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Volume XXIX, Number 6                                         July 2010




THE ASSOCIATION FOR SUPPLIERS OF PRINTING, PUBLISHING AND CONVERTING TECHNOLOGIES



       GRAPH EXPO 2010: A Virtual Preview
       A LIVE SNEAK PEEK INTO WHAT AWAITS AT THE SHOW IN CHICAGO

       A     s its name implies,
             “GRAPH EXPO 2010: A
       Virtual Preview” offers graphic
       communications professionals
       an exciting sneak peek at all
       that the GRAPH EXPO show in
       October will have to offer. On-
       line registration is open now for
       the Virtual Preview scheduled
       for August 19, 2010.
          Sponsored by American Printer
       magazine, GRAPH EXPO 2010:
       A Virtual Preview will feature
       an interactive tour of just some                      portunities to network live with    the Caribbean but also Mexico,
       of the new equipment and                              exhibitors, industry experts and    Latin America and the Domi-
       products to be found at the                           peers from across the Americas.     nican Republic, visitors to the
       show in October—as well as op-                           On the day of the Virtual        preview will have the option
                                                             Preview, August 19, registrants     of participating in the online
 INSIDE:                                                     will visit a designated URL         event in English or Spanish.
                                                             through their Web browser that          In addition to the virtual
 President’s Perspective........................... 2        will launch a page that “mir-       vendor booths and a full list-
 Coated Paper Trade Cases .................... 3             rors” the lobby of the physical     ing of exhibitors expected at
                                                             show where a video on the Jum-      GRAPH EXPO, the Virtual
 Benchmarking and                                            botron screen will welcome and      Preview will include educa-
 Worldwide Market Trends                                     explain how visitors can access     tional webinar sessions
 for Flexographic Printing ........................ 4        the different areas of the online   covering topics of interest to
 Think Outside the Box—                                      event, including the virtual Ex-    11 key industry segments
                                                             hibit Hall; the virtual Audito-     within the full spectrum of
 Expand Globally! ...................................... 5
                                                             rium, featuring a series of         graphic communications
 First Quarter Market Data:                                  educational sessions; and, vir-     professionals—from commer-
 A Return to the Bad Old Days ................ 6             tual Networking Lounge with         cial and quick printers to book     sionals and more. Specifically, the
 SAVE THE DATE:                                              scheduled featured topic discus-    publishers, packaging printers      virtual Auditorium will feature:
 NPES 2010 Annual Conference.............. 7                 sions in five live chat rooms.      and converters, mailing and            • Six educational webcast
                                                                Because GRAPH EXPO will          fulfillment professionals,               sessions covering topics of
 NPES Calendar.......................................... 8   host visitors not just from the     newspaper printers and pub-              current interest to the variety
 News and Notes ...................................... 8     English-speaking Americas and       lishers, creative service profes-        of attendee segments,
                                                                                                                                                          Continued on page 2
                                                                                                GRAPH EXPO 2010: A VIRTUAL PREVIEW, continued from page 1


