Innovative Enterprise of the Year in the American Printing Industry: The Transformation and Expansion of Commercial Printers to Packaging Printers ...
A few days ago, J.S. McCarthy Printing Company, the 2023 Innovator of the American Printing Industry, shared the reasons why the company is innovative, interesting and exceptional. The insights it presents may provide you with the inspiration you need to take your company to the next level or in a new direction.https://www.risedongsheng.com/
In Augusta, Maine, Jon Tadiff's J.S. McCarthy Printing Company has taken its folding carton production to the next level. As one of the oldest and largest commercial printers in New England, the company has always embraced innovation and successfully kept pace with the ever-evolving printing industry.
J.S. McCarthy Printing started as a commercial printer with multiple mergers and acquisitions. Starting 18 years ago, the company did what any growing business typically does - explore new horizons. The company added packaging to its commercial printing and mailing products, changed the trajectory of the business and helped it become the "Innovator of the Year 2023" for the U.S. printing industry.
The printing company has a large number of equipment and can provide a wide range of prints from books and brochures to folding cartons, greeting cards, magazines and more. With experience in greeting cards, the team is familiar with some packaging equipment, so they do not enter the field completely blindly. Today, paper packaging accounts for nearly 70% of J.S. packaging. McCarthy's business remains its largest growth area, focusing on three main markets - food, pharmaceutical and cosmetics.
Folding carton business growth
The company's earliest entry was in the commercial printing market, with a focus on service, quality and price. Tadiff said bringing the same experience and Client Server to the folding carton industry would be a game changer. On the packaging side, he said Client Server could be a pain point for many print service providers. J.S. McCarthy used its experience to exceed expectations in the category, which is especially useful during an epidemic (a period of extreme growth for the company).
While many of the equipment the company has purchased over the past 18 years has contributed to its success, there have also been some significant equipment that has had a lasting impact. In 2013, it invested in the first BOSTER die-cutting and box-gluing machine equipment. "It was a huge leap forward in technology for us and there was a huge increase in productivity," recalls Tadiv. "Then a big change was that we installed the slitter in 2016, which allowed us to work directly with the factory and build strong factory relationships."
In addition, 2018 was particularly noteworthy for J.S. McCarthy installed the first Heidelberg press, an eight-color 41-inch Heidelberg Speedmaster XL 106 LED-UV double-sided press with a capacity of 18,000 sheets per hour, which, according to Tadiff, led to a huge leap in productivity. From running another manufacturer's equipment to running Heidelberg equipment, the company nearly doubled its sheet-fed offset production rate.https://www.risedongsheng.com/
Its partnerships with BOSTER and Heidelberg help the company run at its best. Equipped with an intelligent user experience (UX), one-click stop technology and AutoPlate Pro, its latest purchase of the faster new Speedmaster XL 106 runs at 21,000 sheets/hour, making it the fastest sheet-fed offset press. The press, which will be installed in early 2024, will be the first of its kind in the United States and will significantly increase the company's carton capacity.
That's exciting, especially when J.S. McCarthy not only expands capacity, but also adds square footage to its Augusta facility, according to Tadiff. The company currently has 150,000 square feet of space, has 135 employees, and operates 24/7. The add-on will add 12,000 square feet to the business for updated offices, training facilities, and additional cafeteria space. Phase 2 of the expansion, which will take place over 2-3 years, will add 30,000-35,000 square feet. Once completed, it will give J.S. McCarthy nearly 200,000 square feet of acreage.
While such an expansion may seem to require a large number of new employees, Mr. Tadiv says that is not the case because of automation, which reduces the number of manual touch points necessary and, in turn, the number of people needed in the production process. "We're doing more with fewer people," Mr. Tadiv says. "It's fun to be an industry leader - to have the latest and greatest products. We're very lucky."
Committed to customer success
If shifting business focus and investing in major equipment wasn't enough, J.S. McCarthy also restructured its business model from a family business to an Employee Stock Ownership Plan (ESOP) in 2019. Tadiff said it was a good way to transition the company from the first generation to the second as his parents exited the company.
Today, the company is 100 per cent owned by its employees. "It's good for morale," says Mr. Tadiv. "When employees become part owners of the company, they behave differently. It's a win-win for us."
Like many leaders, Mr. Tadiff does not take credit for the company's success. His strong management team helps with strategic planning and operations. His brother, Matthew Tadiff, serves as chief financial officer, and his sister, Amy Tadiff, serves as vice president and general counsel.
With such a strong team, the company has achieved many victories, and the entry into the folding carton market is the icing on the cake for Tadiv. "If we didn't do it, we would be in a very difficult situation now."
He has seen the decline of the entire commercial printing market and knows his family has made the right decision by refocusing the business. "It would have been hard for us to be as successful as we are today without going the folding carton route," he adds. "It was probably one of the best decisions we've ever made."
What does it mean to be an innovator?
To face change head-on, be willing to explore new revenue streams, and keep customers and employees happy, you have to be a visionary, says Tadiff. It's not just about caring about what happens tomorrow, it's about looking at the next 3-5 years and where the business wants to go. It makes sure that every part of the business is aligned with its mission. For Tadiff, that means keeping the pulse of the industry and being the actual leader. He enjoys knowing what's happening on the production floor, in the sales department, and with his team.
"For me, being an innovator means looking at the longer term. It's not just about equipment, technology and automation, it's about making sure your equipment and people are aligned with where you envision your company going," he explains. "For me, it's about being an innovator - people, technology and automation all in sync and focused on the same end goal."
Looking to the next five years, Tadiff sees J.S. McCarthy continuing to focus on folding cartons and delving deeper into artificial intelligence. Specifically, he wants to integrate robotics into some of the company's warehousing and fulfillment needs, and believes there are some technologies that are well-suited to the manufacturing floor.
He advises print service providers looking to restructure and explore new verticals and tells them to go full speed ahead. "If you wait too long, you may not be able to make changes, if you have a vision to make changes to your company in 3-5 years, go for it. Set goals, move in the direction of your goals, then get it done quickly, you can't be afraid of change."