My bosses can’t tell me how to live… Can they?

The economic outlook remains gloomy. Many employers are still laying off. The staff who is left is working, work longer hours than ever before. More work = less personal time. While personal time diminishes, is personal choice also diminishing? Workplace rules & laws are getting stricter all the time. They are covering more and more of what used to be looked at as personal choices.

These factors contribute to the blurring lines between work life and personal life.

Lets look at some numbers:

Nearly all companies have an IT policy preventing employees from using the companies’ resources for personal online use. In spite of these bans a study released October 14th of this year, shows that 50% of workers say they will shop while at work this holiday season. 10% of these workers will spend at least 30 hours shopping online. Company policies vary, but consequences for violations can be harsh.

Concerned about your rights to privacy in your company computer? Your safest bet is to assume you don’t have any and don’t look for federal government protection. Federal Electronic Communications Privacy Act (ECPA) states an employer-provided computer system is the property of the employer. California allows for some minor adjustments. In general employees can expect very little electronic privacy on company owned computer equipment. Don’t risk termination or disciplinary action; limit your personal computer use to your personal time. Make sure you are familiar with your company’s IT policy. Ask you HR department to provide you with your company’s policy if you are unsure.

Employers don’t stop with company owned computer equipment. Some employers are now attempting to ban obesity in the workplace.  The numbers behind this decision are staggering. Employers with a BMI greater then 40 (18.5 to 24.9 BMI is normal) had 11.7 workers comp claims per 100 workers, compared to 5.8 claims per 100 for normal BMI employees.

Injuries aren’t the only costs. Health benefit costs to employers has SKYROCKETED due to employees with obesity related conditions. The average health spending for the 15 most expensive obesity -related condition climbed 55 percent form 97-05.

Think you are protected against your employer’s decisions regarding obesity? Think again. Discrimination laws very narrowly define protected classes of workers. Only Michigan and DC protect overweight workers. To many employers’ credit, they are working with health care companies to design programs to help employees lose weight. Initiatives include gym memberships, discounted weight loss programs and more mundane solutions such as serving fruit at morning meeting rather than pastries.

Employers aren’t the only ones pushing change in personal choices at work. Many states & localities have a ban on smoking in the workplace. American Nonsmokers’ Rights Foundation says that currently 71% of the US population lives under a smoking ban of some kind. Many of these bans are administered by OSHA. Employers: ignore enforcement at your own peril.

Are the positions these employers and enforcement agencies taking too paternalistic? These statutes that have been challenged in court, and the courts are upholding the employers decisions. Whatever your personal opinion of these “intrusive” rulings, your employer is still within his/her rights to make these personal choices for you.

The more noise social media creates the more clarity print provides.

Received a “Thank You” card in the mail last week that excited me. Please check out the brief video I made in regards to it.

CLICK HERE FOR VIDEO

My excitement spilled over into adding it as a discussion point I had with varies print industry people. Many of them also agreed it had some potential. As Social Media (SM) grows it becomes harder and harder to keep up with and filter out the noise that it generates. In fact at this point the noise of SM is at a roar level. That simple Thank You card coupled with SM had a very profound impact and most importantly, it made me LOOK at the website and possibly become a buyer on that site.

Sitting in Dallas last week with Joe Polanco from PIA-MidAmerica helped further expand on this SM noise. By the time we finished 2 beers and a nice conversation the tag line “The more noise social media creates the more clarity print provides” had been formed.

Dont get me wrong I am a huge fan of SM and think it is an extremely valuable tool in many ways. It is the combining of the two that I find interesting. It is similar to how I look at things like Google AdWords. The first few results in a search doesnt mean legitimacy in my mind, it can also mean someone that is good at getting top rankings for key words, but otherwise not having much value. Thus as many people do, I look at the paid for advertising as a solid option.

The coupling of the two mediums is a strong fit. What better way to filter out the noise than to receive a card in response to something connected with on SM. In fact it is a barrier of entry as the printed piece costs a small amount of money to send and thus acts a good filter from spammers and others that just use free communication tools aggressively, but have a product that has no value or limited value.

