Interprint CEO touts growth

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The author is president and CEO of Interprint, Inc., a laminate products company based in Pittsfield. The following are remarks from the company's recent annual employees meeting Our theme for this Annual Employees meeting of Interprint, Inc. is "Celebrate." First of all we're cheering our country's independence and I hope all of you had an enjoyable and safe 4th of July with your families and friends. There are also many other things to celebrate at Inter-print. You'll hear about some of them from me as well as from other members of my staff. But, with the help of each of you, our recent success is one of the things we celebrate. You should be proud of what you've done. This is just the beginning; this meeting is to celebrate and to recognize and to prepare for the rest of 2002. You will notice also that this is truly an economic development good news story for Pittsfield and Berkshire County. Welcome home reservists The most important thing we celebrate and for which we are extremely grateful is...the safe return of our employees who served recently in the Armed Services. Sales Manager, Fran Vahle, a Lt. Colonel with the Connecticut National Guard commands the 2-192 Field Artillery Battalion. Fran spent 6 weeks on active duty at the Olympic games in Salt Lake City. I'm sure one of the main reasons there were no threats and the athletes and spectators were safe is because of Fran's capable management of the situation. We're also happy to have Scott Trumble back at Interprint beginning next week. He is on a well-deserved vacation this week with his family. Scott spent his active duty in the Middle East, some of the time about 50 miles from the Iraq border on high alert. His unit could have been sent into Afghanistan or into Iraq to unseat Suddam Hussan. Welcome home Scott and Fran 10 year + Employees Another thing we're celebrating at Interprint is the fact that we have long term, dedicated and loyal employees. We currently have 16 employees who have 10 or more year's service with Interprint. This is a significant number considering that our company is only about 15 years old. Experience, dedication, and loyalty are what make this company successful and I salute those of you who have more than 10 years service: Libby Macksey, Steve Greenleaf, Virginia DuBois. Ken Held, Bob "Woody" Wood, Bill Glander, Butch DuPont, Paul Reeves, David Murray, Ben Kline, Jamie Borowski, Bruce Wooley, Steve Stengl, Tom Cornellier, Dave Field and Bill Hines, Sr. Thank you - - - you are the backbone of our company and our success. President's Award We also celebrate the individual achievements of our people. The President's Award was created by me, "To award employees for outstanding merit, performance or positive contribution to the company." Since September 2000, ten people have received the coveted President's Award, which is a plaque, and a $500 cash award: Dave Pecor, Joe Callendar. Chris Malumphy, Ben Kline, Dan Hines, Dave Soules, Trent Shafer, Joel Cross, Brian Trudeau and Frank Williams. Today we will be adding number 11 to the President's Award Hall of Fame. This printer devised ink spot shields for presses three and four to reduce or eliminate all ink spot issues. This device prevented 59,000 lbs. of rejections with a sales value of $l75,OOO. I am pleased to present a President's Award to Alex Matkovsky for his positive contribution to Interprint's profitability. 15+ years of Continuous Growth We're also celebrating the success and now the longevity of the Company for the past 15+ years. Becoming nothing less than one of the greatest enterprises in the industry. Interprint, Inc's Highlights
1985-6 Founded $ 500k 1
1987 Moved to Peck's Rd. #1 Lab Machine $ 1,200k 4
1989 #1 Production Machine $ 2,500k 16
1993 #2 Production Machine $ 15,000k 38
1995 #3 Production Machine Building Addition $ 27,000k 54
1996 Added Design Computer Capability $ 30,000k 65
1998 Purchased Marland Building Building Addition $ 38,000k 76
1999 #4 Production Machine #2 Lab Machine $ 40,000k 86
2000 #5 Production Machine $ 34,000k 96
2001-2 Rt. 41 Site Purchased Site Work Completed #3 Lab Machine $ 48,000k 112
2006 Plan $ 69,000k 150
Capital investments to-date in Pittsfield: Exceed $60,000k Interprint, Inc. is also part of an international group with sales and operations around the world. Total employees are about 530 with sales in the $150 million range. In the group are 18 production printing machines and nine lab printing machines. World Economic Downturn Beginning mid-year 2000, the economic situation in most world markets turned toward the negative. The downturn in the North American economy, after 12 years of continuous growth, was especially difficult for Americans to swallow. After all, we were accustomed to nothing but robust growth spurred in a large part by the dotcom businesses. We all know this came to a screeching halt the latter part of 2000 and early in 2001. And then the knockout punch of September 1lth occurred. The major market sectors serviced by our customers took a major downward spiral. The office furniture manufacturers reported business level declines of more than 35%. Grand Rapids, Michigan, the office furniture capital of the world, has been characterized as resembling a ghost town. Commercial construction in North America declined dramatically in 2001 due to slowing business conditions, and an over supply situation resulting from the office building boom of the late 1990's. The home construction markets were also slowed by the recession of 2001, although at a much lesser rate than for office furniture and commercial construction. We, here at Interprint, did not wait around, wringing our hands in desperation, we took action. With your help, all our employees we were aggressive in managing our costs and our business during this slow period, we reduced inventories both raw materials and finished goods, we went to a more just-in-time approach in responding to our customers' reduced requirements, we didn't hire additional people until absolutely necessary, we reduced the work week from 48 and 6O hours to an average of 42 hours per week, we stepped up our R & D efforts and lab color matching to generate new business. We took the opportunity to improve our productivity by devising ways to reduce downtime, increase printing time while at the same time increasing running speeds. Every order was a challenge to us to make it a profitable order despite less-than-optimum order quantities and more set-up between orders. We concentrated on improving an already industry-best by raising the bar on quality performance. Production acceptance rate from our customers increased from 98% (the industry best) to the current over 99%. And during that time we set a new standard for what is deemed to be customer service in the industry. Our CRM (Customer Relationship Management) program was formalized as a business building initiative under the banner of our new total systems approach for providing a complete package of product, design, service, quality and value delivered to the customer. The executive staff will have more to report on these initiatives. But, bottom line is that we used this period of economic catastrophe as an opportunity, an opportunity to increase our marketshare in North America from 34.8% to 35.1%. This is an increase in volume of more than 5O tons per year and another 1/2 million dollars in sales.. ..Interprint is the marketshare leader in North America. Current economic rebound There is a modest but extremely fragile rebound occurring now in the North American economy. I say fragile because it can slip backwards quickly at the slightest hint of bad news, in the stockmarket. in the mid-East situation, or whatever - - - and the rebound is not wide-spread over all market sectors: for example the office furniture and commercial segments continue to be quite stagnant while there is a boom in housing starts which jumped last month by 11.6%, the largest increase in seven years. Here at Interprint because of the opportunity you took advantage of during the slow economy, we are seeing the rebound effect on our business, not all companies in our industry can report such positive results. Our sales for the 1st six months of this year compared to the previous six months are up by 23% and on-target to meet this year's plan. Earnings likewise for the 1st half of this year versus the 2nd half of 2001 are up to budgeted projections. These are significant accomplishments considering the recent economic crisis around the globe. Proactive As I stated before, we just didn't sit around feeling