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PAGE 8 PROFITABILITY September 2017 Volume 2 Issue 9

PROFITABILITY PAGE 8 · Great Lakes Graphics Association — • 3. Website: Toll-Free Phone: (855) 522-2210 Joseph Lyman. President [email protected]

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Page 1: PROFITABILITY PAGE 8 · Great Lakes Graphics Association —  • 3. Website:  Toll-Free Phone: (855) 522-2210 Joseph Lyman. President jlyman@glga.info

PAGE 8PROFITABILITY

September 2017Volume 2

Issue 9

Page 2: PROFITABILITY PAGE 8 · Great Lakes Graphics Association —  • 3. Website:  Toll-Free Phone: (855) 522-2210 Joseph Lyman. President jlyman@glga.info

2 • Graphics Journal — September 2017

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Page 3: PROFITABILITY PAGE 8 · Great Lakes Graphics Association —  • 3. Website:  Toll-Free Phone: (855) 522-2210 Joseph Lyman. President jlyman@glga.info

Great Lakes Graphics Association — www.glga.info • 3

Website: www.glga.infoToll-Free Phone: (855) 522-2210

Joseph [email protected]

Bill GibsonIllinois [email protected]

Brent EckhartIndiana [email protected]

Sharon FlickCommunications ManagerEditorial [email protected]

Debra WarnerMembership Development and Engagement ManagerAdvertising [email protected]

Doris SaywrightIT [email protected]

Staff Contacts

Technical HotlineDo you have questions about a technical process? Call the PIA Technical Hotline at (800) 910-4283.

Free HR HotlineUse the free InfoNow line to get answers from MRA’s HR profes-sionals. Call toll-free 24/7 at (866) 275-6721, or email [email protected].

GLGA Hotlines

Member Services

Events

State News

What to Look for If Your Profits Are Low

How A Content Marketing Program Uncovers Better Target Accounts

Sales: Tell Them How Good You Are

Managing Wage and Hour Risk

An Alternative to Secondary Contain-ment with Your Oil-Based Ink Storage

Ask the Technical Experts

New Products and Services

Membership News

Calendar

The monthly membership magazine for the Great Lakes Graphics Association

Volume 2 / Number 9September 2017

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Page 4: PROFITABILITY PAGE 8 · Great Lakes Graphics Association —  • 3. Website:  Toll-Free Phone: (855) 522-2210 Joseph Lyman. President jlyman@glga.info

4 • Graphics Journal — September 2017

MeMber ServiceS

Need to Update Your Entry in the Print Buyers Guide and Membership Directory? Edit Your PrintAccess Listing by October 13Had some changes at your company? Update your PrintAccess listing. PrintAccess is the national online searchable database for printing and finishing compa-nies and for print service vendors. Being listed in PrintAccess is a free member benefit. View your listing - and check out possible partners for your business - at www.printaccess.com.

Your PrintAccess listing also is the basis of your company’s entry in our GLGA directory publication, the Print Buyers Guide and Membership Directory. GLGA is beginning to work on the next Print Buyers Guide, which will be mailed January 2018. Review your PrintAccess listing now so that your changes will be included in the 2018 edition. Your PrintAccess edits are needed by Friday, October 13, to be includ-ed in the 2018 publication.

If you need to make changes but don’t have your company’s administrative PrintAccess user name and password, please contact Sharon Flick toll-free at (855) 522-2210, direct at (262) 522-2215 or via email at [email protected].

To advertise in the Print Buyers Guide, please contact Debra Warner toll-free at (855) 522-2210, direct at (262) 522-2213 or via email at [email protected].

Long-Time GLGA IT Specialist RetiresDoris Saywright, who has been GLGA’s IT Specialist for 10 1/2 years, has retired. Doris joined Printing Industries of Wisconsin pre-merger and was responsible for creat-ing the database systems that GLGA relies on to this day. She handled the merger of the membership records for Printing Industries of Illinois and Indiana Association and PIW, designed the membership Return on Investment Reports, and developed our Graphics Excellence Awards judging database system.

Doris started her career in IT in the 1970s. Initially she worked as a programmer, but eventually was drawn to managing databases. She became especially adept at Microsoft Access, which led her to PIW.

While she is retiring from regular office hours, she will continue to lend a hand with the annual Print Buyers Guide and Membership Directory project. Her last day was August 18, 2017.

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Doris Saywright greets attendees checking in at the 2011 Graphics Excellence Awards Gala.

Page 5: PROFITABILITY PAGE 8 · Great Lakes Graphics Association —  • 3. Website:  Toll-Free Phone: (855) 522-2210 Joseph Lyman. President jlyman@glga.info

Great Lakes Graphics Association — www.glga.info • 5

Above: Congratulations to the putting contest winner. From left, Dean Pate, Ricoh; Pete Sipek, Central File; Sheila Palmer, Ricoh; and Denise Fini, Ricoh. Below: The Hohner Stitching team awaits the next raffle ticket number. From left: Mark Friedenauer, Melissa Ali, Barb Grizzle, Michelle Mutehart, and Joe Koch.

eventS

Two FREE Member Webinars Will Help You Connect with Customers GLGA has announced two webinars coming up this fall that are FREE for members. Register online at www.glga.info.

