Sign & Display the Perfect Companion for Commercial

© Keypoint Intelligence 1|© Keypoint Intelligence

Sign & Display:

The Perfect Companion for Commercial Printing

Ron Gilboa

Group Director, Production Services

October 2019

Sponsored by:

© Keypoint Intelligence 2|

FunctionalDecorativePackaging

Our Served Segments Are Interlinked

Cross Business, Application and Technologies

Brand protection*

Coding/Barcodes*

Consumer Labels

Corrugated Display & Packaging

Direct-to-shape

Flexible Packaging

Folding carton

Ceramics *

Glass*

Woodworking

Textiles

Garment Decoration

Interior Decor

Addressing*

CAD

Photo

Promotional

Publishing

Direct-mail

Sign & Display

Transactional/ Transpromo

Regulated Communications

MaterialsInk & Toner

3D*

Printed Electronics

Biomedical

Graphic Communication

Functional & IndustrialGraphics Arts

Paper Paper/Board/Plastic Advanced Substrates Objects

Workflow & Automation

* Limited services


Forecast

-4%

-2%

0%

2%

4%

6%

8%

10%

03 05 07 09 11 13 15 17 19 21

The Global Economic Outlook Reflects Our Challenges

Source: International Monetary Fund: World Economic Database, October 2018

World Average

Advanced Economies

Developing Economies

Real GDP Growth – Annual percent change


U.S. Commercial Printing …

0

20

40

60

80

100

120

'92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 18e

U.S. Commercial Printing ($B)

Source: US Department of Commerce

U.S. Economic recession

The Struggle Continues


Growth Opportunities…


Grand Communication!

Photo: Hypsos


Consumer Demand = Business Opportunity

Self expressions prevalent among every age group

20%

42%

22%

Consumers who expressed

interest in personalized

products are willing to pay a

20% premium

Consumers looking in

customized products prefer

known brands rather than a

selection of options

Consumers willing to shar

some data for a more

personalized service / product

Source: The Deloitte Consumer review –

Made-to-order: The rise of mass personalization


Target Industries Purchasing Wide Format

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Other

Media Buying Organizations

Artist

Entertainment/Amusement

Financial Services

Hotel/Other Lodging

Government Agency/Department

Architectural/Engineering

Professional Services

Non-Profit

Healthcare

Personal Services

Manufacturing

Restaurant/Food Service

Construction

Real Estate

Education

Advertising

Retail

Q12: To which of the following industries do you sell digital wide format color printing?

Multiple Responses Permitted

N = 304 Total RespondentsSource: Looking for BIG Opportunity in Graphic Communications & Specialty Printing; InfoTrends 2017


The Opportunity:

Print Common Communication Platforms

Fratelli Beretta


Top 10 Most Profitable Applications

N = Varies; Base: Respondents who offer these digital wide format applicationsSource: Looking for BIG Opportunity in Graphic Communications & Specialty Printing; Keypoint Intelligence – InfoTrends 2017

Q41: How would you describe each of the applications that you regularly produce in terms of profitability?

0% 20% 40% 60% 80% 100%

Sports Apparel

Floor Graphics

Industrial Products

Backlit Displays

Textiles for Soft Signage

Window Graphics

Wallpaper/Interiors

Signs

Vehicle Graphics

Banners

Highly Profitable Somewhat Profitable


The Growth Effect – End User Prespective

“Our business has grown since we added wide format, and this

growth has been steady over the past couple of years. Our growth

has been achieved slowly but surely… I say slowly because wide format isn’t something that you can just dive into and crush. There’s a

very steep learning curve, and we are still learning.”

— Marketing Manager, commercial print shop with 10 to 19 employees


N = 304 50 114 50 44 46Base: Total RespondentsSource: Looking for BIG Opportunity in Graphic Communications & Specialty Printing; InfoTrends 2017

0%

20%

40%

60%

80%

100%

Total Commercial Sign &

Display

Digital Print

Specialist

Screen Ad Specialty

Q11: What percentage of your revenue is related to sign, display, and specialty graphics?

Adoption Continues –

Sign, Display & Specialty Graphics Revenue

Almost

60%of All Print Business is

Wide Format


Top 10 Revenue Contribution of Applications

0% 5% 10% 15% 20%

Fine Art Work

Advertising Specialty Products

Vehicle Wraps

Window Graphics

POP Displays/Signs

Vehicle Graphics

Posters

Decals

Banners

Signs

Q26: Of the applications you produce, what percentage does each contribute to your sign, display, and specialty graphics revenue?



Changes in Top Growing Applications

14

• Q24: How are each of the following applications changing as a percentage of your wide format printing business?

