Volume XXXIII, Number 2

APRIL/MAY 2014

continued on page 3

Grow Your BusinessDISCOVER BRAZIL’S OPPORTUNITIES FOR PRINT!

year, which also comprises dataand research on 51 countries intotal, including other high-poten-tial global print markets such asChina, India and Indonesia.

Introducing the Brazilian Print Market

For members looking for prof-itable business opportunities in theBrazilian market, specific “guid-ance” is required and should betaken seriously. For example, theBrazilian business culture reliesheavily on local and personalrelationships. NPES staff has thelocal experience, cultural under-standing, and industry/market

Today Brazil is not only thelargest economy in Latin

America, but is also the sixthlargest economy in the world.According to the newly up-dated landmark NPES study,the “World-wide Market forPrint: Identifying Global Oppor-tunities for the Print Industry,”it is also the largest printmarket in Latin Americawith revenues of over U.S.$16 billion in 2012 andgrowth expected to reachU.S. $20 billion by 2017(see Exhibit 1). Twice the sizeof the other five regionalmarkets combined, with apopulation of 195 millionand 20,000 printing industrycompanies (2009), Brazil’sgrowth will be driven byprint packaging and printpublishing revenues, espe-cially newspaper andmagazine printing.

Brazil’s consumer-driveneconomic growth has also

Hamilton Terni CostaNPES Director, Latin America

impacted its print productdemand. With GDP percapita growing by over50% in a decade’s time, moredisposable income will beavailable for goods requiringsome type of print packag-ing. Likewise, higher con-sumer activity has drivenadvertisers’ interest in Brazil(U.S. $15 billion in ad spendin 2011, 18% to newspapersand magazines), with themarket poised to pass theUK as the fifth largest adspend country in the world,and the 2016 OlympicGames set to boost thecountry’s print growth.

All in all, it’s a marketthat cannot be ignored byU.S. suppliers of any size.

For more data on thisgrowing print market, NPESand PRIMIR membersshould consult the “World-wide Market for Print” studyprovided to them earlier this

Exhibit 1: Top Line Print Market Data — Brazil 2007-2017

Source: NPES 2013 study, “World-wide Market for Print: Identifying Global Opportunities for the Print Industry,” by Economist Intelligence Unit

CAGR CAGRCategory 2007 2011 2012 2017 2007-2011 2012-2017

Total print product revenues 13,786.1 17,447.5 16,412.6 20,009.6 6.1% 4.0%

Total equipment sales 1,194.8 1,216.9 947.0 1,113.4 0.5% 3.3%Total prepress consumable sales 102.7 130.5 114.7 137.7 6.2% 3.7%Total ink sales 528.9 746.7 697.1 838.4 9.0% 3.8%Total substrate sales 8,772.5 13,030.5 12,088.8 14,764.9 10.4% 4.1%

BRAZIL AT A GLANCE• Fifth largest country in the world

• Population: 195 million people.

• Sixth largest economy in the world

• Latin America's biggest economy

• Inflation: 6.5% (2011)• Urban unemployment:6% (2011)

• Interest rates: 8% (as of July 2012)

THE BRAZILIAN WAYThe Brazilian business environ-ment requires intimate knowl-edge of the local environment,including both the explicit aswell as implicit costs of doingbusiness (referred to as the“Custo Brasil”). Such costs areoften related to governmentprocedures, and a complex taxstructure. In addition to tariffs,U.S. companies will find a com-plex customs and legal system.Source: U.S. Department of Commerce

NewsNPES THE ASSOCIATION FOR SUPPLIERS OF PRINTING, PUBLISHING AND CONVERTING TECHNOLOGIES

tive marketplace requirescompanies to understandtheir customers’ needs morethoroughly, and deliverhigher levels of service thanever before. An October2013 Accenture study re-vealed a huge “switchingeconomy” in the U.S.: 51%of U.S. consumers switchedservice providers in the pastyear due to poor customerservice experiences. Thehighest switching rates wereamong retail banks, satelliteand cable TV providers,and retailers.

Why is this? I think thatwhile many of these serviceproviders have tons of dataabout their customers, there’sstill a disconnect. They justdon’t understand what it’slike to walk in their cus-tomers’ shoes.