Better filters will certainly come soon for SM and like all things the adaptation of the new tools will need to be assessed and relooking at the value proposition of print will need to happen.

Brian

The case for “Why using flexible staffing makes sense”.

Read an interesting article on one of What They Think’s blog sites about a new NAPL report. In the report, NAPL states that the decline of the print industry productivity in the first quarter of 2009 is 14.2%. What is strange to me is that payroll hours are only down 4%. I think this illustrates how important Flexible Staffing, like that which Semper offers, is a critical component to any printer’s strategy. With productive declining more rapidly than payroll, printers have still not right sized their head count the appropriate levels. Having a solid relationship with a staffing firm that can provide highly skilled printing personnel to your organization can offer areas of cost saving most companies need today. Firms like Semper not only provide highly skill people that can be relied upon, but offer key things like benefits to its flexible workers.

I recently spoke with management of a large global print focused firm and confirmed that they are still operating under a 70% internal staff, 30% flexible staff model. That this ratio has had a very significant role in helping them stay profitable during this unexpectedly long recession. Mind you, this type of strategy is not just used by large organizations, many sized firms use Semper for very similar reasons.

Please find a link to the What They Think posting I have referred to in this email message: http://blogs.whattheythink.com/printing-office

Semper Survey Q2 Results

Semper Survey Q2 Results:

I believe those that have survived thus far have sighed in relief, but it is clear we have some tough times ahead- so much for an Obama Bounce! It would seem contrary to the March statements from the politicos about things getting better, most of us have not seen anything of the sort. In fact, we would estimate 15% or more of establishments in existence January 08 are no longer around. Even the very solid, well-run companies are experiencing severe financial issues. The longer this “contraction” lasts the more harm it is causing. The plus side is those that survive will enjoy a much less competitive market. The first draft of the GDP numbers came out indicating the contraction was 6.2 in the first quarter. The second and third drafts will likely show that is a conservative number; even with the two week busy period many indicate happened in January. An area I would like to look at in this summary is the question that looks at your concerns. The answers to this area have changed so significantly over the last two years and even in the last few quarters. The largest area of concern is now the OTHER area. Upon investigation, OTHER is not several types of concerns but rather the need for a new category to be added – The economy. Ninety percent of the respondents who chose OTHER to question 8 indicate the current economic contraction is their primary concern. Looking back over the last four surveys this constituency has been i ncreasing to the point we will now add a new category “Economy” to this area. As you can imagine the shift from profitable to unprofitable was rather striking and the most severe since we started the survey. 52% say they were profitable this past quarter and 47 % indicate they lost monies- a huge shift. The question regarding business the last two weeks seems to indicate some improvement with 38% indicating some improvement and 42% staying the same. We noticed a 2 and a half week increase starting early April but a fall off as the month ended (hopefully short term). The full-time hiring situation still seems tough with the vast majority staying the same or laying off. We have been privy to many different and creative types of hiring arrangements being used: furloughs, reduced work weeks, reduced pay rates, using the unemployment office’s Work Share program and utilizing Flex staffers after heavy lay offs. We have enclosed the entire Survey results below; if you have questions or would like to see additional areas explored please let me know.

View Survey Results: CLICK HERE

Dave Regan CEO daver@semperllc.com

Thank You

Staffing is a leading indicator

Saving monies and being lean are on everyones radar of late. With labor being such a large component of costs what is your competition doing
to keep costs low? How do the industry leaders gain competitive advantage in this area?

Did you know flex staffing s a “leading indicator? (http://en.wikipedia.org/wiki/Leading_Indicators#Types_of_Indicators)

Have you ever noticed how orders tend to come in clumped together? Like cars at a toll booth or a pocket of traffic on a highway?

How can you use these observations and tips to your companies advantage???

Email me your questions and I would be  more then happy to respond  Always@semperllc.com

Dave Regan 

CEO

Semper

Semper’s quarterly printing industry survey results.

Hi, Thanks to all of you who participated. Please find the results of the survey.

