If there is a bogeyman in print mythology, it’s the fear of print work heading overseas, particularly to Asia and predominantly to China. There are enough precedents. A lot of manufacturing, such as in clothing and footwear manufacturing, has largely disappeared in Australia, and it’s usually relocated somewhere in Asia.

Australian print projects have always been sent to Asia, especially books and magazines, and for the same reason – it was cheaper to print jobs there. Globalisation, the growth of multinational brands and more open trade have only accelerated this trend. As Asia, and particularly China, booms, has a rush to print offshore really materialised? 

It’s tough to know for sure. Hard figures on how much Australian print is done offshore are difficult to find.

The Australian industry’s predilection for new technology and its customers’taste for quick turnaround – usually considered the bane of printers’ lives – are actually helping to keep print on local shores, according to several printers ProPrint spoke to. 

For work that is sent offshore, the prerequisite is that it’s not time-dependent. So while most print work could on the cheap in Asia, urgency determines that most stays in Australia. And with short-run digital print now offering easy ongoing “top-ups” of print runs, there is actually less reason to send some print offshore.

Global marketplace

The Asian print industry has a different definition of the “market”, according to industry figure, print researcher and Austrade export advisor Mark Reid.

“The biggest difference is they consider the world their market, so if they need to fill capacity they will. They’re not like we tend to be in Australia,” he says. 

“If you ask a printer in Sydney to do work for someone in Melbourne they will think that’s a bit different, whereas if you ask someone in Singapore or Bangkok to print something for somebody in, say. Brussels, they wouldn’t have a problem with it.”

Reid was the keynote speaker at three seminars on this topic, hosted by Printing Industries in October, 2006. This different definition of the market was a primary driver for Reid as he sought to create relationships between Australian and Chinese print companies, and to act as intermediaries for Australian print buyers. 

Nearly 20 companies went along to the seminars, and many of them joined a tour to China to meet Chinese printers and develop relationships. However, as far as ProPrint could ascertain, none of the companies involved managed to develop an ongoing relationship with a Chinese printing company.

Hagop Tchamkertenian, national manager for policy and government affairs at Printing Industries, suggests that trying to establish inter-Asian corporate relationships is prone to frustration. 

“I would be surprised if there are many printers here with active Asian relationships – it’s probably in single figures,” says Tchamkertenian. 

“At the seminars in 2006, some printers explored if they could do business with Chinese printers. For printed matter with long lead times, obviously there was an option there. But even though China is attractive with its cheap labour at the moment, dealing with the Chinese, with delays in bureaucracy and the different culture prevailing in official circles, is difficult. It’s not easy. 

“I have a feeling that to do business in Asia, and especially China, you need a timeline of about five years to build the necessary relationships and make the commitment to go there dozens of times. The other option is to open an office there and talk to them on a regular basis, and build relationships that way. While not a cheap option, it may turn out to be an effective one,” he adds.

Relationship issues

Mark Reid begs to differ. “I don’t think it [creating an offshore relationship] is a problem at all. Have them give me a call. I’m happy to do a few projects,” he says.

“It requires you to think with a different thought pattern and figure out what is suitable for China, and find out what our existing customer base is buying. [The problem] is probably just in their own ability and skills to set up a liaison in a foreign country,” he adds. 

“There’s nothing peculiar with Asia. Once you take off the blinkers, there are no issues with setting up relationships with people who want to supply you.”

Tony Onsley, general manager, northern region, at Geon, says that “printing offshore is simply about cost reduction, but not all product types offer sufficient savings to offset the risks and trade-offs. 

“For example, to print overseas you need at least 10 to 12 weeks from the time the file is ready, so that cuts out any time-sensitive material. Then, you need large volume, not only to optimise the freight costs of a shipping container, but also because larger printers in China, Singapore or Thailand are printing for multinational companies in the US and European markets. Sometimes what is large for the Australian market is a drop in the ocean for these printers. 

“But despite these limitations, we’ve had a lot of success with specific products and campaigns that are suited to offshore sourcing,” adds Onsley.

Stream Solutions general manager Andrew Price tells ProPrint that it is as much about innovation as cheap print. “Most people believe the key advantage of printing offshore is reduced price. Yes, that is true in most cases. What we are now finding is that as the industry contracts there are a number of niche products which can only be obtained from offshore.

“As we strengthen our supply chain and logistics capabilities throughout Asia, we are finding new and innovative products and processes which we are able to bring to Australia,” he says.

“There is no doubt, given the proper lead times, printing offshore can reduce costs. Buying from Asia may seem like a good idea, but I have watched many companies come unstuck. Buying from Asia is all about understanding supply chains and logistics,” adds Price.

Chris Mitchell, group managing director of Blue Star, has a similar view of the advantages of going offshore for some projects, but it must fit with client demands. “Blue Star manages the offshore requirements of a range of clients that also have a presence in other parts of the Asia-Pacific region. 

“Many of these clients run centralised marketing and procurement functions from Australia for the Asia-Pacific region, and they expect to work with a partner that can provide the required products and services to their diverse footprint,” he says.

As clients become more multinational, they want suppliers who also cross borders. There are a range of benefits for the buyer.

Mitchell says: “The advantage for the client is that they can have a central point of contact and accountability for all of their requirements – ensuring consistent control of quality – no matter where their product needs to be produced. As our clients expand their regional coverage we believe it is crucial that we are able to continue to provide them with a single point of service delivery regardless of the delivery location.”

Offshore Opus

Opus Print Group recently announced that it had established alliances with printers in Singapore and Hong Kong to better handle clients’ broader demands.

Chief executive Cliff Brigstocke says: “We have a lot of publishers that we work with, mainly in the professional end of the market, and they are looking more and more now for regional principals. They don’t want to print in each state and in each country, with different printers. They’re looking more for a regional supply partnership arrangement, and have that partner able to coordinate their print work on a regional basis.”

Does this mean that more Australian print work is going offshore? Not necessarily, says Brigstocke. “We are replacing work that would be done by other Asian printers. What we are doing here for clients is blending the best of both worlds. We might do a trial run of a couple of hundred and do the first tranche of customised printing of a product. But if there is a 10,000-run that they can’t economically do onshore, and it was being done offshore anyway, then we would coordinate that on behalf of our customers while the local printing was being done with us,” he says. 

“For us, it’s about offering customers here, Asia and New Zealand an opportunity to choose to have some of the print run done digitally here, the bulk of the run done offshore, and as the quantities of the top-up runs come down, they’re being done digitally here. So we might start the job here in Australia, the bulk of the run offshore and keep the book alive by reprinting here in Australia,” adds Brigstocke.

“I think a lot of [print] has already shifted. The best way for us to protect print as an industry is to make sure we have the latest technology geared around speed – quality is a given – and being versatile and focused on client requirements.”

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