I try to visit as many of ourcustomers as I can in NorthAmerica, and spend as muchtime as possible with them atshows throughout the year.Face-to-face customer en-gagement and hearing whatreally matters to them helpsdrive innovation throughoutour company and helps usdeliver better service levels.

From my customer visitsin recent months, a few keytrends have made a clearimpression on me. Here arefive of the most important:

• Customers see printdifferently than they usedto. No one is “just” a printeranymore. Printing digitally isbut one of multiple distribu-tion channels. Our customers

There’s an old paraphrasedsaying attributed to Ralph

Waldo Emerson, “Build a bet-ter mousetrap, and the worldwill beat a path to your door.”Translation: innovate, and thecustomers will follow. Manybusiness owners today wouldadd to that saying, “If themousetrap breaks, help yourcustomer fix it.”

Thriving in today’s competi-

Five Things I’veLearned from Visitingwith Customers

on the document printingside are offering extremelysophisticated, integratedcross-media campaigns thatleverage variable data to de-liver highly customized, one-to-one marketing messages.More personalized and morerelevant with less cost andless waste. Those are hugeareas of focus and whereour customers are able todifferentiate themselves.

• Print has a “premium”value. When a small digitalnews company, IBT Media,purchased Newsweek anddecided to relaunch themagazine’s print edition latein 2013, they envisioned itas a more “premium” and“boutique” product. Many ofour customers have alreadyimplemented a Newsweek-style, paper-based, premiumapplication for their cus-tomers. As an example,they’re producing printedpieces that are of a veryhigh-quality, with interactivefeatures like pURLs, QRcodes and augmented reality.Our customers seem tounderstand that this is thefuture of paper-based com-munication and they’regearing up their business totake advantage of it.

• Being sustainable ANDprofitable. The conventionalthinking was that being sus-tainable costs your businessmore. Not anymore. In fact,those customers I’ve spokento would flip that around.If being sustainable isn’tgiving your business a

ISSUE HIGHLIGHTSPLASTIC Print to Debut atGRAPH EXPO 14 .............................................. 3

Members’ Point of View: Challenges andOpportunities for Business in 2014 ................4

Passage to India: Taking PrintingBusiness Beyond Boundaries............................5

New PRIMIR Study Explores“Next Big Thing” Emerging PrintingTechnologies & Applications ............................6

Senate Finance Committee BringsBack Bonus Depreciation ................................ 7

PRIMIR 2014 Summer Meeting .................... 7

Market Intelligence News:UCC Filing Update ............................................ 8

Calendar .............................................................. 8

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CHAIRMAN’S PERSPECTIVE

Michael Ring

greater return on investment,then you’re not doing some-thing right. Our customersare finding innovative waysto gain efficiency, reducetheir waste and energy use—driving improvements totheir bottom line.

• Increasing workflowautomation. More automa-tion of workflow meansgreater press uptime, feweruser errors, and lower over-head costs. Customers I’vemet see the potential for au-tomating their workflow as atrue differentiator, and areconstantly tweaking andmaking improvements tobecome even better.

• Demand for brand pro-tection solutions is growing.On the labels and packagingside, counterfeiting is a majorissue. Customers to whomI’ve spoken are helping theirbrand owner customers pro-tect their brands and pack-aged goods with someimpressive measures (bothvisible and invisible to awould-be counterfeiter),from security toners to se-quential numbering. I lookforward to seeing furtherinnovations in this area.

Of course, as many of youmight agree, the best part ofmeeting with customers ishaving the opportunity tothank them for their partner-ship. Knowing their uniquechallenges intimately andunderstanding how broadertrends may impact themhelps us be a better partnerin the long run.

3

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expertise to help members navigate the businesschallenges. Among the services offered, NPEScan provide local introductions to pre-screenedand qualified prospective partners, distributors ordealers. This is similar to the Gold Key Serviceprovided by the U.S. Commercial Service(USCS). Both NPES and the USCS stronglyadvise that it is essential to work with a qualifiedrepresentative or distributor when exploringopportunities in Brazil.