sorry for ourselves when it looked as if the world was coming apart at the seams. We chose to create our own destiny. For example, we launched our Website: "Reaching New Heights" at www.interprint.com, which highlights happenings and developments at Interprint, Inc. as well as our overseas activities. We instituted an innovative stocking program called ""Stock Options" for our customers to utilize and increase their business. Our IPX (for Interprint Exchange) is our International Design program between all Interprint locations, design consultants and engraving partners. This cooperative approach enables Interprint to create a breadth of laminate designs that would not be possible if we designed and engraved all of our new offerings in-house as some printers do. This range of artistic expression is one of the key attributes of designs that carry the IPX brand. Our R&D efforts under the direction of John Genzabella have paid off with new products that are resulting in significant business and production volume for Interprint. Formica recently introduced six of our "Pearl Luxe" pearlescent solid colors at the NEOCON office furniture fair in Chicago. We have concluded an exclusivity arrangement with our customer, Nevamar, on a printed product that will revolutionize how people will look at laminate in the future. These are significant accomplishments considering the recent economic crisis around the globe. I spoke a while ago about our CRM program. As Bill, Jr. stated in the latest issue of the Leader, Interprint already gets high marks for customer relations. But anyone who says we can't get better should re-examine the facts. We are developing models that represent our best practices across the entire spectrum of our customers. Then we will apply the model, building on our success with one or two targeted customers. We will be taking "customer-friendly" to a new level. Then just about the time the competition is catching on. we'll move the bar higher again. While being proactive in determining, our destiny, we never, never forget about the importance of our people in the whole process. As you know, we have instituted a strong safety program that sets everyone's sights on safety throughout the factory. Introduced in 2001, our Safeway motivational program rewards everyone for considering safety first. To continue to grow and be successful, it is necessary to bring in additional employees. Finding good people with the right attitude and enthusiasm to fit in with all of you has become more difficult recently. We have conducted two in-house jobs and career fairs here at Interprint over the past year. We got over 50 candidates each time we had a fair. This is a more direct and personal approach instead of just relying on help wanted ads. Many of you came to us through the job fairs and I'm glad we found each other. We, at Interprint, also are strong proponents of education, training and workforce development. Sandra Zink will talk about this later. Community spirit I'm also pleased that Interprint and it's employees are citizens of the community and support local charities, non-profits, museums, the arts and the needy with our contributions of time, services and money. Over the past two years, you and your company have donated over $231,000 in time, services and money to the community. Capital investments And finally, during slow times, we do not completely curtail our capital investments. The latest, most modern and most efficient equipment and the continual expansion of our capacity is a must to be competitive on the world market and to keep all of us employed and our families' livelihood secure for the long term. In the last 2 1/2 years, we have spent $12.6 million in capital investments which include.
$5.0 million Production machine #5
$4.4 million new designs and printing cylinders
$0.6 million Lab machine #3
$1.6 million to-date on our Rt. 41 expansion site.
This amount includes the purchase price of the land from the City of Pittsfield, legal fees, environmental impact studies, construction plans and site preparation work. Currently, Petricca Construction is working on installing the water and sewer extensions down Routes 20 & 41 to the site. Our latest timeline based on the water and sewer extensions, an environmental issue left over from previous owners, construction seasons and additional capacity needs is: Rt. 41 Timeline Site work completed Sewer & water extension Winter. As you can see this $20 million + project is quite complicated and will take another 3 years to complete. But upon completion, we will have the most efficient and best laid out decorative printing factory in the world Regarding our current facility here on Pecks Road, I have promised our Ward 7 Councilor & Council Vice President, Joe Guzzo, that we will not just abandon this location. It is not my style, or Interprint's style, to let our environment deteriorate and fall into a state of disrepair. Furthermore, we have $l1 million invested in the land and buildings here at 125 Pecks Road. We will not, and can not, walk away from such an investment. I am exploring some options that might locate a portion of one of our Canadian customer's operation here - close to their printing source. Other options under consideration are locating one or more of Interprint's suppliers here; or establishing an auxiliary business of Interprint here. Also, when the time gets a little closer we will consider selling or leasing the location to any interested businesses that might be a good fit for the building and the neighborhood. Airport Before I finish, I think it is important to mention a topic of major importance to Interprint, other businesses in the area and indeed to all working and taxpaying citizens of Pittsfield and Berkshire County.. .the Airport improvement plan. There is a negative campaign forming to spread misinformation about the need for and the benefits of the runway safety zones and improvements to the airport. One of the campaigners asked what benefit the Pittsfield taxpayers would get from improving the airport. This is typical short sightedness on the part of a few people who are against change and any progress. First of all federal money coming into the city for the airport would dry up if the airport is not brought up-to-date for safety compliance. I am also greatly concerned about the possibility of some of our major employers (and taxpayers) will see no benefit to staying or expanding their operations in Pittsfield. Losing any business here has a snowball effect on all citizens. The jobs created by these companies are filled by people like you and me who are busy earning a livelihood, supporting our families, paying taxes, supporting our schools and churches. .and donating to charities such as the United Way, Red Cross and Salvation Army and to the service organizations like the Boys & Girls Club, Elder Services and others. Loss of businesses means loss of jobs, loss of revenue, loss of taxes and putting the good work of our charities in jeopardy. Everybody suffers. One of the campaigners says there would be 100,000 trucks driving through our residential neighborhoods carrying landfill for the creation of the safety zone areas. This is an outright fabrication to deceive the people of Pittsfield. From the plans I have seen, the landfill will be provided mostly from other parts of the airport property. I am encouraged to read that the Mayor has stated her support for the safety zone improvement at the airport. It is hoped the Mayor and the city council will wholeheartedly support and lead this project. The people of Pittsfield are depending on the future economic benefits of having a vital airport. We cannot afford to lose another business, another job or another person to an exodus of Pittsfield. In Closing, I will conclude by saying to you, the people of Interprint and the many people who have a stake in the well-being and success of Interprint. Our objectives are simple. We aim to continue to grow and develop our business in North America with the view of remaining the largest and most respected source of printed decorative paper in our market. We will achieve this by being the best at what we do with the best people in the industry. Developing our business over the last 15+ years and the considerable reputation we have developed will give rise to numerous opportunities for Interprint to significantly expand our contribution to our shareholders' value, our employees' security and livelihood and our place as a good corporate citizen in Pittsfield and Berkshire County.
If you would like to contribute information on this article, contact us at info@iberkshires.com.

