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State of the Industry, Response to recent Interview (0 Replies, Read 1139 times)
by JOSEPH MASTERS
February 15, 2010, 3:41 pm
We at Alcan Composites USA were recently asked by the editors of "Wide-Format Imaging" to assess the state of the grand-format industry and wanted to share our full responses below:
* How is the wide-/grand-format industry faring overall?
Within the overall graphic display industry, our fabricators tell us that their business is down on average 30 percent to 50 percent, depending on the shop, and business hunger is driving aggressive sales approaches. We’ve certainly seen some shops close in this economy.
* The current worldwide economic crisis had had a profound impact on the industry as a whole. What areas were hit hardest? When do you see things beginning to turn around?
In this country, areas with the highest foreclosure and unemployment rates – especially Southwestern states including California and Arizona – have also taken the hardest hits in the graphic display industry. We at Alcan Composites have taken our lead from federal government economic forecasts, which predict the start of a slow economic recovery in late-2009. We’ve timed the launch of our new Legends of Mythology marketing communications campaign to coincide with that forecast. We believe that the worst is definitely behind us.
* What technological developments have helped move the industry forward?
Digital printing is king. It allows shops to print smaller quantity jobs without incurring high costs in materials and labor to set up screens for printing. Technological advances in inks – including aqueous, solvent and UV inks – are helping to fuel this digital printing mega-trend. Additionally, more flatbed printers are being developed to facilitate direct printing on thicker rigid substrates such as Fome-Cor®, Sintra®, Gator® and Dibond® graphic display boards, which reduces the material and labor costs that would be required to mount digital images.
* Sustainability has been a growing trend. Has the current economic crisis affected it? The economic crisis has definitely affected sustainability. While customers like the idea of sustainability, many can’t afford to pay a premium for sustainable products. Alcan Composites’ Care & Conserve™ sustainability initiative assesses the company’s entire supply chain from raw materials to disposal. Rather than focusing solely on materials that can be recycled at a premium, we encourage designers and fabricators to incorporate a cradle-to-grave sustainability focus in the project design phase, including selecting materials that utilize recycled content and that can be transported efficiently to reduce fossil fuel expenditures. Additional Care & Conserve sustainability tips can be downloaded from our web site at www.AlcanCompositesUSA.com.
* How are shops responding to and coping with these challenges?
We’ve seen workforce reductions at shops, as well much greater competition for business with customers who’ve established long-standing relationships with particular fabricators. Unfortunately, many shops have cut product inventories, which can make it difficult to fulfill print orders that are required on average to be turned around within two days. This practice hurts the industry as a whole. Some shops have focused on improving their operations with efforts that not only save long-term costs but contribute to sustainability – such as switching from propane-powered forklifts to electric forklifts and installing energy-efficient lighting.
* What growth do you foresee in this market? Where is the greatest growth opportunity for shops (niche/application)? Why?
Following government forecasts, we expect to see a slight economic turnaround through the end of this year and are cautiously optimistic that the graphic display industry will experience growth in early 2010. Any new types of business opportunities should be examined by shops. We’ve seen some of our distributors start selling manufacturing equipment in addition to printing substrates in an effort to expand sales and attract new customers.
* Where do you see the wide-/grand-format market in 12 months?
It remains to be seen, but we’d expect this market to be up along with the rest of the economy.
To read the responses of others in the industry, visit Wide-Format Imaging on-line at:
