Industrial Printing — A Launchpad for Emerging Opportunities

okay so why don’t we get ourselves started here I am Jim Hamilton with info trends and I I’ve got a lot of material to run through and I’m going to run through it quick so what I’d like you to do is think about any questions you have cuz i want to say five minutes at the end for Q&A but if I could ask a couple of questions that people here first I know we have one representative of a print Federation do we have print service providers in the room print service providers people who offer printing services too okay so are these all vendors in here all vendors so system vendors of some kind a journalist’s maybe I don’t know nobody’s raising their hands so I don’t know who’s out there do we have any english speakers out in the audience how about that all right that’s good all right well that’s a good start anyway so so oh they’re too high come on come on in and have a seat all right well good so my topic here is industrial printing and some of the emerging opportunities when I’ve been looking at the schedule of what’s on here you could just stay in your seat and get the overview of industrial printing get printed electronics next and a couple of more following up so a real good opportunity here but my my intent is to cover the broad range of all sorts of things that we would put under functional and industrial and just as a quick introduction I’m Jim Hamilton I’m a group director with info trends we’re a market research and consulting firm in weymouth massachusetts which is a little bit south of boston and i have responsibility for the production group within info trends which looks at really document and printing technologies across all sorts of environments so everything from a small quick printer all the way to a transaction printer a book printer a package sprinter any kinds of those environments wide format printers you’ll see that I’m very active on Twitter if you’ve been following twitter here and looking at the vespa digital hashtag I’ve been active tweeting and doing photos so if you’re into the social media thing you can find me there you can find me on LinkedIn as well we blog frequently our blogs about festival will probably follow the show and then also I’ve done a number of different videos with print samples so I come to show like this collect interesting things a little bit harder to show like the because the print samples are like immense and don’t fit in my suitcase going home but you’ll see some on YouTube related to that and for print service providers we have a business development strategies group headed by barb fellow who some of you from the United States or North America may know but doing a lot to help service providers understand what they need to do to drive the market forward but enough of that ad if you if you think about the overall view of the industrial printing world you can break it up into a range of different categories and typically what info trends does is to think of it really more as a spectrum that includes packaging decorative printing functional pruning 3d printing and that spectrum goes all the way from more document-oriented applications or more the typical graphic arts the promotional Direct Mail kinds of pieces all the way into packaging which kind of starts to have a functional component because the function of a package really is to contain some object to even more functional sorts of applications what we would call decorative and then truly functional now on this spectrum you’re going really from graphic arts to functional industrial you’re going from ink and toner to the jetting of all sorts of weird materials right i mean when by the time you get to making a you know a solar panel or something you’re not squirting ink any more different kinds of substrates so this show has really impressed me for the fact that not only do you have paper but you’ve got bored you’ve got class you’ve got metal you’ve got ceramics you’ve got textiles all sorts of different substrates and in some cases as you get way down on the end of the spectrum there’s no substrate at all I mean what is the substrate for 3d printing I mean you’re just printing into air basically so very interesting in terms of those marketplaces and the questions that we get a lot is how bigger these markets because some of these markets are really well established if you think of this on a market development kind of curve where you know nascent early technologies are on the far left side you got real rapid growth and competitive turbulence and then market saturation by the time you get to the end you have may have markets that are sort of in decline you know transactional printing because of the delivery of documents electro on a very big market but not necessarily huge amount of growth there come back a little bit and you’ve seen you know things like sign and display still on a growth curve but that’s a big market place with a lot of vendors in it as you come down the curve sort of to the lower left-hand corner you get to some applications that are relatively small in size you can see we put the value of print and billions there I mean things like biomedical direct to shape lots of areas where there’s some neat activity but they’re still pretty small right now now thinking about some of the enablers that have made this possible really

inkjet has driven a lot of this aspect of the marketplace because of the ability to go to high resolutions because of the the speed capabilities and because of the ability to jet a whole lot of different kinds of fluids so high resolution the ability to create a number of different drop sizes a new era in terms of line of printhead so not just really narrow heads but wider heads and arrays that can be just just meters and meters long MEMS manufacturing has increased the ability for producers to create much more cost effective heads and then the material science in terms of all the ink and consumable provider so you see all over the show floor here has really move that forward and for me what’s exciting about the Digital side of the marketplace is that it allows really new kinds of business models and we’ve seen that in the document production side again that’s my heritage that’s where I come from where you see people like in the transaction marketplace who used to have to step processes preprint offset shells for the logo on a transaction document and then they would laser on your variable data piece while high speed inkjet color devices came into the marketplace and people could do that all in one step and not