Q1 Survey Analysis – January 2009

Thank You again for your responses – this was the first time we posted on twitter and other Social Networks and the response was trebled.

Let us get right to it- WOW. Glad the fourth quarter is over, but the first could be just as interesting.

The highlights: 

Profitability seems to have increased again- clearly this indicates the cost cutting measures and the reduced costs of raw materials and fuel are helping.

The question regarding how you find employees was interesting. Notice that many more of you are using online resources like printworkers.com or Gain’s job bank than help wanted ads in newspapers. I wonder about the reasoning behind that fact, considering the parallel decision our clients must face between print and new media expenditures.

The hiring section – the Staying the same percentage is continually dropping, with laying off increasing but hiring actually started to show an increase. This would indicate that companies top lines are still being squeezed; they lay off but then find they are unable to meet demand when it comes in. So they have to rehire- A shameless plug but this is a classic temp staffing utilization situation.

Again, we suspect the GDP numbers to be released on Jan 30th 09 will have to be revised even in six weeks lower than even the shocking contraction they first indicated. We are glad to see many of you understood the severity of the situation and took the steps needed to reduce costs last quarter.  All the doom and gloom from Davos aside, we feel that the upturn will start sooner than later. The speed of its improvement is the question. It seems that most responded that business was stable  the last two weeks and expected things to stay the same for the quarter. Lets hope we start to see improvement top line wise shortly there after.

The number one concern of respondents was the economy and it’s impact on clients budgets followed by predatory competition for those budgets. The Fed calls that deflation. Let us all hope that trend and fear is fleeting.

We have enclosed the entire Survey results below, if you have questions or would like to see additional areas explored please let me know.

daver@semperllc.com

Survey Charts: CLICK HERE

Semper’s Q2 Survey Analysis – April 2008

First, Thank You all for the huge number of responses. 

We honestly use this survey as a benefit for the industry in general 

and not for commercial reasons.

 

I think we all can be glad the first quarter is over; except for the fact that the 

second quarter, so far, seems to be even worse then the first. The last 2 

months have seen a severe contraction in most areas of the economy and 

in all geographic areas. The Fed’s actions last Summer came several sessions 

too late to avoid this contraction. The relentless negativity from the media over 

the last two years reached a crescendo of hysteria in August that has scarcely 

abated till just recently. We all are grateful for the news media’s recent more 

positive bias!!

 

A Big question now is have the stock markets hit bottom? If so, then the 

recovery will be approximately six months from that bottom. If you look at the 

current stock charts for Apple, the Dow and the NASDAQ over the last two 

years, It appears that we have hit the bottom and are on the upturn (barring 

another terrorist shock). If the charts are correct, then we should start to see 

improvements as early as September – October. Flex Staffing tends to be a 

leading indicator, like the stock market, so we at Semper should see improvement 

three to four months after the bottom. We will let you know. 

 

Another BIG change in the Industry this year was the demise of Annual report 

printing. One manager I spoke to, mentioned that last year they printed 100 Annual 

reports- this season only four. The result of the SEC allowing companies to post 

the reports “online.” This single change has had a huge negative impact in that 

segment of the industry. I think of what will happen to Blockbuster and the movie 

theatre chains once the movie studios release first run movies directly online. It 

will likely be a similar issue- MAYBE I should sell any holdings.

 

Now to the survey results:

 

As you recall, the results are in the new easier to read and understand format 

which reduces the need for commentary.

 

The question on profitability I am sure is high on everyone’s list. The trend line is 

clearly indicative of the stress we would expect to see ; this is a MACRO issue 

not just your firm.

 

The question on profitability I am sure is high on everyone’s list. The trend line 

is clearly indicative of the stress we would expect to see ; this is a MACRO issue 

not just your firm.

 

The hiring question reinforces the above two responses. Hiring has dropped off, 

but it seems staying at the same staffing level is the course most firms are going 

with. Maybe others agree that things will improve sooner than later. (br>

Clearly, keeping expenses limited is on everyone’s mind, with base pay and benefit 

costs showing big jumps in concern from respondents. Supply costs in general are 

now the largest percent concern of firms as opposed to technology issues.