Trade ShowsNPES mem-

bers have an idealforum to explorethis thriving mar-ket by booth sharing at ExpoPrint Latin America2014, in São Paulo, Brazil from July 16 to 22.This fifth largest in the world, quadrennial printfair features the latest technology for pre-press,printing, packaging and finishing. At the NPESBooth, connect with 45,000+ show visitors,prospective partners, distributors or dealers,many who are high-level decision makers seekingto learn of the latest products and solutions.The NPES Booth provides a cost-effectivemeans of participation and an invaluable intro-duction to the Brazilian market, complete withmarket-specific expertise, advice and assistancefrom NPES staff. The USCS will also have arepresentative available.

NPES Trade Mission to BrazilIn conjunction with the ExpoPrint trade show,

the NPES Trade Mission will provide membersthe opportunity to visit local packaging and print-ing companies to gain a better understanding oflocal requirements and develop potential relation-ships. This trade mission will include marketbriefings with industry associations, governmentofficials and American Embassy staff. Plant toursare being planned for local print companies, andnetworking will be provided through variouscultural activities and social events.

For more information visit: www.npes.org orcontact NPES Assistant Director, InternationalTrade, Pernilla Jonsson at phone: 703/264-7200or e-mail: pjonsson@npes.org.

In Chicago this fall, leaping off the “drawing

board” and onto the GRAPH EXPO 14 show floor

will be the world debut of a groundbreaking new

pavilion—PLASTIC Print!

Unprece-

dented in the

Graphic Com-

munications

Industry, this pioneering hub that bridges print with

industrial manufacturing was inspired by the collabo-

ration of three innovative industry organizations: The

Society for the Plastics Industry (SPI)—producers of

the National Plastics Exposition (NPE); the Graphic

Arts Show Company (GASC); and, CPP EXPO.

Now, for the first time anywhere, inside

PLASTIC Print, featuring 3D printing, show goers

will discover how the exciting new worlds of Pack-

age Printing, Commercial Printing and Industrial

Manufacturing have converged to create a host of

new service and profit-boosting opportunities.

RED HOT in this highly marketed new hub will

be live demonstrations of 3D printing that will cap-

ture buyer-attendees’ imagination with profitable

3D printer options and the vast array of profit-

building applications they can sell NOW!

PLASTIC Print exhibitors will have scores of

opportunities throughout the show to share their

expertise and guidance, one on one, with current

customers and “visionary” NEW prospects seeking

to invest in the future.

Limited space is available in this inaugural

show floor pavilion that will deliver progressive

print service providers from 12 key industry

segments. To learn more, or reserve booth space

in PLASTIC Print visit: www.GraphExpo.com or

phone: 703/264-7200.

‘‘ PLASTIC Print to Debut at GRAPH EXPO 14WHERE PRINT AND PLASTIC APPLICATIONS UNITE

PLASTIC Print exhibitors will have scores of opportunitiesthroughout the show to share their expertise and guidance, one on one, with attendees.

“The Next BIG Thing”Is

PLASTIC PrintFeaturing 3D Printing

Demonstrating the Gamut of New Profit-Boosting Solutions Including…

Ad SpecialtiesAffinity Cards

ATM & Credit CardsAutomotive Parts

Bags BookmarksBraceletsCalendars

Card & Key Tag CombosContactless RFID Cards

Containers & TubsCups & MugsDoor Hangers

Earth Friendly – Recycled PlasticsFlash DrivesGift Cards

Golf Bag TagsHealth Care Cards

Hotel/Hospitality ProductsID badges

Loyalty CardsLuggage Tags

Membership CardsMenus

Party SuppliesPhone Cards & Cases

Plastic CouponsPlastic Labels

Plastic PackagesPlastic Rulers

Player Tracking CardsPOP DisplaysPostcards

Promotional ItemsShelf Talkers & Danglers

SignsTablet Cases

Tape, Tags and Films

…AND MANY MORE!

FOLLOW THE INDUSTRY TO PLASTIC PRINT!

3

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What do you see as the greatest challenges and opportunities for your business in 2014?

