Takeaways from the Third Annual Wide-Format Summit

The third annual Wide-Format Summit, presented by PRINTING United Alliance and Wide-Format Impressions, kicked off Monday with the biggest turnout the event has seen, with 75 wide-format print exhibitors at the PGA National Resort in Palm Beach Gardens, Florida. As he welcomed attendees, Steve Duccilli, vice president/brand director at NAPCO Media and Wide-Format Summit co-chair, shared that the value of the event is three-fold, offering a mix of strong content, market and process diversity, and high-value conversation. Further, he shared that the event is made possible through the support of 35 sponsoring companies, including Keynote Sponsors Agfa, Canon, EFI, and FUJIFILM.

Thriving in a More Competitive Landscape

In his keynote presentation, Marco Boer, vice president at I.T. Strategies, shared how wide-format producers are doing more with less (much more output from a diminishing number of equipment placements), and what they can do to stay competitive. Here are a few key takeaways:

Marco Boer, vice president of I.T. Strategies, provided the event's thought-provoking keynote presentation. | Credit: NAPCO Media

Boer said wide-format producers need to keep up with technology investments, noting that printing and finishing systems have become more advanced, easier to use, and easier to integrate. Because of this, he said, to stand still technologically is to fall behind.

Growing volumes is essential to maintaining growth in the wide-format segment, and Boer offered strong strategies for reaching that goal. Approaches include buying market share though acquisition, making it easier to do business with your company, and removing barriers by automating production systems.

Boer urged attendees to move their businesses up the value chain, away from commoditized approaches and toward what he refers to as high-value printing. Along this path, finishing and installation services have become strong value adds. Finally, he said increased value can be achieved by expanding applications and products.

Summing up, Boer posited that the path forward for wide-format producers may include a change in business model. “This is the moment we’ve all been waiting for,” he said. “A moment to change the model and create additional value and revenue; a moment to leverage the inherent benefits of inkjet printing. If you keep focus, this is going to be a better place to be than ever before.”

Top Trends Impacting the Industry — and How PSPs are Reacting

Following Boer’s keynote, PRINTING United Alliance Editorial Director Denise Gustavson led a panel discussing the top trends affecting the wide-format industry and how print service providers are responding to them.

Gustavson was joined by David Perkinson, president of PRI Graphics, John Rhodes, Owner of ColorChrome, Buddy Kramber, VP of operations for The Bernard Group, and Scott Cohen, VP of Sales at KD Kanopy. Additionally, all of the panelists were recommended by this year’s sponsors – who also posed the four discussion topics for the panel.

Denise Gustavson, Denise Gustavson, editorial director of NAPCO Media and Wide-Format Summit co-chair, moderated a panel discussion with wide-format business owners. From lefft to right: David Perkinson, Buddy Kramber, John Rhodes, and Scott Cohen. | Credit: Wide-format Impressions

Question One: How are PSPs addressing challenges like inflation, labor shortages, and pressure on margins?

To get the responses to the first prompt rilling, Kramber emphasized that combating labor shortages starts with taking care of current employees.

“It’s about how we take care of our employees, our current business model is to bring the client the best level possible, but along the way, we find that we have to serve our employees so that they can feel that equal passion and share the same vision that we as leadership do for the company,” Kramber said.

Rhodes echoed the same sentiment saying that ColorChrome has taken measures to keep its staff happy with 401K packages, HR specialists checking in on employees, and even just simple and lighthearted gestures like setting up a barbecue for the staff.

In terms of inflation and rising costs, Rhodes said it truly hasn’t posed much of an issue.

“All of us are experiencing operating cost inflation, and as we're smart and always watch our costs and which we always have and we always should, it's not that big of an issue because we use a system where we constantly update our pricing,” Rhodes said.

Perkinson piggy-backed and explained that PRI Graphics approaches its pricing from a sales standpoint when it comes to managing margins.

“We make sure that our pricing is fair to us and to the customer. And we have had very little pushback from customers when it comes to price increases in the last couple of years,”

But overall, Perkinson said it’s also about paying attention to detail.

“Business is business, and from own my experience, it has shown that if you stop paying attention to the details, it can really get away from you quickly. So we try to lead by that example and pay attention to the details in our company from employees to operations and operational costs, so we can keep that motivation up to be aggressive and to get out there and work hard and not get complacent,” Perkinson said.

Question two: Are customers willing to pay more for a sustainably produced project? 

The overwhelming consensus majority answer to this question was yes — depending on the client.

Most of the panelists agreed that clients seem eager to do sustainable projects until they realize what the cost is.

All of the industry experts on the stage acknowledged that sustainability is a steadily growing trend that has made its presence known, but it will be a long time before it’s the first and only option for customers.

“Our hearts are in the right place. And many more products are offered today, which is a real plus. This is just going to be a long game as far as getting to that point,” Cohen said.

Rhodes shared a similar sentiment.

“I think sustainability certainly has a place in our market, and I think it's important for our industry to have those offerings. Do I think it's ever going to be the majority critic in our market? No, maybe 20%,” Rhodes says.

Question three: How has your go-to-market strategy changed now that the world has “re-opened?” 

The panelists placed an emphasis on focusing their strategies internally. From promoting “can-do” attitudes to making sure their websites are easy and efficient to operate from a customer standpoint.

“We just continue to refine it. We continue to train our people in our sales organization to serve the customer better. Always working to make it easier for the customer to deal with. Make it quicker for them and more efficient,” Perkinson said.

Cohen admitted that he wrote down a lot of things to answer this question, but when it comes down to it, he said, “At the end of the day, we're really just not doing that much differently. Other than just saying ‘we're here and we can provide whatever you need,’ so really it's the can-do attitude that we’re putting out there, and we always have.”

Question four: How do you measure the total cost of ownership of equipment purchases today?

To answer the fourth and final question, Perkinson said that for PRI Graphics, it’s measured in two ways: Does it enhance current offerings, and does it give them something more improved on what they already offer.

Kramber emphasized that when it comes to investing in equipment, it's all about nailing down what’s most important to you and what’s most important to your business. And explained to the audience that at the Bernard Group, when it comes to deciding on investing in a new piece of equipment, there’s a three-pronged approach where three people sit and decide the pros and cons and then vote on it.

“All of our decisions need to be really thought through to make sure that we're making great decisions on behalf of our employees to make sure that share values are going up,” Kramber said.

Exploring Opportunity in M&A

Marco Boer, left, led Peter Schaefer, partner at New Direction Partners though a thoughtful discussion on trends and activities in industry mergers and acquisitions.

In the day’s final session, Peter Schaefer, partner at New Direction Partners, shared a thoughtful discussion with Marco Boer on the current state of merger and acquisition activities in the wide-format segment.

He said that while this year’s M&A levels will not match the record-setting activity experienced in 2022, it will still be strong. This, despite the headwinds of economic uncertainty and significantly increased interest rates. Further, he explained the priorities of different types of buyers, and which – strategic or financial – are most drawn to specific types of companies, and the factors that can affect company multiples.

“Who is buying,” Boer asked.

“Private equity,” Schaefer replied. Later, he said, “Private equity loves POP,” he said, “it’s a great
segment.”

Boer: “It is a seller’s market or a buyer’s market?”

“I think it’s both,” Schaefer said.

The Wide-format Summit is a hosted buyer-guide event that gives eligible attendees invaluable access to the industry leaders and experts covering the trending topics in the Wide-format industry. Fill out the attendee form here to get a jump start so you don't miss next year's event.

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