Moving to a Higher Level with A/E/C Clients

There's simply no denying that the last decade has witnessed a steep falloff in traditional reprographics volume. But while printing of documents has indeed declined, the downward trend has not meant doom for those progressive reprographers who are willing to think a bit out of the box.

These professionals have begun to go beyond the output their clients once sought. Some are selling contractors printing equipment, allowing the contractors to print documents themselves. Others are renting equipment, and charging the A/E/C companies on a per-copy basis for printouts. Still other reprographics companies have branched further afield, into a wide array of other services. The best part? They're still servicing the clients they have always serviced, and steadily discovering new ways to build relationships with them.

In this 2017 edition of our annual A/E/C market report, we take a look at the rich opportunity the future presents to the most innovative repro shops.

Dealing with big changes

These days, architects, engineers and builders are using less paper than they did five or 10 years ago. That means reprographics shops must find a way to serve the market in other ways. So says Ed Avis, Chicago-based managing director of the Association of Printing and Data Solutions Professionals (APDSP, the former International Reprographic Association). According to Avis, today's leading reprographics shops offer services that extend well beyond printing, and include document management up to and including handling the entire document flow of a construction project.

“That's an important point,” he says. “What reprographics shops need to do now if they are going to survive is move to a higher level with their A/E/C clients. They can't be satisfied just doing a print job now and then. They need to be in the workflow of the architect, engineer, or contractor from the beginning of the project – from when it's just being designed all the way to the end when they're closing out the project. When the whole job is done, all the documentation every step of the way needs to be gathered up in a nice, neat digital file that the owner of the building keeps and updates with any changes to the building over the years. They are involved as an important part of the team, not just an outside supplier.”

Understand, however, that most architects, engineers, and builders don't yet realize leading reprographics companies possess the capability to handle the entire process from printing and document management to archiving to closeouts, Avis says. Many contractors are currently handling the tasks in house, but don't comprehend the tasks can be done more efficiently by an outside document-management firm, such as a reprographics shop. For this reason, smart, progressive repro companies have to make the sale for themselves.

At APDSP's annual convention later this year (October 11-12 in New Orleans), the organization will convene a day-long educational seminar titled “Job Site University.” “That will teach reprographics shop owners how to become part of the full team on a major project, so they understand all the technologies involved,” Avis reports. “Our educational partner is Synnex Corporation, an A/E/C technology company that will provide the educators.”

Rich Reamer, senior director of large-format solutions division, Business Imaging Solutions Group with Canon USA, Inc., agrees with Avis that enormous change has impacted reprography since the Great Recession.

He believes part of the future for reprographers will be in selling equipment, renting equipment, and in taking on graphics projects outside the former purview of reprography.

“It’s been a bit of a move away from the print-and-distribute approach,” he says. “Before the recession, a repro shop would print thousands of drawings and distribute them to all the contractors and subs. Today, general contractors download a file of drawings . . . the general contractor distributes the file and the subcontractors print from their own plotters.

“Print service providers have changed their model, and are now getting into selling the hardware. Those that are really transitioning are taking the business model a step further and making rentals available, and then charging on a cost-per-copy basis.”

A number of reprographers are also seguing into the graphics business, which allows them to produce output like outdoor signage lying outside the traditional A/E/C parameters. Océ Arizona large-format UV flatbed printers from Canon represent just one example of the equipment being used to expand into the fertile area. “There’s still tremendous opportunity in the A/E/C market outside traditional documents,” says Reamer.

Profiting reprographers

Technological advancements ranging from color CAD to cloud-based software systems are providing repro shops with new profit centers unimagined even a scant few years ago.

With today's ability to offer color A/E/C prints, such as CAD drawings, leading repro companies can deliver a service with a distinct financial benefit to clients.

That of course is a major selling point. Incorporating color in a CAD print “is monetarily significant for the builders,” Avis says, translating to fewer errors and costly do-overs.