Bret Farrah, Executive Vice President, Xitron, LLC

I think it’s fair to say that allcompanies associated with theprinting industry are facing manyof the same challenges, but not thesame opportunities. For example, aplate vendor, press manufacturer,and software developer all face theeffects of a shrinking commercial printing market—smaller margins,higher overhead costs, and technological changes—that impactstheir traditional business models.

How they approach the challenges, however, is undeniably tiedto the product itself and the demand for which it was conceived. Ifplate consumption is down due to a migration away from traditionaloffset printing, nothing can be done to the plate to change the courseand re-invigorate the product.

Conversely, if a press manufacturer faces competition fromdigital or high-speed inkjet encroachment on their traditionalmarkets, there may be ways to adapt the machinery and retrofitcomponents to marry the hardware with the new technology andbreathe new life into an existing product. (We are experiencing thistoday with some of our OEM inkjet partners in the label, narrowweb, and transactional printing markets.)

As a software developer, Xitron finds itself in the best possibleposition for turning challenges into opportunities because ourproducts are adaptable across all market segments and devices.Whether our customers print packaging materials and labels usingtraditional flexographic processes, are migrating to high-speed inkjetpresses, or want to run new digital systems in parallel with commer-cial offset, we’ve developed RIPs, workflows, interfaces, and presscontrols that meet the changes in markets and technologies head-on.

Chris Calomino, Marketing Manager,ACTEGA Kelstar, Inc.

The greatest challenges weface concern the consolidationof our industry. As we see largeconglomerates continue toacquire assets to stabilize andgrow their portfolios, our cus-tomer base is affected by thesemergers and acquisitions. It’s vitally important that we leverageour national and global reach to help mitigate the loss of businessdue to customers either being bought by larger companies or,worse yet, closing up shop. Opportunities are the development ofnew technologies such as digital printing and off-line finishing.These areas are being adopted by more and more key players inthe industry. We must ensure that our portfolio is aligned withgrowth in these areas.

Frances Cicogna, Manager, Product Marketing, ProductionSolutions Division,BISG, Canon U.S.A., Inc.

Canon’s overall strategicdirection for our business is tocontinue to drive an integratedapproach to technology develop-ment. We aim to provide continued workflow-oriented improve-ments in our portfolio to help our customers streamline theiroperations and expand and grow their capabilities and business.

Canon’s goal is to leverage our broad portfolio, strong heritage,and brand position to capture increasing levels of market shareacross all segments of the printing industry. For all our inkjetproducts, from continuous feed printers through wide-formattechnologies, we continue to invest in R&D by leveraging theknowledge and expertise from Océ, and we intend to furtherdevelop and diversify our broad inkjet solutions as well as continueto drive new innovation into electrophotographic printing andoverall workflow solutions. ‘‘

It’s fair to say that all companies associated withthe printing industry are facing many of the samechallenges, but not the same opportunities.

— Bret Farrah, Executive Vice President, Xitron, LLC

MEMBERS’ POINT OF VIEW

A panel discussion moderated by Naresh Khanna (c), Publisher, Indian Printer andPublisher; S. Balasubramaniam (l), Head of Marketing and New Media at Dina-malar; and, Kiruba Shankar (r), CEO of Business Blogging and social media expert,examined “retooling, restructuring and reinvention” of the newspaper industry.

V. Balakrishnan (l), Executive General Manager-Marketing at Konica Minolta, during a panel discussion with Harinder Singh (c), Director QA, Fiery Controller Division, EFI-IDC; and, Gaurav Chadha (r), Business Development Manager, HP Indigo & Inkjet Press Solutions, encouraged printers to consider themselves “holistic brand partners” rather than “mere print service providers.”

The second annual NPES-IPAMA Print Business

Outlook Conference, heldFebruary 18, 2014 in Chennai,India and themed “PrintingBusiness Beyond Boundaries,”brought together 200 printleaders representing commer-cial printers, newspaper pub-lishers and package printers

from around the world.The one-day industry-wide

update on current trends in theglobal marketplace was sup-ported by: Platinum Sponsor:Konica Minolta; Gold Sponsor:EFI; and, Silver Sponsors:HP, QuadTech, Air MotionSystems, Toyo Ink, and RapidBlanket Restorer India. The

Passage to India: Taking Printing Business Beyond Boundaries

U.S. Commercial Service(USCS), the All Indian Feder-ation of Master Printers Asso-ciation (AIFMP), the MadrasPrinters & Lithographers As-sociation (MPLA), and IDE-Alliance also lent support tothe program.

In the opening session on

The world market, especially the emerging markets, is expected to grow significantlyacross sectors (8% worldwide growth rate for the period 2012-2017) with the packagingsector occupying a sizeable share of the projected growth.‘‘ the findings from the newly

updated landmark NPESstudy, “World-wide Market forPrint: Identifying Global Opportu-nities for the Print Industry,”NPES President Ralph Nappiinformed attendees that, “Theworld market, especially theemerging markets, is expectedto grow significantly acrosssectors (8% worldwide growthrate for the period 2012-2017)with the packaging sectoroccupying a sizeable share ofthe projected growth.

Harinder Singh, Director QA, Fiery Controller Division, EFI-IDC,discussed marketing trends anddigital printing.

C.N. Ashok, founding Director ofAutoprint Machinery Manufacturers,talked of finding new opportunitiesin the printing industry.

Steve Metcalf, President and CEO, AirMotion Systems, Inc., concluded themorning session highlighting a newcuring approach for print using LED-based UV curing.

Steve Ballinger, Director of Trainingfor IDEAlliance, shared an updateon how digital color technology nowprovides new “magic” for creativeteams and brand managers.

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hype surrounding 3D printing,commercial use is limited due toproduction speed and cost. Atan average build-up of one inchper hour and relatively highcosts of $4 per cubic inch, 3Dprinting will remain in the hob-byist realm rather than tradi-tional manufacturing for theforeseeable future.

3D printing does, however,represent an accessible opportu-nity for many commercial print-ers, not in the application oftraditional printing technology,but rather for expanding theirofferings to customers since it ispossible to enter 3D printingwith minimal investment. Cur-rently, according to the study,the greatest need is for design-ers, operators and salespeopleto understand the value of 3Dapplications and be trainedwith the solution selling andengineering skills required tomaximize this opportunity.

For NPES members, partner-ing with manufacturers of 3Dprinting equipment may providean ideal way to enter the market.With the market rapidly develop-ing, NPES members would bewell advised to act just as quickly.

NanotechnologyAlthough fairly new, this sec-

tor of the material manufactur-ing industry has already createda multibillion-dollar U.S. mar-ket. Nano matter is character-ized by high-tensile strength,

have been in biometrics, uniqueinks, advanced substrates and2D barcoding.

“Biometrics,” the identifica-tion of humans by their individ-ual characteristics or traits, is inuse today. An example is state-issued drivers’ licenses. Thecardholder’s image and personalinformation is encrypted into a2D barcode that appears on thereverse side of the license. The2D barcode is then scanned tocompare the code’s image withthe actual license holder. Somestates also encrypt a finger,thumbprint, or signature intothe barcode.

Printed ElectronicsIn printed electronics, while

commercial printing of com-plete circuits remains elusive,there has been some success inthe laboratory and also pilot-scale operations. The first fullyprinted electronic products willlikely be display backplanes,which will be combined withtoday’s printed (but not elec-tronic) frontplanes to form afully printed complete device.Opportunity would primarilyexist for NPES members whomanufacture fluids (ink) formu-lations or new substrates. Ac-cording to the study, the printedelectronics market may grow toapproximately $20 billionwithin the next ten years.

3D PrintingDespite the groundswell of

PRIMIR’s latest study on“Emerging Printing Technolo-

gies & Applications” presents anintriguing overview of newtechnologies and applications,emphasizing the applicability ofthese budding technologies forcommercial printers and print-ing industry suppliers. The re-search, by Pivotal Resources,includes printed electronics anddisplays, 3D printing and bio-medical printing, as well as 2Dbarcodes and security printing;and nanotechnology. Whileeach of these emerging printingtechnologies is generating buzzin the industry, the PRIMIRstudy identifies those whichoffer near-term opportunitiesfor new revenue streams.