    president’s perspective                                                                        • A preview of the always-popular EXECUTIVE
                                                                                                     OUTLOOK Conference, slated for the day
                                                                                                     before GRAPH EXPO opens on October 2,
    The Road to Opportunity Leads to…Brazil!                                                       • A preview of candidates being considered for
                                                                                                     MUST SEE ‘EMS recognition, a popular part of
                                                                                                     the EXECUTIVE OUTLOOK Conference that
                                           Now let me provide some industry indicators:
                                                                                                     highlights the most influential trends and
                                           • Over 209,000 employees work for 20,000
                                                                                                     technologies to be found on the show floor,
                                       printing companies in Brazil.
                                                                                                   • A preview of companies and organizations
                                           • Over $1 billion was invested in equipment
                                                                                                     being considered for Positively Print
                                       with a majority of that being imported.
                                                                                                     recognition, a new print advocacy program
                                           • Brazil experienced a 49% increase in web
                                                                                                     launched by GASC to promote the enduring
                                       offset growth in 2009.
                                                                                                     power of print in the media mix, plus
                                           After taking part in a show that had over
                                                                                                   • A special webcast on how to maximize your
                                       30,000 visitors—despite two days of Brazil World
                                                                                                     time at the show in Chicago, including a
                                       Cup Soccer play—it is apparent that printers in
                                                                                                     tutorial on how to ‘Map Your Show’ using
                                       Brazil are ready, willing and able to invest in print-
                                                                                                     the online GRAPH EXPO Planner tool to
                                       ing equipment.
                                                                                                     find unique applications, discover industry
    Ralph Nappi                            A second positive indicator for U.S. manufactur-
                                                                                                     best practices, and learn how to partici-
    NPES President                     ers is the limited availability of equipment made in
                                                                                                     pate in social networking to your maximum
                                       Brazil. Tariffs for our equipment are placed on a
                                                                                                     advantage before, during and after the show.
                                       similar playing field when compared to equipment
                                                                                                   As an additional benefit, those who participate
        As much as we at NPES          from other countries. That can’t be said of the
                                                                                                in the virtual event will also be able to visit again
    “preach” about the need to         other two major growth markets of China and
                                                                                                at any time to access the content, including the
    look outside the U.S. for busi-    India, because both possess a substantial domes-
                                                                                                educational presentations, up until October 2 just
    ness opportunities, a real life    tic printing equipment manufacturing base.
                                                                                                before GRAPH EXPO opens in Chicago.
    example smacks us in the face          Third, the U.S. is a major trading partner with
                                                                                                   For more information, or to register for
    and makes me wonder why so         Brazil with political, legal, financial and cultural
                                                                                                GRAPH EXPO 2010: A Virtual Preview, visit:
    many NPES member compa-            synergies that already exist to make your export
                                                                                                www.graphexpo.com/virtualpreview.
    nies don’t take advantage of       effort easier than most growth countries.
                                                                                                   For information about exhibiting in GRAPH
    this potential.                        Fourth, there is an interest in all types of         EXPO 2010: A Virtual Preview, contact the GASC
        Last month I led an NPES       equipment. As I walked through the hall for the          Sales Department at: 703/264-7200 or e-mail
    trade mission to Brazil to at-     three days I attended the show, it was evident           sales@gasc.org.
    tend the EXPOPrint trade show      that there was as much interest in offset sheet-
    and visit a number of printers.    fed products as there was in digital and inkjet
    What we saw and experienced        technology.
    was amazing! Let me start              Finally, and critically important to you, is the             GRAPH EXPO 2010:
    with some basic economic data      qualified and passionate staff at NPES that is
    about Brazil:                      ready to assist you in dealing with all the chal-                 A Virtual Preview
        • Brazil boasts the ninth      lenges that come from exporting to Brazil.
    largest economy in the world,      Hamilton Terni Costa is a well-connected and                             Watch the Video
    ahead of Italy, Mexico and         experienced printing industry expert. He stands             http://www.graphexpo.com/virtualpreview/
    Spain.                             ready to assist with tariff relief, arranging dealer
        • The U.S. rates as first      meetings, Portuguese translation services, train-                 Attending/WhyAttendVideo.aspx
    and second for imports and         ing, market analysis, and logistics just to name a
    exports with Brazil.               few. At NPES, in Reston, we have the resources                 Get More Information and Register
        • Brazil has a 2010 esti-      to assist with your market development, data and              www.graphexpo.com/virtualpreview
    mated growth rate of 5.6%.         forecasting, and visa assistance as you consider
        • Brazil boasts over 190       the Brazilian market.                                            For Information about Exhibiting
    million consumers with in-             U.S. companies MUST actively consider the
    creasing spending power.           potential of international markets if they plan to
                                                                                                        Contact the GASC Sales Department
        • The Brazilian economy        be viable and profitable entities. While it is not                     Phone: 703/264-7200
    is larger than all the South       easy, NPES can make it a lot easier than if you                        E-mail: sales@gasc.org
    American countries combined!       were not a member of NPES. Let NPES help
        • Inflation has been held in   give your company a leg up on an international                                Sponsored by:
    check (4-5%) since 2007.           presence. PLEASE!