First, join us for How To Boost Sales Force Productivity Using Content Marketing on Wednesday, September 20, 2017, presented by GLGA Digital Technology Council. Twenty years ago, the sales team handled prospecting. But, this 1990s practice is not effective in 2017. In our digital age, as buyers use online resources to formulate purchasing decisions, effective content can serve as a member of your sales team. Is it time to make a hire content hire? Presenter John Edmundson of InterEdge Marketing will discuss how a content plan can impact your business.

Then, on October 4, 2017, be sure to attend Turning Data into Dollars $$. This session will teach you how you can set your team apart and make an impact on your customer utilizing the data that you already work with on a daily basis. Our presenter, Gregory Kaye of Analytic Marketing Partners (AMP), wil discuss how to use data to

• Open New Doors

• Grow and Retain Client Relationships

• Protect Your Reputation

• Improve Campaign Performance

• Directly Generate Revenue

Wisconsin Golf Outing Is Another Sell-Out!A sell-out crowd enjoyed a beautiful summer day at the annual Wisconsin Golf Outing, held on August 9, 2017, at Lake Ripley Golf Club in Cambridge, WI. Players arrived for lunch and practice on the range before the round of golf, then finished the day with a social hour and our always popular steak cook-out, hole prizes and a fun raffle.

The Lowest Scoring Team award was won by the team hosted by Midland Paper with Adam Liebenthal, Midland Paper; and Tom Neuman, Rod Wolf, and Bob Quartucci of Schumann Printers.

The putting contest sponsored by Ricoh was won by Pete Sipek of Central File during a nine-person putt-off on a chal-lenging hole.

“It was another exceptional outing,” said Joe Lyman, GLGA president. “Thank you to everyone who played, joined us for dinner, sponsored the event, and donated raffle and golfer gift bag prizes. Mark your calendar for August 8, 2018, and be sure to register early for next year’s outing!”

Above: Team SCS-Goes. From left, Chris Jimieson, SCS Engineers; Nels Goes and Charlie Goes, Goes Lithographing.

Page 6: PROFITABILITY PAGE 8 · Great Lakes Graphics Association —  • 3. Website:  Toll-Free Phone: (855) 522-2210 Joseph Lyman. President jlyman@glga.info

6 • Graphics Journal — September 2017

State newS

IllinoisI have heard it said over and over that our industry needs young and energetic minds, and I have even heard “they have no interest!” This attitude has created a void in progressive recruiting and a mindset of just giving up in finding new talent for our industry.

I believe the exact opposite is true. Young minds are eager to learn and willing to take on responsibility as we allow them to, by internships, scholarships and mentoring to bring them into your facility and create a learning environment with excitement and opportunities to exercise their skills. The trade is filled with new and engaging challenges, and if given the chance youth will rise to the occasion and begin the learn-ing process. I have witnessed this first hand with some of our scholarship awardees as they express their gratitude for our supporting their desire to learn and be a part of the trade.

The key to the success of any program is training, engagement, ownership and a future to look to; by not providing that incentive, companies will begin to revert back to that “they have no interest” mindset. Our educators are struggling to provide unique opportunities with leading companies that are willing to take these young people under their “wing” and give them a chance, but those companies seem to be few and far between. Allotting time from an already work burdened staff is difficult, but in the long run it will produce positive benefits for your company as well as the employee.

GLGA is committed to supporting education for our trade on the high school, college, university and community college levels with ongoing programs of scholar-ships and a conduit between higher education and our membership. Supporting fundraising opportunities and the Illinois Graphic Communications Scholarship Program for education will allow us to continue to develop and implement new programming that will benefit our youth and prepare them for a future in print, whatever that will look like!

“Tell me and I forget, teach me and I may remember, involve me and I learn.” Benjamin Franklin

By Bill GibsonIllinois Director

Contact Bill:(312) [email protected]

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Page 7: PROFITABILITY PAGE 8 · Great Lakes Graphics Association —  • 3. Website:  Toll-Free Phone: (855) 522-2210 Joseph Lyman. President jlyman@glga.info

Great Lakes Graphics Association — www.glga.info • 7

WisconsinProfitability continues to be the biggest challenge impacting companies in the printing industry. Forget about sales. Great sales just make your company an attractive target for acquisition if your profitability isn’t large enough to purchase new equipment, to attract the best talent, or to make the changes necessary to compete in the marketplace.

This is why we have created a Dynamic Ratios Calculator to provide you with a resource that will help you quickly understand how your company is performing financially. The Dynamic Ratios Calculator allows you to compare yourself versus others based on information you provide. All you need is four numbers – annual sales, income before taxes, number of full-time equivalent employees and your annual substrate costs – and you will quickly understand whether you are a market leader, market challenger or market laggard.

The formulas are all based on information derived from Printing Industries of America annual Dynamic Ratios Study and have been widely accepted as key indicators regardless of what type of process you use or type of product you manufacture. Whether you are a printer, finisher, bindery, packager, tag/label manufac-turer or converter, the Dynamic Ratios Calculator is for you.

What if you aren’t a market leader? Participate in the PIA’s Financial Performance Assessment. It is a great way for you to taker a deeper dive into how you can become more profitable.

Check out the Dynamic Ratios Calculator today by visiting www.glga.info/drc.

