Sorry, I forgot to mention this when I should have, like a couple of months ago.
OCE's Q1 2010 Financial Results can be found by going to this Internet address:
http://investor.oce.com/reports/reports/quarterly-reports-archive/default.aspx
It's always interesting to read about the AEC Reprographics Industy's largest vendor and to see how that vendor is doing. If you are in the reprographics business, you should spend a few minutes time to read OCE's Q1 2010 report.
Also, since Canon has acquired OCE, this may be the last time OCE has to report on its own. Or, maybe not. I have no idea about the public reporting obligations/requirements of a Japan-based company that owns a Netherlands-based company, or about the reporting obligations/requirements of a Netherlands-based company that's owned by a Japan-based company.
If Kinko's had been a publicly-held company before Fedex acquired it, we would have been able to read about Kinko's financial performance in 10Q's and 10K's. But, even if that had been the case, Kinko's, after the acquisition by Fedex, would no longer have had to report its numbers. And, today, Kinko's (Fedex Office's) performance numbers are "buried" in one of Fedex's operating segments. So, we can't see how Kinko's (Fedex Office) is performing. I think that's going to happen to OCE's numbers, but I'm not positive about that.
Thursday, July 22, 2010
"Bernanke Says Extending Tax Cuts Maintains Stimulus" - - Hmmm?
Above, the title of an article on Bloomberg News, today.
Below, a few excerpts from that article:
July 22 (Bloomberg) --
Federal Reserve Chairman Ben S. Bernanke said extending the tax cuts passed during former President George W. Bush’s administration would help strengthen a U.S. economy still in need of stimulus.
“In the short term I would believe that we ought to maintain a reasonable degree of fiscal support, stimulus for the economy,” Bernanke said today in testimony before the House Financial Services Committee. “There are many ways to do that. This is one way.” (Blog-editor's note: When he said, "this is one way," he was referring to an extension of the tax cuts, which, by law, are supposed to expire by the end of 2010.)
Bernanke, in the second day of semiannual congressional testimony on monetary policy, said the central bank will act to spur growth should the economy sputter. A top lieutenant, New York Fed President William Dudley, said today that the “road to recovery is turning out to be a bit bumpy.” (Blog-editor's note: As to the comment the NY Fed President made, "bumpy", all I have to say is "no shit, Shurlock" and "how about telling us something we don't already know.")
Three Options
The Fed chief reiterated three central bank options for further steps, including giving more information on the Fed’s commitment to low interest rates, reducing the rate paid on banks’ reserves held at the Fed and buying more securities.
- - - - - - - - -
Joel's comments:
Beyond the Federal Government's stimulus spending, Fed policy, with the tacit approval of both the Executive and Congressional Branches of the U.S. Government, was to make our financial/banking system healthy again by substantially reducing the interest rates that Banks pay for money Banks borrow from the Fed. [I'm intentionally not mentioning the Government's decision, with tacit approval from Congress, to cure the ills of companies in the financial community by buying their toxic assets and by (for all intents and purposes) insuring / guaranteeing their garbage loans (such as is the case with Freddie Mac and Fanny Mae). Well, there we go, I did mention that, anyway.]
And, yes, the Banks are getting healthy; their cost-of-money is way down and they are earning money because of that. On the other hand, this (the very low Fed borrowing rate) was supposed to reduce the interest costs of businesses and consumers. Well, that's presuming you can actually get a loan! While it is true that mortgage rates are at an all time low, qualifying for a mortgage is much more difficult now (than it previously was), and who the hell is buying homes anyway! People who don't have jobs? People who are still fearful that they might lose their jobs? And, while interest rates on mortgage loans are at an all-time-low, what the hell happened to interest rates Banks charge on credit cards! Banks rushed to raise credit card interest rates, even though their interest costs dropped! I call that, "let's screw the consumer!" And, "while we're at it, let's cancel credit cards and make it more difficult to get them." I don't see where Banks are "sharing the wealth" with consumers! And, since our economy's recovery needs consumer spending to increase, why aren't our "leaders" forcing that (Banks to lower interest rates on credit cards) to happen?!
Our "seniors" aren't going to be "spending" anytime soon. Income on their investments is at an all-time-low. (I'm lucky if I can find a 1 year CD that pays much of anything! Same for MM accounts!) Seniors can't afford to "spend." Unemployed people aren't going to be spending anytime soon! The government will extend their unemployment benefits, but where's the government (and Congress) when it comes to really stimulating JOB GROWTH!
Wow, "ain't" you glad your bank is earning big money again?! ... while you are earning far less on your CD's and MM's?! If your banks shared some of their earnings (by increasing the interest they pay you on CD's and MM accounts), you'd have more money to spend ... and then you'd be able to help stimulate the economy! (My wife has been trying to do that all on her own, much to my chagrin! Hey, I need some relief!)
As to extending the tax cuts, I'd prefer to see that NOT happen. Unemployed people pay little, if no, tax anyway. Extending the tax cuts won't help them. Big corporations are stowing cash. Extending tax cuts doesn't necessarily mean that they will invest that money in their companies; it could very likely be that all that will happen is that they will add to the cash they are hoarding. Middle income taxpayers will see little relief; they are still unsure about their jobs, wages are not growing, compensation in many industries got cut back. So, who really benefits from the tax cuts anyway? Very wealthy people. I'm not against very wealthy people. And, I'm not into Socialism. However, I'm also not into our Government continuing to give handouts to people and entities that should not be continuing to get handouts, and, here, I'm speaking about Banks and companies in the Financial community.