2
Coated Paper Trade Cases
                                                  impact of imports sold in the U.S. market       Chinese and Indonesian paper producers
N     PES continues its longstanding support
      of free, fair international trade policy
that enforces existing trade laws, and provides
                                                  at prices that are shown to be less than fair
                                                  market value. Additional import duties
                                                                                                  point to U.S. paper companies’ use of

a level playing field for Association members’    can be imposed on dumped imports.
products in global markets. In that light, NPES   Countervailing Duty laws give similar relief                ...Chinese and
is monitoring the unfair trade practice cases     to domestic industries that are jeopardized
filed by three U.S. paper manufacturers and a     by imported goods that have been subsi-
                                                                                                                 Indonesian
workers’ union, which allege that China and       dized by a foreign government or public             producers continue
Indonesia are harming the U.S. paper industry     entity and therefore have a competitive
by providing unfair support to their domestic     advantage over similar goods produced in            to argue that U.S.
                                                  the United States. Like dumped goods,
paper manufacturers that export to the
United States. Opponents of the cases fear the    additional duties can be placed on subsi-
                                                                                                      domestic shipments of
repercussions of increased paper prices that      dized imports.                                      coated paper are down
could result from the imposition of duties on         AD and CVD cases are conducted jointly
coated paper from China and Indonesia.            by the U.S. Commerce Department’s Inter-            because of the overall
    In September 2009, U.S. paper producers       national Trade Administration (ITA) and
                                                  the International Trade Commission (ITC).
                                                                                                      bad economy, not
Appleton Coated, LLC; NewPage Corporation;
and S.D. Warren Company, dba Sappi Fine           Following an initial finding by the ITC that        because of any unfair
Paper North America, along with the United        there is enough information to arguably
Steel, Paper and Forestry, Rubber, Manufactur-    support the imposition of AD and/or CVD
                                                                                                      practices of theirs...”
ing, Energy, Allied Industrial and Service        duties, the ITA conducts an investigation
Workers International Union filed a petition      and issues a preliminary determination.         “black liquor” bio-fuels tax credits as a form
seeking the imposition of tariffs on certain          In the coated paper cases at hand, the      of U.S. government subsidy of their own.
categories of coated paper suitable for high-     ITA issued its preliminary CVD determina-          Following its March CVD determination,
quality graphics using sheetfed presses manu-     tion against coated paper imports from          in April the ITA announced its preliminary
factured by paper producers in China and          China and Indonesia in March 2010, and          determination that certain coated paper
Indonesia. The paper under investigation is       imposed immediate tariffs averaging             from China and Indonesia had been
typically used for printing multicolored          8.38 %, which will be held pending a final      dumped—sold at less than fair value—in
graphics for catalogues, books, magazines,        resolution of the case. According to peti-      the U.S. market, with additional duties as-
labels and wraps, greeting cards and other        tioner NewPage, the ITA found that              sessed against paper exporters from those
high quality items.                               Chinese producers were benefiting from          countries.
                                                  preferential lending, income tax programs,         The Commerce Department’s final rul-
                                                  tax credits for equipment purchases and re-     ings on both the CVD and AD cases are ex-
                                                  search and development, import duty and         pected in September. Following that, the
                                                  VAT exemptions on capital equipment and         last phase in the process will occur in Octo-
                                                  preferential provision of electric. Indone-     ber or November when the ITC makes its
                                                  sian producers were found to have received      final determination of whether the U.S.
                                                  timber for less than adequate remunera-         paper industry has been harmed, which will
                                                  tion, and government debt forgiveness.          determine whether import duties will actu-
                                                      Although not part of the ITA’s basis for    ally be imposed.
                                                  its preliminary determination, petitioners         Although faced with preliminary CVD
                                                  have also asserted that the undervaluation      and AD findings against them, Chinese and
                                                  of China’s currency provides an additional      Indonesian producers continue to argue
                                                  unfair subsidy that should be considered by     that U.S. domestic shipments of coated
                                                  the ITA. This assertion has been further bol-   paper are down because of the overall bad
                                                  stered by a recent letter from U.S. Senators    economy, not because of any unfair prac-
                                                  Sherrod Brown (D-OH) and Charles                tices of theirs, and believe that the petition-
   Petitioners have sought relief under two       Schumer (D-NY) to Commerce Secretary            ers’ cases will ultimately fail as did similar
of the most frequently applied U.S. trade         Gary Locke calling for the Department to        petitions in 2007.
statutes, Antidumping (AD) and Counter-           include the currency issue in its final CVD        For more information contact NPES
vailing Duty (CVD) trade laws. Antidumping        analysis and determination.                     Government Affairs Director Mark J. Nuz-
laws provide relief to domestic industries that       In response to petitioners’ claims and      zaco at 703/264-7235, or e-mail: mnuz-
have been, or are, threatened with the adverse    the ITA’s preliminary CVD determination,        zaco@npes.org

