The biggest commercial printers in Orange County rallied last year along with the improving economy.
The 30 shops on this year’s Business Journal list posted an 8% jump in OC sales to $569 million for the 12 months ended March 31.
OC employment grew 3% to 2,625 workers during the past year.
Printers outpaced last year’s sales pace of a 5% gain. Many expect revenue growth in the single- to double-digit percentages and have added staff or new equipment.
“With the economy on the rise we are looking forward to the increase in sales with our production ready to handle the expected influx,” said Doug LeMieux, president of No. 26 Orange-based We Do Graphics Inc.
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Despite the optimism, printers are playing it safe. Several shops said that before they invest in new presses or other equipment, they lined up business to cover the costs.
“Most of us in the industry no longer have the ‘if you build it they will come’ mentality of adding equipment,” said Doug Grant, president of No. 13 Foothill Ranch-based Westamerica Graphics Corp. “Technology and equipment investments are wise only when made in the context of real business with real clients.”
Printers are wary of several challenges: hikes in operating expenses, such as paper and gas prices, more competition and demanding clients.
Stepped up competition has forced shops to be more efficient and focused on service, said Randy Tyler, executive vice president at No. 11 American Web Inc. in Yorba Linda.
“We have to remain competitive,” Tyler said. “The margins aren’t what they used to be.”
No. 1 Trend Offset Printing Services Inc. again led the pack with $138 million in sales, a 6% rise.
Trend Offset saw a slight 1% gain in OC workers to 563. The shop has invested in more than $15 million in new press equipment in the past few years, which has helped drive gains.
Chief Executive Todd Nelson said he expects sales to jump 15% in 2006, with recently installed presses attracting customers.
The printer also has streamlined and renovated its facilities in a bid to cut costs, Nelson said.
“There continues to be external cost pressures on our customers such as higher gas prices, paper increases, ink prices, etc.,” Nelson said. “Therefore, our continued commitment is to drive cost out of the printing process by embracing things such as new equipment and technology.”
At No. 2 was R.R. Donnelley & Sons Co. in Irvine, with an estimated $50 million in sales and 190 workers.
No. 3 Irvine-based The Dot Printer Inc. grew sales 4% to $28.9 million for the year through December. Its OC workers increased 3% to 187.
Dot Printer President Bruce Carson said the shop recently moved some of its operations from a 50,000-square-foot facility in Tustin to a 73,000-square-foot spot in Santa Ana.
“We needed more space for fulfillment services and want to take advantage of tax incentives provided in the Santa Ana Enterprise Zone,” Carson said.
No. 4 ColorGraphics also made a move.
The shop, which saw a 6% jump in sales to $27.5 million, shifted from Tustin to a bigger 40,000-square-foot building in Costa Mesa.
ColorGraphics added equipment, including an eight-color Mitsubishi 3000 LS sheetfed press and UV printing capabilities, said David Madison, the company’s director of sales and marketing.
The shop grew its staff 21% to 68 workers to “support the growing needs of our clientele,” Madison said.
The biggest percentage gainers on this year’s list included No. 8 Tustin-based Meridian Graphics Inc., which posted a 54% jump to $23.3 million, and No. 7 Irvine-based Myprint Corp., which jumped 39% to $24.8 million.
Meridian said it’s seen strong printing demand from customers, particularly ones in the homebuilding and software sectors. The company does brochures and packaging, among other work.
Myprint has made several changes during the past year, including hiring some 25 people to help handle new work, said Chief Executive Kent Barkouras.
Myprint now has 108 workers, up 17%, and is on the lookout for more, Barkouras said.
Myprint opened offices in Santa Barbara, Denver, and Tulsa, and plans to open in five other cities by year’s end, Barkouras said. The company also plans to open a 40,000-square-foot fulfillment center this year to “keep up with customer requirements,” he said.
Another big gainer was No. 11 American Web, which is new to the list and posted sales of $18 million, up 50%.
American Web’s Tyler said the shop has been more aggressive with marketing. American Web also has spent about $30 million during the past few years upgrading its facility with new equipment, he said.
