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A new year Greeting from CIP4

Wednesday 31. December 2008 - RIB: The Business Strategy for 2009?

Many CIP4 members are justifiably worried about the economy and the impact it will have on business in 2009. As anticipated, manufacturers have cut both jobs and spending in preparation for what looks like another six “lean” months, at least. Is “RIB” or the “Remain in Business” strategy the business model for our times? Curiously, three new trends have emerged that paint a rosy picture for JDF implementation on 2009:

· CIP4 Membership applications are up! leading us to believe that process automation with JDF is going to be one of the few bright spots of 2009.

· The first CIP4 technical tutorial CIP4 has done exclusively for printers which promised a sparse turnout, played to a completely full house at Printing Industries of Minnesota, where owner and manager attendees were looking for ways to streamline and cut costs from their operations. As we learned from a past PIA study, only 25% of printers are profitable and profitable printers pay less labor per dollar of revenue, but have a higher level of investment in technology and training. The other 75% of printers don’t invest in technology until they absolutely have to — when old equipment breaks down, or the lack of new technology threatens their survival. In other words, some printers buy based upon ROI, while others invest on “RIB,” to “Remain in Business.”
 
· Nearly every JDF implementation case study CIP4 has documented has resulted in either significant labor savings or building capacity without adding staff — just the kind of results printers look for in this economic environment. While investing in a new CTP device, instituting “Green” initiatives or adding new services is likely to be postponed this year, investing in automation where the cost can be amortized over several years, but labor savings recouped in 2009 — just what the doctor ordered.

Wishing you much success in 2009!