                                                                                                                                                    3
    Benchmarking and Worldwide Market
    Trends for Flexographic Printing
                                         provide opportunities for future        One of the more exciting                          another print process (see Figure 1).
    F   lexographic printing has
        had a bad rap for years for
    low quality output. Enlightened
                                         growth. The study investigates
                                         flexo in packaging as well as
                                                                              growth areas for flexography is
                                                                              printed electronics. While re-
                                                                                                                                      It is also interesting to note
                                                                                                                                   that print buyers expect in the
    folks in the industry, however,      non-packaging applications.          portedly only accounting for $3                      next five years they will be sourc-
    understand that flexographic              According to the new PRIMIR     million in sales in 2008, the                        ing their flexo printed products
                                         study, packaging comprises           printed electronics market is                        from regions of the world sepa-
                                         nearly 92% of the global flexo-      forecast to grow to $89 billion by                   rate from the one in which they
                                         graphic volume; the remaining        2020. Even sharing this growth                       are located. In fact, 70% antici-
                                         volume is in non-package print-      with the other print processes,                      pate sourcing these materials
                                         ing applications such as security    there are tremendous opportuni-                      from Asia, while 60% will be
                                         printing, pharmaceutical prod-       ties for flexo in this area.                         sourcing from Latin America.
                                         ucts and commercially printed           As part of the research, LPC                         Getting back to the quality
                                          electronics. In the next several    surveyed more than 75 print                          perceptions about flexography
                                           years flexo will enjoy a 4-5%      buyers or specifiers to learn                        mentioned earlier, clearly those
                                           growth rate—largely coming         about their purchasing practices                     concerns are not an issue in the
                                            from growth in the developing     and any biases they have to-                         tag and label sector where an esti-
                                             regions, more specifically the   wards flexography. Not surpris-                      mated 92% of label printers in
                                              BRIC countries.                 ingly, 63% of those respondents                      North America use flexography
                                              LPC reports in the study that   believe that flexography has lim-                    on their production floor. In fact,
          printing and converting        flexography accounts for nearly      itations when it comes to their                      the quality levels of flexo-printed
    can often be performed entirely      60%, or just more than $260 bil-     specific applications. Many of                       graphics are the highest in the
    inline, on a wide range of mate-     lion, of the $440 billion printed    the limitations cited related to                     tag and label marketplace where
    rials and substrates, and the        packaging market. In 2009,           print quality issues, however                        the narrow to mid-web presses
    quality has improved substan-        flexo’s market share for packag-     some felt flexo lead times were                      produce six to ten-color, 175 line-
    tially. These factors equate to a    ing applications included: $125      longer, flexo printing plates were                   screen applications with sophisti-
    cost-effective process that pro-     billion for corrugated, $81 bil-     too costly, and there was con-                       cated graphics targeted at
    duces minimal waste. And, in         lion for flexible packaging, $56     cern around authentication of                        discerning consumers. It should
    fact, many would be surprised to     billion for labels and tags, and     packaging using flexo versus                         be noted though, that digital
    learn that flexo is the fastest      $1.2 billion for folding carton.     other print processes. But, de-                      presses are making a tremendous
    growing global analog print               Not surprisingly, North Amer-   spite those concerns, more than                      impact on the flexographic label
    method.                              ica and Western Europe featured      70% of those respondents also                        industry as flexo printers around
        Since packaging is a key         the most flexo press installa-       indicate that their company’s                        the globe install digital press sys-
    growth engine for the graphic        tions. However, global growth        use of flexography will increase                     tems alongside their conven-
    communications industry, and         opportunities lie in the emerging    during the next five years, often                    tional flexo presses. Given this
    flexography is a dominant            markets where flexo is not cur-      replacing materials printed by                       development, it should be no
    process for many packaging ap-       rently the dominant process. As
    plications, PRIMIR recently com-     urbanization occurs and in-          Figure 1
    missioned LPC Inc. to conduct        comes rise in these countries,
    research on the topic. The result-   consumers will increasingly pur-                 Print Buyer Projections:
    ing outcome is a new report,         chase packaged foods at retail            Flexo Replacing Other Print Processes
    “Benchmarking and World-             stores versus fresh foods from
    wide Market Trends for Flex-         local outdoor markets. This                                          Other
    ographic Printing” which was         trend will increase the demand
                                                                                   Silkscreen replaced by flexo
    released in May 2010. The study      for packaging, and in many
    provides a comprehensive as-         cases, flexography. The adoption         Letterpress replaced by flexo
    sessment of the global flexo-        of flexo in these markets de-                Gravure replaced by flexo
    graphic industry while               pends on numerous variables
                                         such as: training, consumable           Offset/litho replaced by flexo
    answering how this analog print
    process fits into a world that is    costs, and changing perceptions                                               0%       10%       20%       30%        40%        50%
    increasingly going digital and       about the flexo process—mainly
    which world regions are likely to    quality concerns.                     Source: PRIMIR “Benchmarking and Worldwide Market Trends for Flexographic Printing” by LPC, Inc. 2010


