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Dr. Joe Webb 4th Quarter and 2006 Printing Industry Economic Outlook
- Sponsored by Eastman Kodak
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Questions and Answers
Q: Were any paper mills in the gulf affected by Katrina/Rita?
Dr. Joe: I don’t keep track of those things, and wouldn’t even know if there were any mills there! But Entergy got electricity going to the region faster than anyone expected. The question people are still grappling with are the crippled logistics of anything that would have normally gone through the Port of New Orleans.
Q: Where does large format fit into commercial printers mix? What do you see as the overall prospects for large format growth over the next 3 to 5 years?
Dr. Joe: It’s a specialty service that many commercial printers have found to be quite profitable. It will continue to be so, but it is competitive and low volume in the grand scheme of all things printed.
Q: As you talk about “search,” I have been very unsuccessful tracking digital printing data on a monthly and quarterly basis. Are there any monthly and quarterly metrics on digital sheet shipments, digital printing sales, digital printers sold and operating, on the web? Please let me know if you have good links for that kind of information.
Dr. Joe: I am not aware of any Internet-available service that provides these data.
Q: Are there any market segments that may be stronger to target than others?
Dr. Joe: I assume this is from a printer’s perspective. Service industries and small business are still growing quite well. Real estate and construction have long-term demographics on their side, no matter what the Fed does. Health care businesses will be strong for quite a while because demographics are quite favorable in that regard as well.
Q: Do you see digital color print more for the direct mail industry than others? Or do you think specific market segments will take advantage of this capability such as: retail, financial, healthcare, etc? Any in particular stand out more than others?
Dr. Joe: No, direct mail regardless of process. Digital color is a great application for many small businesses to use. The catalog industry is using direct mail more and more to drive e-commerce transactions. In many ways, direct mail is growing because other applications are being downsized to use it. For example, a cataloger may reduce the frequency of catalogs, and replace part of their promotion with e-mail and postcards highlighting certain products or sales. All businesses who can handle Internet transactions want to get bill paying and selling to online scenarios for their cost, message flexibility, and other considerations.
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About Kodak
Kodak is the leader in helping people take, share, print and view images –for memories, for information, for business, and for entertainment. With sales of $13.5 billion in 2004, the company is committed to a digitally oriented growth strategy focused on four businesses: Digital & Film Imaging Systems – providing consumers, professionals and cinematographers with digital and traditional products and services; Health – supplying the medical and dental professions with traditional and digital imaging and information systems, IT solutions and services; Graphic Communications – providing customers with a range of solutions for prepress, traditional and digital printing, and document scanning and multi-vendor IT services; and Display & Components – supplying original equipment manufacturers with imaging sensors as well as intellectual property and materials for the organic light-emitting diode (OLED) and LCD display industries. More information about Kodak (NYSE: EK) is available at www.kodak.com.
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