As a business model, employee-ownership “fosters sustainable ownership, improves financial performance, and provides a host of benefits to both the company and the country,” said Chad, who is a member of the Canadian Employee Ownership Coalition’s (CEOC’s) steering committee. He believes employee-ownership offers a promising alternative to the negative impacts of capitalism that are becoming more visible these days.

Need for change

According to a 2020 survey by Edelman Data & Intelligence, 57 per cent of people believe capitalism, as it exists today, does more harm than good. There is a stark wealth gap between owners and workers. According to Stats Canada, most wealth is held by relatively few households in Canada. The wealthiest households (top 20 per cent) accounted for more than two-thirds (67.9 per cent) of net worth at the end of 2022, while the least wealthy households (bottom 40 per cent) accounted for 2.6 per cent.

We are also seeing market consolidations in monolithic companies like Amazon as well as the rise of faceless private equity ownerships. Employee-ownership presents an opportunity to address these concerns and create a more equitable economy.

Employee-ownership models attract talented individuals who want to be part of a great story and contribute to the company’s success.

Benefits to the company

Employee-ownership offers several advantages to the company. Firstly, it establishes a sustainable ownership structure, ensuring continuity and long-term commitment from employees. Secondly, employee-owned businesses tend to exhibit better financial performance, driven by a shared sense of responsibility and dedication among workers. Moreover, being part of a company with an empowering ownership model attracts talented individuals who want to be part of a great story and contribute to its success.

Chad Friesen.

Benefits to the country

Beyond the benefits to individual companies, employee-ownership is beneficial to Canada. It contributes to economic resilience by diversifying ownership and reducing dependency on select companies. By encouraging broader distribution of wealth, employee-ownership helps address income inequality, thereby fostering a more inclusive society.

According to a survey by the Canadian Federation of Independent Business (CFIB), 76 per cent of owners plan to exit within the next 10 years. But, 43 per cent of these businesses lack a succession plan, leaving them vulnerable to being sold to consolidators or private equity firms, most likely from outside the community, province, or Canada. With approx. 140,000 businesses in Canada employing between 20 and 500 workers, the implications are significant for roughly 5 million individuals.

As we all know, in the printing industry, many company owners are looking to retire. Employee-ownership would be an attractive option for these owners. A CFIB survey indicates 53 per cent of existing owners would be more inclined to sell to their employees if viable options were available. A majority of the surveyed business owners (61 per cent) said they’ll prioritize “protecting employees” during a business sale over attaining the highest possible price.

Employee-ownership ensures a smooth transition, and the local economy can continue to sustain itself. Canada will also benefit from the reduction in foreign ownership.

Role of EOTs

Employee ownership trusts (EOTs) provide a framework for implementing employee-ownership. EOTs hold shares on behalf of employees, allowing them to benefit from shared ownership without requiring upfront payment. These trusts often borrow money to acquire shares, and employees receive the benefits of ownership based on formulas tied to their tenure and pay. EOTs offer a simple, cost-effective solution to transition ownership and empower employees, said Chad.

Canada’s opportunity

In the U.S. and U.K., employee-ownerships have been successful for years. In the U.S., the employee stock ownership plan (ESOP) was established in 1974. Equity growth is the focus in the U.S. where 6,000 companies with 2 million employee owners have ESOPs. Most of these companies employ around 20 to 250 employees, and are in varied industries, such as manufacturing; professional, scientific, and technical; and financial services. Publix Super Markets is the largest privately held ESOP in the U.S. with more than 200,000 employee-owners.

In the U.K., EOT was established in 2014. Profit-sharing is the focus in the U.K. where 800 companies with 100,000 employee-owners have EOTs. Most of these companies employ around 20 to 250 employees, and are in varied industries, such as manufacturing; professional, scientific, and technical; and IT services.

In Canada, we have around 30 EOTs with profit-sharing as the focus. In 2010, Friesens adopted the EOT business model. Today, it has more 650 employee-owners. In 2022, $10,000 was the average EOT payment at Friesens. 

Brett House, former deputy economist of Scotiabank, predicts Canada could have up to 750 EOTs by 2030 if appropriate policies and incentives are adopted. Per an analysis shared by Chad, the level of adoption would result in 50,000 to 114,000 new employee-owners; $4.3 to $9.6 billion in wealth generated for employee-owners; and over 100 new employee-owned companies formed per year, creating over 10,000 new employee-owners annually.

Stumbling blocks

The federal government committed to creating an EOT framework by January 2024 in the 2023 budget. A draft legislation was also published for feedback. While the legislation proposes providing benefits to all employees at no additional cost, CEOC argues it lacks key measures that are needed to make Canada’s employee-ownership as successful as in the U.S. and U.K.

CEOC is asking the federal government to increase eligibility for EOTs; introduce clear and simple rules for an EOT; adopt a governance structure that promotes smooth and gradual transition of privately owned businesses to an EOT; and incentivize employee-ownerships for about-to-be sold businesses by providing capital gains tax exemption to owners who sell a majority of their company to an EOT.

Employee-ownership has the potential to shape a more equitable and resilient economy. If you’re struggling to draft a succession plan for your company, consider an employee ownership trust.

In August 2022, Rocket piloted a two-month four-day work week program, which has now become permanent.

“We chose August because it is a month heavy in vacations and September tends to be a heavy production month. We felt these two months together would be a good test to see if we could actually do it and to determine where any deficiencies might be that we hadn’t thought of,” explained Scott Williams, CEO, Rocket.

It is well known that the print industry is struggling to attract skilled labour. Williams realized he had to look at new and innovative ways of retaining and acquiring team members. Inspired by the four-day work week trials in the U.K., he decided to test it out at Rocket.

Scott Williams, CEO, Rocket.

Productivity increases

The pilot program was a success. Williams said it was well-received. “We actually gained production capacity because some team members wanted to come in earlier while others preferred to come in later. This resulted in an expanded production capacity,” he added.

Williams’ observation mirrors recently released results of the world’s largest four-day work week trial. The pilot program—conducted by the non-profit 4 Day Week Global, the U.K.’s 4 Day Week Campaign and think-tank Autonomy—guided more than 60 companies in the U.K. and almost 3,000 workers through a six-month trial of a four-day week, with no loss of pay for workers. Post-trial, 91 per cent of participating companies said they’re continuing or planning to continue a four-day week. Companies rated their overall experience of the trials an average of 8.5 out of 10. According to the survey results, revenue rose by 35 per cent over the trial periods and hiring increased while absenteeism decreased. Companies also reported that the health and well-being of employees improved, with “significant increases observed in physical and mental health, time spent exercising, and overall life and job satisfaction. Rates of stress, burnout and fatigue all fell, while problems with sleep declined.”

Given the findings, it’s not surprising the Rocket team embraced the four-day work week from day one. “They knew that it would mean longer hours, but the extra day has been more than worth it. We haven’t had a single complaint,” said Williams.

Matt Keilty, shipping co-ordinator, Rocket, loves the four-day work week, as he gets to spend quality time with family.

A four-day work week has meant that Rocket’s employees are able to reduce childcare costs; spend an extra day with family; not do chores on the weekend and do the same quicker on a weekday; save 20 per cent on gas and travel; and having more time with friends and to do things they normally hadn’t had time for.

“The four-day work week has been amazing! Work-life balance has been perfect. The productive work week flies by and being able to wake up Friday morning and have coffee with my significant other is really nice. Every weekend being a long weekend has given us more time to plan/enjoy our adventures with no rush. All of North America needs to adopt this work schedule,” said Matt Keilty, shipping co-ordinator, Rocket.

His colleague Pam Fraser, accounting administration at Rocket, is all praises for the new schedule. “What can I say about the four-day work week—I love it! Having the extra day off each week gives more family time as you can unwind, get household chores done and still have the weekend,” she added.

Brian Holland, bindery operator, has been able to save on commute time due to a four-day work week. He said, “I live about an hour away and one less day to travel to and from work is great. I’d much rather stay at work a couple of extra hours over four days and have every Friday off. Fridays now are for running errands, booking appointments, and getting work done around the house and leaving Saturday and Sunday for fun activities.”

Contrary to popular belief, a four-day work week increased Rocket’s production capacity.

Industry response

While the Rocket team thoroughly enjoyed the change, there were a few minor challenges such as deliveries and receiving, but Williams explained, “Those things worked themselves out fairly quick. The response from clients and partners has overwhelmingly been one of envy more than anything else.”

Client reaction was one of the major concerns that Williams had about the four-day work week switch. However, those concerns were “quickly alleviated after having conversations with several long-standing clients and being able to assure them that their delivery times would not be affected,” he explained.

Rocket’s innovative plan has garnered some criticism too. “Being one of the first private businesses to adopt a four-day work week has resulted in a few negative comments like ‘it must be nice’, ‘wish we were making your kind of money’, and ‘glad business is so good for you’. None of these are true or the reason for our move to a four-day work week. We did it to look after our team members,” shared Williams, who would highly recommend the four-day work week to all privately owned businesses.

