler adds that, “All partnercompanies in Apprenticeship 2000 guaran-tee their apprentices a job after graduation.After that the opportunities are endless;either within the company or with contin-ued education.” Ramp-up costs and estab-

lishment of the program can be a signifi-cant long-term investment for any com-pany. The Daetwyler program has beenrunning since 1996 and Siegenthalerpoints out, “Struggling with unskilledlabor can also cost a company a lot moremoney. Unfortunately most companiesdo not realize the cost of not having theskilled labor they need.”

And the good news for the appren-tices who pass through the program saysSiegenthaler is that, “Our apprenticesgraduate without college debt and withfour years’ work experience.”

This fall, North Carolina compatriot,Madern USA, Inc. is set to launch itsown program as a partner company inthe North Carolina Triangle Apprentice-ship Program (NCTAP), closely mod-eled on the Apprenticeship 2000program. The program is centeredaround businesses within the Raleigharea that have shared personnel interestsand a quality community college that cancater a curriculum to meet the partners’needs. Mark Bertoncino, Manager ofOperations and Business Developmentfor Madern, champions the company’sprogram: “The benefits are a renewedsource of skilled manufacturing person-nel, which has missed a couple of gener-

Walter Siegenthaler

Mark Bertoncino

… over 80% of manufacturers report a moderate to severe shortage in highly skilled manufacturing resources.

—Accenture 2014 Manufacturing Skills and Training Study Conducted in collaboration with The Manufacturing Institute‘‘

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Printand Paper TechnologyAssociation commissioned astudy of the print market inIndia that identified poortraining of personnel as themost crucial impediment forgood print products.

Print Product Revenues

The greatest growth oppor-tunities for print products areconcentrated around revenuesfrom print packaging and printpublishing (specifically news-paper printing), with the great-est growth potential in packageprinting, which will increase7.8% between 2012 and 2017.The market size of the packageprinting sector will increasefrom U.S. $8.7 billion in 2012to U.S. $12.7 billion in 2017,and will make up 43% of totalprint product sales in 2017.The growth of package print-ing will be driven by increasingdemand for non-commodityconsumer goods in moredeveloped countries in theAsia-Pacific region that are

India—Pathway to Emerging Asian-Pacific Print Market

The recently released,comprehensive NPES and

PRIMIR study, “World-wideMarket for Print: IdentifyingGlobal Opportunities for the PrintIndustry,” conducted by theEconomist Intelligence Unit(EIU), offers a roadmap ofpotential profit opportunitiesfor savvy manufacturers andprinters willing to negotiatethe fragmentary nature ofemerging and developedmarkets outside the U.S.

In 2017, the Asian-Pacificprint industry will be thelargest in the world by region,with total product revenuesprojected to grow from 29% in2012 to 40.5% of the globalmarket at U.S. $270.8 billion(see Exhibit 1).

Unquestionably, Indiacontinues to be a predominantemerging country within theregion and globally, and posesa unique set of socio-economicand structural dynamics, wellworth NPES members’ inves-

Unquestionably, India continues to be a predominant emerging country within the region and globally, and poses a unique set of socio-economic and structural dynamics,well worth NPES members’ investigation for market entry or sales expansion strategies.‘‘

tigation for market entry orsales expansion strategies.

Consumer & BusinessEnvironment

At almost 1.3 billion peopleby 2017, India is one of thelargest global markets, whereincomes continue to rise, givinga boost to the consumer marketand expanding the growth ofits economic base. Recent 2014national elections, with a land-slide victory, bring into officethe pro-business BharatiyaJanata Party (BJP) in boththe country’s parliament andexecutive branches—wherebroad economic reforms arepromised. Foreign investorshave poured more than U.S.$16 billion into Indian stocksand bonds in the past sixmonths and now hold over22% of Mumbai-listed equities,a stake estimated by MorganStanley at almost U.S. $280billion. Prime Minister-electNarendra Modi promises to

usher in profound economicchanges, build greater infra-structure, and attract furtherforeign investment toadvance the region’s third-largest economy.

India Print MarketSummary

Although print marketgrowth in India has decel-erated since the global fi-nancial crisis, the EIUforecasts the size of India’sprint market to be U.S. $29.3billion in 2017, up from U.S.$21.1billion in 2012. Totalprint product revenues inIndia grew at a rate of 11.3%between 2007 and 2011, andare projected to grow at 6.8%annually, between 2012 and2017 (see Exhibit 2).

The growth rate of the printmarket will not be as rapid asother countries, due to a short-age of skilled labor and thepoor quality of print productsmanufactured in India. The

Exhibit 1

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slowly shifting from producercountries to consumer coun-tries, especially China.

Within the package printingsector, label and tags printing isexpected to grow the mostquickly of any product, at arate of 11%, a result of in-creased demand from theemerging middle class in theregion and India itself. Insertprinting and corrugated pack-age printing are also forecast tohave high growth rates, againreflecting the expanding seg-ment of the population in theregion capable of, and inter-ested in, greater consumerconsumption. This factor alsoaccounts for the rapid growthof magazine printing, whichis expected to grow 8.4%between 2012 and 2017.

The publishing printingmarket size will grow fromU.S. $3.4 billion in 2012 toU.S. $4.5 billion in 2017 withpopulation increase, risingliteracy rates, and a growingeconomy to undergird rapidgrowth; however, most ofIndia’s publishing firms arevery small and ill-equippedwith the necessary infrastruc-ture such as printing presses

and distribution networks.Only 10% of publishing firmspublish more than 50 titlesannually.

