by Jon Christensen
Offshore printing is a mysterious concept: glamorous and alluring, yet complex enough to intimidate even the veteran print buyer. At the September dinner meeting, print broker Ken Coburn cleared up a lot of the mystery with an informative talk on the benefits-and the caveats-of sending work abroad. "Offshore" refers to any location outside of the U.S. This has traditionally included many Asian/Pacific and European sites; since NAFTA, Mexico has strengthened its place in the mix. In the past 15 years, the offshore trade has boomed, with a hundredfold increase in the number of U.S. print brokers and a corresponding number of publishers interested in sending work abroad. There are a number of reasons to consider the offshore alternative.
Why Go Offshore?
Convenience. It often makes sense to have packaging or collateral for a product printing in its country of manufacture.
Necessity. Some nations don't allow the expatriation of hard currency profits. Profits originating in these countries must be reinvested in the manufacture of products before they can be exported. Printing meets this requirement well.
Cost. Of course, there are potential cost savings. Sending a job abroad can economize-but only if it's the right kind of work for that particular destination.
Features. Many services, such as sewn binding and handwork, are often more readily and inexpensively available outside the U.S.
Excitement. Finally, there's the travel. Who wouldn't look forward to the occasional tax-deductible trip abroad?
The Caveats
It's important, however, to be selective when choosing jobs to send offshore. Not all locations are appropriate for all work, and there are hazards that go with the potential benefit.
Distance. Long distances can interfere with the timely shipment of materials and finished product, challenging a tight schedule.
Communication barriers. Cultural differences, variance in business practices, differing units of measurement, and language problems can make doing business difficult.
Inconsistent pricing. Countries that seem as if they should be inexpensive can end up outbidding local sources. Political and civil unrest, corruption, general difficulty of doing business, and supply availability can drive costs surprisingly high.
Technology. Computerization tends to trickle down from the United States. Certain technologies taken for granted here may be slow to arrive abroad.
Coburn encouraged anyone buying printing to "think in parts" and to consider having different parts of a product printed in various global locations, negotiating the best terms for each component separately. Stick to the specialties of each printer and each location to maximize quality and minimize cost.
Coburn concluded with a discussion of the United States' current competitive position. As the market for offshore printing has heated up over the past decade, the emergence of custom, short-run printing has helped keep the U.S. competitive. New printing technologies often originate in this country, at times offering a better value than established processes abroad. So, although many jobs benefit from being sent offshore, don't forget that the best deal may still be just down the street.