How about:
Job Tax Credits?
Investment Tax Credits?
If we're going to give tax cuts (which is, effectively, what a tax-credit does, it cuts taxes on income), then let's do that by "encouraging" companies to hire people and buy equipment.
Below, a few excerpts from that article:
July 22 (Bloomberg) --
Federal Reserve Chairman Ben S. Bernanke said extending the tax cuts passed during former President George W. Bush’s administration would help strengthen a U.S. economy still in need of stimulus.
“In the short term I would believe that we ought to maintain a reasonable degree of fiscal support, stimulus for the economy,” Bernanke said today in testimony before the House Financial Services Committee. “There are many ways to do that. This is one way.” (Blog-editor's note: When he said, "this is one way," he was referring to an extension of the tax cuts, which, by law, are supposed to expire by the end of 2010.)
Bernanke, in the second day of semiannual congressional testimony on monetary policy, said the central bank will act to spur growth should the economy sputter. A top lieutenant, New York Fed President William Dudley, said today that the “road to recovery is turning out to be a bit bumpy.” (Blog-editor's note: As to the comment the NY Fed President made, "bumpy", all I have to say is "no shit, Shurlock" and "how about telling us something we don't already know.")
Three Options
The Fed chief reiterated three central bank options for further steps, including giving more information on the Fed’s commitment to low interest rates, reducing the rate paid on banks’ reserves held at the Fed and buying more securities.
- - - - - - - - -
Joel's comments:
Beyond the Federal Government's stimulus spending, Fed policy, with the tacit approval of both the Executive and Congressional Branches of the U.S. Government, was to make our financial/banking system healthy again by substantially reducing the interest rates that Banks pay for money Banks borrow from the Fed. [I'm intentionally not mentioning the Government's decision, with tacit approval from Congress, to cure the ills of companies in the financial community by buying their toxic assets and by (for all intents and purposes) insuring / guaranteeing their garbage loans (such as is the case with Freddie Mac and Fanny Mae). Well, there we go, I did mention that, anyway.]
And, yes, the Banks are getting healthy; their cost-of-money is way down and they are earning money because of that. On the other hand, this (the very low Fed borrowing rate) was supposed to reduce the interest costs of businesses and consumers. Well, that's presuming you can actually get a loan! While it is true that mortgage rates are at an all time low, qualifying for a mortgage is much more difficult now (than it previously was), and who the hell is buying homes anyway! People who don't have jobs? People who are still fearful that they might lose their jobs? And, while interest rates on mortgage loans are at an all-time-low, what the hell happened to interest rates Banks charge on credit cards! Banks rushed to raise credit card interest rates, even though their interest costs dropped! I call that, "let's screw the consumer!" And, "while we're at it, let's cancel credit cards and make it more difficult to get them." I don't see where Banks are "sharing the wealth" with consumers! And, since our economy's recovery needs consumer spending to increase, why aren't our "leaders" forcing that (Banks to lower interest rates on credit cards) to happen?!
Our "seniors" aren't going to be "spending" anytime soon. Income on their investments is at an all-time-low. (I'm lucky if I can find a 1 year CD that pays much of anything! Same for MM accounts!) Seniors can't afford to "spend." Unemployed people aren't going to be spending anytime soon! The government will extend their unemployment benefits, but where's the government (and Congress) when it comes to really stimulating JOB GROWTH!
Wow, "ain't" you glad your bank is earning big money again?! ... while you are earning far less on your CD's and MM's?! If your banks shared some of their earnings (by increasing the interest they pay you on CD's and MM accounts), you'd have more money to spend ... and then you'd be able to help stimulate the economy! (My wife has been trying to do that all on her own, much to my chagrin! Hey, I need some relief!)
As to extending the tax cuts, I'd prefer to see that NOT happen. Unemployed people pay little, if no, tax anyway. Extending the tax cuts won't help them. Big corporations are stowing cash. Extending tax cuts doesn't necessarily mean that they will invest that money in their companies; it could very likely be that all that will happen is that they will add to the cash they are hoarding. Middle income taxpayers will see little relief; they are still unsure about their jobs, wages are not growing, compensation in many industries got cut back. So, who really benefits from the tax cuts anyway? Very wealthy people. I'm not against very wealthy people. And, I'm not into Socialism. However, I'm also not into our Government continuing to give handouts to people and entities that should not be continuing to get handouts, and, here, I'm speaking about Banks and companies in the Financial community.
How about:
Job Tax Credits?
Investment Tax Credits?
If we're going to give tax cuts (which is, effectively, what a tax-credit does, it cuts taxes on income), then let's do that by "encouraging" companies to hire people and buy equipment.
Lyra White Paper Showcases How Color Printing Can Yield Construction Project Savings
This article comes from www.wide-formatimaging.com .....