“With the pandemic, lack of available labour, and the stresses on families that seem to be continually building, we need to look after our employees. Our team members are our most important resource, and we need to make sure they have a legitimate opportunity for work-life balance. A four-day work week helps achieve this goal. There will also need to be flexibility on the part of the employer. Some team members may need to be accommodated due to family responsibilities etc. We do have some employees that work a hybrid five-day week, and you need to be open to some of these concepts. The idea of a nine to five, five days of work per week concept is dying, if it isn’t already dead. Accommodation is key,” he explained.

1. Define your company’s brand strategy

• What is your company’s value proposition?
• Why work here? Is it ‘fun’?
• What is your onboarding process, from interview to first day on the job?
• What is your plan to make the company more diverse and inclusive?
• Make your opportunity exciting because if you’re not thrilled about your company, how will someone else be.
• Differentiators may be more than price, quality, and service. One reason an employee was attracted to our firm was due to our ‘corporate social responsibility’ programs.

2. What are your expectations and how will there be support for them to succeed?

• While you may be looking for a ‘self-starter,’ new employees require information, tools, and guidance to succeed.
• Why do staff want to help customers and contribute to your company’s success?
• Younger employees may need more social support because they missed the level of social interaction they had at school. Offering department managers more discretion and a small budget for monthly or quarterly pizza lunches boosts morale.

3. Is there a career path for the right candidate?

What learning and development opportunities does your company offer? Young people would appreciate the opportunity to diversify rather than be stuck at one role.

4. Pay equity transparency

• Young workers will share pay information, so develop a formal salary structure.
• Historically, the perception is that labour is the most controllable variable in the accountant’s arsenal. However, human resource does not provide that form of guarantee or direct RO, and a strong business case can be made for fair wages.
• Consider a leveraged compensation model that is similar to sales plans with goals, shared risk, incentives and rewards for high performers. Take into account individual and team contributions when planning compensation programs.

5. Early discussions with prospective employees must include life/work balance

• This can be demonstrated before initial engagement and be as simple as an email tagline. We know printers whose email messages convey information about respecting employees’ personal time or highlighting they work four-day work weeks and providing details to reach them after work hours.
• As with successful sports teams, many championships are won due to motivation that focus on teamwork and not individual skills.

 While these recommendations may appear to shift the company’s priorities on the newest employees, these are all best practices that are important to achieve long-term success. These suggestions may come with a price tag that must be reflected in your cost of doing business.    

Bob Dale, Heather Black, and Phil Klugman are with strategic consulting firm Connecting for Results. They can be reached at info@connectingforresults.com.

An edited version of this article originally appeared in the March/April 2023 issue of PrintAction.

One of the companies that has made the move successfully is Hemlock Printers. In October 2022, Hemlock purchased Los Angeles-based Paper Chase Press, and according to Richard Kouwenhoven, Hemlock president & CEO, the acquisition was a good fit because both companies have similar clients and “similar market positioning around quality and technology.”

Based in Burnaby, B.C., Hemlock is focused on new business possibilities with clients on the West Coast. The company has 175 employees in Canada, as well as sales teams working out of Seattle and San Francisco. “We [also] have a wholly owned U.S. subsidiary based in Washington State, and we’ve been selling into the U.S. for over 25 years now,” adds Kouwenhoven.

Richard Kouwenhoven

The e-commerce benefit

Paper Chase was particularly attractive as an acquisition because of their focus on e-commerce and their digital knowhow. “What was really interesting about them is that they have grown through e-commerce,” Kouwenhoven explains, “and we have no real direct e-commerce business. So we can learn from what Paper Chase has done both in the e-commerce and the digital marketing side, which we see as areas we’d like to grow in the years ahead.”

Kouwenhoven says he sees both short- and long-term benefits to his acquisition. “We now have a new sales channel that is coming from the United States,” he explains. “The Paper Chase team and the U.S. Hemlock team can work to develop business together. So that’s the immediate benefit. The longer-term benefit is the growth and expertise in e-commerce, which also drives all kinds of opportunities from a workflow automation standpoint, and the introduction of those kinds of services into the Canadian market.”

Over the next 12 months, Kouwenhoven plans to align and integrate the processes employed by both companies, and thereafter to focus on growing their combined product offering. He feels that this acquisition gets Hemlock into new markets with new opportunities. “The Southern California area is a giant commercial market,” he adds.

The Paper Chase acquisition will benefit Hemlock and boost business on both sides of the border, Kouwenhoven explains. “It’s great news for our U.S. sales team because they have a new ally and a new tool at their disposal. On the Canadian side, it’s the expertise in e-commerce and social media and digital marketing that we feel will be important for Hemlock’s long-term success.”

Taking advantage of missed opportunities

Like Hemlock, Mitchell Press, Burnaby, B.C., is also eager to boost business along the West Coast. With customers both in Canada and the U.S., Mitchell Press’ executive vice-president Scott Gray says his company is focused on growing their client base south of the border.

Scott Gray

“We’ve been working in the States for years,” Gray says, “mostly through historic relationship with a ‘drive down, fly down’ approach to doing business. However, during the pandemic we saw a lot of activity from Eastern U.S. brokers, and we realized that there was a lot of opportunity being missed, especially in the States.”

One of the key benefits of working with American customers, according to Gray, is the big orders they tend to place. “Run sizes in the States are two to three times what they are in Canada,” he explains, “so it doesn’t take as much to make us busier.”

Gaps in the marketplace

Although Mitchell Press was able to take on several larger projects with the help of brokers, Gray says he saw opportunities that were especially well-suited for a West Coast company like Mitchell. “We noticed gaps in the marketplace, especially in the publication and catalogue production areas because a lot of the competition that we have is either in Eastern Canada, or the Midwestern United States. There’s not a lot on the West Coast. They keep disappearing because they’re more focused on super-high-volume [projects] at a cheap cost.”

Mitchell Press, on the other hand, is focused on quality, and on providing top-notch service to their West Coast customers, Gray explains. “When you’re talking about publications, content is king, and it has to be a quality publication,” he adds. “We got back about $4 million worth of business in the last two years from clients that had been printing back east, and just felt they weren’t the number one [client] anymore.”

This West Coast-focused approach to business is why Mitchell Press opened sales offices in Portland, Ore., in October 2022. With one full-time employee in Oregon, along with two manufacturer’s reps, Mitchell is eager to drum up new business, “up and down the West Coast, predominantly from Northern California to Washington State,” Gray adds.

The West Coast is important to companies based in Western Canada simply because of geography, Gray explains. “The Rockies separate the West Coast from the rest of the world,” he adds. “What we’ve noticed, especially with all these extreme weather events, is that the West Coast can get cut off for days at a time. So people are trying to bring their product a little closer to home if they can, and running up and down the coast, as opposed to going inland and outland, has its advantages.”

Sustainable growth

The goal, Gray says, is sustainable growth. “A lot of competition up and down the West Coast has either gone out of business, or they’ve mothballed equipment, or they just didn’t see it was going to fit their billion-dollar dreams,” he adds. “We’re not a massive printer, but we’re big enough that we can play with the big kids.”

Fully aware the economy is still unpredictable as we enter 2023, Gray says he isn’t overly ambitious as he looks at his company’s potential in the U.S. “We want sustainable growth,” he explains. “With 105 employees, we have 105 families to feed. We want to expand, but we don’t want to be uncomfortable with how busy we are. We want to be able to make sure we’re profitable, and that we’re delivering on what we say. We always want to make sure we deliver on quality.” 

An edited version of this article originally appeared in the January/February 2023 issue of PrintAction.

I believe all costs must be recovered from customers, but the timing and process is different. Direct cost increases like paper can be recovered per job, but indirect expenses like rent hikes may be recovered in time.

Budget estimates are based on two types of expenses. Historical costs refer to allocation of labour, overheads, utilities, equipment depreciation, maintenance, training, IT and software, misc. items, etc. These are identified in accounting records, and usually recovered through using budgeted hourly rates, (BHR). Future costs, such as paper, ink, and distribution, are as calculated, and often purchased and calculated for the specific job. BHRs are adjusted on an annual basis.

In recent times, printers were able to justify and collect paper cost increases because with the supply shortage, the paper could be used for other customers who were willing to pay. Other costs were also increasing. However, it’s not practical to identify and recover the impact of a 25 per cent increase in rent from one job. If the company temporarily absorbs the cost increases, then they should plan on future recovery or offset the increase by reducing other expenses, such as staff training.

Typically, a department manager is responsible for balancing the budget, as there are ongoing changes during a fiscal year. Failure to recover costs or offset with spend reduction will result in reduced margins or profits. Repeated failure will create a loss and jeopardize the company’s financial stability.

New fiscal year

With a new year approaching, it is time to review the budgeted hourly rates and adjust as appropriate. However, this is not an opening to make adjustments without due considerations. You must plan to recover all costs related to the business. However, if the new rates are above market rates, you will risk losing business to competitors over time. If this is the case, then review budgets to see what discretionary costs can be reduced. Typically, the first to be reduced are training, marketing, and customer expenses. This would be a short-term corrective action because a healthy business needs to make these investments to be a successful operation.

Another method to reduce cost is to increase efficiency through improved workflow or automation. If your MIS is integrated and operating effectively, you may be able to process more orders with fewer staff and without staff burnout. Intentionally understaffing without providing your team the tools to be effective will only increase errors and turnover.