Security PrintingAreas with direct impact on

the commercial printing indus-try are security printing, bar-codes, 3D printing and nano-technology. Security printing,although a longstanding spe-cialty segment, is changing dra-matically due to the increasingsophistication of criminals andheightened number of threats.Brand protection is becomingincreasingly important to pro-vide protection from would-beimitators. Automation and tech-niques for brand protection thatare not easily duplicated arecritical to brand owners. Themost recent technology ad-vances for security printing

New PRIMIR Study Explores “Next Big Thing” Emerging Printing Technologies & Applications

low weight, high electrical andthermal conductivity, andunique electronic properties.There is widespread interest inbiology and biomedicine; com-puting and memory; electronicsand displays; opto-electronicdevices; optical componentsused in telecommunications;and, security applications.

Of particular interest aregraphene, carbon nanotubesand quantum dots—each underintense research with new appli-cations being unveiled regularly.Production, however, is one ofthe biggest challenges that nano-technology faces. Obstacles forscaling up production includeinvestment dollars and proof ofmanufacturing consistency.Another key challenge will behealth and safety concerns re-lated to handling nano-materials.

Explore the Possibilities

For NPES members, newprofit pathways exist in all ofthese emerging technologies;however, some offer greater ormore immediate opportunity,and are more easily addressed.Looking ahead, members shouldactively seek ways for their com-panies to learn more about thesetechnologies and how to applyexisting skills and knowledge, ordetermine the strategic invest-ments necessary to be best posi-tioned for success in thesegrowing areas.

According to the study, the printed electronics market maygrow to approximately $20 billion within the next ten years.‘‘

7

Saying that this was the last time it would happen onhis watch, new Senate Finance Committee Chairman

Senator Ron Wyden (D-OR) engineered the nearly unani-mous bi-partisan approval by his committee of the ExpiringProvisions Improvement Reform and Efficiency Act (EXPIRE),which includes yet another extension of 50% Bonus Depre-ciation, as well as enhanced IRC Section 179 Expensing.

Chairman Wyden also noted that EXPIRE is an effort to“balance short-term needs with long-term goals,” and thatmany provisions in the extenders package should be madepermanent to give Americans the certainty and predictabilitythey need in the tax law. Commenting on the FinanceCommittee’s action, NPES President Ralph Nappi com-mended Senator Wyden for his leadership, and re-statedNPES’ strong support for tax policy that recognizes andfacilitates capital investment that is essential to sustainedeconomic growth.”

Fifty percent Bonus Depreciation expired at the end of2013, but EXPIRE would once again extend it to qualifiedproperty, including printing, publishing and convertingtechnologies, purchased and placed in service beforeJanuary 1, 2016. EXPIRE would also extend through

Senate Finance Committee Brings Back Bonus Depreciation:TAX EXTENDERS LEGISLATION BRIDGE TO COMPREHENSIVE REFORM

2015 the election to accelerate AMTcredits acquired in tax years prior to2006, in lieu of Bonus Depreciation.

Additionally, EXPIRE wouldagain extend enhanced IRC Section 179 Expensing, increas-ing the maximum amount and phase-out threshold for taxyears starting in 2014 and 2015 to the levels in effect in 2010through 2013, namely $500,000 and $2 million respectively.Under current law and without EXPIRE, a taxpayer mayonly immediately expense up to $25,000 of Section 179property annually, with a dollar for dollar phaseout of themaximum deductible amount for purchases in excess of$200,000. Furthermore, EXPIRE would also once againinclude computer software in the definition of Section 179property. Unlike Bonus Depreciation, IRC Section 179Expensing applies both to property previously used—butnew to the purchaser—as well as new qualifying property.

Section 179 Expensing is however subject to annual dollar,investment and taxable income limits.

For more information contact NPES Government AffairsDirector Mark J. Nuzzaco at phone: 703/264-7235 or e-mail:mnuzzaco@npes.org.

Senator Ron Wyden

‘‘Chairman Wyden also noted that EXPIRE is an effort to “balance short-term needs with long-term goals,” and that many provisions in the extenders package should be made permanent to give Americans the certainty and predictability they need in the tax law.

