February 6, 2018
Here we are, the beginning of a new year, and our thoughts turn to prognosticating: What will the year bring? How will the industry perform? What plans do you have for your company in 2018?
We got a taste of what you, AICC’s members, have in mind when in September of this past year we posted the first of our regular Chair’s Check-In Surveys on our website. In this brief poll, we asked you about your expansion plans for the coming year, and the results tell us that independents are poised for growth through capital investment, expansion, and acquisition. Granted, only 29 general members (out of 258) responded, but we think we got a good 10 percent snapshot of your plans. And this, The Big Associate Issue, is a perfect place to report the findings. If you’re an Associate member reading this column, take note of what we learned:
What are your capital expansion plans for the coming year? Twenty-eight out of 29 will expand their plant and/or warehouse space; six will expand office space; and three reported they will acquire another company. “Growth has really pressed us for space, and we are evaluating a building expansion,” reported one member, adding: “We are completing a major converting equipment upgrade plan this year.” Another said, “We will invest over $5 million in capital. A new flexo-folder-gluer, a new bundle breaker line, and new corrugator stackers. [We’ve had] double-digit growth for the past several years.”
Do you have any equipment acquisition or improvement plans? The top three responses to this question were “Printing (flexo, litho, digital)” and “Die Cutting (flat or rotary),” with 27 out of 29 members saying they were acquiring new or upgrading their current equipment. This was followed closely by “Material Handling” (11 out of 29) and “Software Systems” (10 out of 29).
Regarding the printing question, we drilled down a little further into that, asking specifically about plans for acquiring digital printing capability, a technology that one member called “truly disruptive.” Responding to the question of whether members thought digital printing was an important part of their companies’ strategies going forward, the response was 50–50: 10 out of 20 have already installed digital print capability or will make a final choice in the next six to 12 months; and 10 of 20 are still investigating it. “We have only installed digital printing capabilities in our design department and do not have ‘production’-type capabilities yet,” reported one member. “We are evaluating what direction we should go with digital.” Said another: “The technology is in front of the need, not to mention the technology is changing quite rapidly. There will be an entry point, but we are still waiting to assess the timing.” Another is relying on outside sources for digitally printed sheets: “[We are] currently working with a digital print company that operates like a sheeter (supplying print for independents).”
So, it appears that many independents are in an investment and growth mode for 2018. And as our Chair, Al Hoodwin, says in his insightful column in this issue, AICC members would be wise to consult the brain trust present in the 200 Associate member companies in AICC’s membership ranks as you plan your company’s capital investment strategies. They are able and willing partners in your company’s success in 2018.
Happy New Year!
Steve Young
President, AICC