Don’t forget utilization

In addition to cost, utilization impacts BHR. If your utilization has dropped from 80 to 70 per cent and is expected to stay at that level for the next year, then that will increase your BHR calculation. For example: 

$100/hour BHR cost/80 per cent = $125/hour sell rate;

$100/hour BHR cost/70 per cent = $143/hour sell rate.

The market will determine the price. Therefore, if your utilization dropped, the corrective action may not be to change the calculations, but to increase utilization through sales. 

These are a few suggestions to help you plan as you move forward in 2023.      

Bob Dale is co-founder of Connecting for Results, the management consulting company focused on the graphics communications industry. He can be reached at b.dale@cfrincorporated.com.  

The shutdown of several workspaces, educational institutions and childcare facilities due to coronavirus heightened the visibility of gender inequalities as many women were left to take on the bulk of domestic duties while fulfilling the responsibilities of their professions. 

To take a closer look at how these barriers have continued to present themselves in the lives of women and discuss viable solutions, nearly 300 people registered for Advance: Women in Manufacturing 2022 to hear from leaders in manufacturing about the actions stakeholders can take to create more diverse and inclusive workspaces at all levels. 

Conference opens

Manufacturing AUTOMATION editor Sukanya Ray Ghosh and PrintAction and Food in Canada editor Nithya Caleb hosted the virtual gathering. 

Ray Ghosh commenced the afternoon with a land acknowledgement.

Caleb thanked the gold sponsors for the event, Excellence in Manufacturing Consortium, Salesforce, Build a Dream, Ernst & Young, Ipex by Aliaxis, Invest Buffalo Niagara, Nilfisk, Jeld-Wen in the gold category; silver sponsor Frank by Ostaco and bronze sponsor Dynamic Source Manufacturing. 

Next, Marci Ien, Minister for Women and Gender Equality and Youth representing Toronto, gave all attendants a warm greeting from her office in Ottawa. In her address to those present, she spoke of Canada’s diverse population and the importance of ensuring that the country’s workforce reflects this diversity.

“By sharing advice and real life experiences, you are helping others to reach their highest potential. You’re empowering women to reach for leadership roles for the benefit of your industry and everyone in Canada,” said Ien. 

Parliamentary Secretary Jenna Sudds then took the virtual stage with some statistics to help depict the way women are employed across Canada. 

Women account for 54 per cent of the country’s caregivers, taking on unpaid care work at home. They are also more likely to perform part-time or temporary jobs. In 2019, women represented only 7 per cent of skilled trade workers,  24 per cent of science and technology workers, and 28 per cent of manufacturing workers in Canada.  

“As we work to build back our economy, we cannot afford to lose a single drop of talent. We can only afford to grow our economy, and women have such an important role to play in that growth.”

Keynote Address with Pamela Jeffrey: Impacts of COVID, barriers to the workforce and new opportunities

The audience then lent its attention to their keynote speaker Pamela Jeffrey, an inclusion and diversity expert who founded the Prosperity Project and has operated the Women’s Executive Network for two decades.

Back in 2020, Jeffrey found herself recovering from COVID-19 after a trip to Costa Rica. She told the audience of how she sat in her basement with thoughts of the novel virus and how it would have a devastating impact on women.

It was here that Jeffrey put together ideas that gave way to the Prosperity Project, an organization that links women to prosperity through various initiatives. The organization’s methods for connecting women to career opportunities in which they can thrive are designed to specifically address the barriers women face in the workforce and in their personal lives. 

As Jeffrey stated, such barriers to career opportunities include lack of awareness of training and existing job opportunities, limited access to role models and mentors, lack of partner support at home, barriers to affordable childcare, and having to do more housework at home. 

Like Sudds, Jeffrey noted that COVID-19 left many women shouldering a larger share of domestic responsibilities like homeschooling and care for ageing parents, but this was only one among several impacts on women. 

According to data found by the Prosperity Project’s Canadian Households Perspective Research Initiative in 2021, women were more likely to feel depressed, anxious and stressed. Research also showed that 44 per cent of women reported feeling that COVID-19 would bring an economic recession and leave them without job prospects. 

Through other research and surveys, the Prosperity Project found that 20 per cent of mothers are more likely to work part-time or reduced hours or quit their jobs altogether. Comparatively, visible minority women were more likely to leave their jobs behind completely. 

The Prosperity Project launched the Rosie campaign to tackle limited access to mentors and role models along with lack of awareness of job opportunities and training. The organization’s Matching Initiative has connected women with 100 different charities across the country where they’ve used the opportunity to volunteer their time to complete a project of interest to them. 

In other research like the Prosperity Project’s Second Annual Report Card, they found that only 6.7 per cent of racialized women occupy corporate leadership roles like executive officer or senior management roles even though racialized Canadians make up one quarter of the national population. Indigenous women hold only 0.3 per cent of these positions.

“COVID-19 has given us opportunities,” said Jeffrey.

“When women succeed, we all prosper. Now it’s up to each of you to take what has been a really challenging two years and use the resilience you have found in yourself, draw on the data we have gathered for you, and change the conversation.”

Panel Discussion: Making conscious the unconscious bias

Next up, four panellists presented themselves for a discussion titled Making conscious the unconscious bias where Automate Canada and Canadian Association of Moldmakers president Jeanine Lassaline-Berglund served as moderator. The leaders who took this opportunity to share from their experiences were Jennifer Green, director of competitions at Skills Ontario, Nour Hachem-Fawaz, president and founder of Build a Dream, Maryam Emami, CEO at AI Materia.

A guest who sat in for this portion of the event later wrote to say that she has been in the electronic manufacturing sector since 1996, and many of the issues she has faced resembled those of the women who spoke in the panels. 

Berglund tossed the first question to Emami who was asked to share her personal experience with biases in the manufacturing workplace.

Emami, an engineer and researcher, began by saying that it is easier to identify the biases of others than it is to identify those within ourselves. She added that only 13 per cent of Canadian engineers are women, and this number was much smaller when she started her career.

“It is no secret that even today when you walk into an engineering firm, the place is not usually full of women,” said Emami.

The AI Materia CEO went on to describe how she has been the only woman present in meetings of 15 men or the only woman among dozens of men on the production floor. In such environments, it has become difficult for her to build trust among her coworkers especially while holding a higher position. 

Emami also wanted her audience to understand that while engineering and manufacturing are male dominated, there is nothing about engineering and manufacturing that is inherently “male.” This is a field where women can be just as successful if not more successful than men. 

Berglund took her next question to Hachem-Fawaz which focused on how often she heard from women and racialized women who encountered biases in their work environments and whether these issues are ever resolved.

Haschem-Fawaz explained that while many companies declare an interest in becoming more inclusive and diverse, many of them lack effective strategies to follow through with these statements. 

“Diversity is the what and inclusion is the how,” said Hachem-Fawaz.

As an example, she described her dealings with a company that said it wanted to recruit more women. Later on in their recruitment process, it came to light that this company lacked female facilities and policies and procedures to deal with harassment.

“This conversation prompted us to ensure that we’re not only recruiting women into the sectors, but also addressing these unconscious biases that companies have that are limiting people’s ability to enter this workforce or even advance,” she said.

In another example from Hachem-Fawaz a woman heard one of her male colleagues declare that “women belong in the kitchen.”

Upper management did take the time to help him understand why his comments were sexist and discriminatory according to Hachem-Fawaz.

“So the barriers are still there. How we’re approaching them is shifting, but there’s still so much work to be done.”

Berglund turned the third question over to Jennifer Green, a mechanic and millwright who launched her career at age 16.

“If it happened, you name it, I went through it,” said Green responding to Berglund who asked how things have changed since she began her work in skilled trades 20 years ago. 

Green added that even though there are more women support groups today then there were in previous decades, the treatment of women on sites and factories needs a lot of improvement. 

The lack of female facilities alone represents a significant disadvantage according to Green, who also mentioned the absence of female change rooms as a common complaint shared in social media forums for women in the Canadian manufacturing sector. 

“If there is no facility for a woman, then they’re having to change their schedule, maybe walk an extra 10 minutes, maybe lose some of their lunch,” said Green, adding that companies should create female facilities well-ahead of recruiting more women. 

Berglund moved ahead with the discussion to include methods to address biases and microaggressions before taking questions from the audience.

Building your own board of directors with Crystal Hyde

Advance WIM then hosted founder of Propel Communications Coaching and Consulting Crystal Hyde who guided attendees through a workshop on building their own board of directors, a section of the webinar that resonated with several participants.

“ I enjoyed the panel discussions very much because it was good to hear from so many different people with different experiences and viewpoints but I probably enjoyed the “Build your own personal board of directors” most because that gave some concrete actionable items to start thinking of and working with,” read a message from one guest following the virtual event. 

Hyde mentioned that women experience imposter syndrome more often than men and feel the need to continually earn their positions within a company even after they have landed a role and in her words are, “probably over earning it.” 

Building a personal board of directors is about establishing support that will help move a person’s career forward in the direction that they want. Hyde said people tend to leave their career paths to their managers.

“What our interests are and what we think we can handle, that’s our responsibility to communicate,” said Hyde. 

Since managers are not mind readers she added, people must be overt about where they want to go in their professions. 

Those seeking to build their own board of directors should make efforts to draw in a diverse set of skills, experiences, backgrounds and genders among the people they elect in order to generate the best possible advice from the board.

