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In-plants Diversify to Drive Business Expansion

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As new and advanced technologies have lowered the entry barriers for print service providers (PSPs) to offer a variety of products and services, in-plants — ever vigilant against the persistent threat of outsourcing — have ramped up efforts to diversify how they can best serve their parent companies. The connotation of in-plants as being internal copy and print centers is rapidly changing as an influx of wide-format equipment, cutters, production color inkjet platforms, and advancements in digital toner presses, have opened the doors to a variety of applications that can enhance an organization’s image.

Operating as a department directly tied to the success and growth of a parent organization makes it essential for in-plants to evolve alongside the companies they serve. Having the right tools, capabilities, and growth potential is key to carrying out an in-plant’s inherent mission. In this report, in-plant diversification opportunities will be presented, along with best practices organizations can implement to help maximize those opportunities, and the technology available to produce the applications that are in high demand.

DIGITAL DRIVES DIVERSIFICATION

While the ongoing shift away from offset and toward digital production platforms has been a trend among in-plants spanning multiple decades, the continued advancements being made across digital technologies and devices have allowed in-plants to not just “go digital,” but to make the most of the technology to maximize their capabilities.

These intentions are made clear when assessing in-plants’ latest investments and the drivers behind them. For example, in the 2023 NAPCO In-plant Print Business Outlook Research Study titled “Equipment Installations and Applications at In-plants”, in-plants were surveyed about several topics, including applications they are expanding into and technologies they are bringing on board. When asked to rank the top three reasons why they elected to acquire new equipment, the top responses are indicative of a need for digital’s distinct advantages. The top response was achieving faster speeds and higher productivity, with half of respondents citing these efficiency advantages. Meanwhile, other top responses included producing new types of work (47%), confirming in- plants’ desire to diversify, and improving product quality (47%), which can be achieved through the advancements in digital printing’s color control solutions and expanded range of medias.

Graph: What is driving new equipment investment?

While the drivers behind in-plants investing in the latest digital production and wide-format equipment vary, the confluence of lowered entry barriers into diverse, high-quality applications, and advanced equipment at affordable prices have made in-plants a force to be reckoned with. A long- standing misconception of in-plants is that they do not offer the same print quality and value-add applications as external commercial print shops.

In fact, according to “Enhancing the In-plant Product and Service Offering,” a 2022 NAPCO Research study and white paper sponsored by Canon U.S.A., high-quality color printing emerged as one of the top reasons (34% of respondents) as to why communication buyers and influencers at organizations with in-plants may select an external print provider. An equal number of respondents selected that the excellent customer service and responsiveness of external providers is what leads them to not utilize their in-plant. Other top responses also indicate a perception that external providers are more advanced than in-plants, including:

  • Strong technical capabilities (28%)
  • Offering services beyond print, such as design, finishing, mailing, and data (26%)
  • Most complete set of services (25%)
  • Certifications such as G7® color, HIPAA, and sustainability (21%)

When assessing in-plants’ recent and anticipated equipment investments, a variety of digital printing and production platforms emerge at the top, indicating that in-plants are quickly moving to enhance their capabilities and offerings. In fact, according to the 2023 Print Business Outlook Research study, toner-based equipment remains as in-plants’ top investment priority, with nearly half of respondents (44%) stating they purchased digital color equipment within the past two years. Meanwhile, 39% of respondents state they anticipate investing in this equipment in the next two years.

By investing in newer equipment, in-plants are demonstrating their determination to provide high quality and an expanded range of printed applications with the goal of keeping more work in house. In addition, the ability for customers to source print from an internal department should provide faster turnarounds. Taking a deeper dive into some of the latest digital technology reveals that these devices may support the print application capabilities that communication buyers are receiving from outside sources.

For example, the Canon imagePRESS V family of color production digital presses offers a variety of tools including in-line spectrophotometers and integrated color management solutions that provides color management and color measurement advantages. These tools allow users to quickly meet and achieve a variety of color standards, such as G7®, so in-plants can leverage the benefits of the commercial print standards.

In addition to their color management capabilities, many of the latest digital color production presses, including those in the imagePRESS V family, provide several benefits that in-plants can leverage to compete with external pressures. These include automation capabilities that streamline the workflow, helping to improve productivity and reduce turnaround times, and media versatility that gives in- plants the ability to utilize multiple substrates and offer an increased portfolio of print products.

