Your printer is one of your most important partners, allies, and resources. These days, there are fewer of them to choose from because they’ve been gobbling each other up. Since November, the pace of consolidation has been astounding. You need a scorecard to keep track: Donnelley buys Banta; Quad/Graphics buys Craftsman Press West; Donnelley buys Perry Judd’s; Cenveo buys Cadmus; Donnelley buys Von Hoffmann; Fry buys GANCOM; Cadmus buys LexisNexis; Quebecor is rumored to be selling their print division.

What does this mean for you? Let’s take a look at some of the quotes in corporate announcements, promoting the benefits of these transactions:

• “…immediate cross-selling opportunities with our blue-chip customers.”
• “…furthers our goal of increasing long-term shareholder value.”
• “…enhanced flexibility will allow us to address our customers' needs more quickly for cost-effective and compelling communications.”
• “…combined resources will allow us to craft even more innovative and responsive solutions.”
• “…offer substantial synergies in our procurement, manufacturing, and services operations.”

There’s not a lot of relevance or detail here for a small publisher to take solace in. It would be ideal if these announcements proclaimed immediate and guaranteed price decreases, reduced production cycle times, and elevated service levels. But in all likelihood, even the people involved don’t yet know exactly what to expect as a result of this frenzied consolidation. Their immediate concern is probably much closer to home … Will I have a job next week?

Nevertheless, it is important to speculate on the effects of this changing landscape. Let’s start with the effect consolidation will have on price. The forces driving printing prices down for publishers include economies of scale that produce efficiencies, which, in turn, could be passed on to customers. These efficiencies are somewhat limited because they will likely come from the consolidation of sales, service, and administrative functions (the Banta marketing group has already been eliminated, resulting in the loss of 85 jobs). Distribution economies, where volume is paramount, may also produce cost savings (stay tuned on that front for some exciting news from us). But, efficiencies are harder to achieve on the production side: Facilities don’t scale very well. A press can generate only so much output. Adding work doesn’t make them faster or more productive.

Unfortunately, the economic forces driving prices up appear to be weightier. Consolidation has eliminated some competitors. Banta, Perry Judd’s, and Cadmus no longer exist. Fewer printers results in less competition, producing fewer price concessions. In addition, plant closures and the decommissioning of equipment, already announced, will take capacity off-line. Scarcity of printing resources will likely have an inflationary effect, especially as the industry reaches or exceeds capacity.

Service, a term that includes communication, flexibility, response times, and the depth and breadth of offerings, will be affected—probably in both positive and not-so-positive ways. Certainly, if you are a customer of one of the printers in question, the service representatives you work with on a regular basis may change. Depending on the level of workforce streamlining, you may see a decline in quality of service. But, on the plus side, these larger conglomerates now offer a greater range of services under one corporate umbrella. In addition, they may have the flexibility to offer different printing platforms (plants), depending on the needs of a particular piece of work. Ancillary services like supply chain management, information technology services, business process outsourcing, logistics management, and other non-printing–related support will become available from a single source.

But, this brings up a troubling thought. These other services, heavily touted in the merger announcements, belie the orientation of these consolidated organizations. More than ever, they appear designed to serve the largest publishing concerns–the organizations that can benefit from these services. I’ve yet to encounter a publisher with access to only the most essential resources that needs business process outsourcing. Lane Press customers, publishers of short- and medium-run magazines, need the basic support that keeps their quality high and costs low. The threat of printer consolidation is that now, more than ever, smaller publishers may get lost in a sea of mega publishers, mega printers, and mega factories.

From where we stand today, there are no clear indications or answers. The judge and jury will likely not issue a verdict on the results of printer consolidation for another 18-24 months. In the meantime, Lane Press will stay its course. In the finest traditions of our New England heritage, we are staunchly independent, and we intend to stay that way. We know we are operating in increasingly rarified air. We are one of the few high-quality, independent publication printers remaining in North America. If you are printing with us, you are truly printing with a technology-driven service firm, not a factory with a customer service department. If you are not printing with us, come see the difference. We are a refreshing, but emphatic, reminder of how your printer should be.