In addition, management of documents is easier and more cost-effective thanks to a variety of cutting-edge software programs available to repro shops.

As the speed of information has increased over the past two decades, the velocity of business has grown significantly as well, says John Fulena, vice president, Production Printing Business Group with Ricoh Americas Corporation.

“The ease of use has become a major focal point in hardware design, and that goes for printers and copiers too,” he notes. “Workers want to be able to walk up and get their work done, not wrestle with settings and features for 5, 10, 20 minutes.

“That sounds like a lot – and it is – but it's very possible when printing complex documents like blueprints. So vendors are working to bake ease of use right in. For instance, at Ricoh, we have the Ricoh MP CW2201SP, which has a Smart Operation Panel for easy access to a lot of features, with a simple, streamlined interface. It lets you save your favorite job settings, so making the kinds of copies and prints your business usually makes, even if they're incredibly complex, can be as simple as the push of a button.”

In addition, he says, “scanning is a huge aspect of where A/E/C is headed.”

Digitization is a vital advancement for architects, engineers and contractors, because a great number of A/E/C workplaces have many, many years’ worth of hard copy drawings sitting in specialized storage, where they're consuming a not inconsiderable amount of room. Some cities' laws require architects to retain plans for a full century. In the case of some firms, years of paper drawings can easily fill not just an office, but a complete warehouse.

“But as wide-format scanning improves, in terms of speed, quality and – there's that term again – ease of use, more firms are digitizing their plans,” Fulena says. “It frees up a lot of space, drives huge savings and makes accessing information much easier.”

Growing use of high-yield inks is another trend impacting ease of use as well as environmental sustainability, Fulena reports. Inks that have to be replaced often increase costs and downtime, and can force end users to install replacement cartridges. “High-yield inks have to be replaced less often, addressing each of these issues,” he says.

For his part, Reamer believes software presents another opportunity for repro shops. “With these reprographers selling equipment, they have to educate contractors on how to print,” he says. “Many [contractors] were intimidated having to print an autoCAD file, but now they can print out PDFs through our utility called Canon Direct Print & Share, which simplifies things immeasurably. We really got serious in this market in 2006, and as the market matured we learned what its customers needed. Canon Direct Print & Share allows you to take files and drag and drop them into the utility. You can preview the files without opening the original application, merge files and add some pages of a file into another file.”

In addition, contractors can upload a file into the cloud, Reamer says. Say a general contractor is on the job site in a trailer, and needs a subcontractor such as an electrician or plumbing professional to make a change to its file. The general contractor can upload the file into the cloud to allow it to be accessed and altered, and then can not only view the revision but have the file printed out from an iPad at the site. Canon Direct Print & Share enables the reprographer to set up multiple hot folders on the desktops of the subcontractors, allowing the subs to print from their desktops rather than from an application through a driver, he says.

Ear to the ground

Avis recommends reprographics shops make plans to visit their A/E/C clients, sitting down with them for candid discussions about tasks routinely undertaken by the clients that they could more profitably outsource. “I heard of one that's already servicing the printing and document management, and now is doing payroll for their clients,” Avis says.

“One of our member firms developed an RFID tracking system that helps contractors know and keep track of their personnel on job sites. For accounting reasons, they want to know who's on the job for what number of hours,” and the system makes that possible.

Like Avis, Fulena also emphases the importance of sitting down with customers and leveraging a customer-first approach. “Without customer relationships, you don't have a business,” he says. “So PSPs and firms that supply the A/E/C market alike should always be looking for ways to strengthen their customer relationships.

“That's done by identifying and addressing pain points. In turn, that identification comes from listening to customers and leveraging expertise. Addressing pain points can be a combination of, again, leveraging your expertise and perhaps expanding your portfolio.”

