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Large Printing Cos. Make a Lasting Impression in the Region

Before the advent of the Internet and well before the first computer debuted, commercial printing companies set up mom-and-pop shops in San Diego to capitalize on the need for high-volume printing.

Only a handful of independently owned commercial printing businesses remain in San Diego today, and most have grown to offer a more comprehensive set of services. Among those, Neyenesch Printers traces it roots back the furthest.

William Barrend Neyenesch, grandfather to company executives Carol Bentley and Clifford Neyenesch, first seized the opportunity to print menus for the Hotel del Coronado in 1899. William led a team of in-house printers at the renowned beachfront hotel, which was just more than a decade old at the time. Eventually, he went on to print menus for the newly opened The US Grant hotel downtown. By 1911, he had started his own printing company.

Bentley, who joined the business full-time as an inside sales manager in the mid-1980s, today serves as the company’s chief executive officer alongside chairman and co-owner Clifford Neyenesch. At one time, the printing company operated three offices — in downtown San Diego, El Cajon and Solana Beach — where it provided Instaprint services before photocopy shops appeared.

“Evolution has brought you to all the digital presses now,” Bentley said. “With digital press, you can have it in a day.”

Automated printing processes have also reduced the need to staff the business with hundreds of people. Today, Neyenesch Printers employs about 75 people at its downtown printing facility.

Presses Churn for Large Clients

The company derives the majority of its business from large local clients such as Zoological Society of San Diego, Jenny Craig Inc. and Qualcomm Inc. It has printed the colorful annual reports for SAIC and Realty Income of Escondido.

Last year, the company reported revenue of $13 million, down 14 percent from $15.1 million a year earlier. Bentley said she anticipates the company will reach $14 million in annual revenue by the end of the year.

The business remains in the hands of family members despite frequent requests to sell it, Bentley said. She and Clifford Neyenesch went so far as to buy out all of the company’s shareholders in 1998 in an attempt to keep the business in the family’s name.

“At that time, they weren’t looking to stay in the business and we were,” Bentley said.

Much of the printing industry has consolidated in recent years as price pressures mounted alongside the proliferation of conglomerates like Kinko’s, now known as FedEx Office.

Locally, there has been consolidation as well. Just last year, San Diego-based L+L Printers acquired Bordeaux Printers of Santee for an undisclosed price. In 2008, the San Diego Business Journal ranked L+L No. 7 on its Fastest-Growing Private Companies list. Last year, the 90-employee company reported revenue of $14.3 million, up from $14.2 million a year earlier.

Locals Have Corporate Support

The growth-by-acquisitions strategy has also boosted business for some of the larger, multinational companies.

R.R. Donnelley & Sons Co., a publicly traded international printing business, operates two facilities in San Diego where it prints books, manuals and directories.

“We’re supported by a very large corporation,” said A.J. Steger, vice president and general manager of the San Diego web printing plant located in Miramar. “We derive work from all over the U.S.”

The Chicago-based company has printed materials for companies like UnitedHealth Group, Blue Cross and H&R Block, among others. In 2009, the combined San Diego operations produced revenues of $51.7 million, down from $65 million a year earlier.

For others, such as Anderson Direct Marketing, printing services complement other marketing services such as brand building and data processing and analytics.

Established locally in 1985, the business traces its roots back to Glen and Barbara Ann Anderson, who ran a small direct-mail service. In the early 1990s, the company added printing to its offerings.

“We started out with just a couple of presses. Over the years, we installed our large format press,” said Todd Stoker, director of operations for Anderson Direct. “Around 1998, we got into the digital printing where we were doing color variable.”

Today, the business operates out of a 77,000-square-foot facility in Poway, and has grown from less than 10 employees to 145 during its relatively short history. Last year, it reported revenues of $26.7 million, a 14 percent growth over 2008 when it reported revenues of $23.4 million.

Charting Profitable Routes

Stoker said many of the company’s clients have reduced their operating budgets, causing them to cut back on their printing. That, in turn, has created a bigger push to figure out where the company can best find a return on investment for clients.

On average, direct marketing campaigns usually have a 1 percent response rate. In other words, only one out of every 100 consumers will actually act on a coupon, advertisement or other offer they receive through the mail.

Today, Anderson Direct and others are striving to personalize their direct-mail campaigns to make sure they’re targeting consumers with a history of buying certain products.

“I think you’re going to see smaller runs and more targeted messages,” Stoker said.

He said he believes that, in order to survive, commercial printing companies will have to evolve and add more capabilities.

“I grew up running printing presses as a kid,” he said. “I’ve seen it change quite a bit over the years. I think those who will survive the pricing wars in the current environment are those willing to change to do things smarter and less expensively.”

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