only have that sort of process improvement but also be able to add variable data color and do much more intriguing things with documents and that’s the kind of business transformation that you see across the board here on the functional and industrial side I mean for example you know some of the great textile designs that you see around in the show floor here are done by individual designers who now have the capability to go out to providers see what the you know what their scarf design or whatever it might be will look like in a very short period of time and then go into production in relatively low volumes cost-effectively and that’s changed the way in the same way that you know photo books and self-publishing on the publishing side of the marketplace have changed you see the same thing happening with with textiles and other applications so those values will expand now what you’re going to see in my presentation is I divided it out in a couple of different types and as I said I’m going to fly right through this so keep up with me and then ask questions later but color digital packaging is what I’ll look at first we’ve got sort of functional and 3d and then also the decorative pruning I’m going to go through some of the players some of the trends and what’s going on in these marketplaces so packaging is a market that a huge number of vendors and suppliers have their eyes on why is that I mean in part it’s it’s one application that you know you’re not going to lose to electronic delivery transactional printers book printers they’re all worried about losing volume to electronic delivery well you’re probably never delivering a package electronically but we think that most of the packaging volume today is coming from analog processes so digital has gotten some foothold particularly within labels a little bit within flexible packaging some and folding carton was sort of limited format size to date and a little bit around corrugated but that’s all going to change that’s going to move forward so really we’ll see the packaging market which is very complex in terms of the different kinds of products and applications will see that expand over the next couple of years in a big way so the established sort of applications on the packaging side certainly you’re seeing you know labels some smaller folding cartons a little bit of direct to a bottle kind of work being done although that’s just just nascent on the the production side here you know certainly companies like efi xeikon indigo and and others are entering the market place with some intriguing new products we see even larger more activity around folding carton and corrugated with announcements that have come at this show so very active market now what’s driving the pack side of the marketplace certainly some of the factors that are pushing things to digital print include brand owners requirement so what does a brand owner want maybe they want to target their market a little bit more precisely maybe they want to fill their channel in a more effective fashion they like the ability of being able to do short run which hasn’t really been much of an opportunity in the packaging marketplace up until now and so there is also I think a commitment by the various OEM vendors that packaging is a big market for them and you see a lot of that displayed here now what limits the the digital print side of the the packaging marketplace certainly a lot of these devices are significantly expensive in terms of their acquisition price and you know other technologies don’t sit still either flexo offset technology and we’ll see in some cases where there’s hybrid years where maybe inkjet goes on to a traditional flexo or offset press and when it comes to long runs offsets dominance has you know has been long-standing and will continue for a long time trying to manufacture a lot of the same thing offset flexo and other you know more conventional technologies

are great at that okay let’s let’s shift gears a little bit and talk about decorative printing now decorative printing really covers such a wide range of areas and each of these really in a lot of cases you know could take you to a range of different trade shows that aren’t just printing ones you know I talked to a number of the vendors and they say okay well I was at this you know vertical market show maybe a retail oriented show maybe an architecture and design show you know they’re at shows that they wouldn’t normally have been at because you know you’re printing on ceramics God knows food glass metal paper plastic textiles woods and the ability to do some of those digital print things like unique messaging like the brand awareness capabilities being able to bring a customized looked at that packaging all of this in an environment environmentally friendly way is important and of course you know short runs quick turnaround that’s been a typical digital print kind of ass that but to be able to do that in the packaging market place on a range of different substrate types that’s key and so there’s been a lot of work around the material science side to help drive growth in this area and that certainly will continue now again I you know I want to stress the range of substrates here my this is actually my first fespa here it’s been more of a wide format show Tim Greene is the analyst that info trends who covers wide format I had the opportunity to be here because of another speaking engagement and so I am just like a gas stunned when I look and I can see in various implementations you know mirrors aluminum concrete people printing on venetian blinds you know tile all sorts of different substrates and the ability to do that in a range of ways is really just stunning for me now again I know some of this has been done for a while but you’re talking to somebody who has been to a lot of troche owes like droop and I packs and graph expo and print where I mean honestly a lot of it’s on paper it’s paper paper paper different kinds of paper but it’s still paper now as you look at these kinds of decor oriented products whether it’s on any of the range of substrates you see on the far side of the slide the ability to bring that sort of individuality and creativeness and quality timeliness competitiveness all of those things drive this marketplace now again I’m going to go through some of these categories because for each of those different kinds of substrates there’s a different set of application needs so in the case of glass increased production of this flat glass capability is going to be important particularly for architecture and the automotive