“Here’s the thing with advice that I want you all to keep really close to your heart when you’re  soliciting advice from people,” said Hyde. 

“You can listen to advice, you can solicit advice, you can welcome advice, and you can offer advice, and you do not have to take it.”

As she later explained, advice is about helping people make more informed decisions and not the decision itself.

Panel Discussion: “Stuck in the middle”

Caleb then invited the final group of panellists to dive deeper into the reasons behind a deficient representation of women in executive roles.

Irene Sterian, founder, president and CEO at REMAP and director of technology and innovation at Celestica, recalled a time in her life when she wanted nothing more than to be an engineer. Over time, she realized she wanted to do more and could do so in a position where people reported back to her.

“I wanted to be a manager, but I had never really applied to be a manager,” said Sterian.

A friend encouraged her to apply for the next management role that became available. She credits her friend’s enthusiasm and “push” for the start of her career in a leadership position.

Sterian’s message to women in manufacturing is to apply for roles even if they do not feel qualified for them.

Jennefer Griffith, executive director at Food Processing Skills Canada began her career in an administrative role where many opportunities were. She wrote proposals to the government and participated in projects right from the beginning through to fruition.

Griffith noted however, that her predecessor was a woman in a male dominated industry.

“I think she took a lot of the brunt and the hits,” said Griffith. “Attending meetings where it’s male dominated. It’s not very diverse. There are those trying to tear you down, you have those trying to take your job and so forth.”

Her approach was to learn from those above her and build genuine relationships with them in order to move up into a leadership position.

For Renn Scott MA, founder and chief designer at Daily Goods Design, the success of women correlates with the existence of strategies to empower women in their workspaces. She added that an important component to the success of DE&I strategies is to ensure corporate leadership teams are truly committed to them.

“In the case of those on the call that are senior leaders, we need to hold ourselves accountable for setting up and making progress on diversity goals.”

Closing

Before closing the event, Ray Ghosh thanked all presenters for their insights and advice and invited all guests to visit womenincanadianmanufacturing.com for news, in-depth features, videos and podcasts covering women in the manufacturing industry and listen to the Advance: Women in Manufacturing podcast series.

Many companies have developed a reliance upon government benefits. Programs ended or changed substantially in the fall of 2021, thus reducing the financial support. This is no surprise, as we all knew it was coming.

Business was recovering slowly until this last quarter. According to major Canadian paper merchants, demand for paper in this last quarter exceeded demand in the previous four quarters. Business challenges remain strong. Competitive pressures and limited paper supply were compounded by the challenge of assimilating the never-ending notices of paper and other consumable price increases.

Proactive or reactive

Companies that took action during the pandemic to manage expenses to volumes, improve efficiencies and conduct housekeeping (i.e. clean up estimating standards) fared better than those that did not. Further, there was a need to adopt a cautious approach to business recovery by gradually increasing costs while basing the additions on a realistic/conservative projection of sales.

Possible actions

Short-term actions to improve cash flow include:

• aggressive collection of receivables;
• ensure jobs are priced profitably, with margin;
• prioritize good clients who pay within terms; and
• charge for and collect paper price increases.

Long-term actions include:

• develop reliable credit sources;
• manage relations with lenders and key suppliers;
• calculate and understand loan covenants imposed by lenders;
• be upfront with lenders and suppliers; and
• work together to build an achievable plan.

It is important to recognize the importance of cash flow. It is equally critical to understand the impact of other non-cash costs like depreciation. Business owners who rely too much on cash flow projections for pricing do not build sustainable foundation to continue to survive and thrive. In the long-run, you must cover all costs in order to survive and prosper.

Cash flow is not profit

Cash flow refers to the net balance of cash moving into and out of a business over a specific period of time. Profit is the balance remaining when all of a business’s expenses recorded on an accrual basis (including interest, depreciation, amortization and taxes) are subtracted from its revenues for a specific period of time.

A company needs to manage its profits and its cash flow. It is possible for a company to be profitable and have negative cash flow (e.g. a company that is growing quickly needs cash to finance its increasing receivables and inventory). It’s also possible for an unprofitable company with decreasing sales to have positive cash flow in the short-run, as it reduces its receivables and inventory.

Managing cash is critical for businesses, as cash is king!

Bob Dale is vice-president and Morris Slemko is the CFO of Connecting for Results, Inc. They can be reached at info@connectingforresults.com.

This article originally appeared in the January/February 2022 issue of PrintAction.

Kerri and Mark share their own personal experiences in operating and growing Minuteman Press in Abbotsford, BC over the past eight years. They also provide their key business growth strategies that have enabled them – as well as their clients – to successfully adapt and pivot in 2021 as they look forward to 2022.

Welcome to Abbotsford

Kerri Brandon eloquently describes Abbotsford as “a very tight-knit, loyal and hardworking community built on the resilient farming industry. As such, our customers value relationships and personalized service. They have come to appreciate our quality products and quick turnaround times and, of course, our free contactless delivery.”

She continues, “Abbotsford’s business community is fiercely committed to supporting local businesses, which in turn has really made this community thrive despite the challenges of the pandemic. Through the Bounce Back Canada program, we were able to offer a free platform to promote, and encourage our community to support local businesses. Today, that local support remains strong as we all are in this together.”

Supporting local businesses

Throughout the pandemic and moving forward into 2022, Kerri shares how important it has been for members of the community to support local businesses like Minuteman Press. She says, “Our clients and community have been amazing. Because we remained open, we were able to keep our connection to them uninterrupted and they have come to know that we are there to help, no matter the request. We made a concerted effort to keep the lines of communication open through e-mail and by telephone during those times that we could not connect in person.”

She continues, “I think because choices became somewhat limited during the lockdown phase of the pandemic and our efforts to step up our marketing, we were able to better capture the focus of our current clients and the community as a whole to inform them of the full range of products and services we are able to offer.”

High-demand products spark growth 

For Kerri and Mark, one of the biggest keys to their growth is the ability to adapt their products and services to meet their clients’ needs. Kerri says, “At the beginning of the pandemic, there was high demand for items such as floor decals, face masks and custom plexiglass barriers. So much so that it was hard to keep up with the demand.”

As for today, Kerri shares, “Currently, direct mail has provided a great way for our clients to communicate with their customers and reintroduce themselves back into the marketplace. However, the largest demand has been for large-format signage and decals. This can be attributed to our increased focus on marketing in various different ways over the past year.”

Being in business for over eight years as well as being part of the Minuteman Press franchise family enabled Kerri and Mark to provide a wide variety of products and services. Kerri says, “Since taking over our business over eight years ago, we have definitely expanded our product lines with large-format printing and dye sublimation. We were extremely thankful to have had these in place prior to the pandemic as they were crucial to being able to service the community’s high demand for dye-sublimated and heat-pressed face masks, floor decals, signage and banners. We were even able to source out and supply custom plexiglass barriers.”

She adds, “We also took advantage of the Lumpy Mail program developed by Minuteman Press International and landed some very lucrative accounts by simply reaching out with a phone call and following that up with some personalized goods, which translated into multiple orders.”

Kerri also credits internet marketing and community networking for increasing local awareness of her business. She explains, “As previously mentioned, we stepped up our e-mail marketing to keep in touch with our customers every step of the way. Being that everything moved online, we were sure to keep up our marketing using Minuteman Press International’s internet marketing program.

“In addition, we were lucky enough to be members of BNI during this time, which, through the power of Zoom, helped maintain our visibility and build credibility in the business community. Networking like this gave us the opportunity to introduce new ideas and products and easily share them with the other members of our chapter.”

Cross media marketing

Cross media marketing is powerful because it allows print and digital channels to work together and create a consistent brand message while reaching clients across multiple points of contact. Kerri says, “Communication is vital in business and we offer multiple avenues to make this happen. This was made even more evident over the past year as our customers looked for ways to communicate with their customers at a time when being in person was not a possibility. As a business, being able to provide this vital service to our clients through direct marketing was an invaluable asset.”

She adds, “As we move forward and more businesses and events return, we have been able to help our customers with items including signage and banners, laminated or single-use menus, scannable printed QR codes that link to menus or relevant websites, and custom pop-up tents. All of these items work together to provide a cohesive message across all touchpoints as well as increased brand awareness and visibility.”

Becoming business owners

Kerri and Mark bought their printing business in May 2013. Kerri shares, “Neither of us had a print background when we bought our Minuteman Press franchise. Mark had been an operations manager for a car rental company for 20-plus years, and I had an extensive background in customer service and administration.”

She continues, “We had always wanted to own a business one day and when we attended a franchise show in 2012, we were approached by Western Canada Regional vice-president Neil MacLeod. Neil welcomed us to the Minuteman Press booth and said, ‘Even if you decide not to buy a franchise from us, maybe we can win your future printing business.’ After looking into many different business opportunities, the treatment we received from Neil and the Minuteman Press team made us feel like we would be joining a supportive and reliable franchise, and thus our decision was made.”

Kerri and Mark credit Minuteman Press for providing crucial communications and support throughout the pandemic. “In the early days of the pandemic, the support was essential in helping us to maintain a positive attitude and keep moving forward. We ourselves took a proactive stance, and we were so thankful to see that they were actively working to support their franchisees.”

