Print.IT Reseller - issue 50

PRINT IT RESELLER.UK 23 PRINT A common approach The next release of EFI’s job management application Fiery Command Station 6, due to be launched in April, deepens this integration by providing easy management of all Fiery-driven devices, whether they are used for printing documents, displays graphics, textiles, ceramics or corrugated material. EFI’s John Henze said that with its new Fierys and new job management application, EFI was realising its vision of a unified Fiery-driven print room, where a single Fiery can drive many different types of device through a common user interface and a common platform. Fiery Command Workstation 6 will include a number of new capabilities that reflect this broader reach. They include Fast RIP technology; a powerful but simple way to create layouts for B1 sheets; enhanced Versioning & Personalisation features that enable a designer to create a single file and manage multiple versions of the same job; and support for speciality colours, fluorescents, metallic inks and technical effects, for which PSPs can charge a price premium of 50-400%, including the ability to track how much of each ink is used and how much to charge customers using the new Fiery Smart Estimator. Through a programme of acquisitions and product development, EFI has been putting in place the building blocks that will enable it to compete in new areas. The question is how many of its customers have the vision, inclination and deep pockets to follow? And how long it will take them to do so? PSP challenges Wrapping up the conference, print industry commentator Dr Joe Webb highlighted some of the challenges confronting PSPs after two decades of falling demand and downward pressure on prices, during which time (1997-2016) the per capita spend on commercial print in the US has fallen fall by 52% and commercial print’s contribution to US GDP has declined from 1.1% to 0.33%. Soundbites – what else we learnt from Gecht Just 10% would be amazing. GG: “When will 50% of material be printed digitally? It depends on the application: with display graphics, we are already there; with ceramic tiles, we are already there; with commercial print, paper, not for many years; with textiles, not for many years; with corrugated, not for many years – perhaps not even in our generation. But the volume is so high that our business plan is not based on 50% digital. If we get to 10% digital in those markets it will be gigantic.” Diversification is not a priority GG: “There was a point with EFI when we were looking to diversify and get into new markets. In 2005, with inkjet, we knew exactly what market we wanted to be in. Now we are there we don’t need more markets, because those markets are huge. Packaging by itself is way bigger than any part of printing; textiles is way bigger; building materials is just starting; and display graphics is quite a big market – not as big as the other ones, but a very good market for digital (already 50- 55% digital).” Corrugated is just the start for Nozomi GG: “Nozomi is a platform. We are not done by any means with corrugated and we are super-happy with the initial response, but we are also very committed to certain other markets in which images are a very big part of the product – textiles, display graphics, decorative materials. With Nozomi, we are going to get deeper and deeper into those markets. We are working on a similar product for textiles, which should launch some time later this year.” 3D is not on the agenda GG: “3D was on our agenda for many years and we had many proposals to acquire it. But every time we looked at it we found, first of all, that it is still a very small market because the technology is not there for mass production – it is still too expensive. And it was over-hyped and we didn’t want to join the hype. The second thing is that EFI’s capabilities lie in printing great images, and 3D is not about great images. It uses inkjet heads and we call it printing, but it is actually more like manufacturing. While I’m sure we could do a good job at it, I don’t think it’s the best focus for this company. Today our view is that it is interesting, but it’s not for us. We’ll watch it; we’ll read articles; we’ll invest as individuals – but nothing further.” He drew a correlation between declining print spend and faster, cheaper internet access, which has allowed richer content to be viewed on more devices, and rising print distribution costs that have encouraged customers to send fewer, better targeted mail pieces. Dr Webb also highlighted print’s fear factor for younger generations raised on digital media, particularly its high upfront cost, the inability to make changes once something has been printed, uncertainty over how much to order, long lead times before results can be measured and high levels of waste. One response to changing customer requirements advocated by EFI and other vendors is to invest in new technology that lets you personalise mail, integrate it with digital media and diversify into new business areas. However, this, too, has its risks. “We are in an era of tremendous technological change,” explained Dr Webb. “The marketing life of equipment is different to the production life. You may buy something you intend to use for 10 years, but if the market changes you might only get five years’ use from it and still have all that capital tied up in it. That’s risky.” There are a number of possible responses to this problem. One is to buy less equipment and buy it more often – wear it out before it becomes obsolete. Another is to stay abreast of new technology through joint ventures/ investment. A third is to strike alliances with PSPs that have different capabilities to your own, on a task, project or strategic basis. What is not an option, according to Gecht, is to do nothing. “What we are seeing is that the people who adapt first are growing and the people who stand still and don’t make a decision are shrinking. If you look at Connect today versus Connect 10 years ago, some companies are no longer with us and some companies are bigger. That’s just Darwinism,” he said. www.efi.com Guy Gecht CEO, EFI