Blueprint for Print Providers
Diversification is crucial to the success and growth of many of today's print businesses. But just how does that work at grass roots level? Jon Baker, director at NES, tells his company's story.
One of NES's core strategies and the cornerstone of its business philosophy is to continually research new markets and investigate the viability of the company moving into them. In some case NES has actually been the first to develop these markets, which are usually niche rather than in the mainstream.
Some would think the NES management unbelievably rash, incredibly brave, or just plain stupid - but it's a calculated measured process; there's a degree of risk involved but nothing that going to cause a major meltdown. It's all about managing the risk and your exposure to it.
But how do you do it?
It's really all about the people - predictably true. There is an entrepreneurial culture that is very much present in the management team backed up by flexible and very knowledgeable production people who are not afraid to get inside a machine to understand how it actually works. With everyone knowing the capabilities of the plant it's then just a case of putting all the pieces together, like a giant Jigsaw puzzle, only slightly better. Whether it's UV print or anodised aluminium rain-screen cladding, LED screens or three-dimensional routing, it all will fit together, somehow.
Having this capability in place has allowed NES to gradually move away from the frenetic tendering processes and on-line auctions into the tranquil world of being a specified supplier in many instances. The team talks direct to the designers, architects and clients, which means the company's name appears more and more on tender documents. But, it's not as easy as it might sound - the drawbacks are numerous and costly; a ten minute haggle over price has now metamorphosed into a design meeting accompanied by sample prints, mock ups, CGIs, site visit, another site visit, more samples and then a delivery date so tight that you have to hope the clocks go back to meet it.
This type of working means your sales guys have to be replaced by designers and account mangers, all with enough knowledge to understand the processes and how each of these can combine to form something entirely different. Production guys have to be able to understand the project and what the designers are trying to achieve - their involvement at the very beginning of the process is key and fundamental to its success.
But is it worth it?
It is for NES, as it allows the firm to move away from the direct-to-media sector which seems to be becoming oversaturated with machinery, having the effect of driving down price and delivery with more and more dependence on sales rather than service. For a company with the turnover and positioning NES has, it makes more sense to invest in complimentary machinery/services rather than be constantly replacing print kit to a higher and higher specification.
Large-format print used to be seen in as 'creative', but as barrier to entry is reduced and square metre rates tumbles, mainstream wide-format print it is fast becoming a commodity product, with online ordering and proofing now becoming the norm. It is very rare for a graphic designer to even see the print until its installed, let alone leave Shoreditch for a factory visit.
Do you only do the unusual?
Far from it. NES still faces the daily grind - printing 100 sheets of 8' x 4' 3mm Foamex, waiting too long for the approved artwork to arrive, then trying to deliver it in central London on a Friday afternoon.
But with these type of print projects we're now seeing the margins and ultimately the profits gradually shrinking as customers face a greater choice of supplier - from the global operation to the guy in his shed - all chasing the same type of job. One of NES's largest customers decided to buy his own printer, and just to rub our noses in it, took the operator as well.
So how has the company changed shape?
NES started off on the digital print road with a Gerber Edge, moved on to an E-stat and then completed this remarkable triumvirate with a Zund roll-to-roll printer. Now it has an unbelievably diverse plant list: flatbed and roll-to-roll wide-format printers, routers and plastic fabrication, vacuum forming, brake presses and rollers as well as welding and finishing and even a powder coating line.
At present the company is working on projects as diverse as moving image graphic walls, giant images printed onto cladding panels to the sides of supermarkets, heavily textured aluminium cladding panels and LED lit POS panels - all of these involve the application of images onto materials.
But in the end is it really worth it?
Yes it is. The company is working to its strengths and moving into some lucrative niche markets which have a high barrier to entry - which is good for NES. The client base has increased and we're working across many sectors from retailers, designers to architects and even structural engineers and on projects that are prestigious, challenging and rewarding, and hopefully profitable!
However, it is not all creativity and big invoices flying out at the end of each month - far from it. These projects are anything from six to 24 months duration with protracted payment terms monitored fastidiously by the clients' QS, they have to be supported by the more generic day-to-day work and in the current climate that's not too easy.
It has though, provided a greater sense of security for the future of the business and a chance to work at a five-year strategy - we can also fill in some of the blanks on the financial projections. So in answer to the question, 'course it is.