4
surprise that the study predicts that as
digital press systems offer faster run
speeds and enhanced processing op-
                                           Think Outside the Box—
tions, digital printing will undoubt-
edly take market share from flexo in       Expand Globally!
the tag and label sector.
                                                                                                           is still relatively stable with its middle class steadily
   Flexible packaging is another high
quality, high growth area for this print
                                           H       ave you ever asked yourself, “should I take
                                                   my company global?” Or, if you already do ex- increasing. The Asian economies are also integrating
                                           port to some countries, “should I expand my export              faster and several new trade agreements have accel-
process, whereas rotogravure is slowly
                                           business to China or India?” Of course, you might               erated this process. Consider this: according to the
declining. To quote the study, “In no
                                           need more money, and then you’ll probably face                  International Monetary Fund, China's economy is ex-
other flexo sector does the converted
                                           higher risks and challenges. And then, there are                pected to expand about 10% in 2010; by comparison
product have to perform like in the
                                           those immediate questions… How do I get started?                the Eurozone growth is likely to be about 1%; and
flexible packaging marketplace. The
                                           How do I find the right distributor or sales agent that Canada’s economy is expected to grow less than 3%.
package must decorate, convey, con-
                                           will focus on my product?                                           If now is the time for your company, NPES can
tain, preserve, protect and provide op-
                                               Certainly expanding your business globally                  help you think outside the box to explore new mar-
timum functionality.” As a result, like
                                           does involve more money, and higher risks and                   kets. We coordinate trade missions and summits
the tag and label market, due to cus-
                                           challenges that are inherent in working with other              every year. We bring international companies to the
tomer demand, the number of colors
                                           cultures, different laws, different languages, political GRAPH EXPO and PRINT shows, and we have three
has increased for flexo printed flexible
                                           risks etc. But, imagine the positives—access to                 international representatives ready to assist you,
packaging, and line screen values are
                                           additional growing markets and the ability to bal-              one-on-one, with international strategies and
trending upwards with values of 133
                                           ance the risks, all resulting in more sales for your            contacts. For more information about NPES Global
lpi or higher. These quality improve-
                                           company. As NPES data has shown, there is only                  Programs, contact Pernilla Jonsson at e-mail:
ments, along with decreasing run
                                           so much room your company can grow in the local                 pjonsson@npes.org or phone: 703/264-7200.
lengths and lower costs, give flexogra-
                                           printing market so now is the ideal time to discover                                           Sources: Washington Post, Forbes
phy the upper hand over rotogravure,
                                           export opportunities.
which once was the dominant process
                                               According to an article in
for flexible packaging. On a global
                                           the Washington Post, Asian            International Focus at GRAPH EXPO 2010
scale flexo dominates the flexible
                                           nations are emerging from
packaging sector with over 64% of the
                                           the recession as stronger                                      International Speaker Programs
market share.
                                           economic powers. Numbers                                     McCormick Place, Room: S 103 CD
   The report concludes “as flexo
                                           are indicating that U.S. sales         Have you been thinking about expanding into the global market place?
press, ink, plate and prepress tech-
                                           abroad have increased by
nologies continue to raise quality and                                               Don’t miss this informative and efficient way to explore Latin America and
                                           more than 3% February to
print-consistency standards; run size                                                 China’s fast growing markets—with experienced business development
                                           March, and the administra-
trends and total applied cost benefits                                                    experts, and to network with prospective customers and partners.
                                           tion is continuing to focus on
continue to position flexo as a process
                                           exports as a source of new                                         Tuesday, October 5, 2010
that will increasingly capture gravure
                                           jobs. The plan to reach the                                             4:30 pm – 6:00 pm
market share in every global region.”
                                           goal of $3 trillion in annual                              “The Future of Printing in Latin America”
   The growth of flexography has im-
                                           exports by 2015 will include           The leading magazines in Latin America will announce the results of a survey on
plications for every NPES member,
                                           more expansion of the U.S.
presenting both challenges and op-                                                print trends in the Latin American region—original research released for the first
                                           presence in Asia. In order to
portunities. Even if flexography isn’t                                                          time at GRAPH EXPO. Networking reception to follow.
                                           boost exports, President
the focus of your company’s products
                                           Obama has created an                                             Wednesday, October 6, 2010
or services, flexo growth may cause
                                           Export Promotion Cabinet,                                              8:00 am – 10:00 am
downward pressures on your existing
                                           composed of several cabinet                                     China Day Breakfast Program:
conventional products.
                                           members, the president of                   “Accelerate your Business in the Fastest Growing Market in the World”
   The study “Benchmarking and
                                           the Export-Import Bank and                 Ya-Ping Zhou, NPES Greater China Market Representative, will moderate this
Worldwide Market Trends for
                                           other government officials.
Flexographic Printing” was circu-                                                         timely session that probes current and future opportunities in China.
                                           Obama also wants various
lated to all PRIMIR members and is
                                           government agencies to help
available upon request to all NPES
                                           set up "one-stop-shops" in                                     International Business Center
members as one of their many mem-
                                           the U.S. and American em-                                   McCormick Place, Room: S 103 AB
ber benefits. Want to know more?
                                           bassies and consulates to                           Sunday, Oct. 3 -- Tuesday, Oct. 5 • 10:00 am - 5:00 pm
For a quick overview, reference the
                                           help encourage exports.                                  Wednesday, Oct. 6 • 10:00 am - 4:00 pm
Executive Synopsis of the study
                                              Compared to other
posted online at: www.npes.org.
                                           regions in the world, Asia

