Local Print Company Thrives in Challenging Times
Date: 18th Mar 2009
Anyone reading the local business media over the past few months will realise that these are extraordinarily difficult times for print businesses across the region.
It has seemed that almost every month a local print company has failed. BPR The Printers of Paignton, Colourworks in Totnes and Rowe the Printers in Hayle, Cornwall are among the most recent casualties, while yet more companies are predicted to fail as the economic slowdown intensifies.
In truth, the print industry has been contracting for years. Overcapacity and price-wars have meant margins have been falling for a long time.
Despite this, printers had been able to rely on strong client demand for marketing promotions – direct mail, magazines, brochures and point of sale materials – as marketing departments targeted ‘feel-good’ consumers while house prices rose year on year.
Fast-forward to 2009 where falling house prices and the credit crunch have shattered consumer confidence and dented client demand.
This coupled with stricter credit terms from suppliers, a lack of additional lending from banks and bad debt means cash flow is becoming a big issue for printers.
So it is easy to see how the recent local casualties are symptomatic of the entire industry.
Not everybody is feeling the pinch, however. While many firms are making redundancies, Kingfisher Design and Print of Totnes actually recruited three staff from a competitor when it closed its doors in January.
The family-run company, established in 1984, now employs 36 people and has increased its turnover by 50 per cent in the last four years.
Managing Director Ross Bellotti says: “Downward pressure on margins and increased costs meant there was only one solution for us. And that was to get more efficient.”
Working with industry specialists Vision in Print, Kingfisher follows Lean Manufacturing techniques, a completely different way of running manufacturing processes focusing on the removal of all waste, so that products are manufactured at a rate determined by the customer, with minimal inventory.
Benefits of the ‘Lean’ approach include better use of capital investment, improved use of time, lower raw material requirements and the efficient use of space, with the overall aim of delivering higher productivity, performance and profit.
Ross says: “Through our commitment to ‘Lean’ we introduced ‘Just in Time’ processes which really work for us. In fact everything is ‘Just in Time’ these days; lead times have shrunk, artwork is produced just in time and proofs are returned just in time so we’re well-placed to respond to our customers’ needs.”
The company has spent more than £1 million on state-of-the-art machinery over the past four years but values its investment in its people as even more important.
Ross adds: “The secret of our success is no mystery – it’s our people. We have a balance of long serving, experienced staff, many of whom have worked here for more than 10 years, and new staff from a variety of backgrounds and industries who have brought fresh ideas and a culture of continuous improvement.”
The firm has recently launched ambitious growth plans for the future. Ross explains: “While most of our business comes from within Devon we have blue chip clients all over the country and our future growth plans involve targeting sectors and diversifying into up-to-the-minute digital printing and personalisation solutions.”
But Kingfisher’s growth won’t be at the expense of the environment.
Ross adds: “Our green commitment involves active recycling, energy saving and chemical-free policies and we have recently achieved the Forest Stewardship Council (FSC) award for sourcing paper from sustainable and managed forests.”
