Prep's New Breed

by Lisa Cross, Graphic Arts Monthly
June 2006

Firms that specialize in prepress services are alive, kicking and succeeding, despite major restructuring in the market. It is no secret that seismic shifts are reverberating forward and backward in the graphic arts supply chain. The dramatic reduction in demand for high-end scanning, page composition and film imaging has rocked the market, winnowing away many firms that had specialized in premedia services. As customers have taken a greater role in generating production files, leading print firms have added prepress services to more efficiently drive their own production and to troubleshoot or generally offer more services to customers.

According to the U.S. Dept. of Commerce Economic Census issued last year, the number of prepress companies dropped 36% from 3,191 in 1997 to 2,030 in 2002. Firms either shut down or were acquired. Those left which still specialize in prepress or premedia services have evolved into a new breed, expanding services to include offset printing, digital printing, digital asset management, electronic mechanicals, software services, digital photography, design, database services, soft proofing, print management services and more. Firms participating in Graphic Arts Monthly’s 2006 Top Prepress/Premedia ranking report, both stand-alone shops and printers that offer prepress, acknowledge that the prepress business is still ripe with opportunities, but the model for success has changed.

Graphic Systems Group (GSG), New York City, hired a branding specialist to redefine itself and its markets. It now describes itself is a production agency and acts as an extension to its Fortune 500 clients. Ken Madsen, partner/owner of the company, says huge opportunities were created when the ad agency world opted to shed production operations and focus on its core competency: creative.

Founded as a high-end retoucher in 1983, GSG offers a smorgasbord of complete turn-key services: graphic design, retouching, digital photography, digital imaging, digital mechanicals and output, photolab services, large-format output, digital asset management and B2B workflow solutions.

As the print control arm for Major League Baseball, it makes sure all print produced for the organization and its teams adhere to set standards. The company selects the prepress and printing firms to produce work for teams and events in other locations, and produces the work for local teams and events. Consumer product and cosmetic companies turn to GSG for such services as product color control, comps in up to 17 colors, high-end retouching and FDA references. Digital print products are produced on EFI VUTEk devices and short-run digital printing on Xerox DocuColor 8000 devices.

The company offers database services that organize client’s data to produce effective one-to-one marketing pieces. It has also designed more than 40 different client websites for managing digital assets, which has reduced customer design time from four months to three weeks, says Madsen.

Below, GAM lists top prepress firms, by sales revenue. Data was provided by the companies or estimated by multiplying employee count by IPA’s 2005 Economic Study of average sales per employee ($146,836). Giants RR Donnelley, Quebecor World and Banta opted not to break out premedia services.