IndianaWhat a great phone call I had today! A member company wanted me to visit and meet with several of their staff so that they could be sure they are not missing out on any benefits of their GLGA/PIA membership. That is typical of the proactive approach this firm exhibits and makes them one of the leading commercial printers in the state. If you are reading this column and wonder if your company is getting the most bang for its membership buck, please give me a call. There is seldom a member visit that does not result in an “I didn’t know you offered that.” moment. I would appreciate the opportunity to stop by for a short visit and make sure you and your team are up to date on GLGA/PIA benefits.

Speaking of visits, I hope everyone had a good trip to Chicago to see PRINT. Thanks to those of you who stopped by the GLGA Reception on Monday afternoon. It is always interesting to hear the conversations and comments about what is on display at the show. The other day, a printer told me that she tries to look at new equipment and processes not for what they will do for her company but for what they will do for her customers. That is an interesting lens through which to view the show. It’s a perspective that most of us probably don’t use enough.

Finally, I want to ask our Indiana printers and finishers to take a moment and think about some of the well-crafted and interesting work you have done thus far in 2017. Then take a few of those samples, set them aside and resolve to enter them in the Graphic Excellence Awards competition next year. Yes, we are a long way off from the judging, but now is the time to think about what you have produced and also to think about the prestige and promotion that will come your way when you enter and win an award. The GEAs are not a strong tradition in Indiana, but we are starting to change that. Every year we have more printers and binders entering the competition. Reward yourself!

By Joe LymanPresident

Contact Joe:(262) [email protected]

By Brent Eckhart Indiana Director

Contact Brent:(317) [email protected]

Page 8: PROFITABILITY PAGE 8 · Great Lakes Graphics Association —  • 3. Website:  Toll-Free Phone: (855) 522-2210 Joseph Lyman. President jlyman@glga.info

8 • Graphics Journal — September 2017

Frequently we are asked for our top reasons for low profits at printing firms. Just as is true of your physical health, some vital signs in the health of your business can be too high or too low. The following is a list of indicators that may need to be examined in order to see greater profitability:

Your Prices Are Too Low

Over the years, we have repeatedly pointed out how price increases trump both cost decreases and sales increases in boosting profits. Too many printing companies focus on costs and continue pricing as they have in the past. PIA studies show that raising prices by just one percent raises profits by a higher percentage than decreasing materials cost by one percent, reducing payroll cost by one percent, reducing administrative and selling costs by one percent, or increasing sales by one percent.

Your Plant Utilization Is Too Low

Low plant utilization means that plant overhead is spread over fewer jobs, leading to low or no productivity.

Your Value Added Is Too Low

A basic maxim of the printing industry is that profit is derived from sales of a company’s internal manu-facturing process; so, printers need to minimize their outside purchases. Printers make a profit from the work done inside their plants, not outside.

Your Sales Per Employee Are Too Low

The gap in sales per employee for a profit leader compared to a profit challenger is over $35,300 for printers with less than $3 million in annual sales. On average, each additional $3,600 in sales per employee increases profit on sales by one percent.

Your Sales Per Production Employee Are Too Low

The gap between profit leaders and profit challeng-ers for this metric is over $20,700 for small printers. On average, each additional $2,100 in sales per production employee adds one percent in profit as a percentage of sales.

Your People Costs Are Too High

For all printers participating in this year’s Dynamic Ratios, profit challengers paid an average of 40.2 percent of sales for people costs (wages, salaries, benefits and payroll taxes). In contrast, profit leaders expended an average of just 35 percent, for a difference of 5.2 percent. For smaller printers (less than $3 million in annual sales) the gap is even greater — 5.6 percent of sales.

Your Paper and Consumable Costs Are Too High

Paper cost as a percentage of sales is a benchmark that can indicate both efficiency and inefficiency. However, in most cases, relatively high paper cost indicates inefficiency or high waste and spoilage.

Your Production Costs Are Too High

For a typical print job, variable costs comprise around 60 percent. Total factory cost of product as a percentage of sales is inversely related to value added but not in a one-to-one relationship.

Your Sales Costs Are Too High

A typical printer spends around eight percent of sales on selling expenses such as salesperson sala-ries, benefits, payroll taxes and commissions. Profit leaders usually beat this rate by one percent or so. Typically, a leading cause of high selling expenses is the sales commission structure itself; so, if this metric is high take a look at this first.

Your Administrative Costs Are Too High

For a typical printer this metric is usually around eight percent or so of sales. Usually, a profit leader can shave a half percent or so off of this amount.

Now that you have diagnosed where your problems lie, understanding how to implement change proce-dures in your firm is a whole different story. PIA’s Center for Print Economics and Management offers a Financial Performance Assessment that gives you a detailed action plan to follow based upon the health of your financials.

Contact Tai at [email protected], (412) 259-1756.

By Tai McNaughtonEconomistPrinting Industries of America

econoMicS

What to Look for If Your Profits Are Low

Page 9: PROFITABILITY PAGE 8 · Great Lakes Graphics Association —  • 3. Website:  Toll-Free Phone: (855) 522-2210 Joseph Lyman. President jlyman@glga.info

Great Lakes Graphics Association — www.glga.info • 9

Page 10: PROFITABILITY PAGE 8 · Great Lakes Graphics Association —  • 3. Website:  Toll-Free Phone: (855) 522-2210 Joseph Lyman. President jlyman@glga.info

10 • Graphics Journal — September 2017

Does a content marketing program generate better target accounts?

