001176
ORIGINAL
BEFORE THE
RATE COMM,SS,ON
posT*L
WASHINGTON,
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L! ib:.zi,: : ,. ‘:
D.C. 20268-0001
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I
MAILING ONLINE SERVICE
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I
,
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Docket No. MC98-1
DIRECT TESTIMONY
OF
JOHN HAMM
ON BEHALF OF
UNITED STATES POSTAL SERVICE
c
.
001177
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TABLE OF CONTFNTS
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AUTOBIOGRAPHICAL
SKETCH . . .. . .. .. .. . . .. . .. . .. . .. . .. .. . .. . . .. . . .. . . .. . .. . . .. . . .. . .. . .. . . .. . . .. . . .. ii
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I. PURPOSE
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II. THE DIGITAL PRINTING
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Ill. THE PRINTING
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IV. MAILING ONLINE AND NEW OPPORTUNITIES..
OF TESTIMONY
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REVOLUTION
INDUSTRY
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AND THE POSTAL SERVICE.. .........................
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001178
C.
Direct Testimony
of
John Hamm
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AUTOBIOGRAPHICAL
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5
SKETCH
My name is John Hamm. I am President of Balmar Printing and Graphics of
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Arlington, Virginia.
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clients to communicate
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digital printing, and the distribution
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Balmar for nineteen years, and have been in the printing industry since 1971.
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My testimony
Balmar is a full-service
commercial
with such document
printing company that helps our
services as design, conventional
services of mailing and fulfillment.
today is presented
printing,
I have been with
on behalf of the Printing Industries of America
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(PIA), the nation’s largest printing and graphic arts association
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15,000 members.
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every state. While PIA represents
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printers have fewer than 20 employees.
with approximately
*
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PIA represents
every segment of the printing industry in virtually
large companies,
I currently serve PIA as Chairman
the overwhelming
of the Digital Printing Council.
majority of
The Digital
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Printing Council was created to assist PIA and its members move into and through the
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revolution
in digital technology.
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001179
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I.
PURPOSE
OF TESTIMONY
The purpose of my testimony
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is to offer the support of the Printing Industries
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America for the proposal by the Postal Service to establish Mailing Online service.
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II.
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THE DIGITAL
PRINTING
Printing companies,
of
REVOLUTION
both large and small, are in the middle of a technological
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revolution that many equate to the invention of movable type. Among the changes that
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have occurred
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make-ready
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advertising
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as part of the digital printing revolution are shorter print runs, reduced
(or pre-press)
in printing.
In the printing of
materials, for example, shorter runs with reduced make-ready
cost mean
greater personalization.
Digital printing technology
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customers
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runs opportunities
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the technology
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costs, and greater specialization
offers market opportunities
both large and small; however, the technology
that previously were economical
offers efficiencies
for a number of print
helps bring to smaller print
only for large print runs. Likewise,
to smaller customers.
In the past, printing economy was often related to the size of the run. The
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greater the number of impressions,
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continues to be true, the gap has narrowed.
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demand”
orintina: customers
the lower the cost per impression.
The new opportunity
While this
in printing is “on
orint what thev want at the time thev want it.
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OOl180
Ill.
THE PRINTING
INDUSTRY
AND THE POSTAL
SERVICE
The U.S. printing industry has a strong relationship
that literally dates back to the early days of the nation.
with the U.S. Postal Service
The majority of items handled
by the Postal Service every day are products of the printing industry.
magazines,
produced
direct mail, greeting cards, checks, postcards
by printers and their customers.
Books,
and many other products are
Mailing Online is a logical extension
of this
partnership.
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IV.
MAILING
ONLINE AND NEW OPPORTUNITIES
It is our hope that Mailing Online will bring the power of the U.S. Mail and the
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IO
U.S. printing industry together for the benefit of small mailers.
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individuals,
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or other copy online.
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developed
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The transmission
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The turnaround
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mailers can communicate
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that would be required in more traditional
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small businesses
and non-profits
Once completed,
of this document
are able to create advertising,
the newly-created
by the mailer can be transmitted
document
newsletters,
and a mailing list
to one or more printers in multiple locations.
can be done in real time for printing and mailing.
time for the mailing is significantly
with customers
reduced.
Through this service, small
and other recipients in a fraction of the time
channels.
PIA members are eager to participate
the projects
Under this system,
in Mailing Online.
The factor that will
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determine
success will be the volume of work for those participating
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printers.
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Online become more widely known, the volume of printing should increase.
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old and new technology,
We anticipate that there will be a slow start, but as the benefits of Mailing
the ability of a piece of equipment
With both
to make money for the
001181
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printer is dependent
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While the price of printing may vary from one area of the country to another due to
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compensation
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the pricing of specific jobs in particular regions within narrow ranges.
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printers need to run their equipment
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fly
upon the amount of use. Each press has points of efficiency.
differentials
and other considerations,
by offering new market opportunities
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smaller mailers an opportunity
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internet, spawn new businesses,
for both printers and small mailers.
to become efficient mailers.
increasing
and elsewhere.
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limited to those printers actually participating
It offers
The service may, like the
demand for printing both for Mailing Online
Thus, the benefits of Mailing Online for the printing industry are not
in the service.
As an example of the future of the growth of digital printing technology,
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were an estimated
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2000 it is projected that 12,000 units will be in operation.
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Consequently,
efficiently in order to bring the costs down.
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in the industry keeps
Mailing Online offers the potential for efficient use of digital printing technology
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competition
there
2,800 digital printing units in the United States in 1997. By the year
We look forward to working with the Postal Service in the development
Online and urge the Commission
to support this project.
of Mailing