Lyra White Paper Showcases How Color Printing Can Yield Construction Project Savings
Posted: July 19th, 2010 01:04 PM EDT
Lyra Research
Since the 1960s, the productivity growth rate for the construction and building industry has averaged -0.59 percent, while all other industries combined have an average productivity growth rate of 1.77 percent. General construction industry estimates claim that between 10 and 30 percent of all building project costs can be attributed to wasted activities, such as schedule overruns, wasted labor and management time, wasted materials, and unnecessary litigation. Based on US Department of Commerce building estimates for 2009, a 10 percent waste factor is equal to approximately $94 billion. Without indicating the specific cause, this information reveals that significant opportunities for waste reduction and productivity improvement exist in the construction industry, if the problem can be effectively defined and viable solutions identified.
Lyra Research has published a white paper, Color Construction Documents: A Simple Way to Reduce Costs, which discusses the forces that have created unnecessary costs and waste in the construction industry. Sponsored by Océ North America, this white paper examines how advanced technologies, in particular color computer-aided design (CAD) printing, deliver significant cost-reduction opportunities and greater productivity and profit for traditional design-bid-build projects. The paper also details the specific benefits of applying color construction documents to design-bid-build projects for project owners, general contractors, and architecture, engineering, and construction (AEC) firms, including how each incremental dollar invested in color printing can yield $4 in savings for a construction project.
Furthermore, the paper offers a simple model for quantifying the operating (RFI and change-order management) and project cost waste factors (estimation cost contingencies and net value of change orders) caused by poor documentation. It also delivers a four-step flexible ROI model, with a sample project, to measure the anticipated cost savings and overall return that can be gained by leveraging the use of color construction documents. The four-step ROI model involves estimating the waste in project costs; estimating the reduction in waste for operating expenses for general contractors; estimating the reduction in waste costs for project owners; and inputting color CAD printing costs.
"This white paper showcases Lyra's research, knowledge, and analysis of the printing industry," said Frank Stefansson, CEO and executive vice president of Lyra Research. "Our consultants were able to synthesize information to create a model focused on improving the specific business processes used in the AEC and technical CAD markets, ultimately saving companies time and money by improving ROI and increasing productivity. This type of analysis can be applied to other industries and vertical markets that utilize imaging technologies."
To download a free copy of Color Construction Documents: A Simple Way to Reduce Costs, please visit Lyra Consulting Group. For more information, contact Joel Mazza, director of business development, at 617-454-2664 or jmazza@lyra.com.
Lyra White Paper Showcases How Color Printing Can Yield Construction Project Savings
Posted: July 19th, 2010 01:04 PM EDT
Lyra Research
Since the 1960s, the productivity growth rate for the construction and building industry has averaged -0.59 percent, while all other industries combined have an average productivity growth rate of 1.77 percent. General construction industry estimates claim that between 10 and 30 percent of all building project costs can be attributed to wasted activities, such as schedule overruns, wasted labor and management time, wasted materials, and unnecessary litigation. Based on US Department of Commerce building estimates for 2009, a 10 percent waste factor is equal to approximately $94 billion. Without indicating the specific cause, this information reveals that significant opportunities for waste reduction and productivity improvement exist in the construction industry, if the problem can be effectively defined and viable solutions identified.
Lyra Research has published a white paper, Color Construction Documents: A Simple Way to Reduce Costs, which discusses the forces that have created unnecessary costs and waste in the construction industry. Sponsored by Océ North America, this white paper examines how advanced technologies, in particular color computer-aided design (CAD) printing, deliver significant cost-reduction opportunities and greater productivity and profit for traditional design-bid-build projects. The paper also details the specific benefits of applying color construction documents to design-bid-build projects for project owners, general contractors, and architecture, engineering, and construction (AEC) firms, including how each incremental dollar invested in color printing can yield $4 in savings for a construction project.
Furthermore, the paper offers a simple model for quantifying the operating (RFI and change-order management) and project cost waste factors (estimation cost contingencies and net value of change orders) caused by poor documentation. It also delivers a four-step flexible ROI model, with a sample project, to measure the anticipated cost savings and overall return that can be gained by leveraging the use of color construction documents. The four-step ROI model involves estimating the waste in project costs; estimating the reduction in waste for operating expenses for general contractors; estimating the reduction in waste costs for project owners; and inputting color CAD printing costs.
"This white paper showcases Lyra's research, knowledge, and analysis of the printing industry," said Frank Stefansson, CEO and executive vice president of Lyra Research. "Our consultants were able to synthesize information to create a model focused on improving the specific business processes used in the AEC and technical CAD markets, ultimately saving companies time and money by improving ROI and increasing productivity. This type of analysis can be applied to other industries and vertical markets that utilize imaging technologies."
To download a free copy of Color Construction Documents: A Simple Way to Reduce Costs, please visit Lyra Consulting Group. For more information, contact Joel Mazza, director of business development, at 617-454-2664 or jmazza@lyra.com.
Monday, July 19, 2010
"Homebuilders losing confidence in the recovery"
Reference the above "title", an article was posted 45 minutes ago on "Google hosted news", and the author of that article really had nothing but "bad news" to report. Evidently, the NAHB (National Association of Home Builders) today published its monthly reading of "builders' sentiment" and, my take on the index readings .... well, they are "off the charts" on the negative sentiment side.
The author states in the article, "Readings below 50 indicate negative sentiment about the market." Well, at some schools, if you score a 50, you flunk the course. Imagine scoring a 21, a 15 or, egads, a 10!
I don't mean to be the bearer of "bad news." But, there's not much "good news" to write about. When I find a glimmer of good news, I make it a point to talk about it on this blog-site.
