PGAMA eNews

Issue: July 16, 2009


Congress Brushes Aside Industry Concerns on Clean Energy Act
The House of Representatives passed the American Clean Energy and Security Act (H.R. 2454) last week, paving the way for the Senate to review this legislation that has the potential to negatively impact the printing industry...
A Whole New Ballgame for Collections
With business bankruptcies on the rise (up 41.6% compared to 2007), collecting accounts requires different practices...
The Wisdom of Kellogg's
A recent New Yorker magazine article chronicled the competition between Kellogg's and Post cereal companies...
Paper Myths Revealed
As the "Do Not Mail" campaign continues to threaten the printing industry, it is a good opportunity to refresh yourself and your clients on some true facts about paper...
Expect Inflation to Return
The national debt is expected to approach 100% of Gross Domestic Product in three or four years...
Tech Tip of the Week: Matching Fonts
Jessica Meyers, Digital Imaging Specialist at Printing Industries of America, has a hint to help match fonts...
Member News
See who won a $25 gift card just for completing a survey...
Upcoming Events


Minimum Wage to Increase
The current Federal Minimum Wage rate of $6.55 per hour will increase to $7.25 per hour on July 24th. The current minimum wage for Maryland and Virginia is $6.55 per hour; in DC it's $7.55 per hour and will increase to $8.25 per hour on July 24. In PA the current rate is $7.15/hour.

Open Enrollment for PDT Ends July 31
The open enrollment period for long-term disability coverage through Printers Disability Trust (PDT) ends July 31. Act now to protect your employees! At the website you can request a quote to determine the cost of this benefit. Go to www.standard.com/mybenefits/pdt



Congress Brushes Aside Industry Concerns on Clean Energy Act

The House of Representatives passed the American Clean Energy and Security Act (H.R. 2454) last week, paving the way for the Senate to review this legislation that has the potential to negatively impact the printing industry. The Bill contained the controversial cap and trade provision that a Printing Industries of America analysis shows could:
* Reduce industry shipments by approximately $670 million/year
* Reduce industry payrolls by approximately $300–400 million/year—or 6,000–7,000 jobs/year and
* Increase industry utility costs by approximately $1.25 billion/year
Prior to the vote Printing Industries of America sent all 435 U.S. Representatives a "Key Vote" notice asking they vote no to the Bill, but it passed in a close vote: 219-212. The Senate is likely to review the bill this fall.

And in other Legislative News...
The arrival of the newest U.S. Senator, Al Franken (D-MN), brings a 60-vote majority to the Democrats and adds a new dynamic to the Employee Free Choice Act debate. Franken supports the EFCA as introduced and was feted at a welcome reception this week hosted by the AFL-CIO's headquarters. However, there is not yet a solid 60 votes in support of the EFCA and no official compromise legislation has been introduced. Printing Industries of America continues its work as part of a Coalition for a Democratic Workplace to block the EFCA and any legislation built upon its flawed concepts.

 

A Whole New Ballgame for Collections

With business bankruptcies on the rise (up 41.6% compared to 2007), collecting accounts requires different practices. Nowadays, companies must have more frequent contact with slow paying customers, and must not put off placing accounts for collection. A few warning signs to look for: ignored phone calls, defaulted payments, a suddenly raised dispute, and bounced checks are all red flags that your client is having financial difficulty, and you may need outside help to collect on the account. Don't delay! In today's business environment, time is not on your side. Fortunately, as a PGAMA member you have access to CMI-Credit Mediators Inc-to help resolve slow-pay situations. CMI is an established commercial collection agency and a PGAMA partner. The firm will negotiate with any client that appears to be a problem, and work out payment plans to your benefit. They offer No Risk Collections-if they don't collect, you don't pay. To use this service, go to www.cmiweb.com and click on the "Associations" tab. In the PGAMA section, enter the user name "PGAMA" and the password "663454."

 

The Wisdom of Kellogg's

A recent New Yorker magazine article chronicled the competition between Kellogg's and Post cereal companies. The companies dominated the market for packaged cereal in the late 1920's, but then the Depression hit. Post did the predictable thing, curtailing expenses by cutting back on advertising. But Kellogg's doubled its ad budget, moving aggressively into radio and print advertising, and heavily promoting its new cereal, Rice Krispies. By 1933, even as the economy cratered, Kellogg's profits had risen almost 30% and it had become what it remains today: the industry's dominant player. Are you a Kellogg's or a Post? Ask your customers the same thing!

 

Paper Myths Revealed

As the "Do Not Mail" campaign continues to threaten the printing industry, it is a good opportunity to refresh yourself and your clients on some true facts about paper and the environment. These "myth-busting" facts are provided by the Technical Association of the Pulp and Paper Industry (TAPPI). Get more great paper info at their website, www.tappi.org/paperu.
Myth #1: Cutting Down Trees Leads to Deforestation. Fact: Deforestation is the permanent clearing of trees for creating farmland and/or residential/commercial development. Most deforestation is actually caused by population pressure, and the wood is burned for domestic fuel (heating and cooking). Unfortunately, deforestation is occurring in some parts of the world, but the trees that grow in the tropical rain forests are rarely harvested to make paper.
Myth #2: Paper production is the main reason trees are cut down. Fact: Only about 17% of the 3.3 billion cubic meters of wood consumed worldwide each year is for papermaking. One third of the raw material used to make paper comes from wood chips and other residue left behind from sawmill operations. Another third of all paper is made from recovered paper, and the rest is made from trees grown specifically to make paper.
Myth #3: In the U.S. most trees are cut down to make paper. Fact: Most of the raw material used in manufacturing paper in the U.S. does not come from whole trees, which the industry calls round wood. It is not considered economical to use large logs for paper when they could instead be used for lumber, so only trees smaller than 8 inches in diameter, or larger trees not suitable for solid wood products, are harvested for papermaking.