                                                                                                                                                                             5
    First Quarter Market Data:
    A Return to the Bad Old Days
    W        hen we last reported on
             NPES Market Data trends
    after the 4th quarter 2009 data
                                                                       Figure 1: U.S. Printing Equipment Shipments
                                                                                                                                    ($ Millions)
                                            $3,000
    was released, we noted the data
    was showing some marked im-                          $2,455         $2,441
                                                                                      $2,485
                                            $2,500                                                   $2,337
    provement in the industry. At
                                                                                                                    $2,085                                                     $2,106
    that time, 4th quarter GDP had
                                            $2,000                                                                                $1,790
    increased at an annual rate of                                                                                                               $1,743         $1,791
                                                                                                                                                                                             $1,608
    5.6%. Since then, 1st quarter
                                            $1,500
    2010 data released by the Bureau                                                                                                                                                                        $1,275
    of Economic Analysis showed
                                            $1,000                                                                                                                                                                         $925
    that the output of goods and
    services produced by labor and
    property located in the United            $500
                                                                                                                                                                                                                                          $150
                                                                                                                                                                                                                                       (1st quarter)
    States increased at an annual rate
    of 3% (that is, from the 4th                $0
                                                         1998           1999           2000          2001           2002           2003          2004           2005           2006           2007          2008          2009            2010
    quarter to the 1st quarter). In the
                                               Note: Includes Canadian shipments for Pressroom Equipment (except sheetfed presses). Also includes Bindery Estimates (1998-2006) 2009 Contains Estimates. 2010 total includes only 1st quarter.
    4th quarter, it appeared that
    things were taking a turn for the
    better for printing equipment.        chemistry. It’s important to                                        boost in press sales in December                                        printing equipment, UCC filings
    Final year-end 2009 figures           note that the NPES data does                                        2009. We did not witness a simi-                                        showed a similar pattern. The
    showed an increase of 53% over        not include digital presses,                                        lar trend in the 1st quarter, with                                      UCC filing data for both new
    the 3rd quarter 2009 and 24%          which would certainly account                                       the data showing a decrease of                                          and used printing equipment
    over the same quarter 2008 to         for some of the reported declines                                   18% over first quarter 2009 and                                         also increased significantly in
    approximately $378.2 million.         as our industry continues to                                        a nearly 60% decrease over 4th                                          the 4th quarter. Although UCC
       NPES tracks monthly ship-          transition some printed products                                    quarter to $150.1 million (see                                          filings are a combination of new
    ments across 80 different cate-       to a digital platform.                                              Figure 1).                                                              equipment sales, used equipment
    gories of equipment and supplies         The upward trend we saw in                                           There is a close correlation be-                                    sales and re-financings of existing
    including prepress, lithographic      4th quarter 2009 did not really                                     tween our market data and the                                           placements, they are still a strong
    press and bindery equipment           translate over into 1st quarter                                     UCC filing data as reported by                                          indicator of market activity.
    as well as film, plates, and proof-   2010. The significant increase in                                   Equipment Data Associates (EDA).                                            Following the trend between
    ing products and the related          the 4th quarter was due to a                                        With a strong end to 2009 for                                           our market data and the UCC