Are you a PSP whose customers go elsewhere for tri-fold brochures? Consider adding enhanced brochure capabilities, he urges. Or, if your brochures are perfect as is, consider streamlining workflows or adding a digital front end, driving down turn times and costs. “That's just one example, but you can see how it applies throughout your business,” he says.

If you supply A/E/C firms, and you're finding your customers struggling with device downtime or job turn time, consider offering more technical support. Or pitch customers on more user-friendly, reliable devices and long-lasting consumables.

“Keep an ear to the ground and be ready to adapt,” Fulena summarizes.

Reamer offers a bit of advice to reprographers who have witnessed their high-volume black-and-white volumes drop. “Put these solutions in your own shops,” he says. “Install in your own shops the very printers you’re selling to contractors and subcontractors -- our IPF780 and IPF780 MFP. And you can get a solution that allows you to copy, print and scan. It gives you that capability with color, and can allow you to create indoor signage and posters. And with that one solution, you have the flexibility to offer more than technical drawings at a very reasonable price. You can also reach out to other businesses beyond the A/E/C market and offer posters and signage. And you can sell that MFP solution to architects and subs who believe they have enough work in their business to justify the purchase.”

Creatively serving clients

The important thing to remember is that great opportunity continues to exist. Despite printing volume being reduced, the fact that construction is increasing should buoy repro shops, Avis says. “That's because even though printing won't return to previous levels, reprographics firms that creatively serve their A/E/C clients stand to benefit as construction grows.”

Reamer is similarly bullish on the future of those serving the A/E/C market: “I think the PSPs and reprographers will continue to evolve and offer more printing and hardware solutions for their customers,” he concludes.

The Shop Viewpoint: Franklin Imaging

Franklin Imaging (franklinimaging.com) in Columbus, Ohio, is a full-service reprographics company specializing in full color printing and finishing plus wide format digital printing, and also provides facilities-management services as well as being a full licensed dealer of equipment from Canon/Oce and HP. In addition, the firm is a partner in the ReproMAX Network, the large international network of independent reprographic companies and other digital print service providers.

We reached out to Franklin Imaging president Emily Castle for her take on the current state of the A/E/C print marketplace:

WFS: What are the biggest changes Franklin Imaging is now seeing in the A/E/C marketplace?

We believe high-speed single-pass color printing has the potential to be disruptive, but we don’t yet see a demand for it in our marketplace. 3D printing and scanning is an area that we continue to monitor because we believe that the service is a good fit for our customers.

WFS: Is the A/E/C market still a viable marketplace?

A/E/C is still a viable marketplace. Prices are low in our market, so we must be very cost conscious. We diversified our offerings many years ago, but A/E/C remains a pillar of our business.

WFS: Can reprographers exist still serving just the clients they did in the past – or do they have to expand their market audience?

I don’t believe that we could have remained profitable if we continued to offer the same services to the same clients. Our business now has four pillars – traditional A/E/C, equipment sales and service, print and mail room operation and staffing, and color graphics. In addition to traditional reprographics, we now work with our A/E/C customers on projects like wayfinding, environmental graphics, custom digital wall décor, and more.

WFS: How important are other services beyond print to the A/E/C market? 

Scanning is an important revenue stream for us in the A/E/C market. Scanning requires diligent operators and careful quality control, but there’s no marginal cost to the service. To the extent that we can fit scanning into our regular hours, it can be very profitable.

WFS: Franklin Imaging has expanded beyond just offering reprographic services, correct? What are some opportunities that shops should be taking on now – or at least investigating?

Staffing for print and mail rooms has been a successful service for us. The sales cycle is very long, but then the contracts tend to be 3 to 5 years. These contracts require a fair amount of work to get implemented, but they tend to be stable sources of revenue for the long haul. I would also caution repro-only shops that jumping into color is not an easy feat. It took us many years to build a portfolio and develop the experience necessary to execute complicated projects.

WFS: What hardware does Franklin Imaging utilize in its operation?