If you're a reprographer, then it is always in your best interests, whether good news or bad news, to keep up to date about what's going on. If we are leading into a recovery, you have to make plans to grow with the recovery. Or, to the opposite, if the economy is headed down, you need to make necessary adjustments to the budget.
You can read the full article at this internet address:
http://www.google.com/hostednews/ap/article/ALeqM5gNiyJ905Ho0Ur96V2TQhsBX19lGwD9H27VF83
It will take most less than 7 or 8 minutes to read the entire article. Get to it, do your homework!
The author states in the article, "Readings below 50 indicate negative sentiment about the market." Well, at some schools, if you score a 50, you flunk the course. Imagine scoring a 21, a 15 or, egads, a 10!
I don't mean to be the bearer of "bad news." But, there's not much "good news" to write about. When I find a glimmer of good news, I make it a point to talk about it on this blog-site.
If you're a reprographer, then it is always in your best interests, whether good news or bad news, to keep up to date about what's going on. If we are leading into a recovery, you have to make plans to grow with the recovery. Or, to the opposite, if the economy is headed down, you need to make necessary adjustments to the budget.
You can read the full article at this internet address:
http://www.google.com/hostednews/ap/article/ALeqM5gNiyJ905Ho0Ur96V2TQhsBX19lGwD9H27VF83
It will take most less than 7 or 8 minutes to read the entire article. Get to it, do your homework!
Sunday, July 18, 2010
Recent article on PEiR Group blog-site: Sell Software to Grow Sales and Profits
Check out the latest article Shaun Meany, President of the PEiR Group, posted on the PG blog-site. That article is located at this Internet address:
http://peirgrouppointofview.blogspot.com/2010/07/sell-software-to-grow-sales-and-profits.html
What you see below is not the full text of the article. The article includes some scary stuff, and I thought it would be interesting to highlight the scary stuff. Scary stuff always provokes food for thought.
Sentences from the article include:
"As the economy continues to linger in the doldrums many reprographers are struggling to make ends meet."
"For some reprographers, revenues are down as much as 50 percent from the industry highs of 2008 and profitability, of any amount, is becoming difficult to realize."
"What('s) more, Reprographers are struggling to develop strategies to survive."
"Demand for traditional printing and other services are down as your clients continue to adopt digital workflows to save costs and improve productivity."
"As business leaders, it is extremely important that you strategize on ways that you can re-position your company’s message and resources so you will be prepared to offer the right products and services that your marketplace with need after it experiences the paradigm shift that will result."
"The profiles of the companies that survive the recession will likely be smaller but more efficient."
http://peirgrouppointofview.blogspot.com/2010/07/sell-software-to-grow-sales-and-profits.html
What you see below is not the full text of the article. The article includes some scary stuff, and I thought it would be interesting to highlight the scary stuff. Scary stuff always provokes food for thought.
Sentences from the article include:
"As the economy continues to linger in the doldrums many reprographers are struggling to make ends meet."
"For some reprographers, revenues are down as much as 50 percent from the industry highs of 2008 and profitability, of any amount, is becoming difficult to realize."
"What('s) more, Reprographers are struggling to develop strategies to survive."
"Demand for traditional printing and other services are down as your clients continue to adopt digital workflows to save costs and improve productivity."
"As business leaders, it is extremely important that you strategize on ways that you can re-position your company’s message and resources so you will be prepared to offer the right products and services that your marketplace with need after it experiences the paradigm shift that will result."
"The profiles of the companies that survive the recession will likely be smaller but more efficient."
C2 Reprographics (California) appears to be shaking it up in the Southland
When I first met Gary Crisp, CEO of C2 Reprographics, C2 had one location, which was in Costa Mesa, CA. Prior to founding C2, (with his wife and partner, Julie Crisp) Gary had no experience in the AEC reprographics business or industry. (He did have experience in the "small-format" imaging industry.)
I've met Gary a couple of time over the years, and I've met Julie at least once (I think that was at a PEiR Group FM Sales Seminar); sharp people. At the time I first met Gary, Greg Lundeen, ex-CEO of Consolidated Reprographics was a member of the C2 Board, and one could not have a better industry advisor than Greg Lundeen.
A recent check on C2's web-site shows that C2 Repro now operates 6 locations and provides services in 3 different Southland markets: Los Angeles, Orange County and San Diego (the latter through an acquisition.) Head-to-head players in those three market areas include ARC, ABC and C2. Cybercopy, a ReproMax member is a large player in the L.A. market.
Above, I mentioned that Gary and Julie are sharp people. Well, sharp people surround themselves with other sharp people. A quick look at C2's team web-page reveals at least 3 C2 management team members who had previous experience with competitors:
Barry Malkin, Senior Vice President Marketing & Strategy. A Cal Poly Pomona alumnus with a B.S. degree in Business and Marketing, Barry’s entrepreneurial experience as a flooring subcontractor, experience in sales and operations management with FedEx Kinko’s provide key leadership in C2’s strategy, service, pricing, and new products.
Keath Lauderdale, Senior Vice President of On-Site Services; Keath began his career in reprographics 1978 in his father’s business United Reprographics. At United, he originated the west coast’s first on-site services program. After United was acquired by Consolidated Reprographics in 1994, Keath joined its senior management team and later pioneered Professional Reprographics who then sold to its employees.
