Wikoff Color

Source: Manufacturing Digital

Date :08/05/2008 06:36:34

Formed to address two important needs in the printing industry, Wikoff Color Corporation has responded to those needs with innovative solutions

Written by Rebecca Waters & Produced by Alexander N. Hortaridis

After recognizing two important needs in the printing industry: tailor-made inks to maximize efficiencies and highly technical, service orientated approaches to ink making, Fred C. Wikoff formed Wikoff Color to address needs he felt had been overlooked.

The employee-owned company has since responded to those with solutions for customers’ problems both on and off the press, with product lines, which run the gamut of the major printing processes: litho, flexo, letterpress and gravure, as well as functional coatings, energy curable products and other specialty items. All of this with one goal in mind: to achieve customer satisfaction.

A quality service

Customers are the focus of this Fort Mill, South Carolina company, a manufacturer of printing inks and coatings for the graphic arts industry, a principle which was established at the beginning by its founder: “We are in the business of making our customers money, when that stops so do we.” This customer-centric approach has seen the company build its customer base extensively, in excess of 2,000 in the United States or abroad, growth that is driven by the type of products and services Wikoff Color offers; tailor-made products which require tight specifications and the highest levels of quality and consistency.

“The quality of our products and services is our number one priority,” the company asserts in its Guiding Principles. This is achieved through constant and consistent improvement of processes, recognized in the company’s Quality Policy.

But sustaining such quality can be difficult especially as the world of printing is constantly changing. Wikoff Color is aware of this and has in place unique training programs for its customers based on their specific needs. These include: Print Characteristics, Advantages and Limitations of Coatings and Internal Auditor Training.

For Wikoff Color, responding to the changes takes place in their R&D labs in Fort Mill, SC (the main manufacturing site for inks, coatings, varnishes and pigment dispersions), Alpharetta, GA and Toronto, Canada, all of which are registered to the ISO-9001:2000 quality standard. This standard ensures that the company continues to provide the best service; whilst continuously improving its product line, something which enhances its position in the ever growing ink industry. The ink industry represents a multi-billion dollar industry in the United States alone.

Raw materials

Whilst the ink industry is growing at a considerable rate, higher raw material and operational costs, directly related to increases in energy and transportation (fuel) costs and now in pigments, are a growing issue throughout the industry and have cut into already tight margins.

According to the National Association of Printing Ink Manufacturers’ (NAPIM) 2007 State of the Industry Report, the ink industry’s EBITDA in 2006 was a paltry 1.9 percent. As a result, beleaguered publication ink companies implemented price increases.

Wikoff Color has passed along some of these price increases, and although has it took time, it has been successful, with customers more understanding than attempts to increase in the past. This was not the case when prices spiked after the Gulf Coast hurricanes of 2005.

However, as Phil Lambert, Wikoff Color’s president and CEO has noted in the past: “Pricing needs to stabilize for everyone’s long-term health.” And the cost of raw materials is still a concern.

But there is hope as new technologies are driving potential growth in the U.S. publication and commercial ink segments.

Growth, expansion

Crucial to Wikoff Color’s own growth will be continuous improvement and organic growth; through the continued expansion into new locations and through acquisitions.

In its 52 years, the company has expanded into four core business: Folding Carton packaging, Flexible Packaging, Labels and Packaging, and Commercial Printing. Such diversification has been achieved through acquisition.

The acquisitions of three ink manufacturers during 2004 and 2005 provided Wikoff Color with more diverse product lines and expanded geographic coverage. The acquisition of Frontier Printing Inks, a Toronto, Canada-based flexible packaging ink specialist, in 2005, saw the company make a significant move into Canada and the flexible packaging market.

As a result of this expansion, Wikoff Color enjoyed a significant growth in 2006, with double-digit sales growth, and in 2007, reported revenue of about $130 million.

Changing Industry

To sustain this revenue and to handle this significant growth, Wikoff Color has bought in more leadership to handle the company’s operations. Change that coincides with the significant changes in the graphic arts industry, which include: e-commerce, new media and globalization, shorter runs, just-in-time delivery and customized content.

With increasing costs being pitched against these new challenges and developments, it will be exciting to see how Wikoff Color responds to these changes. With a history of problem-solving, this Fort Mill company looks to set to weather out the storm, coming up with fresh ideas.

Click here to view the corporate brochure on Wikoff Color