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HOW T
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September 11, 2013Global Channel Partners Summit
EXPAND PRODUCTION OPPORTUNITIES WITH CUTTING, ROUTING AND LASER TECHNOLOGIES
EVERY super-wide-format digital printer NEEDS a digital finishing solution in order to maximize his profitability via accurate and on-time finishing with minimum cost
In today's marketplace, there are many companies that offer devices to perform the cutting of complex shapes, but which type of technology is the best for your business; which offers quick ROI, functionality within existing workflows and the chance for differentiation in crowded markets?
Selling such solutions allows a distribution channel to help its printer clients to maximize their opportunities and increase their profitability
PRESENTATION SUMMARY
Specialty Graphics are different
The “Harley” problem
UV Printer Market and Differences
Samples of the Specialty Graphics needing finishing
Printers’ Comments
The value of Finishing and Automated Workflow
Distortions necessary to account for in finishing
Discussion of available RIPs, Printers and Finishers and what you can get for each price point.
Conclusion
GRAPHICS ARE DIFFERENT
They can’t be sold without Finishing They’re labor intensive, at best, with variable
results Large prints are really hard to cut smoothly by hand,
worse for fabric Materials can now cost more than labor Design files don’t accurately represent the
distortion evident in the final print Faster grand format printers make finishing
automation all the more necessary There are only a very limited number of digital
finishing companies that don’t print, unlike the services readily available for offset finishing.
THE HARLEY DAVIDSON PROBLEM
Three dies were yielding 30% scrap Low, average and high humidity made more shape changes than only 3
dies could handle
The screen print shop manager asked if X-Y cutting tables could be used with a camera system for achieving less scrap and being able to meet Harley’s gas tank and fender graphic needs.
From this need came the first vision enhanced cutting system from MGE in the 1999 time frame – i-cut™
In 2002, with grand format digital printing hitting its stride, use of these systems for digital graphics took off.
WHERE IS FINISHING MOST NEEDED?
The largest area for growth is in printed fabrics. These tend to be up to 10ft. Wide and typical jobs may be20 ft. in length. Hand cutting is not satisfactory.
One user has indicated that a job that took 28 hours with a manual hot knife was completed in 45 minutes on a 10 X 20 ft. laser cutting table.
The second largest growth area is for companies buying faster and larger grand format printers who need both speed and added width, plus operating efficiency.
Lastly, new printers who are buying their first grand format printer and need a reasonable, yet high quality finisher are still growing in the marketplace.
See Chart on next Slide
6
Product Type
2010 Sales 2015 Sales 5 Year Growth
COMMENTS
HEUVR2R>$300k
281 440 57% Fabric Growth
HEUVFB>$125k
424 663 56% Cut/Route Growth
LEUVFB <$125k
1,551 2,429 57% Needs an ~ $100k Finisher
UV PRINTER MARKET GROWTH
Between Zund and Kongsberg, alone, approximately 1,000 flatbed digital finishers worldwide are being sold per year, mostly alongside the High End UV Flatbed (HEUVFB) printers. These are sold primarily to the High End UV Flatbed buyers
Per the prior chart, the Low End UV Flatbed (LEUVFB) printers are selling at 4X the rate. This would indicate a latent need for 4X the units or roughly 4,000 per
year with North America probably representing 1/5 of the market or 800 units/year in 2015
At least 100 systems per year are being sold into the fabric finishing marketplace – HEUVR2R users
With these varying needs, it is no wonder there are so many choices for finishers available for your consideration depending upon what you print!
But be careful to evaluate your complete needs and the finisher’s ability to meet them
PRINTER MARKET GROWTH – CUTTER NEEDS
WHAT KINDS OF GRAPHICS ARE
WE TALKING ABOUT?