Source:2018 FESPA Print Census

0% 20% 40% 60% 80% 100%

Posters

Billboards

Banners

Backlit displays

Vehicle wraps

Decals

Vehicle graphics

POP displays/signs

Wallpaper/Interiors

Growing No Change Decline

Wallcoverings – Offer a Growth Value Segment to POPs

Digitally Printed Wall Covering Application


Change in Demand for Various Capabilities

0% 20% 40% 60% 80% 100%

Linking print to digital media channels

More integration with other marketing collateral

More complex logistics requirements

Online ordering/web-to-print

Delivery to the point of need

Personalization/versioning

Shorter runs

Just-in-time requirements

Shorter turnaround

Increasing Staying the Same Decreasing Don't Know

Q48: How are demands for the following capabilities changing?



On Demand - A Cost of Abcost these days?3’x6’ 13oz Scrim Digitally Printed Banner

Online Sell Price $50.00

Total Cost $25.80

Profit (not fully burdened) $24.20

48%Profit

4%Equipment

(portion of 3yr finance)

6%Ink (based on average

consumption)

17%Media, Finishing,

Accessories

25%Labor (based off 30min)

48% Profit(not fully burdened)


Application & Technology


Wide Format Printing Technologies

Expand Opportunities

EFIMimaki

HP

INCA

Xanté

Roland Mutoh

EPSON

CanonMimaki

Mimaki

HP CanonEPSON

OKI

Fujifilm

Ricoh Mimaki

DURST

ATP Color

AQ

Latex

Sublimation

UV

Solvent

Wide Format

HP


Wide Format Printing – Expanding Opportunities

0

200

400

600

800

1,000

1,200

2018 2023

Pri

nt

Vo

lum

e

M M

2

UV

Sublimation

Latex

Aqueous

Solvent

Sign & display provides high-value

output that augment POD offerings

Durable inks including latex,

sublimation, and UV drive compelling

applications

Commercial printers and digital

printers derive 25% and 56% of

revenues from wide format printing

respectively

Sublimation based devices print

volume surge as new applications

make use of the technology

Source: Keypoint Intelligence 2017-2022 Wide Format Print Forecast

NA Production Volume (Millions M2) 2017 & 2022

11% CAGR ’18-’23


Top Applications Vary by Ink Type

Technology Top Application

Aqueous inkjet Posters

Solvent inkjet Banners, signs, decals

Eco-solvent

inkjet

Used for the widest range of applications

Latex Banners, floor/window graphics, decals, posters,

vehicle graphics/wraps, signs, wallpaper/interiors,

backlit displays

UV-curable

flatbed

Signs, POP displays, and posters

UV-curable

roll-to-roll

Banners, floor graphics, signs

Dye transfer Ad specialty, sports apparel, garments

Thermal

transfer

Decals, signs, labels

Screen presses Garments, sports apparel, industrial products


Durable Ink Technologies Offer Broad

Application Support & New Business Opportunities

Top-growing applications:

› Banners, vehicle wraps, signs, and

vehicle graphics

New applications produced:

› Wallpaper, soft signage, industrial

products, floor graphics, and

apparel

Growing interest in Textile

printing

Source: HP


What is Happening in Durable Ink?

Solvent/Eco-Solvent

Latex

UV Curable

Sublimation


UV Curable


UV Wide Format Technology Review

Roll to roll, hybrid, and flatbed systems are designated by their manufacturers by their material handling.

Most versatile wide format inkjet printing category

› UV curable inks the most suitable for printing on the widest range of media.

› Roll materials such as films and fabrics

› Rigid materials like corrugated board, plastics, metals, wood

Sign & display, decor and industrial applications such as membrane switches and thermoforming

Canon Oce’ GT660 Hybrid

Flatbed/Roll to Roll

EFI Pro 30f

Flatbed

FUJI Acuity Ultra 5006/5008W UV

Grand Format 5M Roll to Roll

Ricoh ProTF6250

Flatbed

MIMAKI JFX200-2513EX-1319

Flatbed

Roland LEF-200

Small Flatbed


UV Printing Vast Range of Application

Clear/Vanish for 2.5D Texture Effects

Print for Ad Specialties(e.g. pens, journals, golf balls)

Matte or Gloss Finishon the Same Print Run


UV Wide Format Ink for Unique Applications

Photo: Roland DG



Photo: Anvy Digital



Photo: Shaeffer AG



Printing on Fiberglass and Rice Paper


Key Trends In UV Printing Hybrid/Flatbed

New innovations in Ink Technology

› Gel Ink

› Latex Inks

› Water based UV

› Flex Ink

Substrates and media

› Fabrics

› PET

Range of product offerings

› Entry level to production

Continued migration from 1.6M to Grand Format 3.2M

› Flatbed, Roll

› Hybrid


Solvent/ Latex

Eco-Solvent


Eco Solvent Wide Format Printers

To compete with Latex and

UV, Solvent printers now offer

reformulated ink chemistry to

allow for faster outgas

allowing for same day

finishing.