Indeed, it’s unlikely that sales teams look at content as a way to identify better account opportunities. Target accounts are about maximizing the opportu-nity to grow sales and shorten selling cycles. At first glance content marketing appears to have little to do with identifying the best accounts that maximize revenue opportunities.

But, can you improve target account program? In sales or any discipline, taking steps to improve the odds your process succeeds is essential.

Unfortunately, as with any subjective exercise, there’s no magic formula.

For example, the National Football League pours endless hours and funds big budgets to scout college players. Yet, less than 30 percent of first round picks this process identifies become starters.

Financial firms employ highly accomplished financial analysts with robust staffs, but less than 20 percent of mutual funds outperform the S&P 500 Index over a

10 year period. And, sales and marketing teams spend hours evaluating internal and external data to determine the best targets. Unfortunately, these efforts only result in a success rate of around 15 percent.

Of course, you can’t expect perfection. Unforeseen circumstances make flawless outcomes impossible. For example, an injury may prevent a football player from ever taking the field. Investors may withdraw money from a mutual fund forcing the manager to sell assets at an inopportune time. Similarly, when the target account you are about to close is unexpectedly acquired, it derails the outcome.

But there are steps you can take to improve your success rate.

How a Content Marketing Program Uncovers Better Target Account Opportunities

Although it won’t help the NFL scouts or mutual fund managers improve their results, it will benefit you. A content marketing program guides sales teams to make better target account selections. It allows you to uncover accounts that are more likely to value your services. And, as a result, it improves the odds of increasing your target account close rate.

How Does a Content Marketing Program Improve Target Account Selection?

Target account plans aren’t a shot in the dark. Effective programs use demographic and firmo-graphic data, incorporate knowledge from past experiences and may even include predictive analytics. Unfortunately these efforts still result in failure more than 80 percent of the time.

But, the underlying value of any process is to improve the way you and your team work. Integrating a content marketing program into your target account process creates a better outcome, one that will lead to better target account selection and sales success.

A Content Development Program Complements Target Account Selection

Content plans are typically designed to accomplish specific goals such as increasing brand awareness, generating leads or increasing lead conversions. But regardless of the goals, an important component of a content marketing program is developing a deep understanding of your customer.

As a result, it forces you to think about users that buy your product. For example, what are their likes, dislikes, jobs functions, reporting structure, business challenges and more? It helps you clarify what “jobs” your audience uses your products to perform. Recognizing your prospect’s wants and needs provides insights into opportunities the data may be missing.

For example, a healthcare services company provided support for hospitals facing compliance challenges. However, through their content market-ing research, they found that not all end users consumed their services in the same way. Although many used them when they were in “compliance jeopardy,” others required the same information to develop proactive compliance training programs.

“A Content Marketing Program improves the odds of increasing your target account close rate.”

Marketing

How A Content Marketing Program Uncovers Better Target Accounts

By John EdmundsonPrincipalInterEdge Marketing

Page 11: PROFITABILITY PAGE 8 · Great Lakes Graphics Association —  • 3. Website:  Toll-Free Phone: (855) 522-2210 Joseph Lyman. President jlyman@glga.info

Great Lakes Graphics Association — www.glga.info • 11

Accordingly, instead of only focusing on organizations who had compliance issues, the company reworked their services to target a new hospital client: one that needed training to help prevent compliance problems. This insight uncovered new, viable target account opportunities and helped them improve their target account selection and close rate.

Content Distribution

How you communicate content to your target audience provides additional clues.

Therefore, a blog, newsletter, social media and posts in other publications uncover opportunities that you may not even know exist.

For example, a company specializing in healthcare labels found that a food service company subscribed to their newsletter. The specific area of interest centered around allergy and food safety labels. Ultimately, the food service company become a good customer.

Moreover, after further research, the label company determined that numerous food service organizations had the need for this same label expertise. As a result, they developed a program to target these companies.

Bottom line, through their content marketing program, they identified new target accounts and closed sales opportunities they would have otherwise missed.

New Customers and New Applications

Similarly, content can identify applications within your target accounts that you may not be considering.

A printer used content to promote their large format capabilities to marketing departments in many industries. They received a blog comment from a hospital marketing manager asking if the printer could produce standees. The hospital wanted life-like replicas of 20 hospital staff members for their new building dedication ceremony and public tour.

The printer recognized the potential for this application. They used the same concept for hospitals on their target list. But, that’s not all. They started targeting hospitals that were in the middle of a building expansion and used it successfully to not only sell new business but also break into accounts that weren’t previously targets.

Without the content marketing program “ah ha,” additional sales volume would have never transpired.

Creating Better Target Accounts

You may be limited by geography, company size or the market segments that typically use your services. However, a well thought-out content marketing plan will help you improve your target account selection process.

Content marketing is not a magic formula. But improving your target account close rates by only a few percentage points can dramatically impact revenue and another reason a content marketing program is worth considering.

InterEdge Marketing provides B2B companies with online and offline marketing services. Utilizing methods include website optimization, content marketing, social media strategies, direct marketing and lead nurturing, the company helps organizations expand their audience, generate additional leads, increase conversions and drive revenue. Contact John at (630) 442-0040 or [email protected].