Rolled vinyl and semi rigid plastics
Rolled fabric
Rigid boards, plastics and composites
Foams of varying densities and thicknesses
Banner Material
More …
TYPICAL GRAPHICS – POP/SMALL SIGNS
CAN BE FLEXIBLE OF RIGID
TYPICAL GRAPHICS – DECALS/LABELSTHAT ARE THROUGH OR KISS CUT
KISS CUTTING OF VINYL
TYPICAL GRAPHICS – LARGER RIGID MATERIALS
TYPICAL ROUTED GRAPHICS
TYPICAL POINT OF PURCHASE DISPLAYS
15
LASER CUTTING OF RIGID MATERIALS INSTEAD OF ROUTING
Smart-X
LASER CUTTING OF GRAPHICS
KissCut Vinyl
LASER CUTTING OF NON-PRINTED
Gaskets
LASER AND/OR KNIFE CUTTING
Fabric for Clothing
FABRIC SIGNAGE – LASER OR ROTARY CUTTER USED FOR FINISHING
Laser Cutting of many
materials doesn’t require
hemming…
FOAM CUTTING
Laser, Knife and Routing can all be used
depending upon type of foam
NESTED MATERIALS ALL IN PLACE AND IN SUPER SIZES CAN BE HANDLED BY ALL
5 to1 20% attachment rate will grow with increasing printing speeds = new bottlenecks in finishing = more cutters sold
digital presses sold in 2012 – 80% replacing older, slower printers = increasing the demand for
finishing thru-put
price for high-end digital press – Good fit for faster and wider cutters with multiple tool capabilities
$100,000-$200,000
Medium priced presses –
Perfect fit for new Digital
CuttersThat Do More for
lower prices
6,000
$200,000 - $2,000,000
Market Drivers
FINISHING BENEFITS
What are some of the driving factors to buying a digital finisher?
What do Printers have to say?
How can we look at their results from the positive influence of finishing workflow inside their marketing and the production processes?
GRAPHICS ARE DIFFERENT
The alternatives cost more: Hand cutting and then laminating Sabre saw and saw horses
One cutting table customer noted that a job that took 5 men 3 days by hand, was completed in 1 day with 2 men. 13 man days saved – over $650 in cost Typical system costs $2,000-$3,000 per month on a 5
year lease
The quality improvement is significant as well
You do the math
ARE ERRORS VISIBLE?
The Human eye Can see errors in the order of 1/1000 (.001) of an inch
Errors at the edge of a graphical shape cause under cut and over cut edges, as well as potentially cutting off important parts of the image
Even digital print causes errors large enough to be visible if not corrected
PRINTER COMMENTS
Richard Rudolph-Tango Graphics/EXL Prints: The bank made me run with a printer and no cutter for a year to prove I
could pay back the printer loan. Within 60 days of bringing in a cutter/router, we went from plenty of
available capacity to 50 hours per week use per machine because we never had to turn down a job.
We wouldn’t be in business today if we didn’t have it. It is a “tool of the trade” that no printer should be without.”
It ensures a cleaner job than before and all cut lines are straighter. The system actually pays for itself in under a week of use per month, but it
is worth much more to the business.
PRINTERS’ COMMENTS
• Ron Clark (Ben Franklin Press) • Guy Ladd (Reprographic Technologies)
“I can’t understand anybody buying a flat bed printer and not pairing it with a flat bed digital die cutter”
PRINTER COMMENTS
Jim Sullivan (BrandBoxx):
Our i-cut digital finishing system allowed us to:
capture over $200,000 in gross profit in year one that previously was spent outsourcing finishing work,
add over $400,000 in top line sales that we wouldn’t have received without i-cut’s capabilities and
save between $115,000 and $230,000 in real cost from spoiled work.”
MAJOR FABRIC PRINTER
Using a laser cutter, we have saved 7 employees per machine shift and we no longer have sewers waiting around to get work.
30
BENEFITS / JUSTIFICATIONDIGITAL FINISHING AUTOMATION
Reduce labor expense
Increase production capacity
Improve quality / reduce spoilage
Eliminate subcontracting
Maintain control / shorten lead times
Capture additional business with expanded capabilities
Never turn down a job!
A SERVICE BUREAU STORY
DICON was a cutting service bureau in Southern WI for over 8 years.
By tracking all jobs, they were able to confirm a scrap level of well under 2% consistently regardless of how the jobs were printed.
They proved that a profit could be made with digital finishing when closing DICON, developed a “cloud-based” product that ensures digital finishing users can estimate accurately to ensure their jobs stay profitable
When customers reached between $2,000 and $3,000 a month in finishing, plus their shipping expenses, they bought a cutting system and never looked back, using DICON only for overloads.
