Convergence Plays Pivotal Role at Industry Event

By Ashley Roberts

The following article was originally published by Printing Impressions. To read more of their content, subscribe to their newsletter, Today on PIWorld.

Print is not dead and there is “no debate,” Mark Hanley, CEO of I.T. Strategies, said during a morning session at Print4All. The event, which was a one-day conference in Stresa, Italy, on July 6, was organized by Acimga and Argi as part of the road toward the Print4All trade show, taking place May 27-30, 2025, at Fiera Milano.

Hanley offered the audience, which consisted of 70 delegates from 20 different countries, a look into some global trends in the printing and converting industry, focusing on digital technology and the inroads it has made. Digital infrastructure, he explained, isn’t just part of printing communications, it is part of the digital communications industry and will have an accelerating effect on the development of inkjet technology. It will also continue to have an increasing effect on the packaging and industrial sides of the printing industry.

Setting the stage for his discussion, he highlighted the impact COVID-19 had on the industry: Paper pricing has doubled since 2019; labor costs are up 30+%; and consumable costs are up 10+%. This means that the business model of the modern print service provider (PSP) must change. Because print has become more expensive for customers, it must “offer more value,” he said, shining a light on the opportunity for printers to explore diversification into other products.

Mark Hanley, CEO of I.T. Strategies, shared some data and trends with Print4All attendees.

This, coupled with the general development of digital technology, has given rise to what Hanley described as “common requirements.” He stressed the importance of automation, which he firmly stated was “non-negotiable;” the desire from customers and partners to have access to real-time dashboards; an evolution to a “different kind of labor,” which he said means hiring those who are digitally literate and don’t necessarily think of “print first;” and offering a faster turnaround on printed products.

Hanley then gave attendees a look at market segments, starting with labels and packaging. He explained that it is a generally profitable and growing segment, but when it comes to digital integration, there has only been progress made on the label front. In general, it’s been adopted as a “profit vehicle,” and has not replaced analog. For those outside the segment, labels are the “gateway” to packaging. However, even with profit and diversification as driving factors for digital in packaging and its growth in labels, it’s hasn’t fully established value in corrugated and folding carton and it is “poorly adapted” to technical challenges in flexible packaging.

Although Hanley touched on the decorative/industrial space, and the commercial segment, which is experiencing a cost crisis that is “de-emphasizing analog volume print against high-value inkjet print,” it’s the wide-format segment that is proving to be a standout in the digital space. Hanley explained that the segment has more than 30 years in digital, and while 75-80% of the market is still analog, digital makes up 200% of the value share. He described them as “two separate markets not in competition.” It is also a segment for commercial printers to expand into as part of a “cross-sectional channel evolution.”

Convergence Is ‘Evolving’

For those who have paid attention to our channels for the past few years, or those who have attended PRINTING United Expo (Oct. 18-20, 2023, Atlanta, Georgia), the term “convergence” might ring some bells. Pat McGrew, managing director of McGrewGroup, took the stage to tackle this topic and look at its effect on printers and converters.

McGrew began her session by explaining that one of the biggest things driving convergence is the customer base PSPs are targeting today.

“The people that bought [print] 20 years ago are not who we are selling to today,” she said.

Pat McGrew, managing director of McGrewGroup, took the stage to discuss convergence.

The new customer base is creative and well-educated, but they might not understand what you do from a printing standpoint. That’s why working closely with customers to help them understand your capabilities is key.

She cautioned attendees to “get ready for convergence” by preparing for more than a technology change (noting that evolution is essential); developing and nurturing the entire organization for constant change while evolving alongside customers, the market, and technology; focusing on leading change, not just “keeping up;” and working to eliminate bottlenecks.

“How are you going to empower your team to tell you the things that aren’t working well and where your bottlenecks are?” she asked. She suggested asking for honesty from your team. It’s critical to focus on efficiency to enable growth, she said.

Beyond efficiencies, McGrew emphasized the need for PSPs to continually reevaluate their product offerings and added capabilities.

“You want to take a look at what you offer and add 10% new things each year,” she said. Additionally, “turn off the things that aren’t making you money.” She suggested PSPs take a hard look at what they sell and figure out how to leverage their expertise to “create the next generation of your business.”

Convergence wasn’t just a session topic at Print4All, it was a keyword shared throughout the entire event with the explanation that with this year’s conference, “the keyword for the 2023 edition is convergence: the convergence of technologies, applications, and markets, in the future of sustainable and effective printing, across all industry segments, from graphics to marketing, packaging and industrial sectors.”