Page 12: PROFITABILITY PAGE 8 · Great Lakes Graphics Association —  • 3. Website:  Toll-Free Phone: (855) 522-2210 Joseph Lyman. President jlyman@glga.info

12 • Graphics Journal — September 2017

We do so much for our customers, but it is all too often forgotten during hectic day-to-day opera-tions. The challenge is telling them how good you without telling them how good you are.

Conducting a formal customer business review (CBR) will give you the chance to create a dialogue that reminds your customers how well you serve them while helping you establish a larger role in the success of their business.

What is a Customer Business Review?

A CBR is a scheduled event where the current job is momentarily set aside to focus on the bigger picture and concentrate on strategy, investment and your relationship. Discussions are focused on how to mutually improve processes and move the business forward, which can positively change the dynamic of your relationship. By seeking out clear and honest feedback from your clients, you transition from commodity vendor to strategic partner.

Because they can be time- and resource-consum-ing, CBRs should only be done in collaboration with customers who possess the greatest opportu-nity for positive impact. Typically this is your top tier continuity customers. Clients who run one to two jobs a year with you are probably not a good fit.

When Should I Conduct a CBR?

Timing and frequency should be driven by your customer. In my experience, conducting quarterly CBRs is excessive; so, I recommend a semi-annual or annual business review. Defer to your client’s willingness to participate and respect their requests for scheduling and rescheduling. It also may be advantageous for a member of the leadership staff to reach out to a customer leader with the offer to do this review. The CBR is a great tool to open C-level dialogue and show how much you care about their business.

What Should We Discuss?

That depends on what matters most to you and your customer. Start by working together to create a mutually agreed upon agenda. I suggest exchanging a working draft so that both sides can contribute discussion points that are most important to them.

A typical CBR agenda will include

1. Marketplace Overview. Do a little research and provide perspective on the marketplace. This will open forward-thinking dialogue.

2. Client Open Items.This should be issues the customer is interested in discussing. Give them a chance to talk and remember to talk less and listen more.

3. Production Overview. Put together an overview of what was produced by month and quarter.

4. Report Card. Create a grading scale (1 – 5) with the customer to cover each phase of production and touchpoints (such as estimat-ing and billing). Both sides should provide grades and compare outcomes, including what was done well and what needs improve-ment including on customer side

5. Value Added Recap. Discuss what you do – and have done – for the customer. This is your chance to remind them how good you are. Share what you are doing that will help them grow their business. Specify relevant changes, improvements and investments.

6. Customer’s Outlook and Strategic Needs. Discuss the customer’s needs and how you can contribute to achieving their business goals. Ask open ended questions and get them to talk beyond a job.

7. Goals and Action Steps.What was identified that needs to be addressed and worked on? Make a list of action items and assign owners. The activities on this list need to be measur-able, tracked and reported on. Be sure to evaluate this list at the next review.

Again, the CBR changes your relationship – you are a partner to their business and your success is now important to them. The activity allows you to get true “Voice of the Customer” feedback and direc-tion and make everyone aware of how important mutual success is.

Tim Hendricks is President of the Creative Cognition Group, a leadership, sales and marketing consulting company. He can be reached at (708) 610-1926 or at [email protected].

SaleS

Go Ahead – Tell Them How Good You Are

By Tim HendricksPresidentCreative Cognition Group

“Without promotion something terrible happens—nothing.” PT Barnum

Page 13: PROFITABILITY PAGE 8 · Great Lakes Graphics Association —  • 3. Website:  Toll-Free Phone: (855) 522-2210 Joseph Lyman. President jlyman@glga.info

Great Lakes Graphics Association — www.glga.info • 13

Wage and hour suits continue to be a prominent source of employment practices claims throughout the nation. The prolific nature of these suits can be attributed to the complexity of wage and hour laws, differences between state, federal, and local laws as well as difficulty in defending these suits.

As plaintiffs’ counsel continue to see a high success ratio and with these being fee-shifting cases, where the defendant has to pay the plaintiff ’s counsel’s attorney fees if the plaintiff wins, there continues to be a substantial incentive for filing wage and hour suits.

Types of Wage and Hour Claims

1. Misclassifying Employees – The Fair Labor Standards Act (FLSA) determines who is entitled to overtime pay (non-exempt) and who is not (exempt). Employees misclassified as exempt can sue for the misclassification and allege failure to pay overtime wages.

2. Overtime Wages – Non-Exempt employees are entitled to overtime pay. Common sources of claims include failure to pay overtime, miscalculation of overtime pay or failure to pay at the correct rate.

3. Extra Time Off – Rather than pay overtime monetarily, employers have tried providing additional time off. This practice is generally prohibited by wage and hour laws and not an acceptable replacement to paying for hours worked.

4. Lunch/Meal Breaks – Although federal law doesn’t require rest and meal periods, some state laws do. Employers should be cognizant of how both federal and state or local laws are applicable to their business.

5. Independent Contractors – Suits often arise when workers who are classified as indepen-dent contractors are found by the Department of Labor to be employees and therefore entitled to all benefits employees are given.

Risk Management Tips

1. Implement policies requiring approval of overtime hours before they are worked.

2. Ensure your wage and hour policies are consistent with both federal and state or local law.

3. Ensure all employees are properly classified and their job descriptions and duties remain consistent with that classification.

