Securing Future Business

The security printing market is a powerful force, and print service providers (PSP) should be sitting up and taking notice. According to a report from Smithers Pira titled “The Future of Global Security Printing Markets to 2020,” the worldwide market for security printing will grow from $20.5 billion in 2010 to $36.6 billion in 2020, at a compound average annual growth rate (CAGR) of 6.0 percent for the 10-year period. And while the 2010-2015 growth rate was 6.1 percent, with 2015-202 projected to drop to 5.9 percent as digital technologies continue to put pressure on traditional print techniques, that is still a healthy amount of growth that PSPs can be taking advantage of.

There are multiple levels of security printing, ranging from the type that can be implemented by nearly any shop with the equipment they already own, to sophisticated features that not only require special equipment, but also certifications to earn the business from the buyers looking for that type of work. Figuring out that spectrum and what’s required in each is the first step toward determining if it’s a product your shop should be looking to offer.

“Security printing is a layered approach, using a mixture of overt and covert technologies and techniques to protect a document or a product. This is my definition because no single security feature or technology can stand alone and be effective,” said Tony Orsello, general manager of Northstar. And his point is one that any printer considering this service should take to heart: no one security measure is ever going to be good enough to stop those who want to steal or counterfeit brands or property.

“Security printing is the process of adding various print based features to deter counterfeit attacks while providing a means of in-field authentication,” agreed Roger Buck, director of marketing for Flesh Co. “The layering of print based solutions is typical in both counterfeit deterrent and authentication applications.”

So what should PSPs be considering? According to Joe Rouhana, GM, Production Workflow & Solutions, Xerox Corp, security printing offerings depend on what type of work you want to produce. “It depends on the technique or type of security a print service provider needs, and the type of documents they are securing,” he noted. “There are many types of security printing — watermarks, magnetic ink, holograms and optically variable color changing inks to name a few — all of which have varied levels of difficulty and cost.”

He further broke it down into three categories, each getting progressively more complicated. “For transaction and check printing we use Magnetic Ink Character Recognition (MICR). For Packaging we use eTracs. And for general purpose documents like tickets, ID cards, certificates, etc, we use Specialty Imaging (SI). MICR requires a marking unit or developing unit in the press specific for MICR, as well as a Controller/DFE to RIP MICR commands into actions on the press. eTracs requires scanners, database systems, ERP/MIS interface and a service to monitor and track. And SI has no extra equipment needed to print the images, but some techniques require a UV light or IR camera to view the artifacts.”

“Various security papers and inks are available on the open market,” said Buck. “Naturally, the ease of access also reduces the effectiveness of some of these features. Still, there are opportunities for average printing firms to offer some layered features to elevate a client current security status of their documents.”

But that’s where the problems can occur. It’s not enough to simply tell print buyers you offer secure printing features because you can add a watermark to something, noted Orsello, who believes the lack of understanding of what security printing truly involves — from both the PSPs and the buyers _ contributes to the problem. “One of the reasons it is easy for average printers to ‘say’ they offer security printing without truly offering this product is because the supply chain doesn’t always do their due diligence when it comes to vetting to whom they sell secure materials. Another reason is that the buyer and the end users aren’t always educated enough nor do they care enough to really know the difference between a print house and a secure print house.”

He went on to say, “Any printer who produces security documents should be certified by NASPO International. More importantly, anyone who is buying secure documents should insist their printer is certified secure.”

Buck agreed, to a point. “Some high level applications may require a printer to have some certification, he said. “However, in most cases, qualifications will be based on the printer’s years of production expertise in security printing as well as the physical security status of their plant including control of any special security materials. Cameras installed within the production facility as well as licenses for security high level security substrates may also be a consideration.”

The Future

Should you start looking to invest in new equipment capable of handling the high-level security features? Or start working on certifications? That depends on whether or not the verticals predicted to see the most growth are areas you want to push in to. Brand protection is one big area that will see an increase in buyers looking for assurances their pieces will not be duplicated or counterfeited.

“The security printing market is growing in multiple directions as companies work to ramp up brand protection efforts, especially in specific industries like pharma packaging, tobacco and alcohol labels due to governmental controls and anti-counterfeiting measures that need to be taken,” noted Rouhana.

“The security market has the potential to grow given the large amount of loss due to counterfeiting and fraud,” agreed Buck. “ID theft and brand theft are at the top of the list. Even counterfeit checks are still very prevalent. The market will grow as end users and brand owners become more aware of their true and potential loss due to counterfeit attacks.”

Orsello is a bit more conservative, but he still sees the potential for growth. “As technology continues to advance and the bad guys continue to find new and creative ways to commit fraud, the need for secure printing will increase. The challenge is educating the users. The truth is, people often do not think about securing documents until they are affected by fraud.”

And that sentiment goes the same for print shops: the need to offer secure options often doesn’t come up until a customer has had an incident and the shop is responding. Rather than wait for an incident to occur, consider looking hard at the options now, and making you shop the go-to location for secure document printing.