Kristine Mattson, Controller. With over 25 years experience with equity investments, acquisitions, and financial reporting, Kristine worked with Prudential Financial, PRIMEDIA Publishing, and prior to joining C2 in April of 2010, was Assistant Controller for Consolidated Reprographics. Kristine is currently working on her Business Administration degree at the University of Phoenix, and is due to Graduate in November 2011.
(One comment: Consolidated Reprographics was acquired by ARC several years ago.)
I've met Gary a couple of time over the years, and I've met Julie at least once (I think that was at a PEiR Group FM Sales Seminar); sharp people. At the time I first met Gary, Greg Lundeen, ex-CEO of Consolidated Reprographics was a member of the C2 Board, and one could not have a better industry advisor than Greg Lundeen.
A recent check on C2's web-site shows that C2 Repro now operates 6 locations and provides services in 3 different Southland markets: Los Angeles, Orange County and San Diego (the latter through an acquisition.) Head-to-head players in those three market areas include ARC, ABC and C2. Cybercopy, a ReproMax member is a large player in the L.A. market.
Above, I mentioned that Gary and Julie are sharp people. Well, sharp people surround themselves with other sharp people. A quick look at C2's team web-page reveals at least 3 C2 management team members who had previous experience with competitors:
Barry Malkin, Senior Vice President Marketing & Strategy. A Cal Poly Pomona alumnus with a B.S. degree in Business and Marketing, Barry’s entrepreneurial experience as a flooring subcontractor, experience in sales and operations management with FedEx Kinko’s provide key leadership in C2’s strategy, service, pricing, and new products.
Keath Lauderdale, Senior Vice President of On-Site Services; Keath began his career in reprographics 1978 in his father’s business United Reprographics. At United, he originated the west coast’s first on-site services program. After United was acquired by Consolidated Reprographics in 1994, Keath joined its senior management team and later pioneered Professional Reprographics who then sold to its employees.
Kristine Mattson, Controller. With over 25 years experience with equity investments, acquisitions, and financial reporting, Kristine worked with Prudential Financial, PRIMEDIA Publishing, and prior to joining C2 in April of 2010, was Assistant Controller for Consolidated Reprographics. Kristine is currently working on her Business Administration degree at the University of Phoenix, and is due to Graduate in November 2011.
(One comment: Consolidated Reprographics was acquired by ARC several years ago.)
Stunning Announcement! - ABC Imaging captures PBSJ's reprographics business!
AFTER YOU READ THE FIRST PART OF THIS POST, PLEASE REMEMBER TO SCROLL BELOW TO THE "JOEL'S COMMENTS" SECTION OF THIS POST!
ABC ISSUED THIS PRESS RELEASE ON JULY 16, 2010:
ABC Imaging and PBSJ agree to FM print services deal
Washington, DC—July 16, 2010—ABC Imaging announced today it will provide on-site print services for PBSJ, a leading infrastructure engineering and architecture firm.
PBSJ operates more than 80 offices in the U.S. The Florida-based company has considerable expertise in a wide variety of engineering and architectural services in both the public and private sectors. PBSJ's projects have included everything from theme parks to toll booths and its services range from hazardous waste management to structural engineering for bridges.
"Our agreement with PBSJ represents ABC Imaging's commitment to the AEC industry," said Medi Falsafi, President, and CEO of ABC Imaging. "With the PBSJ account, we add to our position as a leader in enterprise-wide facilities management programs."
According to Don Vrana, PBSJ's Chief Financial Officer, "This is a new step for the corporation, and a departure from our traditional operations. However," Vrana said, "we are confident that our arrangement with ABC will provide new efficiencies and cost savings to the company that we expect will have a positive impact on our bottom line for the long term."
ABC Imaging will begin installing printers and other hardware in the early summer. Of the more than 80 locations, 19 will be manned locations with at least one ABC Imaging employee assigned to the client site.
End of Press Release.
- - - - - - - - - - -
Joel's comments:
Long ago (back in the 1980'), after we had accomplished selling our first 6 or 7 staffed FM (OnSite) deals at our first company (Rowley-Scher), I remember making a remark to one of my reprographics industry friends about selling FM programs, .... "the more you have, the more you get." Meaning, the more programs you have, the higher your credibility at providing that service, and increased credibility leads to additional sales of that service. In the mid 1980's, we took one of ABC's largest accounts away. That account was HOK's Washington, DC office. Prior to that, ABC was providing reprographics services to HOK's DC office, but not in an FM environment. Bob Abrams (our DC Sales guy at the time) and I had a one hour meeting with the four principals who were then managing HOK DC's office - we were there to "pitch" our FM concept and program (and, at that time, all of our FM's were staffed FM's.) At the end of the hour meeting, we responded to about 30 minutes (or so) of questions; the very first question they asked, "who are you already doing this for?" We verbally listed the A/E firms we were already providing FM services to, and you could, literally, see the balls (meaning, their eyes) rolling - it was, for us and for them, an issue of credibility - and we had that, credibility, in the bag. We implemented the HOK DC FM service and it lasted (remained with my ex-company) for at least a dozen years, if not longer. (The HOK DC FM went to NRI at that time.)