Kerri adds, “As the pandemic rolled along, we had several check-ins from our field rep Ray Leung advising us to take ad­vantage of first the Bounce Back Canada program and then the Lumpy Mail campaign. Both of these encouraged us to actively reach out to our customers, the latter of which turned out to be very successful for us. In addition, we truly appreciated the constant communication from Nick Titus (president, Minuteman Press International) offering support and positive updates that included suggestions of what was successful for other owners.”

Rewards of owning a business

When asked about the rewards of owning their business, Kerri answers, “On the personal side, my biggest reward is being able to experience a client’s gratitude when helping them complete a project from start to finish, especially when they have been told ‘no’ somewhere else.”

Mark shares, “For me, it would be the sense of accomplishment of taking what was an underperforming location when we took it over and turning it into a strong, thriving, successful business.”

He continues, “Professionally, both of us pride ourselves on the level of customer service we are able to provide. We strive to do whatever we can to ensure our customers have a great experience when dealing with us, and on the occasion that they don’t, we are sure to do everything within our power make it right. We are rewarded every time we receive a five-star Google review and are proud of our 4.7 rating, which we have actively worked to achieve. We were especially proud when being recognized by Minuteman Press International with their Achievement in Customer Service Award.”

As for what advice Kerri and Mark would give to other business owners at this critical time, their answer is simple. “Market. Market. Market! Even when trying to control your expenses, don’t skimp out on marketing. Traditional­ly, this is the first thing to go when the need arises to cut back on spending. However, marketing keeps you top of mind over your competitors and you never know where your next big client might come from.” 

RRD has notified Atlas that it intends to terminate the Atlas Merger Agreement for the purpose of entering into a definitive merger agreement with affiliates of Chatham. Pursuant to the Atlas Merger Agreement, Atlas has the opportunity through December 7, 2021, to negotiate an amendment of the Atlas Merger Agreement such that the Chatham Proposal would no longer constitute a Superior Proposal.

RRD intends, and is required under the Atlas Merger Agreement, to negotiate in good faith any adjustments or revisions to the terms and conditions of the Atlas Merger Agreement proposed by Atlas. RRD is not permitted to terminate the Atlas Merger Agreement or enter into a definitive merger agreement with affiliates of Chatham during the negotiation period.

Under the Atlas Merger Agreement, the Company is required to pay a $20-million termination fee and expense reimbursement to Atlas if the Company terminates the Atlas Merger Agreement in order to enter into a definitive merger agreement with affiliates of Chatham.

Chatham has agreed to pay the termination fee and expense reimbursement to Atlas on the Company’s behalf in such event. Under the terms of the Chatham Proposal, the Company would be required to repay Chatham for such termination fee and expense reimbursement under certain circumstances in connection with a termination of the proposed definitive merger agreement with affiliates of Chatham.

Additionally, Koenig & Bauer is also setting itself sustainability goals with its new group strategy, ‘Exceeding Print’. Along with its responsibility toward its customers and employees, as a member of the UN Global Compact, the world’s largest sustainability initiative, the Group aims to increase its efforts to deliver on its ecological, social and community responsibilities.

“By 2025, we are aiming to reduce CO₂ emissions in our production plants by 75 per cent, and intend to be completely carbon-neutral from 2030 on,” said CEO Dr Andreas Pleßke. “As the industry’s leading provider of sustainable solutions, we help our customers to reduce their ecological footprint. Solutions based on technology that we developed reduce energy consumption, cut waste and decrease ink and coating consumption, helping to cut CO₂ emissions.”

Koenig & Bauer intends to maintain its entrepreneurial independence in future by retaining a high level of vertical integration – from the smallest gearwheel to complex units.

“Our ‘Exceeding Print’ strategy allows us to promote sustainability as the greatest challenge that the packaging industry will be facing in future, and uphold our claim to leadership when it comes to digitalization,” says Dr Andreas Pleßke. “This means organic growth with our own business models and products, but does not rule out growth through acquisitions.”

The RRD board, consistent with its fiduciary duties and in accordance with the terms of its November 3, 2021, definitive merger agreement with affiliates of Atlas Holdings, will review and consider the revised Chatham proposal to determine the course of action that it believes is in the best interests of the company and RRD shareholders.

RRD shareholders do not need to take any action at this time and the board has not yet made any determination with respect to the revised proposal.

As previously announced, RRD received an unsolicited proposal from Chatham on November 16, 2021, to acquire all of the outstanding shares of RRD not already owned by Chatham for $9.10 per share in cash, and thereafter the company has been engaged in negotiations with Chatham regarding the terms and conditions of the proposal. Additionally, on November 27, 2021, and as part of its “go-shop” process, RRD received an alternative acquisition proposal from a strategic party for $10 per share in cash, subject to other terms and conditions.

On November 28, 2021, the board determined, in good faith after consultation with its outside financial advisor and legal counsel, that both the proposals would reasonably be expected to lead to a “superior proposal” (as defined in the Atlas merger agreement), thereby making each of Chatham and such strategic party an “excluded party” under the terms of the Atlas Merger Agreement.

At this time, the Board has not determined that the revised Chatham proposal or the alternative acquisition proposal constitutes a superior proposal, and there can be no assurances that a transaction will result from either proposal or that any alternative transaction will be entered into or consummated.

The company remains subject to the Atlas merger agreement and is complying with its terms and conditions, which remain in effect unless and until the agreement is terminated. Accordingly, subject to and as required by the merger agreement, the board has not made a “Change of Recommendation” (as defined in the agreement), reaffirms its recommendation of the agreement and rejects all “alternative acquisition agreements” (as defined in the Atlas Merger Agreement).

As previously announced, RRD received an unsolicited proposal from Chatham on November 16, 2021, to acquire all of the outstanding shares of RRD not already owned by Chatham for $9.10 per share in cash, and thereafter RRD has been engaged in negotiations with Chatham regarding the terms and conditions of the proposal. Additionally, on November 27, 2021, and as part of its “go-shop” process, RRD received an alternative acquisition proposal from a strategic party for $10.00 per share in cash, subject to other terms and conditions (the “Go-Shop” proposal).

On November 28, 2021, the company’s board determined, in good faith after consultation with its outside financial advisor and legal counsel, that the Chatham and Go-Shop proposals would reasonably be expected to lead to a “superior proposal” (as defined in the Atlas Merger Agreement), thereby making each of Chatham and such strategic party an “excluded party” under the terms of the Atlas Merger Agreement. At this time, the Board has not determined that the Chatham Proposal or the Go-Shop Proposal constitutes a Superior Proposal, and there can be no assurances that a transaction will result from either proposal or that any alternative transaction will be entered into or consummated.

Under the Atlas Merger Agreement, the Company is required to pay a $20-million termination fee and expense reimbursement to Atlas if the Company terminates the Atlas Merger Agreement in order to enter into a definitive merger agreement with respect to either the Chatham or Go-Shop proposals by 11:59 p.m. (Chicago time) on December 9, 2021.

Chatham has agreed to pay the termination fee and expense reimbursement to Atlas on the Company’s behalf in such event. The Company would be required to repay Chatham for such termination fee and expense reimbursement under certain circumstances in connection with a potential termination of the proposed definitive merger agreement with Chatham.

At this time, the Company remains subject to the Atlas Merger Agreement and is complying with the terms and conditions of the Atlas Merger Agreement, which remain in effect unless and until the Atlas Merger Agreement is terminated. Accordingly, subject to and as required by the Atlas Merger Agreement, the Board has not made a “Change of Recommendation” (as defined in the Atlas Merger Agreement), reaffirms its recommendation of the Atlas Merger Agreement and rejects all “Alternative Acquisition Agreements” (as defined in the Atlas Merger Agreement). The Company does not intend to disclose developments with respect to this process unless and until it determines it is appropriate to do so, subject to the terms of the Atlas Merger Agreement.

“Dylan and I have worked with Henry for over 15 years, and his experience, knowledge and approach to service is an invaluable addition to our service offerings,” said Michael Steele of Sydney Stone. “His mentorship for our service team is an important part of our strategy to continue to grow increasingly skilled, professional and nimble team members. Our strategy of continuous skill development is aimed to provide industry-leading technical service that will ensure our professional partners have the support they need to meet their client’s deadlines and protect their valuable assets.”

“It’s been my pleasure to work with Michael and Dylan for many years,” said Henry. “I have complete trust that they will continue to take care of my loyal and long-time customers, and believe that clients of Philips Graphics will benefit from having access to multiple technicians and support staff, including myself. I look forward to being an official part of the Sydney Stone crew and sharing my experience in field service to the benefit of both their team and their customer base.”

Existing customers of Philips Graphics have the option to continue using the same phone number they have in the past to schedule service, or they can call 1-800-668-6055 or 905-673-9641, or e-mail service@printfinishing.com.

To further facilitate this transition, Sydney Stone is offering a welcome package to customers of Philips Graphic Services. Please contact us at sales@printfinishing.com to claim yours. The package includes discounts and coupons for supplies, service and equipment.

“The supervisory board of Heidelberg would like to thank Rainer Hundsdörfer for his extraordinary commitment as CEO of the company. He has succeeded in steering the company successfully through the COVID-19 crisis, while at the same time setting the course for the company’s further strategic development and establishing new business such as e-mobility,” said Dr. Martin Sonnenschein, chair of the supervisory board.