WHAT TECHNOLOGIES SHOULD YOU BE CONSIDERING
Vision Systems RIPs Laser/Knife/Router Finishers Workflow
33
TYPICAL VISION CAPABILITIES AVAILABLE IN THE MARKETPLACE
Controller based – Position & Rotation MultiVision, OptiScout, Zund
CutCenter, Esko i-cut, Mvision and others – Position, rotation and Compensation – some better at graphics longer than the table and non-linear errors than others
How many register marks are enough?Buyer beware: What will the next job you need to finish
require for accurate cutting?
PRINTER RIPS THAT HANDLE WORKFLOW
3M Graphic Maker
Caldera
Colorburst
ColorGate
Durst/Dice
Efi
Ergosoft
EskoArtwork
Gerber
Mimaki
Onyx
SAI/Scanvec
Wasatch
PRINTERS THAT WORK WITHIN THE RIP WORKFLOWS
Agfa
DYSS
Durst
Gerber
HP/Colorspan,Indigo &Scitex/NUR
Matan
Mimaki
Mutoh
Oce/Fuji
Sericol/Inca
Teckwin
Rastek/VUTEk/efi
Finishing Market Overview
$150K
$100K
$75K
$100K $200K $400K $600K
Finisher
Printers
$50K
$200K
$1MIL
The Goal: Most printers see themselves as printers first, and don’t want to spend more for a finishing solution than their printer cost. The market should allow them to choose a cutter/finisher for every speed and quality level they require - all working the same way
One Common Workflow - Many
Choices
Printer
CUTTERS/ROUTERS/LASERS THAT WORK WITHIN THE WORKFLOW
Anderson (Q-KUT)AXYZCielleDYSSEskoArtwork/KongsbergEurolaserGerberHanter TechnologyKern LaserMCT/Blackman & White
MecanumericMimakiMulticamTeckwinTrotecVytek LaserZundMore
TYPICAL SMALL FORMAT CUTTER
PRICED UNDER $100K
Zund S3
TYPICAL SMALL FORMAT LASER
SMALL LASERS PRICED UNDER $100K
Trotec Speedy 500
TYPICAL ROUTER
ROUTERS PRICED UNDER $75K, UP TO $100K
AXYZ Camtech Router
TYPICAL CUTTER/ROUTER
TYPICALLY COST BETWEEN $100K AND $225K
Zund G3
TYPICAL LASER
TYPICALLY COST BETWEEN %75K AND $150K
Kern Laser Cutter/Engraver
TYPICAL LASER/CUTTER
TYPICALLY COST ABOVE $275K
Eurolaser 3XL 3200 with Laser and Zund Tangential Cutting knives, but no Routing
TYPICAL GRAND FORMAT
LASER/CUTTER/ROUTER
TYPICALLY COST $225K AND UP
MCT/Blackman & White MasterCut™ (up to 5M wide X up to 40M long or more) can have both laser on one side of beam and cutter tools and/or router on the other side
NEW MCT CUTTER/ROUTER /LASER
VALUE PRICE POINT OF UNDER $135K IN 5X10 FORMAT TO $210K IN 10X10 FORMAT WITH LASERTO MATCH THE MAXIMUM PRINTER BUYERS’ NEEDS
MCT/BW introduces new
Versa-Tech™ Cutter/Router/Laser
With sizes of 1.6M, 2.0M and 3.2M
Wide by 3.2M long
cutting areas
One system that does it all!
PRINTER (PSP) CONCLUSION
You have many choices for finishingChoose ones that give you the most
opportunity for growth and profitability and make sure that the manufacturer also understands your workflow needs!
BUT CHOOSE DIGITAL FINISHING TO MAXIMIZE BOTH YOUR PROFIT AND
GROWTH
DISTRIBUTOR CONCLUSION
Pick the finishing product company that gives you:
the best breadth of product, Has a good relationship with its
customers, and works with a distribution partner
as a true partner, not just as another outlet
CONTACT INFORMATION
Steve Aranoff
VP Business Strategy & Distribution
MCT, Inc. (Mikkelsen Converting Technology, Inc.)
700 W. Virginia St., #B110
Milwaukee, WI
Cell: 928-300-8757
Office: 928-282-4173
Fax: 775-254-5768
Skype: steve.aranoff