CALENDAR

May 2014PRINT’S VOICE ’14 Capitol Hill Fly-InMay 6-7 • Washington, D.C.

June 2014ICC MeetingJune 23-25 • Heidelberg, Germany

July 2014ExpoPrint Latin America 2014 - NPES Booth and Trade MissionJuly 15-22 • São Paulo, Brazil

NPES Market Data Meeting July 21 • Cleveland, Ohio

PRIMIR 2014 Summer MeetingJuly 21-23 • Cleveland, Ohio

August 2014KIPES 2014 August 27-30 • Goyang, Korea

September 2014EXECUTIVE OUTLOOK Conference September 28 • Chicago, Illinois

GRAPH EXPO 14 and CPP EXPO September 28-October 1 • Chicago, Illinois

October 2014CGATS/USTAG/PPC Meeting October 13-15 • Rochester, New York

ICC Meeting October 30-November 1 • Boston, Massachusetts

8

NPES News is published bi-monthly by NPES.

Publisher:Ralph J. Nappi

Director of Communications:Deborah Vieder 703/264-7222

Managing Editor:Jane Pratt 703/264-7200 x242

Correspondents:Jackie BlandPernilla JonssonMark Nuzzaco

The Association for Suppliers of Printing, Publishing and Converting Technologies

1899 Preston White DriveReston, VA 20191 USA703/264-7200e-mail: npes@npes.orgwww.npes.org

DID YOU KNOW?

Nearly 70% of consumers feel it is unlikely that they’ll give up on printed books by 2016. “Consumers have an emotional and visceral/

sensory attachment to printed books,” researchers note, “potentially

elevating them to a luxury item.”

—I.T. Strategies study for Ricoh Americas Corp.,

2013

Rekha RatnamDeborah Vieder

Despite up and down fluctuations in new equipment filings, there appears to be a very slight upward trend developing.

Market Intelligence News:UCC Filing Update

A Uniform Commercial Code Form 1 (UCC–1) filing is a financing statement required by lawto be filed with the state to show that one party (usually a lender) has a security interest inanother party’s (usually a borrower’s) personal property, and most frequently relates to thecommercial financing of capital equipment through a lending institution. UCC data is filedevery day throughout the U.S. Each UCC data filing statement has three components: the bor-rower, the lender, and what the borrower purchased, including make, model and serial num-ber. Once the data is filed, EDA’s more than 50 employees manually review each filing toidentify and correctly classify the transactions of printing equipment. What results is a robustdatabase that offers subscribers continually updated information on exactly who is buying orleasing what pieces of equipment.

The chart compiled from UCC data provided herein by Equip-ment Data Associates (EDA) shows up-to-date UCC (see defini-

tion below chart) activity for all printing equipment. Although UCCfilings are a combination of new equipment sales, used equipmentsales and re-financings of existing placements, they are still a strongindicator of market activity.

Despite up and down fluctuations in new equipment filings, thereappears to be a very slight upward trend developing. Following theJanuary 2013 reading of 394 units, new filings grew 15% to 464 unitsin December 2013. Overall since December 2012, when units wereas high as 490, the data has declined 6%. Filings in January andFebruary 2014 fell to 318 and 329 units respectively, making itdifficult to predict steady growth.

Used equipment filings have followed a similar but less drasticup-and-down pattern, dropping to 186 units in December 2013,down from 215 units at the start of 2013; this still represents an in-crease from 146 units in December 2012. However, filings are alsoexperiencing declines in 2014 (165 in January and 150 in February).

This information is extracted directly from EDA’s comprehensivedatabase of nearly 30,000 records for purchasers of printing equip-ment. For more information, or to join the free NPES Market Dataprogram, contact Assistant Director, Market Data & Research,Rekha Ratnam, at phone: 703/264-7200 or e-mail: rratnam@npes.org.For information about the market intelligence services offered byEDA, contact Mauricio Jurin at phone: 704/845-1099 or e-mail:mjurin@edadata.com.

‘‘Printing Equipment UCC Filings: 2009–2014

New vs. Used