4. Check state laws regarding rest and meal periods.

5. Consult with a labor or employment attorney to confirm your policies and procedures are compliant with state or local laws regarding rest and meal periods, and update these poli-cies as new rules come into play.

6. Ensure your employment practices liability insurance policy includes a limit for defense of wage and hour claims.

Scott Little is a sales executive with Rand-Tec Insurance Agency in Vernon Hills, IL. He has been in the insurance industry for more than 33 years, and specializes in property, casualty, business auto, and workers compensation coverage. Contact Scott at (847) 996-3854 or [email protected].

HrManaging Wage and Hour Risk

By Scott LittleSales ExecutiveRand-Tec

Page 14: PROFITABILITY PAGE 8 · Great Lakes Graphics Association —  • 3. Website:  Toll-Free Phone: (855) 522-2210 Joseph Lyman. President jlyman@glga.info

14 • Graphics Journal — September 2017

Do you store oil-based inks and manage them as part of your facility’s Spill Prevention, Control and Countermeasures (SPCC) Plan? If you do, an impracticability determination is an alternative approach that you can use to comply with the SPCC Rule if you have oil sources without secondary containment already in place. The high viscosity of oil-based inks can provide an opportunity for an alternative means of complying with the secondary containment requirements of the SPCC Rule. An impracticability determination can be an appropri-ate option for oil-based ink you store in single-walled containers at your print facilities.

Tying Oil-Based Ink Storage to the SPCC Rule

If you store oil-based ink at your facility in contain-ers equal to or greater than 55-gallons, you must include these oil sources in your facility’s SPCC Plan. Oftentimes, ink is stored in single-walled containers, which means you need to address how the containers are complying with the secondary containment requirements of the SPCC Rule.

With larger containers, traditional secondary containment measures such as concrete contain-ment dikes likely remain as the most appropriate way to comply with secondary containment requirements.

Facilities are often moving smaller, more portable containers of ink to multiple locations during their operational lifespan – oftentimes a staging area and then a location on the floor where the ink is used.

Learning More about Impracticability Determinations

The SPCC Rule provides two opportunities for facilities to take an alternative approach to obtain-ing compliance – impracticability determinations and environmental equivalence. However, it is important to understand that for secondary containment, the only alternative path allowed by the SPCC Rule is impracticability determinations. Environmental equivalence allows deviation for most other technical elements of the SPCC Rule, but may not be implemented for the secondary containment requirement.

When considering the high viscosity of ink and the cost of providing secondary containment for smaller ink containers, you may ask your Professional Engineer if they have considered evaluating and writing an impracticability deter-mination into your plan rather than you having to pay hefty costs associated with adding concrete containment structures or portable containment

units to your facility to comply with the secondary containment requirement.

Impracticability determinations, when pursued for your facility’s SPCC Plan, must indicate why the secondary measures are impracticable and how the alternative measures are implemented.

Placing an Impracticability Determination in your SPCC Plan

If secondary containment is deemed impracticable, you must clearly state in your SPCC Plan why such secondary containment is impracticable.

After the statement of impracticability for a particu-lar oil source, it is critical that the Professional Engineer has done sufficient due diligence to provide sound reasoning on why the secondary containment was deemed impractical. I recom-mend listing at least two to three clear reasons on why secondary containment isn’t feasible. Cost may be one factor in an impracticability determination, but it can’t be the only determining factor.

Upon explaining the reasoning, you must then demonstrate how your facility meets the following additional requirements:

• Implement an inspection and monitoring program

• Develop an oil spill contingency plan per 40 CFR 109.5

• Provide a written commitment of resources to control and remove any oil that would be discharged

These additional requirements may already be part of your existing SPCC Plan, so the Professional Engineer will need to clearly connect the appropri-ate dots when writing an impracticability determi-nation, and add the elements not already covered by your facility’s SPCC Plan.

Ask your Professional Engineer if you have a situation that warrants a look for the potential of pursuing an impracticability determination.

Chris Jimieson has more than 18 years of experience helping industrial, commercial, military, federal, state, municipal, and solid waste companies with environmental compliance. He has extensive experi-ence helping printing companies with SPCC projects and manages compliance projects providing comput-er-based training (CBT) modules to meet clients’ employee compliance training needs. Contact Chris at [email protected] or (608) 216-7367.

By Chris JimiesonProject Manager/Senior Geological EngineerSCS Engineers

environMental

An Alternative to Secondary Containment with Your Oil-Based Ink Storage

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Great Lakes Graphics Association — www.glga.info • 15

Printing induStrieS of aMerica

Ask the Technical Experts!One of the benefits of membership is the technical expertise provided by Printing Industries of America. The technical experts from the Center for Technology and Research help members with environ-mental, health, and safety concerns; consulting and on-site technical assistance; and technology training. In this column, they discuss common production problems and issues.

Q. How long does it take sheetfed litho ink to dry completely?

A. Ink setting and ink drying are two different phenomena. Ink that has set allows the sheet to be handled without easily offsetting or smearing. Many printers refer to ink setting as ink drying, since some chemical drying has occurred at this stage.

