PrintingNews.com

When it comes to printed products, these days the buzzwords all revolve around things like variable data, digital, and value-added services. The industry as a whole is trying hard to move away from a strictly manufacturer role to more of a service provider and partner to the clients and end users.

But at the end of the day, no matter how much we try not to think about it, this is an industry that produces a tangible product. Which means it takes real and tangible costs to create and produce it.

Any business, no matter what industry, will only survive as long as the costs don't exceed the incoming profit. No profit, no business. It's a simple concept in principle, but in practice, we all know it's much, much harder to quantify sometimes. Especially once you factor in all those extra services and capabilities. And then when you add in the push to move away from price-based competition, it gets even more murky.

One of the most basic costs of our industry is the ink we use to print with. These days it comes in a wide variety of types, for an ever-expanding range of machines—everything from lithographic and letterpress to the latest digital innovations.

However, while it is a very basic cost, it can be hard to pin down. Not only do printers have to factor in things like waste and coverage, they also have to keep in mind the pressures the ink market itself is facing, which makes pricing more fluid and subject to change than ever before.

To get a feel for exactly what these pressures are, and how they can affect the average printer, Printing News chatted with executives from three of the major ink manufacturers. Steve Simpson, senior vice president and chief technical officer, Superior Ink; Joe Bendowski, president, Van Son Holland Ink; and Doug Labertew, vice president and general manager, Sheetfed Ink Division, Flint Group North America, all sat down to give us their thoughts on what factors are having the most impact on ink, what trends they're keeping an eye on, and what you, as a printer, can and should expect from your supplier.

PN: What do you think the biggest issue was last year, with regards to ink production and distribution?

SS: In 2007, we saw the continuation of significant price increases in raw material costs, much of which was driven by skyrocketing crude oil costs. Additionally, the cost and availability of seed-derived oils such as linseed was dramatically impacted by the biodiesel movement, where farmers are shifting their crop selection toward corn, soybean, and other more profitable bioethanol feedstocks.