Fall 2004                    return to newsletter contents page

Plate Equipment and Materials Suppliers Meet with FPPA Representatives to Discuss Market Trends

by Jack Fulton, Committee Chair

On September 21, 2004, in conjunction with FPPA’s Management Workshop in Las Vegas, several suppliers were invited to meet with FPPA’s Product Technical Committee.

The Product Technical Committee was formed several years ago with the purpose of interacting with equipment and material suppliers to alert them to issues or concerns arising from their products in the marketplace.

Concerns have been voiced recently by platemakers concerning industry presentations encouraging printers to install their own platemaking equipment, and about a perceived proliferation of sales efforts by these suppliers to place equipment in converting operations, thereby bypassing tradeshops and the traditional supply chain.

Several suppliers were invited to address the Product Technical Committee recently in Las Vegas, or to submit written responses. Based on the interviews that were conducted, our suppliers assure us that we, as platemakers, continue to be the preferred channel to market for plate equipment and material. The volume of business that we represent, and the trained personnel and knowledge that we bring to the process make us the customer of choice for our suppliers.

Many suppliers, with whom we met, spoke of the necessity of installing plate equipment at some converter locations based on competitive factors, i.e. if a converter is seriously interested in going in-house and a competitor is offering to install such equipment, the supplier must protect market share by meeting that need. We certainly understand that situation, however, each supplier’s stated preference is to sell to trade shops first.

As platemakers, we are requesting that suppliers take certain steps in these situations:

• Ask the converter for the names of the tradeshops with whom they do business – all of the major tradeshops, not just the primary partner. The supplier should then contact each of these tradeshops to inform them that their customer is considering this change.

• Explain to the interested converter that this process of bringing platemaking in-house involves more than buying a piece of equipment. It will require trained and experienced personnel to operate and troubleshoot the processes; integrated equipment and systems, etc.

The final question we asked of them is for their long term vision for this supply chain. The answers were mixed but the predominant answer was the same. If our price is the most important thing we have to sell, then we are doomed as an industry.

As platemakers, it is incumbent upon us to educate our customers about the value we bring to the equation. Making customers more aware of the quality service we provide, the money we save them, and the problems we eliminate, will help protect our business.

On behalf of the trade shop membership, I want to thank the suppliers who met with us and those that submitted written responses. It is critical for trade shop and supplier members to keep an open line of communication on all issues.