More specialized equipment, such as wide-format inkjet and digital envelope printing is also garnering increasing interest and capital expenditure. For example, data from the 2023 Print Business Outlook Research study indicates that roll-fed wide-format has been a sizable investment area for in-plants, with 27% having bought in the past two years. While hybrid or flatbed platforms have not been as big of an investment area, with just 11% having made the move in the past two years, that is expected to increase, as 18% of respondents stated they plan to invest in the technology in the next two years. Envelope printing has also emerged as a strong opportunity segment for in-plants, and more than a quarter of respondents (27%) have spent on a digital envelope press in the past two years, while 17% plan to in the next two years.

Graph: Recent and upcoming in-plant investments

DIVERSIFICATION LEADERS DEMONSTRATE EFFECTIVE STRATEGIES

The approach to diversifying an in-plant is not a one-size-fits-all process, and different types of in-plants require different technologies and applications. For example, a higher-education in-plant with goals of offering banners, wall-coverings, or soft signage, will likely investigate their options in various wide-format technologies. Meanwhile, an in-plant that has an eye on producing custom labels or stickers will likely want to check out finishing equipment that can efficiently cut these printed products into unique shapes.

During the onset of the COVID-19 pandemic, the in-plant at the University of Delaware immediately recognized the need for wide-format applications. As reported by In-plant Impressions, the University’s printing department was tasked with producing an increased amount of floor graphics and banners. And while the in-plant had existing wide-format equipment in the shop, it was due for an upgrade. The increased demand for wide-format applications served as a catalyst to bring in more advanced technology.

In May of 2022, a roll-fed Canon Colorado 1630 and Canon Arizona 1360 GT flatbed printer were installed at the Newark, Delaware school, improving the in-plant’s wide-format capabilities. According to University Printing’s Manager Michael Czerepak, the two new Canon printers are offering robust production of banners, stickers, canvases, and signs. He adds that new opportunities in vehicle graphics have also emerged, including for the university’s police force.

Wide-format equipment has also been beneficial for producing much smaller applications, albeit on a grander scale. At another large university in-plant, what was initially a promotional opportunity has led to a campus-wide enthusiasm for stickers. The orders at this in-plant have come in from several departments, including Public Safety, Athletics, Admissions, the library, and all the colleges within the university.

While wide-format and production inkjet have received significant attention in their ability to diversify in-plant offerings, toner-based solutions have been demonstrating their ability to make in-plants nimbler and more versatile. For example, the Print and Mail department at Hunter Engineering Co., in Bridgeton, Missouri, has been able to leverage its two new Canon imagePRESS V1000s with the optional Plockmatic finishing to evolve into a full on-demand operation.

“We used to keep stacks of brochures on the shelves,” Manager Mike Barnes told In-plant Impressions. “We don’t do that anymore.”

Barnes also lauds the imagePRESS V1000s’ print quality and automation components. Specifically, he cites their 2,400x2,400-dpi output and front to back registration. Additionally, he says the Sensing Unit that checks registration and color tone on every sheet, with on-the-fly adjustments, has been beneficial in providing the in-plant with consistent quality across the jobs printed on these devices.

INVESTING IN INKJET

While digital printing is on the rise throughout the in-plant segment, especially as offset continues to phase out, inkjet technology is in its early stages among in-plants. For example, in the 2023 Print Business Outlook Research study, when asked to share their inkjet investment plans, 60% of in- plant respondents stated they are not considering inkjet now. However, the remaining 40% either expressed plans to invest in inkjet or noted that they have already made the jump. Specifically, 16% stated they are exploring inkjet with the expectation to install within the next three years, 12% already had an inkjet press, 5% have an inkjet press with plans to install another, 4% have budgeted to install a first inkjet press within two years, and another 4% already have multiple inkjet presses installed.

Graph: In-plants increasingly eying inkjet

Those in-plants that have installed inkjet presses however, have been able to leverage their robust capabilities into their diversification strategies. For example, ISU Printing Services, the in-plant at Iowa State University, installed a Canon varioPRINT iX3200 sheetfed inkjet press last year. As In- plant Impressions reports, ISU Printing Services has been tasked with producing a wide variety of applications on its new Canon inkjet press, including brochures, magazines, flyers, curriculum materials, transactional statements, and stationery.

