Offshoring in Printing

Offshoring is a popular topic, and one I've discussed a great deal in the political portion. I actually just got done reading Exporting America, which discusses some non-traditional (high skilled) functions being outsourced. Being that my research focus was on the printing industry, I fully expected the high volume, less time sensitive work to go abroad. To my surprise, that hadn't happened in significant numbers. However, that seems to be changing.

In my last few visits to a couple bookstores, I've noticed many of the new books are printed abroad. Virtually all of the 2006 calendars are printed abroad. I've spoken to a few people, and they confirm that much of this type of work has moved to China and South Korea. While it would be nice if domestic consumers were loyal to domestic products, we all know that price generally wins, even if they claim differently.

So, what does this mean for U.S. printers? In my opinion, it further solidifies digital printing's importance. Digital jobs tend to be more time sensitive, while the nature of digital/variable works makes any communication barriers too much to overcome. I think it'll get tougher and tougher in the offset business. However, I believe the digital business will be viable for quite a while.

Weather and Retail Sales

Weather can have a significant impact on retail sales. This is obvious in the case of natural disasters, as one example. However, even good weather can have a negative impact on retail sales. Many retailers dealt with weak October results, due partially to warm weather that hindered fall clothing sales.

Merchandising is a gamble. So businesses have little choice but to look at weather trends and make educated guesses. Seasonality has an impact on every business, so it's vital to build that into forecasts and react accordingly. Understocking or overstocking can be dangerous.

A different example of botching a season was when Sears received clothing shipments late a year or two back, and more or less missed the season. That in turn forced them to deeply discount inventory. I think many people forget about the importance of weather, seasonality and general timing. Nonetheless, we've seen recent examples of their importance.

Wal-Mart's PR Strategy

Wal-Mart endures its share of criticism. My "big box" post was somewhat critical. Some is fair, while I'm sure some is less justified. To combat these efforts, Wal-Mart has created a war room. In a nutshell, it works to quickly combat any negative media attention by sending out their own press releases, making phone calls, and even releasing videos.

Is this strategy wise? I'm not sure. For example, due to reading this article, I learned about a film critical of Wal-Mart for the first time. I'm now interested, and never would have known otherwise. On the whole, it'll probably benefit them, even if they come across as overly paranoid now.

However, what can we learn from this? In general, I'd say there is value for any business to quickly respond to any negative PR. However, as long as you treat customers well, such efforts won't be necessary. And if any unfair criticism is ever dealt, making some calls to set the record straight can't hurt.