For his part, Rainer Hundsdörfer acknowledges the trusting co-operation with the supervisory board as well as within the company. “These have been very challenging years here at Heidelberg. We successfully defied the pandemic and strategically realigned Heidelberg. I am proud to be part of the Heidelberg family. I wish my successor Ludwin Monz a good start to the new financial year and continued success.”

“With the appointment of Ludwin Monz, Heidelberger Druckmaschinen AG is gaining a suitable face to drive forward its strategic realignment,” emphasizes Sonnenschein. “He is a proven expert in high technology and innovation with capital market experience.”

Ludwin Monz is chair of the management board of Carl Zeiss Meditec AG until the end of December 31, 2021.

Monz has been a member of the management board since 2007 and was appointed its chair in 2010. He was also appointed to the group management board of Carl Zeiss AG with effect from January 1, 2014. After studying and obtaining a doctorate in physics at the University of Mainz, Monz went on to the National Institute of Standards and Technology in Gaithersburg, USA, and the Gesellschaft für Schwerionenforschung GSI, in Darmstadt, where he worked as a scientist. He is also an MBA graduate of Henley Management College in the UK. In 1994, he joined ZEISS as a scientist. Two years later, he became head of Geodetic Systems Development, then overall head of the business unit. In 2000, he moved to the Medical Technology division of ZEISS.

Looking ahead to his new role,  Monz says, “For me, Heidelberger Druckmaschinen AG is a flagship of German mechanical engineering. I see enormous potential for the future in the broad expertise of its employees, its widely branched global organization and its long-established brand.”

Firstly, in what are unprecedented times, how have the last 18 months been for Gallus?

FR: Yes, the last 18 months have been a very challenging time for everyone. However, COVID-19 made us fast-track a few things that we might not have done so quickly, supporting a wider strategy to reposition the business, improve efficiencies and drive profitability via a number of new initiatives and business changes.

RH: Indeed, the pandemic impacted the whole world and none of us were immune. However, at the same time, the impact of our transformational process for the wider Heidelberg business started to bear fruit, and with increased sales throughout the year, business recovery was much faster than expected, which has obviously helped every business within the group.

FR: We still have many pandemic-made issues to overcome, such as electronic parts availability, how to socialize with our team and the wider market, restrictions on travel and much more – it’s far from over, but we are very positive with regards our future and the potential of the business.

Rainer Hundsdörfer

In terms of Gallus, what specific changes have you made to the business?

RH: Well, to realize the potential that Ferdinand talks about, we embarked on another transformational program that had begun many months before, which was expedited when the Benpac acquisition had run its course. To do that, we completely restructured the Gallus business, providing it with the flexibility and autonomy to make its own decisions and be agile and creative once more. As a member of the Heidelberg Group, Gallus has sole responsibility for all business within the labels market, and this customer segment is important to us.

Today, Gallus has separate sales, service and R&D operations, and can respond very quickly to specific customer requests or wider market trends. Gallus and its management team report only to me, which makes decision-making faster, but the Gallus team has also been able to retain the Heidelberg elements that made sense, such as manufacturing its digital elements at our advanced manufacturing facility in Wiesloch (Baden-Württemberg, Germany), as well as use our in-country market presence for a wider reach. It has the best of both worlds. We’ve also seen the return of several ex-Gallus employees– really talented individuals from all over world who know the business and our customers, and are now instrumental in driving the business forward.
Sounds impressive, but I’m glad you mention Benpac – what was the situation there?

FR: When Benpac approached us at the beginning of 2020, Gallus wasn’t actually for sale, but following early discussions with them and our internal review, strategically, the sale made sense for the wider Heidelberg business.

RH: However, the acquisition process wasn’t typical. It took several turns that through no fault of our own, either completely stalled progress or made us very uncomfortable, with the sale eventually collapsing.

FR: Since then, and with a committed team, we haven’t looked back. With all the changes we’ve made– a solid strategy in place, the right people, amazing products and the strength of Heidelberg beside us – we now have all the assets and potential to lead the labels and packaging markets and make a huge contribution to the group.

Does this mean that Heidelberg is no longer seeking a buyer for the business?

RH: That’s correct; Gallus is definitely not for sale. During the pandemic, we received a very good offe, but now we are very happy we did not sell the business. Gallus helps us in the packaging business, which offers excellent growth potential, and it also perfectly meets our quality requirements. We are giving Gallus all the freedom it requires to grow and further develop the highly specialized label business, and we will offer our synergies wherever this makes economic sense. On this basis, we are expecting Gallus to make a valuable contribution to the Heidelberg Group result in the future.

FR: I would like to emphasize once again that we are 100 per cent committed to the business and our people. Moreover, we’re excited to bring further innovation to the labels and packaging markets, crucial in enabling customers to not only improve their operations, but to leverage new profitable applications too.

For Gallus, what has been the result of these changes so far?

FR: The attitude of our people has changed dramatically. We now have a dedicated team with the thinking and flexibility of a start-up business, where creativity is encouraged, and nothing is impossible. Where we were firefighting issues before, we’re fixing them now.

Another big change has been in our ability to honour customer commitments. Our independence has enabled this to happen, and it has already seen customer relationships blossom once more. Additionally, with Gallus R&D now back to full speed, we’re increasing cost efficiencies and overall product quality within the supply chain, which is having a big impact on revenue. In fact, by the end of 2021, we are on target to be profitable for the first time in many years.

Have you made any changes to the existing Gallus portfolio?

FR: Yes, we have been doing a lot. I can’t discuss too much, but I can mention that we will shortly be conducting field trials of a new Gallus Labelmaster 570, which promises to deliver many new customer benefits. We also started selling the Gallus Labelfire with a low migration capability, and from the end of 2021, the world’s first ‘flexible UV Inkjet Ink’ for 1200 dpi will be available on the Gallus Labelfire for digital folding carton production. With this new ink you will be able to die cut and crease folding cartons without cracking or splintering, and we will extend this innovation to other applications (e.g. tube laminates).

We have also ramped-up our secondhand press business, renamed ‘Gallus Classics’, where we buy, refurbish and sell warranted pre-owned Gallus presses. We also provide a ‘matching’ service, putting buyers and sellers of second-hand Gallus presses together. There was large demand from customers looking for parts for older machines, so we have developed upgrades for those presses that are at the end of their ‘electronic’ life, but would otherwise go on for many years. For instance, Gallus Classics provides control system upgrades for Gallus EM Lines and the Gallus TCS 250.

Utilizing our extensive R&D experience and in-depth application understanding, together with our customers, we also develop highly customized solutions on a project base – these aren’t intended for serial production.

Finally, we are going to launch a new production system at the very top end of our product range. It is too early to announce details, but it will be exciting.

Can you tell us more about the benefits of the ‘low migration’ capability of the Gallus Labelfire’?

FR: Labelfire is a hybrid, up to seven-colour plus white and 1200dpi, digital inline label press combining the benefits of digital and conventional printing with further processing technology in one system.

For customers specializing in food, pharmaceuticals and cosmetics we needed to provide further assurance about ink migration. So, we were delighted to pass all the necessary industry certifications for that, and more importantly, our UV low migration inks meet the requirements of Swiss Ordinance and Nestle Guidance – a huge milestone for Gallus and our customers. With this now all in place, we believe that Labelfire offers the highest quality UV inkjet solution on the market, with the ability to integrate with any label workflow without limitations. What’s more, our total cost of ownership calculation shows the lowest cost per print over all run lengths. Now, the press opens-up the food, pharmaceuticals and cosmetics sector with low migration.

Is the new low migration capability for the Gallus Labelfire commercially available today?

FR: Yes, it is.

Switching to Heidelberg, what did you do to enable the business turnaround?

RH: Too much to summarize succinctly, but we have been making fundamental changes to how the Heidelberg business thinks and behaves. We are learning to be humble, and that impacts every element of the business from equipment and product life cycle to customers and addressing their needs. After 200 years of working in a single industry and serving it in our way, old habits die hard. Internal culture change has been one of the biggest barriers to moving us to where we need to be, but with some truly inspiring leaders, we’ve made amazing progress, and success breads confidence and further success.

Given that we are, hopefully, turning a corner with the pandemic, what are both of your thoughts as to the immediate future of the industry?

RH: Interestingly, in terms of Heidelberg, business performance in June 2021 represented our best month for 10 years. Some of this was due to a pandemic bounce-back, but our transformation process and new business lines were also a huge contributor to this turnaround, and we see this trend continuing.

FR: We are also very optimistic. Not only are we making great progress, but also seeing sales increase across the portfolio, especially for Labelfire and its ability to meet the new demand for ‘profitable’ digital label jobs and a post-COVID consumer boom.

Finally for Gallus, where do you see the business in five to 10 years’ time?

FR: Well, we obviously have a long-range business plan that we’re mapping progress against, but firstly, we need to continue the transformation process. What’s more, and like any manufacturing business right now, we have the impact of the pandemic to navigate. As previously mentioned, the most immediate issue involves sourcing parts, specifically electronic parts for our presses.