side of the marketplace now in architecture you know when economies go up architecture and building and all those kinds of things tend to go up when the economy goes down that’s kind of not so good for that overall part of the marketplace but here what we feel is that the economic recovery is going to drive some demand for the kind of products that would be printed on glass so doors walls dividers windows you know so you’ll see that kind of application and then there also areas that are not residential kinds of construction where you’re thinking about schools you know hospitals offices hotels all of those kinds of things bring in really unique ways of taking advantage of this technology part of the challenge really is to making sure that designers and the architects and engineers know that there are these capabilities that they can build in as I think about their designs and a lot of times it relates also to excuse me to the requirement by various folks to you know have a green aspect so to be printing on those substrates but not necessarily with really destructive kinds of chemicals so in in the cases where I go through here I’ll show a couple of products here now they’re probably vendors in here are going to look up here and not see their product come tell me later will include it the slide next time but typically what we’ve done in these slides is to include some of the top vendors oh and for those of you you know taking notes or taking pictures if you want to have a copy of the presentation just give me your card after and i’ll send you the PDF but in any case so tech glass dip cat dirk Steve Lamar content all all involved in that side of the glass production marketplace all right you know again I said I was going to fly through this so we’re going from glass to ceramics now so high speed printer is typically using you know ceramic types of inks the range of designs and and you know patterns that you can get there to really drive custom production is amazing and the quality levels that you see on those tiles just just fantastic and I’ve seen some on ceramic surfaces that go kind of up and down and up and down and still you’ve got a beautiful image on the top of that so really very amazing results durability can be very high depending on the you know the the ink capability and when you’re doing these kinds of things

you can drive efficiency not necessarily having to store large quantities of you know of pre printed tiles and certainly that helps in in in terms of the inkjet design we’re also seeing selectable quality levels that allow you to sort of meet your speed and productivity need to your clients demands so this does open up new new opportunities in terms of the value chain how ceramics get provided the people how you can personalize and customize those kinds of things you’ll you’ll see a you know examples from companies like system ceramics Doris hope China Farrell carriage at creative print the EFI company a company the FI acquired dip tech and honestly as I go around the show floor here I see many many ceramic examples and in fact a number of wide format devices that are printing just just on what seems like virtually anything so this is this is by no means an extensive list of the folks who print on ceramics because a lot of them if the in capability is there they’ll be able to drive that all right let’s go to laminate so think about things like flooring countertops those sorts of things which typically have maybe a wood grain or some other pattern printed on them generally with analog technologies and quite high volumes but the speeds of inkjet and the capabilities the durability capabilities and the ability to laminate some of those kinds of things really has the potential to to change this market as well and I think really it’s the high productivity of some of these inkjet devices that okay make people may have been thinking about this so a while ago you know three four or five years ago now the productivity levels are really able to drive the marketplace so localized supply chain custom and short run production all very important here green you’ll hear that throughout all these discussions residential construction in regard to wood or key for these kinds of placement so you got to look at the residential users needs the comparison between wood flooring and sort of fake laminate wood flooring could help drive this marketplace too so we do expect to see sales increase and there are also those who create these kinds of laminates who want to be able to differentiate their products in comparison to say what we would call some of the big box stores the you know the the the ones who are selling construction oriented products so you know that’s something certainly that that impacts this marketplace and here again not necessarily names that you would have heard from the wide format side of the world but people who are really looking at these kinds of technologies hey man Barbara and Seth diefenbach are all doing work in these areas and again you’ll see other implementations from other vendors I showed this picture here and so we’re talking about textile here but actually this relates a little bit the wall covering as well so if you were you know wall cover you know wallpaper manufacturer chances are you got designs going back 60 years and you’ve got the you know the prints cylinders to go with them and you got a huge warehouse this is an example of one to store all your print cylinders okay that that has sort of an analog feel to it that that picture right the idea basically being you want to move to a workflow where you could get rid of these and print cost effectively from a digital master which is what we’re seeing lots of folks do across a range of areas within the textile side of the marketplace so that can include fashion and industrial performance apparel decor and you see tremendous amount of it going on here thinking about some of those trends back to okay how do you meet customer demand in terms of short runs the ability to customize a personalized what kind of risk are you taking in terms of the overall into inventory and for me the lessons that are learned let’s say in the book marketplace where publishers have really adopted this idea of book on demand print on demand is it feasible in certain kinds of textile and fashion types of applications definitely you see that translate over your ability to bring products to market you know so think about a designer who can get a comp immediately back instead of having to wait three months for a conventional process to create I mean the ability to have quick turnaround in terms of the design is important and that allows people to innovate and from an environmental side this is a you know this is a market that you know your the final products are going to be laying against other people’s skin in many cases so it’s got to be green and you know not include toxic material so use of water raw material waste in some of the existing processes if those can be gotten around also around energy consumption if there’s a more energy efficient method markets will definitely go from it so in terms of textile printing solutions you’ll see some of them here I know for example reggiani is here with that particular product so you know UCLA mechanical Robustelli store konica minolta there are a number of different offerings here and a number of whom are

