PSG Monitor: January 2019
Happy New Year to all! 2018 is in the rearview mirror and what a year it was.
2018 brought us a strong recovery year over the disappointing 2017. Driven by a variety of factors, with increased sales and client growth leading the way. PSG added 100 new clients totaling well over $1,500,000 in additional sales!
Our team stepped up and embraced the challenge, which reversed the downward slide that began in the second half of 2017. A focus on quality and customer service is the backbone of PSG and we delivered.
We wowed our clients with our new HD Plate Technology as we raised the bar on Flexographic printing. This has positioned ourselves very well for 2019 with new and existing clients.
We had our challenges as well!
The labor market has tightened creating a shortage of qualified prospects to join our team. Many positions were left unfilled, roadblocking the goals of our expected throughput.
Last-minute call offs from our existing work force were at the highest levels in history. The strain and pressure it puts on our staff across the board was apparent. Creating missed schedules, client dissatisfaction and broken promises which were extremely challenging to clients and co-workers. Hopefully 2019 will see some relief and consistency.
Material increases, especially in pressure sensitive materials, foil and PET created uncomfortable dialogues with clients and in many cases eroded our margins on key pieces of business. Lead times have also been moving out. A sign of a strong economy.
Consistent consolidation in our industry is creating a very competitive and, in many cases, concerning trend for independent printers like PSG. The big guys are getting bigger and the pressure to compete is getting tougher. We will struggle to compete on technology investment, buying power, and capacity.
What’s in store for 2019?
Could it be a new press, slitter, 175-line screen printing, or maybe a new ERP system?
All these items are constantly being discussed. When and which one has not been determined but we all have our “short list”.
We started the year with a 98% score on our surprise audit from the SQF audit and that is a great start. Great job team!
With the continued focus on sales /marketing, customer service, and production efficiencies, we will continue to move forward and make 2019 the best in PSG history!
The link below is to an article called the “War on Plastics”. It’s a quick overview on the challenges of plastic waste, and how it’s perceived and dealt with. PSG is a leader in sustainability and recycling efforts, and will continue to be in 2019. We’re also exploring the use of compostable films for our bar line…stay tuned.
Quote of the Month:
“There is only one thing that makes a dream impossible to achieve: the fear of failure”. ― Paulo Coelho