From a product perspective, we will have a portfolio that caters for every labels and packaging customer requirement and budget. We are pretty close already, but within the next five years we will close all the gaps with new, innovative products. In addition, we will continue to evolve our presses to drive the innovation and efficiencies that our customers need, and that means continuing to develop our digital offering. If we continue as we’ve started, we expect to be a strong, growing and profitable business in the coming months and years.

This new location further positions CFR to help North American customers achieve their goals in consulting, recruiting, procurement automation, and mergers and acquisitions. An expert in operational efficiency, CFR consultant Howard Conway leads the east coast expansion.

Based in St. John’s, Newfoundland, Conway has over four decades of experience in change management, customer service and workflow. His expertise supports specific areas of business that are experiencing additional challenges due to COVID-19 including process improvement, cost realignment and improving profitability.

“This is an unprecedented time in the industry and I am pleased that CFR can now help clients coast to coast across North America,” said Gordon Griffiths, CEO, CFR.

CFR has Canadian offices in Victoria, Toronto and St. John’s. In the US, offices are located in Seattle, Denver, Minneapolis and New York.

The company remains a UK entity with its shares listed on Euronext Brussels. It is expected that Euronext will make the change of name effective from the start of trading on 20 October, 2021, and that the company’s stock symbol will be changed from GLOG to HYSG. There will be no other changes to the listed shares.

Chair Guido Van der Schueren said, “I have felt for some time that the name ‘Global Graphics’ no longer described the group’s mission, especially to the investor community. With the acquisition of Hybrid Software earlier this year it was clear that we needed a name which reflects the real nature of our business: enterprise software combined with printhead electronics for digital printing applications. I’m very pleased with the strong support we have received for this rebranding.”

CEO Mike Rottenborn adds, “The four operating companies in the group – Global Graphics Software, Hybrid Software, Meteor Inkjet and Xitron – operate under their own individual brands which are well established in the market, but it’s important that investors and customers see them as part of a larger group with a complete solution for industrial inkjet manufacturing. Rebranding the company as Hybrid Software Group is an important step in the positioning of our company, and I look forward to promoting the new brand.”

Werbitt has more than 30 years of experience, including 27 years as the co-founder of an $18-million printing company. In 2008, he launched the industry’s first viral video, “Printing’s Alive”.

Apart from his regular contributions to industry publications, his enthusiasm and passion for next-level print communications has landed him on panels, boards and conference keynotes across North America.

“The goal of the Print Whisperer is simple,” said Werbitt. “Many print industry owners and executives are struggling to re-invent their business, especially in a post-COVID commercial environment. Their existing operations and sales processes, production workflows and marketing tactics are becoming inefficient and ineffective. What got them here won’t get them to where they want to be. What’s needed is a fresh pair of eyes. The Print Whisperer works with small to medium-sized print businesses to tighten-up their operations, increase efficiencies and fuel a better company culture.”

Terms of the transaction were not disclosed.

Upon closing, the XSYS management team will be led by Antoine Fady as CEO, Dagmar Schmidt as COO and Martin Sauer as CFO. Steve Dryden will succeed Fady as CEO of the Flint Group.

“The carve-out we are announcing today represents the next logical step for Flint Group and XSYS,” said Fady. “It will further enable the XSYS business to advance as a standalone, best-in-class, full solutions provider to the flexographic and letterpress pre-press industries, with tailor-made solutions developed for each market segment and customer type. We look forward to working with Lone Star, whose experience and track record will be of great benefit as we move XSYS forward in this next phase.”

“With this transaction, we will create two dedicated management teams with increased strategic and operational focus,” said Steve Dryden, newly elected Flint Group CEO. “Flint Group becomes positioned to further invest in the structurally growing segments of paper and board, flexible packaging and labels, serviced with our conventional and digital printing consumables. This successful strategy – centred around product and service innovation – enables Flint to grow with customers that value our colour proposition by helping them to standardize and reduce their costs.”

“We look forward to working with XSYS, a leading global provider of printing solutions,” said Donald Quintin, president, Lone Star Opportunity Funds. “We recognize not only the resilience of the XSYS business and the diversity of its offerings, but also its growth prospects. We appreciate the value XSYS provides its many customers, and have great confidence in the management team’s commitment to realizing XSYS’s potential in the years ahead.”

Goldman Sachs Bank Europe SE and J.P. Morgan acted as financial advisor and Freshfields Bruckhaus Deringer LLP acted as legal advisor to Flint Group. Lone Star was advised by Perella Weinberg Partners and Weil, Gotshal & Manges.

The acquisition of MultiCam, including its operations in the U.S. and sales offices in Canada and Germany, expands Kongsberg PCS’ market reach and customer base across North America and Europe, and creates one the world’s first diversified provider of digital finishing and CNC cutting machines.

Stuart FoxStuart Fox, Kongsberg PCS president, said, “This is a monumental day for Kongsberg and MultiCam. Our businesses coming together to drive best-in-class cutting and finishing processes will deliver a tremendous advantage for our global customer base. Following the completion of the deal I am now excited to begin integrating our businesses and exploring new markets.”

Founded in 1989, MultiCam supplies CNC cutting solutions for a multitude of industries and applications ranging from sign making to digital finishing, aerospace to automotive, sheet-metal to plate-steel processing, hardwoods to cabinet making and thermoform trimming to plastics fabrication.

MultiCam’s  CEO, David J Morse added, “At MultiCam, we have worked for over 30 years to diligently build a world-class organization in the focused cutting arenas of routing, fabrication and digital finishing. The MultiCam brand is synonymous with quality, durability and ease of use. We are very pleased to join forces with Kongsberg who has built an outstanding global brand and culture that align directly with what we have built at MultiCam.”

The company will continue to operate under the MultiCam name within Kongsberg Precision Cutting Systems, with David J Morse joining the Kongsberg PCS senior management team and continuing to lead the MultiCam business.

McGregor retired 25 years ago, but his company is still remembered as the industry leader. He told us his company’s mandate was to “be the best printing company in Canada.” He instilled in the 160 staff members at AJ that “commercially acceptable” quality was unacceptable. In order to be the best, everyone in the plant had to be committed to quality. Therefore, they did not have a QC department because everyone was authorized to stop a job if there were quality issues.

Stress on quality

Quality is much more than a slogan at AJ; there’s a stress on the right combination of technology, tools, training, skills and attitude. McGregor made sure AJ was equipped with the best technology. It was a Heidelberg shop, which meant work could be transferred from one press to another seamlessly. McGregor shares the story of producing an annual report for a large U.S. client. The client was onsite for press approvals, and he overheard the client telling his office he would return in two days instead of a week, since they were running all the signatures on different presses so they would finish in half the time others would take.

To demonstrate to clients that AJ produced the best quality, they would enter work into quality competitions like the Gallery of Superb Printing, which was run by the Craftsmen Club. He would then frame the awards and present them to their customers.

Annual reports

To build a name and reputation for quality, McGregor focused on the annual report (AR) market. He was warned that there were other, more established companies in that space, but he persevered and became the industry leader. Additionally, AJ’s reputation and track record allowed it to be awarded work even if they were not offering the lowest price. They needed to be competitive, but customers recognized the value-add provided by AJ warranted a premium.

AJ would also host an AR show, and invite art directors and corporate decision-makers to join them to learn the latest techniques, papers, trends and coatings that could be used to enhance their reports.

Once AJ built a reputation for best quality annual reports, they then focused on expanding sales. At one point, the annual reports for all of Canada’s major banks were produced by AJ.

Innovation

To stay ahead of competition, AJ invested in innovation and R&D. They developed varnishing techniques that had not been used before. They managed their paper lifts in small piles, and while this may not have been the most efficient, quality and colour was more consistent. They developed new colours and combined metallic silver with PMS colours to achieve unique effects.

One key requirement was the team. They retained key staff, provided a healthy work environment, and had strong leaders for all departments including manufacturing, sales and operations.

Customer focus was a constant endeavour, and they would frequently meet to see what could they do differently and better. While this extra effort came at a price, customers were willing to pay because they recognized the added value AJ offered.

Bob Dale and Nicole Morrison are with Connecting for Results, Inc. They can be reached at info@connectingforresults.com.

This article originally appeared in the September 2021 issue of PrintAction.

The recently signed agreement is with Tecnoform, a company from Colorno (Parma) which will retain the remaining 30 per cent of the capital, and which specializes in the production of trays, displays and internal elements for packaging, made from plastic and other materials, used in various industrial sectors such as cosmetics, fashion, toys and food.

The NewCo is a spin-off of the Tecnoform business dedicated to the development of innovative packaging products to replace plastic with thermoformed cellulose through a proprietary technology to process cellulose fibre and certified and patented packaging solutions that are highly innovative and environment-friendly. It will initially focus on the cosmetics and high-end perfumes sectors. The applications, however, are endless, ranging from luxury items to technology, from jewellery to watches and food and e-commerce packages, with Fedrigoni aiming to expand this business to reach a turnover of $25 million in the next two to three years.

“The agreement with Tecnoform is a new milestone on the path toward innovation to offer the market higher performing paper replacements for plastic. This is one of the main strands of our sustainability policy for which we have set challenging objectives for 2030,” said Marco Nespolo, CEO of the Fedrigoni Group. “The luxury packaging sector is extremely relevant to us and we believe we can make the difference in guiding it, on a global level, toward environmentally friendly solutions, thanks to the know-how acquired so far, the synergies with the other activities in our ecosystem and the possibility of globalizing business, expanding it from Europe to America and Asia”.