on the show floor here today so again this is this has gone from being what I would have thought of more a sort of a screen printing wide-format show to such a wide range of functional industrial applications so let me talk now about the functional and 3d printing group here so on the functional side this is really a very diverse market emerging as i showed in one of those earlier slides some of these are still fairly small things like display lighting creating a batteries the photovoltaic idea system components i mean you see the market sizes there i won’t necessarily go into that driven in part by some technologies that allow you to lay down either inks or other substances conductive substances to allow you to do things you know like touch screens or like flexible screens or you know the the batteries or voodoo why am I spacing on the word what’s the thing you put on the roof to get the Sun you know that there we go solar panels every once in a while the brain just doesn’t work but now on 3d printing I’m not really gonna spend much time on 3d printing because the problem is it’s another whole set of range of applications a lot of the vendors are interested in it in fact i think the the stock markets are a little bit over interested in some of this there’s there’s a bit of a bit of hype around this marketplace but there’s also a lot of opportunity and I’d say actually the from the 3d printing side of the marketplace what I think is the biggest tie back here is related to packaging so create a 3d printed prototype of whatever the product is before it’s even manufactured then you can start creating your packaging your bubble wraps whatever goes around that packaging before the product is completed and thereby improve your ability to get to market faster so I mean that’s that’s the application that I see most important when I see people talking about okay I’m going to print a replacement for my my chest piece or something that doesn’t seem like a killer after me packaging does I think there are some interesting things happening around a parallel architecture electronics engineering medical but this is a market that’s relatively small right now doubling in size but again we’ll we’ll have some big potential moving forward and so really just to wrap it up here I’ve you know one of the things we want to do is sort of put a wrapper around this marketplace to say all right what are the various categories so we think good broad categories or packaging decorative functional and 3d we’re looking at all those areas we have done forecast around the digital packaging side of the marketplace the textile printing side of the marketplace and we’re looking to add additional research there the most recent research piece that we actually have going into the field right now is around decorative so we’re going out to architects and designers and asking them about either their knowledge of those products their needs for those kinds of capabilities and again we feel that research is going to be important in understanding that marketplace but that’s one little sliver of this entire market so a lots of opportunity here some very small to start with some moving forward and just a huge range of of system vendors for that old marketplace well it looks like I’ve managed to hold about five minutes for question and answer and I would love to be able to hear what you guys have say in the audience ask me any questions we have a walk around microphone so let me see a hand here I want a brave person to ask a question I think you can ask a question right now yeah there we go I get to get me started here right okay yeah so you talked a lot about the the the interior decoration market and architecture and everything and and mainly from a point of view where the we as a printing industry reacts to things happening in the market but do you see also that market changing for example when you go to run of one so ever every piece can be customized do you think our workflows are ready to to to work with that or well you know it’s the idea of using really expensive equipment to do of one there’s not there’s not always an economic argument to do to do that but I and I agree with you on the on the document production side it took a long time for the front end workflow and finishing to catch up with some of the capabilities of the print engines but if I look at the wide format marketplace I’ve seen a couple of devices where you can print two different images on the same bed at the same time right well that’s kind of getting to your point do you want to be able to do that you know split up among two kinds of of even materials or even just two designs on the same kind of material but two different boards I think that gets to that point ultimately though you will have dedicated applications where people really are just driving the you know the volume that they you know that they’re there that these higher speed devices are capable of doing and I think also when you start either making it more

eco-friendly if you’re able to get rid of warehousing costs in some cases or if you’re able to just do unique effects that maybe weren’t possible with those other technologies do I hope that helps other questions come on don’t be shy here we go everybody’s avoiding my eyes now cuz i know i’ll pick somebody no nobody want to ask well look it has been a pleasure as i said i have you know i’d be happy to give anybody a PDF if you’ll give me your business card be happy to send you that way I encourage you to you know follow me on LinkedIn or Twitter because again very active show all sorts of things going on you can learn a lot by seeing once at the hashtag FESPA digital or via me at jrh info info transcom so anyway thank you very much for listening I appreciate it take care now