September 11, 2013
Global Channel
Partners Summit
EXPAND PRODUCTION OPPORTUNITIES WITH CUTTING,
ROUTING AND LASER TECHNOLOGIES
EVERY super-wide-format digital printer NEEDS...
PRESENTATION SUMMARY
 Specialty Graphics are different
 The “Harley” problem
 UV Printer Market and Differences

 Samp...
GRAPHICS ARE DIFFERENT
 They can’t be sold without Finishing
 They’re labor intensive, at best, with variable results
 ...
THE HARLEY DAVIDSON PROBLEM
 Three dies were yielding 30% scrap
 Low, average and high humidity made more shape changes ...
WHERE IS FINISHING MOST NEEDED?
The largest area for growth is in printed fabrics. These tend to be
up to 10ft. Wide and t...
UV PRINTER MARKET GROWTH
Product Type 2010 Sales

2015 Sales

5 Year
Growth

COMMENTS

HEUVR2R
>$300k

281

440

57%

Fabr...
PRINTER MARKET GROWTH – CUTTER NEEDS
 Between Zund and Kongsberg, alone, approximately 1,000 flatbed digital
finishers wo...
WHAT KINDS OF GRAPHICS ARE
WE TALKING ABOUT?
Rolled vinyl and semi rigid plastics
Rolled fabric

Rigid boards, plastics an...
TYPICAL GRAPHICS –
POP/SMALL SIGNS
CAN BE FLEXIBLE OF RIGID
TYPICAL GRAPHICS – DECALS/LABELS
THAT 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

Market Drivers
20% attachment rate will grow with increasing printing speeds =
new bottlenecks in finishing = more ...
FINISHING BENEFITS
What are some of the driving factors to buying a digital
finisher?
What do Printers have to say?
How ca...
GRAPHICS ARE DIFFERENT
The alternatives cost more:
 Hand cutting and then laminating
 Sabre saw and saw horses

One cu...
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 graphi...
PRINTER COMMENTS
Richard Rudolph-Tango Graphics/EXL Prints:
 The bank made me run with a printer and no cutter for a year...
PRINTERS’ COMMENTS

• Ron Clark (Ben Franklin Press)
• Guy Ladd (Reprographic Technologies)
“I can’t understand anybody bu...
PRINTER COMMENTS
Jim Sullivan (BrandBoxx):

Our i-cut digital finishing system allowed
us to:
capture over $200,000 in gr...
MAJOR FABRIC PRINTER

 Using a laser cutter, we have
saved 7 employees per machine
shift and we no longer have sewers
wai...
BENEFITS / JUSTIFICATION
DIGITAL FINISHING AUTOMATION

Reduce labor expense
Increase production capacity
Improve quality /...
A SERVICE BUREAU STORY
 DICON was a cutting service bureau in Southern WI for over
8 years.
 By tracking all jobs, they ...
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, OptiScou...
PRINTER RIPS THAT HANDLE WORKFLOW
3M Graphic Maker
Caldera
Colorburst
ColorGate
Durst/Dice
Efi
Ergosoft

EskoArtwork
Gerbe...
PRINTERS THAT WORK WITHIN THE
RIP WORKFLOWS
Agfa
DYSS
Durst
Gerber
HP/Colorspan,Indigo
&Scitex/NUR
Matan

Mimaki
Mutoh
Oce...
$200K

The Goal: Most printers
see themselves as printers
first, and don’t want to
spend more for a finishing
solution tha...
CUTTERS/ROUTERS/LASERS THAT WORK
WITHIN THE WORKFLOW
Anderson (Q-KUT)
AXYZ
Cielle
DYSS
EskoArtwork/Kongsberg
Eurolas...
TYPICAL SMALL FORMAT CUTTER

Zund S3

PR IC ED U N D ER $ 1 0 0 K
TYPICAL SMALL FORMAT LASER
Trotec Speedy 500

SMA LL LA SER S PR IC ED
U N D ER $ 1 0 0 K
TYPICAL ROUTER
AXYZ Camtech Router

R O U T ER S PR IC ED U N D ER $ 7 5 K ,
U P TO $ 1 0 0 K
TYPICAL CUTTER/ROUTER
Zund G3

T YPIC A L LY C O ST B ET W EEN $ 1 0 0 K A N D $ 2 2 5 K
TYPICAL LASER
Kern Laser Cutter/Engraver

TYPIC A LLY C OST B ETW EEN
%7 5 K A N D $ 1 5 0 K
TYPICAL LASER/CUTTER
Eurolaser 3XL 3200 with Laser and Zund Tangential Cutting knives, but no
Routing

T YPIC A L LY C O S...
TYPICAL GRAND FORMAT LASER/CUTTER/ROUTER
MCT/Blackman & White MasterCut™ (up to 5M wide X up to 40M long or more) can
have...
NEW MCT CUTTER/ROUTER /LASER
MCT/BW introduces new
Versa-Tech™ Cutter/Router/Laser

With sizes of 1.6M, 2.0M and 3.2M
Wide...
PRINTER (PSP) CONCLUSION
You have many choices for finishing
Choose ones that give you the most opportunity
for growth and...
DISTRIBUTOR CONCLUSION

Pick the finishing product company
that gives you:
 the best breadth of product,
 Has a good rel...
CONTACT INFORMATION
Steve Aranoff
VP Business Strategy & Distribution
MCT, Inc. (Mikkelsen Converting Technology, Inc.)