Ink setting involves a rapid increase in the viscosity of the ink on the printed sheet. The causes of ink setting include absorption of solvents into the substrate, solvent evaporation, increases in the ink’s viscosity due to the ink’s thixotropic properties, and reduction in the temperature of the ink along with quick setting varnishes.

Actual drying of the ink is a complicated chemical reaction involving oxidative polymerization using drying oils and other drying agents that react with oxygen in the air. A “hard dry” or completion of the chemical drying process can take as long as 24–48 hours.

Q. I’m getting a missing font warning when I package my artwork even though all the fonts in the file are properly linked. What could be causing the renegade font issue?

A. Unfortunately, there can be numerous reasons for renegade missing fonts in files. If you can’t find the culprit in your native file, check all the supporting files for missing fonts. Oftentimes a linked .EPS file will include fonts that don’t convert properly, which can cause programs like InDesign to raise a red flag indicat-ing a missing font.

If you have an .EPS file that includes text, you can quickly convert the text to outlines by creating a new Transparency Flattener Preset and applying it to your .EPS files. Go to Edit > Transparency Flattener Presets in Adobe Illustrator and create a new preset. Check the “Convert All Text to Outlines” option, ensure your raster/vector balance is set to 100 percent for optimal quality and your resolutions for line art and gradients are set to 1200ppi and 300ppi respectively, and save this as a new preset.

Now, when you resave your .EPS files ensure you apply your new preset and all the text in the .EPS will be converted to outlines. This will fix any renegade missing font issues when you package your file for print production. This will also work in InDesign if you’re saving to .EPS format.

Q. I’m getting a lot of static buildup in my digital press and it’s causing production issues with long-running jobs. Is there an inexpensive way to mitigate this so I don’t have so many paper jams and continuously need to stop production?

A. Static buildup is directly related to the moisture content of the paper and the relative humidity of the pressroom. Toner-based digital presses have a high-temperature fuser roller that melts or softens the toner, which adheres it to the paper and also removes a significant amount of moisture from the paper. This results in the paper being more prone to static buildup. The recommended rela-tive humidity of the pressroom is 45–55 percent. Relative humidity around or below 30 percent RH will contribute to static buildup.

One inexpensive method of reducing static electricity in your paper is to tape a dryer sheet to the back of each paper drawer. You want to make sure it won’t get pulled in as well; so, ensure the dryer sheet is properly secured in the back of the drawer. Consult your digital press representative for their recommendations.

Q. I’m using Excel and Adobe InDesign to merge a variable data job and need to insert special characters into my PDF. How can I do this without creating a merged document and typesetting these characters in by hand?

A. First, make sure you’re working with a CSV file and not an Excel workbook, then convert all the cells without numbers to plain text formatting by right-clicking, selecting “Format Cell,” and choosing “Text.” You also can create custom cells for elements such as digit-based codes, but plain text should work just fine. Save your file and update the linked CSV file in InDesign. When you preview your list in InDesign, your imported data with special characters will display properly.

Q. Are small companies like ours required to have a first aid program?

A. Before you can determine if a first aid program is required, you must determine how long it will take for emergency response services to respond to a call. Based on OSHA’s interpretation of its regulation, the allowable response time is 3–4 minutes for manu-facturing facilities. If your company is outside of this response window you will need to create a first aid program and designate First Aid Responders (FARs). FARs need to receive the appropriate training in first aid and OSHA’s Bloodborne Pathogen rule.

Offering unbiased and confidential results, Printing Industries of America provides a range of testing and laboratory services to help solve printing-related problems. For more information, please contact Jim Workman at (800) 910-4283, ext. 710 or direct at (412) 259-1710, visit www.printing.org/labservices or email [email protected] or [email protected].

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16 • Graphics Journal — September 2017

To have your company, product or service featured, contact Sharon Flick toll-free at (855) 522-2210 or via email at [email protected]. News will be published as space allows. We reserve the right to edit for length and clarity.

new ProductS and ServiceS

Canon Solutions America Expands Its Colex Sharpcut Product OfferingCanon Solutions America, Inc.has announced that two flatbed cutter models have been added to their Colex Sharpcut product offering. The Colex Sharpcut™ Digital Finishing System was intro-duced last year as an entry-level cutting solution for customers looking to help grow their business through increased application capability. With the expansion of the finishing solution developed by Colex, Canon Solutions America aims to help provide dynamic workflow possibilities for every customer. Read more at http://tinyurl.com/ydxr25ww.

Nicoat and MinusNine Combine to Launch New LED Coatings LineWith inaugural brand Nicoat and the acquisition of MinusNine Technologies, ICP Industrial combines two market leading, trusted brands to form a high-performance portfolio of aqueous, UV/LED/EB, silicone, and specialty coatings and adhesive technologies. ICP Industrial’s new UV LED coatings in gloss, satin and dull finishes are eco-friendly, lower energy-consuming, high-quality finish solutions for web and sheet-fed applications. UV LED coatings have all the desirable qualities of traditional UV curing with none of the negative aspects of heat and ozone generation. Learn more at https://tinyurl.com/ydewyqur.

