Boss Litho Improves Profitability with First RMGT 1060LX Press in North America
Credit: RM Machinery Inc.
RMGT, manufacturer of 8-up sheetfed press in North America, delivered an RMGT 1060LX model (with single coater) to Boss Litho, a package printer in City of Industry, CA. During the first three months of operating the eight-color packaging press, CEO Jean Paul Nataf reported that the packaging press supports his company’s decision “not to participate in [economic] recessions.”
Philosophically, the seasoned chief executive contends that print service providers (PSPs) need to spend money to make money. Boss Litho has invested more than $5 million on upgraded equipment, including a new flexographic press as well as the RMGT 1060LX -- since this past February.
“Boss is using the 1060LX to reproduce displays and posters as well as folding cartons,” said Lloyd Molloy, RM Machinery’s director of customer service. “From supplies to labor, the present competitive landscape can be tough sledding for printing firm owners and managers, which is where press advancements and automation from RMGT come into play.”
“It has been a grind,” agreed Nataf, who started Boss Litho near Los Angeles in 2009. He points to consumable costs, in particular, as posing particular challenges. “The price of plates is up 40% and ink and coatings are way up, too,” he noted. “Not to mention the price of paper, which has doubled since the COVID-19 pandemic.”
Boss Litho, like many commercial/packaging printers, has evolved over the past 24 years and today is a testament to manufacturing more with less. The firm, which employs 40 people, projects annual sales of more than $12 million in 2023, Nataf forecasted. The company’s 47,000-square-foot production facility runs two shifts. “About a month ago, we changed to a four-day work week on 10-hour shifts,” he explained, adding that employees seem to enjoy longer weekends and having off Fridays.
Doing more with tech
With the overall cost of doing business increasing and overall production volumes decreasing, how can PSPs maintain profit margins and still make money? The capability to print more jobs at a faster rate becomes paramount. Nataf cites RMGT’s automation as the saving grace to higher profitability. With maximum sheet size of 29½ x 42 inches and a top running speed of more than 16,000 sheets per hour (sph), he said the 1060LX press is nearly twice as fast as the older offset machine it replaced.
“Reducing press makeready times between our quick-turn jobs is another way to stay ahead,” observes Nataf. “Makereadies are down some 60% on the RMGT 1060LX, from 90 minutes to between 30 and 40 minutes.” This competitive edge is a particularly compelling benefit for Boss Litho for maintaining large accounts in a climate of ultra-competitive pricing wars. In an environment where prospects can obtain boxes printed at a unit cost of 26 cents, for example, Nataf explained how the ability to drop price points by 28% to 37% can make all the difference.
Boss Litho has been a big fan and loyal customer of RMGT tech for 12 years. “This press’s UV coating is superior,” Nataf said of the 1060LX, which he first saw in action last fall at the PRINTING United Expo in Las Vegas. The 2023 show takes place at the Georgia World Congress Center in Atlanta, October 18-20.
In conclusion, he shared that, post-COVID, the cost of skilled labor also has risen to negatively affect the bottom line. To retain employees in the Southern California marketplace, Nataf and his team have been forced to raise hourly wages. However, advanced manufacturing automation is helping to offset this additional expense as the firm’s overall head count now is down some 30%.
The preceding press release was provided by a company unaffiliated with Packaging Impressions. The views expressed within do not directly reflect the thoughts or opinions of the staff of Packaging Impressions.