7...
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How to make money with digital finishing steve aranoff

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Steve Aranoff helps us all to understand the evolving opportunities with his 'How to make money from Digital Finishing' presentation given at the 2nd Global Channel Partners Summit held during Print 2013 in Chicago; for more information check us out on www.global-channel-partners.com

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  • 5 to 1 – attachment rate. Pressbuuyersbying digital cutters. 20% - will go up as cutters cannot keep up. And spending $1mio on press – trivial to spend $150k on cutter. Sometimes the rate is 2 to 1 or even higher. E.g. Skin IT 4 to 1. Presses come in different sizes and speed. Usually speed is the expensive part. Again HP, Fuji, Canon, big players.
  • How to make money with digital finishing steve aranoff

    1. 1. September 11, 2013 Global Channel Partners Summit
    2. 2. 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
    3. 3. 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
    4. 4. 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.
    5. 5. 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.
    6. 6. 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
    7. 7. UV PRINTER MARKET GROWTH 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
    8. 8. PRINTER MARKET GROWTH – CUTTER NEEDS  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
    9. 9. 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 …
    10. 10. TYPICAL GRAPHICS – POP/SMALL SIGNS CAN BE FLEXIBLE OF RIGID
    11. 11. TYPICAL GRAPHICS – DECALS/LABELS THAT ARE THROUGH OR KISS CUT
    12. 12. KISS CUTTING OF VINYL
    13. 13. TYPICAL GRAPHICS – LARGER RIGID MATERIALS
    14. 14. TYPICAL ROUTED GRAPHICS
    15. 15. TYPICAL POINT OF PURCHASE DISPLAYS 15
    16. 16. LASER CUTTING OF RIGID MATERIALS INSTEAD OF ROUTING Smart-X
    17. 17. LASER CUTTING OF GRAPHICS KissCut Vinyl
    18. 18. LASER CUTTING OF NON-PRINTED Gaskets
    19. 19. LASER AND/OR KNIFE CUTTING Fabric for Clothing
    20. 20. FABRIC SIGNAGE – LASER OR ROTARY CUTTER USED FOR FINISHING Laser Cutting of many materials doesn’t require hemming…
    21. 21. FOAM CUTTING Laser, Knife and Routing can all be used depending upon type of foam
    22. 22. NESTED MATERIALS ALL IN PLACE AND IN SUPER SIZES CAN BE HANDLED BY ALL
    23. 23. 5 to1 Market Drivers 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 6,000 price for high-end digital press – Good fit for faster and wider cutters with multiple tool capabilities $200,000 $2,000,000 $100,000$200,000 Medium priced presses – Perfect fit for new Digital Cutters That Do More for lower prices
    24. 24. 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?
    25. 25. 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
    26. 26. 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
    27. 27. 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.
    28. 28. 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”
    29. 29. 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.”
    30. 30. 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
    31. 31. BENEFITS / JUSTIFICATION DIGITAL 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!
    32. 32. 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.
    33. 33. WHAT TECHNOLOGIES SHOULD YOU BE CONSIDERING     Vision Systems RIPs Laser/Knife/Router Finishers Workflow 33
    34. 34. 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 nonlinear errors than others  How many register marks are enough? Buyer beware: What will the next job you need to finish require for accurate cutting?
    35. 35. PRINTER RIPS THAT HANDLE WORKFLOW 3M Graphic Maker Caldera Colorburst ColorGate Durst/Dice Efi Ergosoft EskoArtwork Gerber Mimaki Onyx SAI/Scanvec Wasatch
    36. 36. 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
    37. 37. $200K 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 Printers $150K Finisher $100K $75K $50K $100K $200K Printer $400K $600K $1MIL One Common Workflow Many Choices Finishing Market Overview
    38. 38. CUTTERS/ROUTERS/LASERS THAT WORK WITHIN THE WORKFLOW Anderson (Q-KUT) AXYZ Cielle DYSS EskoArtwork/Kongsberg Eurolaser Gerber Hanter Technology Kern Laser MCT/Blackman & White Mecanumeric Mimaki Multicam Teckwin Trotec Vytek Laser Zund More
    39. 39. TYPICAL SMALL FORMAT CUTTER Zund S3 PR IC ED U N D ER $ 1 0 0 K
    40. 40. TYPICAL SMALL FORMAT LASER Trotec Speedy 500 SMA LL LA SER S PR IC ED U N D ER $ 1 0 0 K
    41. 41. TYPICAL ROUTER AXYZ Camtech Router R O U T ER S PR IC ED U N D ER $ 7 5 K , U P TO $ 1 0 0 K
    42. 42. TYPICAL CUTTER/ROUTER Zund G3 T YPIC A L LY C O ST B ET W EEN $ 1 0 0 K A N D $ 2 2 5 K
    43. 43. TYPICAL LASER Kern Laser Cutter/Engraver TYPIC A LLY C OST B ETW EEN %7 5 K A N D $ 1 5 0 K
    44. 44. TYPICAL LASER/CUTTER Eurolaser 3XL 3200 with Laser and Zund Tangential Cutting knives, but no Routing T YPIC A L LY C O ST A B O VE $275K
    45. 45. TYPICAL GRAND FORMAT LASER/CUTTER/ROUTER 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 T YPIC A L LY C O ST $ 2 2 5 K A N D UP
    46. 46. NEW MCT CUTTER/ROUTER /LASER 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! VAL U E PR IC E PO IN T O F U N D ER $ 1 3 5 K IN 5 X1 0 F O R MAT TO $ 2 1 0 K IN 1 0 X1 0 F O R M AT W IT H L ASERTO MAT C H T H E M AXIM U M PR IN T ER BU YER S’ N EED S
    47. 47. PRINTER (PSP) CONCLUSION You have many choices for finishing Choose 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
    48. 48. 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
    49. 49. 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
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