According to Nathan Thole, director of ISU Printing Services, versatility was top of mind when investing in and installing an inkjet press. With the varioPRINT ix3200, he says that a variety of substrates can be run through the press, including coated, uncoated, synthetic, carbonless, and magnetic. This versatility has been particularly beneficial in the in-plant’s stationery printing offerings, as prior to the inkjet equipment, the department printed stationery on its offset equipment because of its ability to be laser-safe stationery.

“We’re just trying to get away from toner where we can because inkjet just seems to be so much more cost effective, and faster,” Thole told In-plant Impressions.

Beyond inkjet’s ability to help an in-plant grow its application offerings, in-plants that have installed the technology report that it has allowed them to condense their equipment footprint. For example, at the recent Inkjet Summit, an annual conference hosted by PRINTING United Alliance, Chuck Werninger, IT senior manager and records management officer for the Houston Independent School District, shared how his in-plant’s installation of a Canon varioPRINT i300 has increased both its efficiency and capacity.

“I replaced five boxes with one and ... I think I have more capacity,” he said. “The uptime is so much better that we get so much more work done.”

EMBRACING EMBELLISHMENTS AND SPECIALTY APPLICATIONS

As in-plants, along with the rest of the PSP community, seek to diversify their offerings, technology and equipment that can provide added value to applications in the form of embellishments, specialty shapes, and enhanced color reproduction have emerged as investment priorities. According to the 2023 Print Business Outlook Research study, equipment including contour cutters, laminators, and digital embellishment equipment are all receiving noticeable attention.

More than 20% of respondents stated they have invested in a contour cutter in the past two years (21%). Other top investments over the past two years included laminators, with 17% of respondents, and digital embellishment equipment, which was installed by 16%. Those same equipment categories emerged as top installation expectations for the next two years, with 20% of respondents aiming to acquire a contour cutter, 16% eying a laminator, and 13% citing digital embellishment equipment.

Graph: Specialty devices offer new opportunities

At Iowa State, enhancement capabilities on its wide-format printing equipment have allowed it to diversify its signage offerings and take over an application that had previously been produced by a separate department. As In-plant Impressions reports, prior to the installation of its wide-format equipment, which includes an Arizona 2280GT and Colex SharpCut CNC machine, Iowa State's facilities team was tasked with producing the university's ADA-compliant wayfinding signage by hand, one by one. With the flatbed Arizona device, Thole explains the in-plant can now produce braille and other ADA-compliant features on its signage, with the university also benefiting from the department’s skill in color management, process control, and customer service.

“Our expertise is similar to that of a sign shop,” Thole told In-plant Impressions.

RECOMMENDATIONS AND CONCLUSIONS

As an in-plant printing department, providing the most value to a parent organization should be considered top priority. While in-plants have historically served as internal copy and print operations, the latest in digital printing technology, along with print enhancement capabilities and specialty finishing devices have allowed in-plants to diversify their offerings and help increase the value they provide as an internal print provider.

Wide-format printing platforms have emerged as a top resource for several eye-catching applications, many of which are in high-demand. Both roll-fed and flatbed equipment has been beneficial for in-plants, allowing them to expand into rigid and flexible signage, wall-coverings, stickers, and displays, among several other applications that customers can incorporate to improve their visual appeal. Pairing these devices with specialty cutting equipment platforms can be particularly advantageous for increased customization.

Production inkjet devices have also emerged as a tool for diversification. While newer on the scene, particularly among higher-education in-plants, the robust nature of these devices, along with their increased substrate versatility, allowed some in-plants to condense their equipment footprint, while expanding their application mix. Though production inkjet can be a costlier capital expenditure compared to toner-based devices, in-plants should strongly consider how this technology can achieve its return on investment and better serve its parent organization.

The desire to add value to printed products should also lead in-plants toward embellishment and print enhancement opportunities. Equipment including contour cutters, laminators, and digital embellishment equipment is helping in-plants maximize their parent organizations’ printed applications.

While the threat of outsourcing always looms for in-plants, those that leverage the latest in digital production technologies and continue to innovate can help them remain as the top choice as a print provider. By combining these technologies with the knowledge of in-demand applications and the added value capabilities the latest technology can provide, in-plants can continue to be an invaluable component to their organization.

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