Many Eco Solvent printers

now offer wide gamut ink

colors like Red, Orange, Blue

and Green.


HP has been producing

Latex devices for almost

10 years.

Ricoh, now on it’s 2nd

generation of Latex

technology, is offering a

strong production unit in

the Latex market.

Most manufactures are

looking to enter this

space.

Ricoh L5100 series

Latex Roll to RollRicoh L4100 series

Latex Roll to Roll

HP L365

Latex Roll to RollHP L570

Latex Roll to Roll

Latex Wide Format Printers

HP L3500

Latex Roll to RollHP R1000/R2000

Latex Hybrid


Eco-Solvent and Latex Ink for Vehicle Wraps

Photo: Digital EFX Wraps


Eco-Solvent and Latex Ink for Banners

Photo: Affordable Sign Solutions


Eco-Solvent and Latex Ink for Custom Cut Stickers

Photo: Jukebox Prints


Solvent Ink for Billboards and OOH Advertising

Photo: AXIOS


Sublimation

Photo: Printing News


Sublimation

Mostly used for Soft signage and sports apparel

Ease of use and mounting drives growth

New generation 5M emerging

Sign & Display graphics is migration from paper transfer to direct sublimation


Worldwide Wide Format Print Volume

by Application 2017 & 2022

0

100

200

300

400

500

600

2017

2022

Millions M²

9.7%

Can Be Produced with Sublimation


Sublimation Ink for Soft Signage

Photo Credit: Volloy Inc.


Photo: Printing News

Photo: Roland DG

Sublimation Ink for Soft Signage


Sublimation for Apparel

Photo: HP FESPA 2019


Photo: Alaskan Brewing Co. Photo: Volloy

Photo: Roland DG

Sublimation Ink for Specialty

Applications


Purchasing Plans for Wide Format Devices

0% 20% 40% 60%

No plans to purchase

Thermal Transfer

Offset Press

Screen Press

Transfer Dye Sublimation Inkjet

Direct Dye Sublimation Inkjet

UV-Curable Inkjet Roll-to-Roll

Solvent Inkjet

Aqueous Inkjet

Eco-Solvent Inkjet

Latex Inkjet

UV-Curable Inkjet Flatbed


Q18: Which of the following wide format devices do you plant to purchase in the next 24 months?



Top Equipment Investment Drivers

0% 20% 40% 60% 80%

Other

Expanding number of colors (upgrade from 4 or 6 colors)

Investing in a wider printer

Require devices that can print thicker/rigid substrates

Seeking higher resolution output

Increasing print speed (need for faster printers)

Adding capacity

Reducing production/operating costs

Upgrading/replacing older equipment

Customer demands for new products

Expanding business

Q23: What are the key factors driving your investment in digital wide format devices?




Onward…


Driving Growth …

Expanding printing technologies are addressing the demand for a broad

set of applications.

› Choose the technologies that best

address your clients’ evolving

demands.

› To remain competitive be nimble and

flexible, embracing new and

changing technologies.

› Consider print enhancement as a

differentiator.

Custom Decorative Rug Source: Zimmer


Technology … Choose Strategically

Décor and Wall Covering Applications are Growing on a Global Scale

› All durable ink categories offer applications in this space

Durable Inks Lead Application Development

› Many applications can be produced with all durable ink technologies

Sublimation Ink and Media Continues to Evolve

› Backlit, high-end POP, and fabric signage are leading applications

Soft Signage is Growing

› New durable ink products, particularly in UV will lead to new applications


Expand to Grow

Application expansion is top of mind for PSPs› Nearly 40% of the study respondents

plan to expand their range of print applications expect to do so with business development.

› Other top-ranked expansion needs, include a larger print format and expansion of finishing equipment in production.

POD applications will have the highest volumes and the highest page volume growth, although packaging (folding carton) and WFP have higher growth rates

Source: 2018 Applications in Digital Print Survey


Invest For Success

Proactively manage the business

Embrace a vertical market focus

Ongoing promotion of your business is essential

Automate and optimize

Software investment is required to optimize production

Strategic investment in print technology

Thank You

© Keypoint Intelligence

WEYMOUTH

97 Libbey Industrial Parkway

Suite 300

Weymouth, MA 02189

781.616.2100

[email protected]

HEADQUARTERS

80 Little Falls Road

Fairfield, NJ 07004

973.797.2100

[email protected]

[email protected]

© Keypoint Intelligence

WEYMOUTH

97 Libbey Industrial Parkway

Suite 300

Weymouth, MA 02189

781.616.2100

[email protected]

HEADQUARTERS

80 Little Falls Road

Fairfield, NJ 07004

973.797.2100

[email protected]

Documents

Sign & Display the Perfect Companion for Commercial