A strong economy once again gave Orange County’s biggest commercial printers a boost despite rising costs for fuel, insurance, labor and
environmental compliance.
The 30 biggest commercial printers here posted a 5% gain in local sales to $578.2 million for the 12 months ended March 31, according to this week’s Business Journal list.
Printers grew OC employment 1% to 2,516 workers during the past year.
The cost of doing business here did take its toll on printers,this year’s gain is down from last year’s 8% increase.
The rising cost of fuel, insurance, labor and environmental-friendly products and machinery are challenges for the industry, printers said.
“The industry continues to be challenged by rising costs and consolidation both on the printing side and on the supplier, vendor and publisher sides,” said Warren Dow, president and chief operating officer of Trend Offset Printing Services Inc. in Los Alamitos. “The market is changing before our eyes and we’ve got to change with it.”
Trend held onto its No.1 spot again with a 3% growth in sales to $142 million for the 12 months ended December. The company, which specializes in magazine and direct mail printing, counts 563 workers in OC and has offices in Texas and Florida.
Trend plans to hit $265 million in sales for 2007, Dow said. The company plans to grow by continuing to invest in technology and workers, he said.
Many commercial printers are adapting to the industry’s technological changes by using traditional printing presses that apply digital applications such as customizing and transferring digitized information.
Several printers are still holding back from investing in short-run, digital printing presses, according to Dow.
“We’re keeping an eye on digital even though our traditional business is digital in the sense that it’s highly automated with customized digital information,” Dow said. “We’re in the middle of assessing short-run, digital presses. We haven’t made any investments yet and we’re kind of just seeing what that will be like.”
At No. 2 was Irvine’s Moore Wallace, an R.R. Donnelley Co., which held its spot with an estimated $50 million in sales.
No. 3 Irvine-based MyPrint Corp. & eTools LLC jumped four spots with a 26% gain to $31.3 million in sales.
Adapting to the industry’s changing technology determines whether local printers will grow, close or move out of state, said MyPrint Chief Executive Kent Barkouras.
The printer added four people for a total of 112 workers.
The company’s growth has stemmed from new Internet software applications and eTools, which allows customers to order, customize and track print-on-demand products, Barkouras said.
“I think some printers have closed or moved out of the area due to the changes in the industry,” Barkouras said. “Large industry leaders like us have anticipated the technological changes in the past five years by offering web software applications that offer clients a multitude of different products rather than just print products. So we have an opportunity to capture more of their revenue and become the fabric of their organization.”
MyPrint plans to launch an improved Internet software program and expand its foothold in the Dallas, Kansas City, Minneapolis, Denver and San Jose markets, he said. The company expects to hit $40 million in OC sales this year, according to Barkouras.
No. 4 ColorGraphics in Costa Mesa held its spot with an 11% increase in sales to $30.5 million. It saw its local workers increase 4% to 71.
Rounding out the top five was Dot Printer Inc. in Irvine. The company moved down two spots to No. 5 on a 2% decline in sales to $28.5 million. Its OC headcount dropped 13% to 162 workers.
Rising costs associated with the environment continue to present challenges for commercial printers, said Don Chew, chief executive of No.18 K & D Graphics. The Orange-based company, which specializes in brochures, flyers and books, grew its sales by 18% to $11.4 million. The company upped its workforce by one person to 53 workers.
“California continues to be a very expensive place to own and operate a business,” Chew said. “Not only do business owners need to calculate the increasing cost of fuel and insurance but they also need to factor in the costs of running an environmentally-friendly company.”
Many commercial printers are investing in eco-friendly products such as soy-based inks and presses with low emissions to reduce their impact on the environment, Chew said.
“There’s definitely more of a movement for printers to be cautious about the environment, whether it’s by using recycled paper or using chemicals that fit into air quality control guidelines.”
Despite the rising cost of doing business here, many printers agree OC is good place for work.
“Orange County provides a really healthy market for the printing industry because there are so many businesses in the area and many need some kind of printing service,” said Tarek Korraa, general manager of Orange County Printing in Irvine, part of Houston’s Consolidated Graphics.
No. 17 Orange County Printing’s sales grew 24% to $12.8 million. The company grew its workforce by 10% to 65 workers.
Newcomers to this year’s list were No. 27’s Anaheim-based Apollo Printing & Graphics with $3.9 million in sales and 20 workers and No. 30 Lake Forest-based Studio Two Graphics & Printing with $1.8 million in sales and 9 workers.