                                           Figure 2: Printing New vs. Used 2006-2009




6
filings showed the close correla-
tion between the two, once
again, for 1st quarter 2010. How-                    Figure 3: U.S. Graphics Arts Supplies Shipments
ever, while it was encouraging                                                                                    ($ Thousands)

news to see how the data points         $2,500
for new and used printing equip-
ment shadowed our market data                    $1,960,053
                                        $2,000
at the end of 2009, the same did                              $1,785,924
not hold true for the first quarter                                        $1,613,415
                                                                                        $1,464,230
of 2010. UCC filings have de-           $1,500                                                       $1,344,770
                                                                                                                   $1,264,036
creased significantly in the 1st                                                                                                $1,175,700 $1,192, 984   $1,201,448
                                                                                                                                                                        $1,144,041
quarter (see Figure 2). As shown                                                                                                                                                     $1,066,077
                                        $1,000                                                                                                                                                    $868,405
here, new equipment sales
dropped in the 1st quarter and
remained stagnant going into             $500
2nd quarter. Used equipment                                                                                                                                                                                  $189,275
sales, on the other hand, also
                                           $0
dropped in the beginning of                       1998          1999         2000         2001         2002          2003         2004         2005        2006           2007         2008        2009       2010
2010, but are increasing moving
into the 2nd quarter. A factor
that could have influenced the        explain why new equipment                                      cline in terms of workforce                                      to shipments of printed products.
drastic increase in printing equip-   sales have been declining thus                                 reduction that is faster than                                    With the ongoing decline of
ment sales at the end of 2009 was     far, and used equipment sales are                              the decline in demand, grab-                                     printing shipments, the negative
the American Recovery and Rein-       slowly increasing.                                             bing the business volume of                                      effect on graphic arts supplies
vestment Act (ARRA), enacted in           According to Dr. Joe Webb,                                 their dearly deceased weakest                                    sales continues. Just like printing
February 2009 providing bonus         “printing shipments are still                                  brethren, and the effects of                                     equipment is impacted by the
depreciation to be applied to         declining, and prices are flat or                              “tuck-ins” that make far more                                    transition to digital, supply vol-
new equipment purchased and           declining, which means they’re                                 sense in this uncertain market                                   umes are also affected by the
placed in service in 2009. The        not keeping up with inflation.”                                than outright mergers and                                        shift from lithographic to digital
expiration of the depreciation        However, according to 1st quar-                                acquisitions.”                                                   printing, as digital requires no
bonus at the end of 2009 could        ter data from the Commerce                                         Moving on to the perform-                                    plates in the workflow. First quar-
have encouraged manufacturers         Department, printing profits are                               ance of graphic arts supplies,                                   ter 2010 data shows the continu-
to take advantage of this incen-      improving (Q1-2010 is up $830                                  we continue to see a similar                                     ing decline of the supplies dollar
tive by purchasing equipment          million vs. Q1-2009). Dr. Webb                                 picture to the 4th quarter of                                    volume, falling to $189.3 mil-
by year end. Although there           explains that these profits are                                2009. Sales of film, plates,                                     lion, an almost 9% decrease from
are plans to reinstate this impor-    occurring because, “printers have                              proofing products and chem-                                      the first quarter 2009 total of
tant provision for 2010, it could     finally gotten ahead of the de-                                istry are all directly correlated                                $207 million (see Figure 3).