 

In closing, we see positive news here in the expectations of sales for this quarter. 

Take a close look at the actual results and feel free to ask questions or give 

feedback – daver@semperllc.com

 

Click here to view the Survey:

http://www.semperllc.com/printing_survey/Semper_Survey_2008_Q2.pdf

                                                                  

Thank You

Q1 Survey Analysis – January 2008 (Printing)

Q1 Survey Analysis – January 2008We have reorganized the survey for this quarter. The new format makes it easier for you to track the changes historically, allowing you to spot trends. It also reduces the need for our commentary.The feds surprise reaction today is exactly the tonic that appears to be needed based on this survey-This survey shows several distinct trends:-This is now the third quarter in a row with a significant drop in companies reporting profitability.-The expectations for the coming quarter has dropped now for the second survey.-The decrease in hiring and the number of layoffs have both increased over the last survey – Both have accelerated.On a positive note- Companies are reporting a strong increase in orders over the last two weeks and this is the first survey in a while that Technology is less feared.The Quebcor news has many pluses and minuses for the industry as clients potentially shift vendors.If you have questions or would like us to add a question or topic please feel free to contact me directly – daver@semperllc.com Click here for the Results PDF 

Q4 Survey Analysis – November 2007 (Print Industry)

We have reorganized the survey for this quarter. The new format makes it easier for you to track the changes historically, allowing you to spot trends. It also reduces the need for our commentary.

This survey has a few notable items: This is the second quarter in a row with a significant drop in companies reporting profitability. Keep in mind our industry is not alone so watch your AR closely.

The question relating to labor costs again highlights base pay increases causing concern. This type of pricing pressure is significant for its inflationary implications.

Many respondents indicated they expect business to decrease or stay the same, with a full 19% indicating they did not expect increases. The last quarter of the year traditionally is a busy time. We noticed last year for the first time in many years, that the busy-time failed to occur. We wonder if others noticed and suspect a trend?

If you have questions or would like us to add a question or topic please feel free to contact me directly – daver@semperllc.com

Click here to view the Survey, PDF Format

Revenue vs Expenses? The bottom line is clear

The goal of your business is to make money. You need to show a profit on your P & L or all other business goals are moot. One obvious action is to cut expenses. But, At some point you need sales as well. We all know what a P&L looks like pluses and minuses are simple: sales are a plus and expenses are a negative. The goal is to have sales higher than the expenses. At what point does cutting expenses start hurting or become ineffective? When does looking for the lowest price end up costing the most?

Basically the above questions are similar and I’m using them to help round out the discussion. Lets use this current mortgage mess as an example. A homeowner looks to get the lowest priced mortgage possible; they find a 7-year ARM they can switch into. Four years ago that would mean $850 a month on a $250,000 note, the deal is done. In hindsight, maybe not such a great move. Here is another example: a new home buyer purchases a house for $250,000 with no down payment, a fixed rate for 7 years and interest only payments. They get a great LOW monthly payment and one would expect a first time buyer to make the minimum payments allowed. This would also allow their standard of living to rise higher than it should. Both of these are examples of bad decisions. The impact will, of course, be felt by all of us since many people made these bad decisions- IE lowest cost per month. In printing this happens many times with our clients, they play us off each other price wise, and we let them. It seems to me, it is too easy to get caught in a downward spiral with printers always competing on price alone. One solution is to buy all your competition and then drive the rest of the printers out of business. This oligopoly type situation sounds familiar, no?

Printers themselves are forced to push costs down to survive. With labor costs, sometimes they push to the point that they cannot attract the skills they need. Check out this blog: CLICK

In the end we can never cut expenses as much as we need to increase sales. I am a strong advocate of running a lean operation, but sales are by far and away the more important part of that P and L equation. And sales, is about quality, reliability, relationship, trust, and value. The sooner we get our clients and ourselves to start weighing the whole picture the better.

Just some thoughts.