How PSPs Can Make the Most of Their Digital Printing Investment

Nearly every print service provider (PSP) today uses digital technology in some way. But surprisingly, few take full advantage of these assets. 

 

Commercial printers appreciate that digital technology lets them say “yes” to more jobs, especially for clients with tight marketing budgets. As corporate customers have become increasingly savvy about how to buy print, they are less likely to purchase more than they need in exchange for per-piece discount rates. Using digital is more cost-effective for these short-run orders – particularly those with fast turn-around times.

 

PSPs could be gaining so much more from digital technology, however. By fully transitioning their analog jobs to digital technology, it is possible to realize significant savings each year. Some of that will come from utilizing newer solutions that provide the option of using just three colors instead of four without compromising quality. PSPs can also leverage cutting-edge digital press features, such as the ability to print micro-text, to deliver additional services that generate increased revenue. Micro-text can be used to support brand protection and serialization as a value-added client service.

 

These advantages help to explain why the analog to digital transition is still going strong. Digital print accounted for about 16.4 percent of global print and printed packaging in value terms in 2017 but only 3.9 percent of the volume, according to a Smithers Pira report. By 2022, digital will be about 19.1 percent and 4.3 percent of volume, the report found.

 

 

Capitalizing on digital technology is one way for every PSP to avoid becoming just another commodity “print manufacturer.” That’s a big deal. Idealliance’s State of the Industry, 15th Edition report finds that there are about 7,200 fewer printing companies today than there were in 2007, but that doesn’t mean there is less competition.

 

“Despite record consolidation, commercial printing is getting more competitive as the internet and digitization let everyone into everyone else’s business,” writes Andrew Paparozzi, chief economist at Idealliance.

 

Nosco, a full-service packaging solutions provider for the healthcare industry, relies on digital technology in a significant way. Its fleet of digital label machines includes multiple high-end digital presses. Such technology, which provides clients with high-level quality, color consistency, reduced lead-times, serialization and personalization, has been important to attracting new customers in healthcare and other markets. Its investment in its sixth digital pressin 2016 is shortening lead times, while expanding capacity to offer customized, short to medium run order quantities will “support the growing need for serialized and personalized packaging,” according to Russ Haraf, President of Nosco.

 

The investment in digital presses to remain competitive is a must for PSPs today, but they also must know how to deploy them. PSPs can distinguish themselves by using digital technology to help clients offer customers not just products, but overall experiences. To do this, it is important that PSPs demonstrate ways in which high-end, persuasive and personalized print products could be used to make digital marketing campaigns more effective in various vertical industries.

 

For example, PSPs could put together a campaign in which they show auto dealers how they would use digital presses to create personalized communications that could be sent to customers with expiring leases. By connecting early, it demonstrates the dealer is thinking about the needs of its customers – often before they, themselves, even realize they have a need. This improves overall experience and satisfaction, increasing the likelihood these customers will sign a new lease or purchase agreement when the time comes. 

 

 

To capitalize on digital technology, it is important to have talent to operate the technology. The print industry overall has been struggling with a skilled worker shortage with about 15.5 percent of respondents in a Printing Industries of America (PIA) Affiliates survey saying digital pressroom positions are the hardest to fill.

 

One solution to the problem of recruiting and hiring personnel may be to bring existing staff up-to-speed with digital technology. This could involve providing in-house training to familiarize operators with tuning and optimizing digital print jobs, among other functions, ultimately making the investment in digital presses work harder.

 

Clearly, there is tremendous value in adding digital printing to your services, or in increasing your use of the technology. After all, every PSP wants to stand out from the competition. Being able to provide true, value-added digital services to clients can help achieve that.