This is the sixth acquisition in less than three years for Fedrigoni.

“Voxel8’s innovative technologies and talent will help us accelerate the execution of our 4.0 strategy to digitize sustainable, on-demand textile production,” said Ronen Samuel, CEO of Kornit Digital.

“Voxel8’s innovative and sustainable technology enables the digital creation of unique decorative and functional applications, while eliminating time and waste from the manufacturing process,” said Fred von Gottberg, Voxel8’s president and CEO.

The Channel Futures MSP 501 survey examines organizational performance based on annual sales, recurring revenue, profit margins, revenue mix, growth opportunities, innovation, technology solutions supported and company and customer demographics. Konica Minolta has been selected as one of the technology industry’s top-performing providers of managed services by the editors of Channel Futures for 10 consecutive years, representing the efforts of its Canadian operation, IT Weapons, as well as All Covered, its IT services division in United States.

The 2021 MSP 501 list is based on confidential data collected and analyzed by the Channel Futures editorial and research teams. Data was collected online from March 1-May 24, 2021.

“We are proud to be on this distinguished list that reflects this team’s continued efforts to ensure our clients feel safe,” said Ted Garner, president of IT Weapons.

Vestcom uses data management capabilities to synthesize and streamline store-level data and deliver item-specific, price-integrated messaging at the shopper’s point of decision. The acquisition is expected to close in the third quarter of 2021, subject to regulatory approvals and other customary closing conditions.

Vestcom is headquartered in Little Rock, Ark., with roughly $400 million in annual revenue. The company has 11 U.S. production facilities and approximately 1,200 employees, with sales across multiple U.S. retail channels, including grocery, drug, and dollar.

“Vestcom is a high-performing business that is a near adjacency to RBIS,” said Mitch Butier, Avery Dennison’s chair, president and CEO. “With this acquisition, we are expanding our position in high-value categories and adding complementary channel access and data management capabilities that have the potential to further accelerate our intelligent labels strategy. We look forward to welcoming them into the Avery Dennison team.”

Larsen will team up with supervisor Rob Kondratowski and his team of highly qualified operators. Larsen will be responsible for day-to-day partner communication, estimating, scheduling, project consultation and meeting with existing and prospective clients. He will continue to work with Scott Gray, VP of sales and Marketing to serve, advocate and empower the professional print communicators of Western Canada and the Pacific Northwest.

Southern Lithoplate’s strong customer support and expertise within the newspaper sector and Kodak’s world-class products and technology will now be fully integrated under Kodak’s print solutions.

Kodak’s service and support team will provide a comprehensive plan for Southern Lithoplate’s customer base, offering a vast range of different service options to meet a wide variety of business requirements.

“Our partnership with Southern Lithoplate deepens our expertise in the newspaper segment and strengthens our ability to provide exceptional service for customers,” said Jim Continenza, executive chair, Eastman Kodak Company. “Kodak’s world-class service and support helps customers maximize uptime and improve operational efficiency to drive profitability and growth.”

“With an 87-year history of putting our customers first, it was vital that we find the right partner to carry on SLP’s exceptional service legacy. Kodak will provide the very best service, support and print solutions available on the market. Our decision to choose Kodak to continue on with the SLP customer base includes Kodak’s on-going commitment to print long-term and the honour and integrity by which the team at Kodak has supported our plate business since January,“ stated Edward A. “Trip” Casson III, SLP chair.

The Kodak service team will take over the servicing of Southern Lithoplate’s accounts beginning August 1, 2021.

With this third acquisition in 18 months, Fedrigoni further strengthens its position as the third global player for self-adhesive materials.

“The acquisition of Acucote represents a further step in the growth strategy in the increasingly promising self-adhesive materials sector, where we are determined to expand our position as market leader,” said Marco Nespolo, CEO of Fedrigoni Group, “It is in line with our wish to diversify our geographical penetration, strengthening our position across the Americas and in particular in the United States.”

“The new entry to the Group will allow us to increase production capacity directly on site and to distribute throughout the United States, also thanks to the integration with our subsidiary company, GPA, to create excellent procurement alliances and to count on cutting-edge technologies, including in terms of environmental sustainability,” added Fulvio Capussotti, executive vice-president of the Fedrigoni Self-Adhesives division.

“Lauren brings the perfect blend of a relentless focus on customer experience with a pragmatic approach to internal collaboration, from marketing and sales, to various divisions within large complex global organizations,” said Carsten Bruhn, CEO, Ricoh North America. “She embodies our Ricoh team values and shares our team’s obsession with customer satisfaction and embraces our culture of excellence mindset. Welcoming Lauren to the team is one of many ways we are mobilizing to take advantage of the tremendous opportunity that lies ahead for Ricoh, our partners and customers.”

Sallata comes to Ricoh from Panasonic Corporation of North America, where she led the region’s marketing transformation, redesigning the brand and digital strategy to align with the company’s new business positioning. With a focus on extending the brand from consumer to a holistic provider of integrated solutions, Sallata increased overall purchase intent and awareness, developed long-term brand strategy positioning for millennial and Gen Z buyers and launched a customer engagement platform. While at Panasonic, she received several industry awards including 2020 ITSMA Marketing Excellence Diamond Award in Transforming the Brand; 2018 ANA B2 ‘Marketer of the Year’ top three finalist; and two 2017 Stevie Business Awards for B2B Campaign of the Year.

“The energy, creativity and authenticity I see at Ricoh is inspiring,” said Sallata. “I’m thrilled to join a team so passionate about the customer experience and am excited to share my learnings from other large-scale marketing transformations. It’s clear that the Ricoh team values collaboration, teamwork, responsibility and an unwavering commitment to customers, a true recipe for long-term success, which is exactly what we’ll accomplish together.”

The goal is to improve. However, managers need to know what to improve to do so. Also, how do you check if things have improved? Measurements must therefore be established and constantly monitored.

The adage, “what gets measured gets done” is true. I’m sure many of you have a smart watch or an activity tracker. A Fitbit lets you set hourly, daily and weekly goals, motivates you to keep moving and informs you when you reach the goals! The same applies for managing your business.

The challenge is to know what to measure. Key productivity indicators (KPIs) can help with that. Since there are many types of activities and performances to measure, it is critical to select the correct metrics to avoid ‘analysis paralysis.’ Keep the following guidelines in mind when you are selecting KPIs:
• practical – simple, easy-to-get data to report, analyze, maintain, and act upon;
• fewer KPIs is likely better so you remain focused;
• identify KPIs that have the greatest impact on your business;
• automate KPI collection and reporting for greatest impact;
• draw from your MIS/ERP system for consistent, relevant information;
• in order to get information from your systems, you need to collect them;
• ensure team understands why you are collecting the data, and how you use it;
• share appropriate data with team members to align everyone’s efforts; and
• interpret what the data means (i.e. what is the root cause of the negative or positive variance and what action needs to be taken).

Measure improvement, not just activity. To do this, you need to track KPIs over a period of time to understand the changes and identify if they are positive or negative. For example, sales per month, compared to the same month in a previous year. Also remember that while revenue is a metric it can be misleading. For example, some printers are achieving increased margins with lower sales, so total revenue is only one side of the story.

How to get started
The image at the beginning of the article has some suggestions that may help. Remember, PrintingUnited publishes performance ratios that can help benchmark your financial and operational performance to industry standards.

Bob Dale and Howard Conway are with Connecting for Results Inc. They can be reached at info@connectingforresults.com.

This article originally appeared in the May 2021 issue of PrintAction.

The rebrand is part of the company’s strategy to evolve its business and create a foundation for new and emerging opportunities. A review of the corporate strategy began in late 2019 and was then extended due to the COVID-19 pandemic. The company’s leadership team used the additional time to thoroughly review the organization’s direction, the growing impact of technology in the field, and how customers were using print and information services in the rapidly changing work environment. Interviews with employees, customer surveys, focus groups and an expert advisory team helped shape the rebrand and new direction for the company.

The branding research determined the company’s current brand identity no longer accurately reflected the organization’s national reach and growing set of digital on-demand print and information solutions. The new WCD identity embodies an organization that is reinventing itself, but is still very committed to its roots and the legacy it has built in its core markets.

“This is an exciting change for us that reinforces our direction as a digital company that provides print and information solutions to our business customers, and, ultimately, to their customers. We are focused on WCD’s value proposition and what our people bring to the market. While our commitment to the customers and communities we have always served will not change, there is now greater potential for us to grow the scale and scope of our operations and show what a proud Alberta-based company can bring to other markets. We believe the new WCD brand positions us perfectly for such opportunities,” said Jennifer Brookman, vice-president of marketing at WCD.

WCD is currently updating its building signage, delivery fleet, customer sales materials, website and social media channels to reflect the new branding.

Dino Scalia, senior vice-president and managing partner said, “Andrew will continue to expand the execution of our mission; establishing meaningful and productive relationships with both job seekers and employers in Canada. Providing an unparalleled customer experience is the first step toward being a leader in our market, and Andrew operating from the well-established PrintLink Platform truly enhances our opportunities to accomplish that for our clients and candidates.”