While I certainly don't know how many separate FM deals ABC Imaging has country-wide, ABC has, in the past, issued press releases that reveal a few of its "national" FM deals, including its deals with HNTB, Parsons Brinckerhoff, and Perkins & Will. And, now PBSJ. What is VERY INTERESTING to me is that, five or six years ago, ABC wasn't doing much business "to speak of" in Florida, and the deal that they just announced is with a major FLORIDA-BASED firm. And, PBSJ is not just a major Florida-based firm, PBSJ is an "old-line" very traditional firm. I joined NGI (which is a Florida-based reprographer now owned by ARC) in late 1997. Shortly after that, our CEO (Martha Korman) introduced me to several of PBSJ's top people. And, for me (and for our CEO), that began an extended "off and on" pursuit of PBSJ (to convince them that they should go the FM/OnSite route), a pursuit that lasted my entire 10 year career at NGI! An UNSUCCESSFUL pursuit at that! During that ten year period, I (we) met a number of PBSJ's officers and top managers, including PBSJ's CEO, two different PBSJ CFO's, two different PBSJ Presidents and a whole host of others, all in an attempt to convince PBSJ that "going the FM way" would be the optimum business model for their firm. When I met him for the first time several years ago, Don Vrana, PBSJ's CFO, who is mentioned in the ABC Imaging press release, was new to the engineering industry and brand new to PBSJ. [He was hired by PBSJ to replace Scott DeLoach (the former PBSJ CFO who was arrested and later convicted for embezzlement.] I (we) had several meetings over the course of time with Don. One of those meetings was a 3-on-2 meeting; The CEO of NGI, me and one of our then Board members together with PBSJ's then President (Todd Keller) and PBSJ's CFO (Don Vrana). That was not the first meeting we had with PBSJ officers to share with PBSJ the workings of an FM relationship and how that business model would improve their business model. And, that was not the last. When I first joined NGI in late 1997, I was forewarned that PBSJ was a very, very traditional firm and was very set it its ways, reprographics-wise. They preferred to own or lease their "in-house" equipment and outsource whatever they could not handle "in-house." They were a substantial customer, one that I had (and still have) a great deal of respect for. All in all, great people at PBSJ, lots of business .... and they paid their bills on time. But, even though we had a great relationship with PBSJ, it, still today, gives me a headache that I was (we were) unable to convince them that they should commit to an FM relationship.
And, that, my blog-site readers, is why I chose to refer to ABC's PBSJ FM (OnSite) announcement as stunning. When I was there, we lobbied PBSJ for 10+ years. I've been gone from NGI for 2 & 1/2 years, and I would imagine that, even after I left, NGI continued trying to convince PBSJ that an FM service would be in its best interests. And, now, some 12 & 1/2 years after we began our efforts, ABC has now "swept all of the chips off the table." My congratulations to the ABC Imaging team on this stunning development, ...... but, I do think that Mr. Falsafi should send me a note of thanks for the extensive seed planting we did during the 10 year period I was with NGI. Smile.
ABC ISSUED THIS PRESS RELEASE ON JULY 16, 2010:
ABC Imaging and PBSJ agree to FM print services deal
Washington, DC—July 16, 2010—ABC Imaging announced today it will provide on-site print services for PBSJ, a leading infrastructure engineering and architecture firm.
PBSJ operates more than 80 offices in the U.S. The Florida-based company has considerable expertise in a wide variety of engineering and architectural services in both the public and private sectors. PBSJ's projects have included everything from theme parks to toll booths and its services range from hazardous waste management to structural engineering for bridges.
"Our agreement with PBSJ represents ABC Imaging's commitment to the AEC industry," said Medi Falsafi, President, and CEO of ABC Imaging. "With the PBSJ account, we add to our position as a leader in enterprise-wide facilities management programs."
According to Don Vrana, PBSJ's Chief Financial Officer, "This is a new step for the corporation, and a departure from our traditional operations. However," Vrana said, "we are confident that our arrangement with ABC will provide new efficiencies and cost savings to the company that we expect will have a positive impact on our bottom line for the long term."
ABC Imaging will begin installing printers and other hardware in the early summer. Of the more than 80 locations, 19 will be manned locations with at least one ABC Imaging employee assigned to the client site.
End of Press Release.
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Joel's comments:
Long ago (back in the 1980'), after we had accomplished selling our first 6 or 7 staffed FM (OnSite) deals at our first company (Rowley-Scher), I remember making a remark to one of my reprographics industry friends about selling FM programs, .... "the more you have, the more you get." Meaning, the more programs you have, the higher your credibility at providing that service, and increased credibility leads to additional sales of that service. In the mid 1980's, we took one of ABC's largest accounts away. That account was HOK's Washington, DC office. Prior to that, ABC was providing reprographics services to HOK's DC office, but not in an FM environment. Bob Abrams (our DC Sales guy at the time) and I had a one hour meeting with the four principals who were then managing HOK DC's office - we were there to "pitch" our FM concept and program (and, at that time, all of our FM's were staffed FM's.) At the end of the hour meeting, we responded to about 30 minutes (or so) of questions; the very first question they asked, "who are you already doing this for?" We verbally listed the A/E firms we were already providing FM services to, and you could, literally, see the balls (meaning, their eyes) rolling - it was, for us and for them, an issue of credibility - and we had that, credibility, in the bag. We implemented the HOK DC FM service and it lasted (remained with my ex-company) for at least a dozen years, if not longer. (The HOK DC FM went to NRI at that time.)