Sun Chemical Names Veritiv as Distribution Partner of Streamline Solvent Inks for Wide Format MarketSun Chemical has named Veritiv as a distribution partner of its Streamline solvent inkjet inks for wide format and super wide format printers. The new distributor partnership allows Sun Chemical and Veritiv to reach their North American inks customers faster and more efficiently and jointly provide customers with technical and product support. Veritiv customers will now have access to Sun Chemical’s full range of Streamline inkjet eco solvent inks for Mutoh and Roland printers, as well as super wide format inks for three- and five-meter solvent printers. Read more at http://tinyurl.com/yar7npjw.

Western States Envelope and Label Releases Latest Envelope Resource GuideWhat does more for your bottom line with 130+ new products, expanded resources and an easier-than-ever format? The latest Envelope Resource Guide available especially for you from Western States Envelope and Label. Our customers spoke and we listened by enhancing our latest Resource Guide with:

• 130+ new products, including many designed for digital equipment.

• Easy-to-navigate elements like introductions and detailed descriptions, color-coded pages, highlighted products and product availability information.

• An expanded resources section: European Sizes, Equivalents, Standard Window Positions, Inside Tints, Standard Envelope Cutting, Envelope Layouts, Resource Templates and more.

To order a copy, visit www.wsel.com/envelope-resource-guide/pi.

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Great Lakes Graphics Association — www.glga.info • 17

MeMberSHiP newS

THE PRI GROUP600 Thomas Drive Bensenville, IL 60106 www.theprigroup.com Edgar Arana, Executive VP (630) 477-4040 [email protected]

The PRI Group was founded to help businesses recognize the benefits of recycling through the adoption of a proper waste disposal programs. Our waste consulting and recycling services will help your company identify, minimize and recycle your waste materials, diverting waste from landfills, while cutting your waste disposal costs, and, in some cases, generating an income for your company.

Welcome, New Members!ZUND AMERICA, INC.5068 W. Ashland Way Franklin, WI 53132 www.zund.com Matt Rooney, Central Region Territory Manager (414) 433-0700 [email protected]

Zund Systemtechnik AG, a family-owned business with operations worldwide, specializes in developing and manufacturing digital cutting systems. The Zund name represents Swiss Quality and is synonymous with precision, performance, and reliability. Since 1984 Zund has been developing, manufacturing, and marketing modular cutting systems and is globally recognized as market leader.

Color Ink “opened the doors to the future” at an open house at their newly rede-signed Sussex, WI, headquarters on August 16, 2017. Above: Dignitaries from the business community joined the company for a ribbon-cutting ceremony. From left: Suzanne Kelley, president of Waukesha County Business Alliance; Greg Goetz, Sus-sex village president; Todd Meissner, Color Ink president; Jim Meissner, founder/owner of Color Ink; Austin Meissner, Color Ink sales and sourcing manager; and Paul Farrow, Waukesha County Executive. Right: Color Ink executed a “Back to the Future” theme throughout every room, with both an actual vintage DeLorean on the ground and a crafted one in the air, accompanied by “Doc Brown.”

2018 Graphics Excellence Awards Competitor’s TipThink the GEAs are just for booklets and brochures? Think again.

There are nine categories specifically for Packaging/Labels – Flexography plus another category for Digital Labels; two categories for Large/Wide Format; five categories for Finishing Techniques, including Product Packaging Assembly; and Category X2, which is for any specialty printing.

That includes printing on metal, textiles, fabrics, vinyls, holograms, DVDs and silk screened items.

If you printed or finished it, there is a place for it in the competition.

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18 • Graphics Journal — September 2017

calendar

Upcoming GLGA Events and ActivitiesTo learn more or to register, visit GLGA’s website at glga.info.

Webinar: How to Boost Sales Force Productivity Using Content Marketing September 20, 2017

Webinar: Turning Data Into Dollars$$October 4, 2017

Webinar: Quarterly HR UpdateNovember 1, 2017

Upcoming PIA EventsTo learn more or to register, visit PIA’s website at www.printing.org.

OSHA Compliance for Printing WorkshopOctober 11-12, 2017, Warrendale, PA

Color ’18January 13-16, 2018, San Diego, CA

Technical Association of the Graphic Arts (TAGA) ConferenceMarch 18-21 2018, Baltimore, MD

Continuous Improvement (CI) ConferenceApril 8-11, 2018, Chicago, IL

Upcoming MRA WebinarsTo learn more about these free HR webinars, visit MRA’s website at www.mranet.org. For access, register for a user log-in to MRA’s website at www.mranet.org. Once you have a log-in, you can view the recordings whenever it is convenient for your schedule.

R.E.S.P.E.C.T! - Civility in the WorkplaceAvailable on September 21, 2017

Taking the Reins - Successful Succession PlanningAvailable on October 19, 2017

Upcoming Industry EventsGreater Illinois Postal Customer Council Mailers Forum

September 27, 2017, Addison, IL

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Great Lakes Graphics Association — www.glga.info • 19

#SmartPrintShop

Push to Stop is how we see smart print production in the future. It is based on networked processes and intelligent machines that organize and work through all print jobs independently. Completely autonomously. The operator only intervenes if necessary. This is invaluable because it frees you up to concentrate on what really matters. Simply Smart.

Heidelberg USA, Inc.800 437 7388 • [email protected] news.heidelbergusa.com

Page 20: PROFITABILITY PAGE 8 · Great Lakes Graphics Association —  • 3. Website:  Toll-Free Phone: (855) 522-2210 Joseph Lyman. President jlyman@glga.info

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