RFP Ready for North County High School Study

By Tammy Daniels iBerkshires Staff
NORTH ADAMS, Mass. — The working group for the Northern Berkshire Educational Collaborative last week approved a request for proposals to study secondary education regional models.
 
The members on Tuesday fine-tuned the RFP and set a date of Tuesday, Jan. 20, at 4 p.m. to submit bids. The bids must be paper documents and will be accepted at the Northern Berkshire School Union offices on Union Street.
 
Some members had penned in the first week of January but Timothy Callahan, superintendent for the North Adams schools, thought that wasn't enough time, especially over the holidays.
 
"I think that's too short of a window if you really want bids," he said. "This is a pretty substantial topic."
 
That topic is to look at the high school education models in North County and make recommendations to a collaboration between Hoosac Valley Regional and Mount Greylock Regional School Districts, the North Adams Public Schools and the town school districts making up the Northern Berkshire School Union. 
 
The study is being driven by rising costs and dropping enrollment among the three high schools. NBSU's elementary schools go up to Grade 6 or 8 and tuition their students into the local high schools. 
 
The feasibility study of a possible consolidation or collaboration in Grades 7 through 12 is being funded through a $100,000 earmark from the Fair Share Act and is expected to look at academics, faculty, transportation, legal and governance issues, and finances, among other areas. 
 
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