 

Expect Inflation to Return

The national debt is expected to approach 100% of Gross Domestic Product in three or four years--a level not reached since WWII. The Administration says that their economic policies will reduce the deficit shortly, but this seems quite inconsistent with other plans, including health care reform, cap and trade, etc. While in theory the Federal Reserve could keep this in check with rising interest rates and reductions in the money supply, its track record on the subject isn't very good. The good news in an inflationary run-up is that it is easier to raise prices since clients accept higher prices as the norm. But in the long term, inflation and monetary instability is inconsistent with real growth, and is bad for us all.

See what else awaits your business in the next 12-24 months in the FREE report from Printing Industries of America, "Profiling the Economy and Print Markets 2009-2010." This report is a targeted analysis of economic and market trends focused on print and printers. It offers distinct scenarios on the projected recession path, and guidance for printers in dealing with the challenges and opportunities ahead. Download your copy from www.pgama.com in the Members Only section under "Other Economic Reports."

 

Tech Tip of the Week: Matching Fonts

Jessica Meyers, Digital Imaging Specialist at Printing Industries of America, has a hint to help match fonts-the website WhatTheFont: My Fonts. WhatTheFont allows you to upload a scanned image and run it through their database of fonts. In doing so, the database will find the name of the font or closest possible matches for FREE. It works by asking you about the shapes and attributes of certain unique letters, and then connects that info with the fonts that match those qualities. They even have "font experts" you can email if your font is not in the database. This is a great way to match text on old documents.

 

Member News

Congratulations to Bobby Firestein of Svec Conway Printing, Inc. for being the first respondent to the PGAMA Environmental survey. Bobby received a $25 gift card from Starbucks in appreciation for offering his opinion on environmental and sustainability matters.

Haven't filled out your survey yet? The survey was sent to the key contact at each member company. Additional $25 gift cards will be given for each subsequent 50th response. As of today there have been 28 respondents to the survey so check your e-mail and fill your survey out today! You may be the next lucky winner!

 

 

Upcoming Events
July 20-21 Workshop: Total Immersion-Digital Color, at Printing Industries of America headquarters in Sewickley, PA. This brand new workshop is designed to give you a comprehensive look at what it takes to produce reliable, high-quality digital output. Two intense days of hands-on training will get you totally immersed, and totally knowledgeable, in digital color and press optimization. Cost is $595 for members. Full details and registration link on www.printing.org.
July 22 Special Event: The History of Printing in Baltimore with Bill Schneidereith. 7:00-9:00pm at the Maryland Institute College of Art in the Bunting Center, Room 410. Plan to attend this unique event featuring one of PGAMA's own, member Bill Schneidereith, who will give a brief history on the evolution of Baltimore’s Printing Industry, from the early days of setting type by hand to today's fast paced transfer of electronic files. Schneidereith & Sons was a fixture in the Baltimore printing industry for over 150 years. Event presented by SHAG- the Society for History and Graphics.
July 29 FREE Webinar: Selling During A Recession-The Daring Adventure 9:30-10:30am. Join host (and PGAMA member!) Joe Becker of MargolisBecker and Mark Potter, Publisher of CANVAS magazine for this informative discussion that will touch on the opportunities that can be found despite the economy; how to define yourself by who you serve, not what you make; and more. Pre-registration is required. Sign up with Bonnie Pfaff at MargolisBecker, 888-577-1717.
July 29 Webinar: Quality that Counts: The State of Digital Printing, 2:00-3:00pm. Digital print quality has improved by leaps and bounds over the last decade. Today, we’re seeing an abundance of print volume that is short-run in nature or needs to be turned around quickly, but still requires a high degree of color control and quality. During this Webinar, participants will discuss end customer perspectives on quality, improvements in digital presses as well as some of the tools utilized to achieve high fidelity quality and various applications where quality is a critical factor in print production. This is a FREE presentation. Register on WhatTheyThink.com.
August 13-16 Special Event: Summer Management Conference, at Great Wolf Lodge in Williamsburg, VA. Come for the family time. Come for the classes. Come for the networking. Whatever your reason, be sure to attend this year's event. Featured speakers include Lisbeth Lyons of Printing Industries of America who will weigh in on the EFCA; sales consultant Linda Bishop who will give three talks on sales techniques; and Ray Prince who will share ideas on implementing LEAN manufacturing at your plant, plus a Recession Checklist. Room rate is just $219 if booked by July 13~call the hotel at 800-551-9653. Call PGAMA to register for the seminars, 410-319-0900.
September 24 MAGE Crab Feast, 6:00-10:00pm at Ten Oaks Ballroom in Clarksville, MD. Come to the biggest MAGE event of the year and enjoy LARGE crabs all night, plus a dinner buffet. By popular demand there will once again be Blackjack 21 gaming tables--play for prizes! New this year: your ticket stub enters you into a drawing for a Garmin GPS system. Tickets are the same cost as last year: just $60 per person for ALL YOU CAN EAT LARGE CRABS! ($575 for a table of 10.) Reserve your seats by 9/18. Call PGAMA, 410-319-0900.***Sponsorship Opportunities Available. Contact Paul at PGAMA for more info.
Check http://www.pgama.com for the latest industry news and event photos.
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