While I certainly don't know how many separate FM deals ABC Imaging has country-wide, ABC has, in the past, issued press releases that reveal a few of its "national" FM deals, including its deals with HNTB, Parsons Brinckerhoff, and Perkins & Will. And, now PBSJ. What is VERY INTERESTING to me is that, five or six years ago, ABC wasn't doing much business "to speak of" in Florida, and the deal that they just announced is with a major FLORIDA-BASED firm. And, PBSJ is not just a major Florida-based firm, PBSJ is an "old-line" very traditional firm. I joined NGI (which is a Florida-based reprographer now owned by ARC) in late 1997. Shortly after that, our CEO (Martha Korman) introduced me to several of PBSJ's top people. And, for me (and for our CEO), that began an extended "off and on" pursuit of PBSJ (to convince them that they should go the FM/OnSite route), a pursuit that lasted my entire 10 year career at NGI! An UNSUCCESSFUL pursuit at that! During that ten year period, I (we) met a number of PBSJ's officers and top managers, including PBSJ's CEO, two different PBSJ CFO's, two different PBSJ Presidents and a whole host of others, all in an attempt to convince PBSJ that "going the FM way" would be the optimum business model for their firm. When I met him for the first time several years ago, Don Vrana, PBSJ's CFO, who is mentioned in the ABC Imaging press release, was new to the engineering industry and brand new to PBSJ. [He was hired by PBSJ to replace Scott DeLoach (the former PBSJ CFO who was arrested and later convicted for embezzlement.] I (we) had several meetings over the course of time with Don. One of those meetings was a 3-on-2 meeting; The CEO of NGI, me and one of our then Board members together with PBSJ's then President (Todd Keller) and PBSJ's CFO (Don Vrana). That was not the first meeting we had with PBSJ officers to share with PBSJ the workings of an FM relationship and how that business model would improve their business model. And, that was not the last. When I first joined NGI in late 1997, I was forewarned that PBSJ was a very, very traditional firm and was very set it its ways, reprographics-wise. They preferred to own or lease their "in-house" equipment and outsource whatever they could not handle "in-house." They were a substantial customer, one that I had (and still have) a great deal of respect for. All in all, great people at PBSJ, lots of business .... and they paid their bills on time. But, even though we had a great relationship with PBSJ, it, still today, gives me a headache that I was (we were) unable to convince them that they should commit to an FM relationship.
And, that, my blog-site readers, is why I chose to refer to ABC's PBSJ FM (OnSite) announcement as stunning. When I was there, we lobbied PBSJ for 10+ years. I've been gone from NGI for 2 & 1/2 years, and I would imagine that, even after I left, NGI continued trying to convince PBSJ that an FM service would be in its best interests. And, now, some 12 & 1/2 years after we began our efforts, ABC has now "swept all of the chips off the table." My congratulations to the ABC Imaging team on this stunning development, ...... but, I do think that Mr. Falsafi should send me a note of thanks for the extensive seed planting we did during the 10 year period I was with NGI. Smile.
Predictions about U.S. Construction Industry Recovery
In an article posted on Reed Construction's site on July 15, 2010, Jim Haughey, RCD's Chief Economist, authored an interesting article which gives insights into the "recovery" of the construction industry in the U.S.
Here's the title of the article:
Building Construction Recovery to be Strongest in Northeast and California
Insight and Analysis of Construction Industry Trends
Jim Haughey
RCD Chief Economist
Jul 15, 2010
Here's the introduction to the article:
Southern New England, New York, California, South Florida, Washington-Baltimore and four long depressed Midwestern cities will have strongest recovery for building construction, excluding single family housing, according to the May Expansion Index from Reed Construction Data. The index also suggests that the relatively hot housing markets in Texas recently will not cause a quick and strong recovery in Texas nonresidential construction.
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You can read the full article at this Internet address:
http://www.reedconstructiondata.com/jim-haughey/post/building-construction-recovery-to-be-strongest-in-northeast-and-california/
Joel's comments:
Also, you might want to save this Internet address for your future reading pleasure. This is the Internet address for "Notes from Jim Haughey" (the author I mentioned above who is Reed's Chief Economist. http://www.reedconstructiondata.com/jim-haughey/
As to ALL economists .... Right after I read "current" articles (opinions and insights), I find it interesting to go back and read earlier articles they wrote, simply to gauge if their predictions and/or opinions bore out.
Here's the title of the article:
Building Construction Recovery to be Strongest in Northeast and California
Insight and Analysis of Construction Industry Trends
Jim Haughey
RCD Chief Economist
Jul 15, 2010
Here's the introduction to the article:
Southern New England, New York, California, South Florida, Washington-Baltimore and four long depressed Midwestern cities will have strongest recovery for building construction, excluding single family housing, according to the May Expansion Index from Reed Construction Data. The index also suggests that the relatively hot housing markets in Texas recently will not cause a quick and strong recovery in Texas nonresidential construction.
