a clear and different approach to commodity and value-add print, and by focusing on direct relationships with its clients, reports Wayne Robinson.
Independent B1 printers are becoming thinner on the ground as the sackloads of private equity coming over the Tasman swallows them up, but Lithocraft in Melbourne is determinedly single, and successful.
The opening of its swish new greenfield premises on the outskirts of Melbourne last month marked the latest growth phase for this classic Aussie print company, and made a statement that the future of B1 sheetfed printing does not lie entirely within the giant new groups typified by Geon and Blue Star.
For while Lithocraft certainly operates a clever business model, and more of that later, it is in many ways a classic story of a company doing things correctly, and subsequently reaping the rewards.
From humble beginnings as a small printer in premises above a Chinese takeaway in Melbourne ('good for late shift tucker' quip the management) Lithocraft has developed over the past 45 years into a $20m a year business with a blue chip client list, many of whom have been with the company for one, two or three decades.
Lithocraft is not only moving into purpose built new premises and buying a new press, but evolving at the top as well. Founder and chairman Iain Morley is now virtually retired, and current managing director Kevin Pidgeon is looking to ease down, which means sales director Nick O'Sullivan will become the main driver. O'Sullivan, who became a partner in the company five years ago after beginning as a salesman more than a decade ago says, "What's really important about this company is that we're all dedicated; our people are quality conscious and passionate about print."
O'Sullivan says, "You can see evidence of that just looking around this place, which is one of the most high tech print centres in the country." Looking around bears out O'Sullivan's claims, the building is fully air conditioned, all powder is extracted, and paper dust is extracted.
There is a reason for this, for in fact Lithocraft's new premises are notable not only for their size and modernity, and their trio of new MAN Roland presses, but for the fact that it is believed to be the first sheetfed printing house in the country that has employed the services of Eurographica, MAN Roland's plant design and build team more usually associated with building newspaper plants and heavyweight commercial web factories - the new Age plant outside Tullamarine Airport is typical of their work.
However Ron Salmon, Lithocraft's long time well known operations manager says, "Eurographica turned out to be the best thing we did. We have always challenged ourselves to be at the forefront of change and aim for the highest standards, so when John Hansen at Roland suggested we use Eurographica to design and build the new site we considered it, and decided to go with it."
The new print centre features a new MAN Roland 505 press with aqueous coater, in addition to Lithocraft's two existing B1 presses, a MAN Roland 708 long perfector and a MAN Roland 705 perfector with coater. Pidgeon says, "We took the decision to invest in a new half size press when we analysed the work requirements of our customers, which showed an increasing requirement for smaller sizes." The investment has also included pre-press upgrade, with a new Fujifilm Luxel B1 CTP unit and additional finishing equipment.
O'Sullivan had no qualms about investing his hard earned cash into print, he says, "Lithocraft has always operated on a sound financial footing, understands its market, and knows how to service that market successfully. Print has a good future, providing printers have the correct strategy."
In terms of the business position O'Sullivan says, "We aim to be a one stop shop for clients, working from concept to delivered or mailed goods." Highlighting this approach Lithocraft is an equity partner in major Melbourne high end design agency Collier & Associates, which operates out of the new building. O'Sullivan says, "This is a strategic fit. Collier & Associates provides an excellent stream of work into Lithocraft, and Lithocraft is able to offer a full design studio function to its clients, many of whom enjoy the benefits it provides."
Lithocraft's business strategy also includes the appropriation of its print to a Chinese printer where beneficial. O'Sullivan says, "All our value-add work is handled here in Melbourne. However commodity-type print, which doesn't need to be here tomorrow, goes to China. The economics are favourable, the quality is top notch, so the customers are always happy." Lithocraft's Chinese operation is no me-too riding the current wave of Sino appreciation; the relationship goes back 15 years. Managing director Kevin Pidgeon says, "You can't hope to get a good relationship with a Chinese printer in a 10 day visit. It takes a good while to build things up to the point where you are ready to get going with print." Lithocraft has certainly got it going. Its Chinese business is worth around a third of its overall revenue. The company it uses, C&C in Shenzen (just over the Hong Kong border) has 21 B1 presses, two full size presses, two Sunday presses and three M600 web presses. Shipping time to Australia is around two weeks.
One of the interesting aspects of Lithocraft, and probably one of the reasons why it has managed to maintain its relationships with individual customers for so long is that it builds long term relationships directly with its clients - avoiding third party mark ups and allowing it to add real value to its clients' businesses. Lithocraft firmly believes a strong understanding of print and the needs of client procurement and marketing departments is what breeds success. This is what has made recently-acquired small offset printer LynchPrint such a great fit with Lithocraft. Both companies share a common philosophy and set of values, which has resulted in a very successful reunited Lithocraft/ LynchPrint.
Now in its fifth decade, and growing at a good rate, plenty in the Australian print industry will be interested in Lithocraft's views. The credibility is high. As a bellweather for the B1 sector (albeit now with a half size press as well) the company is clearly pointing a way ahead. As the new production centre's opening night crowds departed back into the distant Melbourne lights the Lithocraft presses fired up, getting on with the business of print.