Equipment SalesThough dominated by the

sheer size of China’s market-place for consumption of print-ing equipment sales, at 41% ofthe nearly U.S. $5.5 billionprojected for the region by2017, China will actually fallto third place, in compoundannual growth rate (CAGR)of equipment sales at 3.4%,behind growth rates in India

Exhibit 3

of 5.9% and Indonesia at 3.6%(see Exhibit 3).

Sheetfed offset lithographicequipment and web offsetlithographic equipment willcontinue to be the main rev-enue generators in India.Collectively these two printequipment sectors will accountfor almost 50% of sales in 2017,with total revenue of U.S.$330.8 million.

All types of equipment salesare expected to post positivegrowth rates between 2012 and2017; postpress equipmentsales are predicted to have the

highest growth rate at 10.2%,well over the category averageof 5.9%. The poor quality ofprinting equipment producedin India means that advancedmachines for producing high-quality print products will stillrequire importation.

NPES Member Opportunities

Armed with key countrydemographics, printing indus-try trends, and the benefit ofestablished market penetrationservices and advance investiga-tive work, available throughNPES—the rewards can begreat. NPES and PRIMIRmembers should refer to the“World-wide Market for Print”study provided to them earlierthis year for: much greater dataon the growing India printmarket; in-depth data andresearch for the entire Asia-Pacific region and others; and,all 51 individual country re-ports encompassed in the land-mark NPES/PRIMIR study.

Exhibit 2: Top Line Print Market Data – India 2007-2017

Source: NPES 2013 study "World-wide Market for Print: Identifying Global Opportunities for the Print Industry" by Economist Intelligence Unit

CAGR CAGRCategory 2007 2011 2012 2017 2007-2011 2012-2017

Total print product revenues 14,795.7 22,697.0 21,099.4 29,304.3 11.3% 6.8%

Total equipment sales 625.0 566.8 511.9 681.4 -2.4% 5.9%

Total prepress consumable sales 152.5 164.2 166.6 205.3 1.9% 4.3%

Total ink sales 468.4 385.7 368.9 512.4 -4.7% 6.8%

Total substrate sales 7,300.7 9,884.2 9,431.9 13,289.6 7.9% 7.1%

12

CALENDAR

DID YOU KNOW?

The U.S. mailing industry—including paper, printing, paper and printing suppliers, graphic

design and mail management and distribution—supports 8.4 million

jobs. That’s 6% of all U.S. jobs.—Envelope Manufacturers Association

Foundation Mailing Industry Jobs Study, 2012

July 2014ExpoPrint Latin America 2014 - NPES Booth and Trade MissionJuly 15-22 • São Paulo, Brazil

NPES Market Data MeetingJuly 21 • Cleveland, Ohio

PRIMIR 2014 Summer Meeting July 21-23 • Cleveland, Ohio

September 2014EXECUTIVE OUTLOOK Conference September 28 • Chicago, Illinois

GRAPH EXPO 14 and CPP EXPO September 28-October 1 • Chicago, Illinois

October 2014CGATS/USTAG/PPC Meeting October 13-15 • Chicago, Illinois

ICC Meeting October 30-November 1 • Boston, Massachusetts

November 2014NPES 2014 Annual Conference & PRIMIR Winter MeetingNovember 2-4 • Charleston, South Carolina

ICC DevConNovember 3 • Boston, Massachusetts

All in Print China-NPES Booth and Trade MissionNovember 14-17 • Shanghai, China

TC130 Working Groups & Plenary MeetingsNovember 14-20 • Beijing, China

NPES News is published bi-monthly by NPES.

Publisher:Ralph J. Nappi

Director of Communications:Deborah Vieder 703/264-7222

Managing Editor:Jane Pratt 703/264-7200 x242

Correspondents:Jackie BlandMark Nuzzaco

The Association for Suppliers of Printing, Publishing and Converting Technologies

1899 Preston White DriveReston, VA 20191 USA703/264-7200e-mail: npes@npes.orgwww.npes.org

Greg SafkoDeborah Vieder

New GAERF Board Appointees

GAERF, the Graphic Arts Educa-tion and Research Foundation,

recently announced the appointmentof two experienced educators to itsBoard of Directors, Dr. Jerry Waiteand Laura Roberts.

Dr. Waite is Professor of Tech-nology at the University ofHouston, Houston, TX and hasa distinguished career in post-secondary graphic communicationseducation. He also served as President for the InternationalGraphic Arts Education Association, and President of theAccrediting Council for Collegiate Graphic Communications.

Ms. Roberts is Printing Tech-nology Instructor at Mattoon HighSchool in Mattoon, IL. She teachesPrint Media Technology/GraphicArts introduction and advancedclasses. Prior to teaching sheworked for 18 years in variouscapacities in the print ndustryand is currently completing herMaster’s Degree in Educational Administration.

Dr. Jerry Waite

Laura Roberts

Share of print packaging products - 2017

Corrugated packaging

Flexible packaging

Folding carton/paperboard

Labels and tags 24%

18%

13%

45%

*2012 - 2017 CAGR

Total packaging: $288 billion by 2017

Corrugated packaging 4.8%*

Labels and tags 4.3%*

Flexible packaging 4.0%*

Folding carton/ paperboard 3.1%*

Developing markets will drive most growth in packaged goods, but mature markets will still grow.

IT’S A FACT!PACKAGING—THE LARGEST PRINT SEGMENT TODAY—WILL CONTINUE TO BE STRONG INTO 2017• Print packaging is the largest products

segment today, and will continue to be strong.

• Not as much divergence between developed and developing countries.

• Developing markets will drive most growth in packaged goods, but mature markets will still grow.

• Rising incomes will lead to a rise in demand for consumer packaged goods.

Source: NPES 2013 study, “World-wide Market for Print,” conducted by Economist Intelligence Unit

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