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You can read the full article at this Internet address:
http://www.reedconstructiondata.com/jim-haughey/post/building-construction-recovery-to-be-strongest-in-northeast-and-california/
Joel's comments:
Also, you might want to save this Internet address for your future reading pleasure. This is the Internet address for "Notes from Jim Haughey" (the author I mentioned above who is Reed's Chief Economist. http://www.reedconstructiondata.com/jim-haughey/
As to ALL economists .... Right after I read "current" articles (opinions and insights), I find it interesting to go back and read earlier articles they wrote, simply to gauge if their predictions and/or opinions bore out.
Does it still work this way? - When the Architect gets paid, the Reprographer gets paid?
In an article posted on the AIA's web-site in late June, Jennifer Riskus, AIA's Manager of Economic Research, wrote an article that talks about business conditions in the Architecture industry, including insights into the ABI AIA Index, the commercial real estate lending environment, and "accounts receivable collections." The article includes charts and graphs.
Here's the title of that article:
ABI Slips Slightly in May as More Firms Experience Softening Business Conditions
More than 60% of firms anticipate being able to collect nearly all current outstanding receivables
By Jennifer Riskus, AIA Manager of Economic Research
And, here is an excerpt from that article:
Most firms anticipate collecting majority of outstanding receivables
As the economy has begun to improve, nearly half (40%) of our survey panelists reported that the outstanding time for previously invoiced receivables on active projects averages 30 to 60 days. Just 14% indicated that it was 90 days or more. The average number of days outstanding was approximately 60, although that time is shorter for firms in the West (53 days) and longer for firms in the Midwest (60 days). Small firms, with annual billings of less than $250,000, are also reporting shorter outstanding times for receivables while the largest firms, with annual billings of $5 million are reporting the longest times (43 and 69 days respectively).
In addition, more than one quarter of respondents (28%) anticipate that they will collect all of their current outstanding receivables, while an additional 35% expect to be able to recoup more than 95%. Fewer than 10% expect that they will never collect 25% or more of their current outstanding receivables. In the Midwest this share is higher: 15% of firms anticipate they will lose more than a quarter of their current outstanding receivables, compared to just 4% of firms in the Northeast. Firms with less than $1 million in annual billings are more likely than larger firms to report that they expect to collect all current outstanding receivables, but they are also more likely to anticipate that they may lose out on 25% or more of their current outstanding receivables.
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You can read the full article at this Internet address:
http://www.aia.org/practicing/AIAB083478
Joel's comment:
Years ago, when we were a small, young company in the reprographics industry, our cash-flow (collections of A/R) was highly susceptible to our customers' A/R collections activity. When the Architect did not get paid, we did not get paid. When the Engineer did not get paid, we did not get paid.
Here's the title of that article:
ABI Slips Slightly in May as More Firms Experience Softening Business Conditions
More than 60% of firms anticipate being able to collect nearly all current outstanding receivables
By Jennifer Riskus, AIA Manager of Economic Research
And, here is an excerpt from that article:
Most firms anticipate collecting majority of outstanding receivables
As the economy has begun to improve, nearly half (40%) of our survey panelists reported that the outstanding time for previously invoiced receivables on active projects averages 30 to 60 days. Just 14% indicated that it was 90 days or more. The average number of days outstanding was approximately 60, although that time is shorter for firms in the West (53 days) and longer for firms in the Midwest (60 days). Small firms, with annual billings of less than $250,000, are also reporting shorter outstanding times for receivables while the largest firms, with annual billings of $5 million are reporting the longest times (43 and 69 days respectively).
In addition, more than one quarter of respondents (28%) anticipate that they will collect all of their current outstanding receivables, while an additional 35% expect to be able to recoup more than 95%. Fewer than 10% expect that they will never collect 25% or more of their current outstanding receivables. In the Midwest this share is higher: 15% of firms anticipate they will lose more than a quarter of their current outstanding receivables, compared to just 4% of firms in the Northeast. Firms with less than $1 million in annual billings are more likely than larger firms to report that they expect to collect all current outstanding receivables, but they are also more likely to anticipate that they may lose out on 25% or more of their current outstanding receivables.
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You can read the full article at this Internet address:
http://www.aia.org/practicing/AIAB083478
Joel's comment:
Years ago, when we were a small, young company in the reprographics industry, our cash-flow (collections of A/R) was highly susceptible to our customers' A/R collections activity. When the Architect did not get paid, we did not get paid. When the Engineer did not get paid, we did not get paid.
Wednesday, July 14, 2010
.... and an interesting article about "Top Project Starts" in Mid-Atlantic Construction News
Scott Judy, the author of the article I mentioned in the previous post, also wrote an article for the current issue of Mid-Atlantic Construction news...
This one is "more current" than the other article, since this one "points to" 2010 starts.
This author (Scott Judy) writes extremely well; his articles are quick-to-read, so get to it!
Here is the internet-address for the article I've mentioned in this post:
http://midatlantic.construction.com/midatlantic_construction_news/2010/0601_Mid-AtlanticStarts.asp
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Oh, by the way....... Scott Judy is Senior Regional Editor, McGraw-Hill Construction
This one is "more current" than the other article, since this one "points to" 2010 starts.
This author (Scott Judy) writes extremely well; his articles are quick-to-read, so get to it!
Here is the internet-address for the article I've mentioned in this post:
http://midatlantic.construction.com/midatlantic_construction_news/2010/0601_Mid-AtlanticStarts.asp
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Oh, by the way....... Scott Judy is Senior Regional Editor, McGraw-Hill Construction
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