Onset of Industry 4.0 and print industry’s next frontier

The printing industry is at the cusp of a revolution driven by seismic changes in technologies. Industry adoption is rapidly shifting from traditional to digital printing and with the onset of the fourth industrial revolution, the line between digital printing and conventional printing methods has begun to blur, thus paving the way for a new era of individualisation and personalisation. Riding the tidal wave of Industry 4.0, the printing, packaging and allied industries have also embarked on their journey to Print 4.0.

Industrial revolution has been one of the major forces for driving business growth and changing the world around us. The first industrial revolution (1784 – 1869) led to the introduction of steam engines and mechanical production whereas the second industrial revolution (1870 – 1968) witnessed the expansion of electricity, petroleum and steel. The third industrial revolution (1969 –2015) ushered in the era of electronics, information technology and automation, and the ongoing fourth industrial revolution, also dubbed as Industry 4.0, is characterised by a range of new technologies that are fusing the physical, digital and biological worlds, impacting all disciplines, economies and industries.

Driven by changes in technologies and with the onset of Industry 4.0, a profound digital transformation is underway within the printing industry as well. Printing companies are enhancing their capabilities with newer technologies and are investing in seamless workflows as a preliminary capability to drive innovation and make significant improvements in efficiency. The advent of fourth industrial revolution has ushered in a new era for the professional printing industry, with the introduction of a myriad of new technologies that are taking printing and finishing technology to the next level. It is safe to say that the industry is witnessing new growth frontiers like no other.

In today’s day and age, connectivity, cloud computing and automation have become the new normal and the printing industry is thoughtfully deploying these technologies in sync with the proliferation of Industry 4.0. Embracing digital is a necessity in the current disruptive environment as it plays a pivotal role in enabling productivity, streamlining printing workflows, improve customer service and enable businesses in staying agile.

As the technology landscape transforms with Industry 4.0, the style of manufacturing will also change, prompting the creation of smart factories which will consequently bridge the gap between customers and suppliers in the near future. In my observation, commercial printers which have added digital capabilities are already witnessing up to 80 percent growth; and those who are adding value to the print and customers are seeing further boost in profitability. On the other end of the spectrum, commercial printers which don’t have digital capabilities have begun to see a decline in revenues. It is evident that the time to embrace digital is now!

While technologies like Cloud Computing, Big Data and 3D Printing which are associated with Industry 4.0 have been around for some time now, it is only today that they have begun to grow mainstream and are rapidly finding mainstream adoption. Connected factories, robotics, artificial intelligence, augmented reality and 3D printing have the potential to disrupt and reinvent virtually every aspect of the printing industry.

Technology giants are investing heavily in these technologies, collectively working towards the shared vision of improving cost-effectiveness and precision quality while provisioning for mass personalization for everyone, everywhere. Recent report from PwC predicts that as many as68 percent of manufacturers have already begun to deploy 3D printing. Of these, 28.9 percent are experimenting to determine how 3D printing can be optimally integrated into their production processes. By retrofitting industrial robots with 3D printing guns and artificial intelligence algorithms, futuristic machines can be constructed that can see, create, and even learn from their mistakes.

Print 4.0 all set to go mainstream

While print was dismissed a decade ago, where the dawn of a paperless era was predicted, truth remains that print is here to stay. In today’s digital age, print is in 94% of mixed media campaigns and attracts 48% of the budget spend.

It is a long standing fact that no other medium beats the tactile and enduring nature of print. Businesses today continue to believe that print communicates quality, that it is a way of differentiating their companies from their competitors and that it is the most effective way to reach specialist or older audiences.

A recent Canon Research of 552 print service providers (PSP) and print and media buyers across 25 countries across Europe, Middle East and Africa, reveals that awareness of digital print applications among print buyers has increased in the last two years, 20% of PSPs offer cross media or multi-channel campaign coordination, 84% PSPs see cost rising faster than revenue, 55% print buyers ask buyers for advice on multi-channel communications, 80% PSPs say they can no longer do things as they always have, and 48% of commercial printers only have a formal marketing or business development plan.

It is evident that digital printing is growing at a pace faster than ever before. According to a report by Smithers Pira, the total digital printing market will reach 225% of the 2013 value by 2024. The report states that digital print is growing because it allows print suppliers to improve the levels of service they offer to customers, as well as opening new opportunities and helping them to make money.

Increasing versioning and personalisation helps make print more targeted to end users which is increasingly important as the digital world continues to become more and more connected. The maturing of Big Data with technology is able to identify potentially valuable customers is a very powerful tool, and digital print will be used as a communication channel for this output. Digital print will also exploit many new opportunities for high value short runs and move increasingly into labels and packaging.