                                                                                                 NPES 2010
                                                                                                 Annual Conference
                                                                                                 PRINT REINVENTED 2011: THE FUTURE
                                                                                                 OF MEDIA COMMUNICATIONS
                                                                                                 Thursday, November 18 to
                                                                                                 Saturday, November, 20, 2010
                                                                                                 Royal Palms Resort                                      Phoenix, Arizona


                                                                                                                                                                                                                        7
    news and notes
      NPES CALENDAR
               July 2010
         PRIMIR Summer Meeting
        July 26-27 • Atlanta, Georgia
                                                  SAVE THE DATE!
           October 2010
     EXECUTIVE OUTLOOK Conference
                                                  Vision 3 Summit • March 13-16, 2011
        October 2 • Chicago, Illinois
               GRAPH EXPO
                                                  Advancing Graphic Communications
        October 3-6 • Chicago, Illinois
         TC 130 WGs and Plenary                   J.W. Marriott Desert Springs Resort
      October 10-16 • Sao Paulo, Brazil
             CGATS/USTAG
                                                  Palm Desert, CA
       October 28-29 • Location TBA
                                                  A dynamic new leadership conference open
         November 2010                            to graphic communications service providers
              ICC Meeting
     November 4-6 • San Antonio, Texas
                                                  and vendors with a broad and distinctly
               ICC DevCon                         management-level approach.
      November 8 • San Antonio, Texas
                                                  A joint venture between NAPL, NPES and Printing
      NPES 2010 Annual Conference
     November 18-20 • Phoenix, Arizona            Industries of America, co-owners of the Graphic
                                                  Arts Show Company (GASC), producers of the
         December 2010                            GRAPH EXPO and PRINT trade shows.
         PRIMIR Winter Meeting
          Renaissance Boca Raton
     December 6-8 • Boca Raton, Florida

            March 2011                      Call for Experts for new
             Vision 3 Summit                                                                                     NPES News is published
     J.W. Marriott Desert Springs Resort
    March 13-16 • Palm Desert, California   ISO TC 130 TF2 on Postpress                                          monthly by NPES.

                                                                                                                 Publisher:
        September 2011                                                                                           Ralph J. Nappi
     EXECUTIVE OUTLOOK Conference
      September 10 • Chicago, Illinois
                                            A    t the September 2009
                                                 Plenary meeting of
                                            ISO TC 130 (Graphic Tech-
                                                                               ipate in this work has been
                                                                               issued by the TC 130 Secre-
                                                                               tariat, and is open to anyone
                                                                                                                 Managing Editor:
                                                                                                                 Deborah Vieder 703/264-7222
              GRAPH EXPO                    nology) it was agreed to           who has an interest and is
     September 11-14 • Chicago, Illinois    form a Task Force to deter-        knowledgeable about post-         Correspondents:
      International Graphic Arts Show       mine requirements for stan-        press issues in printing. Addi-   Jackie Bland     Mark Nuzzaco
    NPES Member Booth and Trade Mission     dardization in the field of        tional information on this        Pernilla Jonsson Rekha Ratnam
       September 21-27 • Tokyo, Japan
                                            postpress by taking into ac-       work can be found in the          Circulation:
                                            count existing national stan-      TC 130 Call for Experts doc-      Darcy Harris 703/264-7217
           October 2011
                                            dards. The plan for this task      ument, available from the
      NPES 2011 Annual Conference
     October 16-19 • Palm Beach, Florida    force is to develop a scope        NPES Standards Workroom
                                            and the framework for future       at: http://www.npes.org/
           October 2012                     projects to be adopted as ISO      Standards/isoworking.html.
                                                                                                                 The Association for Suppliers of Printing,
               GRAPH EXPO                   publications. After the ap-            If you are interested in
                                                                                                                 Publishing and Converting Technologies
       October 7-10 • Chicago, Illinois     proval of a first new work         participating in this work or
                                            item this Task Force will be       have questions, please con-       1899 Preston White Drive
        September 2013                      disbanded and a Working            tact Debbie Orf in the NPES       Reston, VA 20191 USA
                  PRINT                     Group will be formed.              Standards Department at           703/264-7200
      September 6-11 • Chicago, Illinois       A call for experts to partic-   e-mail: dorf@npes.org.            e-mail: npes@npes.org
                                                                                                                 www.npes.org

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