We run all Canon Oce equipment in our A/E/C production environment. Self-service is one of the ways that we keep our costs low and uptime high. In our graphics department, we run a Screen Truepress 2500, a Canon Océ 250GT flatbed, HP Latex 3100 (126 inches) printer, two 60-inch eco-solvent Mutoh 1624s, an HP Latex 370 printer (64 inches), two Zund L-2500 routers, plus hot, cold, and liquid laminating.

Tracking Construction Spending

Print service providers seeking opportunities and projects in the A/E/C marketplace can take some comfort in the recent analysis of Census Construction Spending data by the National Association of Home Builders (NAHB).

Total private residential construction spending grew nearly 2% this past February, to a seasonally adjusted rate of more than $484 billion; it was up by 6.4% from one year earlier, reaching its highest level since August 2007, the NAHB notes. Multi-family construction spending continued its record-breaking pace – nearly 11% higher than a year ago.

Private nonresidential construction spending for February 2017 was basically flat, dipping 0.3% on a monthly basis, the NAHB reports – however, it was 7.5% higher than a year ago. There were three primary growth categories in nonresidential spending, including:

• Office (24.8% increase);
• Educational (15.6% increase); and
• Lodging (14.9% increase).

The Shop Viewpoint: Franklin Imaging

Franklin Imaging (franklinimaging.com) in Columbus, Ohio, is a full-service reprographics company specializing in full color printing and finishing plus wide format digital printing, and also provides facilities-management services as well as being a full licensed dealer of equipment from Canon/Oce and HP. In addition, the firm is a partner in the ReproMAX Network, the large international network of independent reprographic companies and other digital print service providers.

We reached out to Franklin Imaging president Emily Castle for her take on the current state of the A/E/C print marketplace:

WFS: Is the A/E/C market still a viable marketplace?

A/E/C is still a viable marketplace. Prices are low in our market, so we must be very cost conscious. We diversified our offerings many years ago, but A/E/C remains a pillar of our business.

WFS: What are the biggest changes Franklin Imaging is now seeing in the A/E/C marketplace?

We believe high-speed single-pass color printing has the potential to be disruptive, but we don’t yet see a demand for it in our marketplace. 3D printing and scanning is an area that we continue to monitor because we believe that the service is a good fit for our customers.

WFS: Can reprographers exist still serving just the clients they did in the past – or do they have to expand their market audience?

I don’t believe that we could have remained profitable if we continued to offer the same services to the same clients. Our business now has four pillars – traditional A/E/C, equipment sales and service, print and mail room operation and staffing, and color graphics. In addition to traditional reprographics, we now work with our A/E/C customers on projects like wayfinding, environmental graphics, custom digital wall décor, and more.

WFS: How important are other services beyond print to the A/E/C market? 

Scanning is an important revenue stream for us in the A/E/C market. Scanning requires diligent operators and careful quality control, but there’s no marginal cost to the service. To the extent that we can fit scanning into our regular hours, it can be very profitable.

WFS: Franklin Imaging has expanded beyond just offering reprographic services, correct? What are some opportunities that shops should be taking on now – or at least investigating?

Staffing for print and mail rooms has been a successful service for us. The sales cycle is very long, but then the contracts tend to be 3 to 5 years. These contracts require a fair amount of work to get implemented, but they tend to be stable sources of revenue for the long haul.

I would also caution repro-only shops that jumping into color is not an easy feat. It took us many years to build a portfolio and develop the experience necessary to execute complicated projects.

What hardware does Franklin Imaging utilize in its operation?

We run all Canon Océ equipment in our A/E/C production environment. Self-service is one of the ways that we keep our costs low and uptime high.

In our graphics department, we run a Screen Truepress 2500, a Canon Océ 250GT flatbed, HP Latex 3100 (126 inches) printer, two 60-inch eco-solvent Mutoh 1624s, an HP Latex 370 printer (64 inches), two Zund L-2500 routers, plus hot, cold, and liquid laminating.