The trend is further corroborated by Industry Guru Frank Romano, who observed that while digital imaging offset press technology is still valid for short runs, digital printing offers the benefits of one-off impressions and variable data. He noted that all printing processes will soon share the same digital infrastructure. Finally, underscoring the importance of automation, he reiterated that workflow is, and will be, everything.

As digital becomes the new normal, the impact of digital media on paper and print has grown more complicated than ever before. The outcome is what experts call a ‘Digital Whirlpool’, which we see as having ‘four currents for consumption’, all running in parallel — Digital pure play; Print migrating into digital; Digital working with print; Digital backing into print.

Instead of being washed away totally in this whirlpool, usage of print continues, but it is being dispersed. Eventually, Print will reform and reappear in a different, new and sometimes novel manner. The future of Paper and Print will be determined by how they reinvent themselves in a Digital-First universe.

While digital printing continues to gain firmer ground, it is the fusion of ‘print’ technologies that is blurring the lines between conventional and digital. Some recent print technology innovations worth noting include high-speed digital printing on demand, 3D printing, hybrid print and digital print workflows. Among these, 3D printing will play a crucial role in helping the industry move forward and achieve new growth frontiers. The opportunities for growth and innovation enterprises can witness through adoption of 3D printing are exponential. The technology has already begun to transform the healthcare industry to a massive extent. 3D printing has the capability to solve the need for efficient production of complex products, customise medicines, medical devices and pharmaceutical ingredients. Presently, the products being developed through 3D printing are mainly in areas such as medical implants, surgical guides, prosthetics, orthotics, orthodontics and anatomical models for surgery.

In the near future, numerous opportunities will be opening up in more advanced healthcare applications such as creation of bone structures, airway tracheal splints and complex medicine, with mass customisation incorporated every step of the way.

A recent report from leading market research firm Markets and Markets predicts that the 3D printing market is expected to be worth USD 32.78 Billion by 2023, at a CAGR of 25.76% between 2017 and 2023, presenting a mammoth opportunity to printing industry. The growth is attributed to factors such as the ease of development of customised products, ability to reduce overall manufacturing costs, and government investments in the 3D printing projects for the development and deployment of the technology. Further, according to the market intelligence solutions firm 6Wresearch, India’s 3D printer prototyping and materials market is projected to reach over $62 million by 2022 with several start-ups entering into the niche segment. This exponential growth of 3D printing and the ongoing industrial revolution will lead to an evolutionary change in print technologies and prompt creation of new and more innovative methods of printing.

The journey ahead

Industry 4.0 and the concurrent Print 4.0 present opportunities aplenty but it isn’t devoid of threats. All printers, whatever market or region they are from, know that if they want to succeed in the long term, they must continue to adapt to the ever changing market and economic conditions. Knowledge and experience of yester years may not be enough for them to make a change.

What they will need is a ruthless approach to efficiency and automation while at the same time learning new skills and adding new value services. New skill sets are mandatory to sell to customers (some of whom may not even exist today).

Also, while Industry 4.0 will greatly develop the prospects to retain and grow the customer relationship but it will also make the fight for customers more intense. To overcome this challenge, and many more that may come in its way, the print industry should come together to ensure that its workforce, economy, and products are built with Industry 4.0 at heart. Being amongst the ‘leaders of adoption’ for new print technologies will be ever so important for ‘differentiation’ and ‘profits’.

The road ahead for print providers is full of bright prospects, as long as they embrace digitisation wholeheartedly. To drive future success for their print operation, they must begin by creating a marketing and business plan and reviewing it regularly. They must learn to market their services, particularly the opportunities delivered with digital applications. It is crucial for them to determine how they can be part of the multi-channel communication opportunity.

To delight buyers, print providers must invest and promote “value added solutions, both upstream and downstream”. Buyers understand and appreciate the additional benefits. Print providers must do everything possible to promote the return on investment that print delivers to their customers. Finally, to stay ahead of the curve, they must invest in up-skilling themselves continuously as the paradigm will keep changing.

In summation, it is clearly evident that the markets are in the process of transitioning from print-first to digital-first. Hence, the future of paper and print will be determined by how the industry reinvents itself in the digital-first universe.

I would like to sign off with the vision that 4.0 is no longer a future trend. With technology accelerating and transforming at a neck breaking speed, the need of the hour is to hop onto this ‘smart’ wagon of technological integration and future-proof print.

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