For The Times, They Are A-Changing!

Dear Colleagues,

It was the summer of '65, and I was spending a warm, sunny day on the Atlantic beach at the Newport Jazz Festival, having traveled from Providence RI where I was enrolled in a Peace Corps training mission at Brown University. I had come for a rare opportunity to enjoy Bob Dylan, Stan Getz and Charlie Byrd, musical favorites of mine. Getz and Byrd were terrific. But, I was totally bummed when Dylan came on stage with an electric guitar and made it obvious he had departed from his New York City subway roots (think "Blowing In The Wind") for the clamor of electronic chords. However, he did have the decency to play his old acoustical guitar and harmonica for a rendition of "For The Times, They Are A-Changing."

Which, in the ‘60's, they certainly did. And, the '70's, and the ‘80's, and ... well, you get the drift.

With respect to the a-changing times of our Independent Print Services and Distribution Industry, I believe the greatest change during my career has been the transition from industry dominance by a small group of national print manufacturers ("The Majors") to dominance by a multitude of Independent Print Services Distributors.

Forty years ago, the Independents comprised about 20% of total industry sales. Today, we comprise nearly 80%, a complete role reversal. Also, the Majors struck a minor chord, with only one, The Standard Register Company, left independently standing – and theirs a business model that is increasingly challenged by hyperspace and today's innovative, creative supply chain world. If you majored in zoology, the metaphor of the dinosaurs versus the small mammals comes immediately to mind.

"For the times, they are a-changing." All over the world, the lights of obsolete business models are going out, one by one.

Recently, an interesting article on the Forbes website featured a new automotive company beginning production in November 2009 on a 100 mpg, $88,000 plug-in hybrid sports sedan. The interesting aspect for us is that all engineering and production is totally outsourced. This entrepreneurial Danish car designer has become a de facto "Independent car distributor." According to the article, "the implosion of GM and Chrysler (think "Majors") has sparked a flurry of similar innovators."

In another example, traditional news media are going the way of the dinosaurs. The Big Three Networks (think "Majors") face declining viewers and ad revenues. The venerable NY Times exists on transfusions from Mexican billionaires. Who's winning? Cable networks, blogs, social networks, Internet news … all small media mammals.

And, what do all the above-mentioned mammals, regardless of Industry, possess in common? The ability to distribute products and services that are more personalized, innovative, relevant, timely, valued and cost efficient.

And so, it seems a great time to be an Independent Distributor. WE WON! Or, did we? I mean, aren't we now an example of a "major" success story?

In upcoming Tuesdays, we'll explore various ways in which we can exploit ongoing technological innovation in our industry to achieve continued major success without going "the way of the Majors." It'll mean work, but then again, "the times, they are a-changing!"

Enjoy a wonderful week,



Ross Barker

P.S. But, don’t let all this change cause you to forget your "roots." I never bought another Bob Dylan recording after Newport.