Printing Firm Expects Expansion to Spark Revenue
K/P's mail/fulfillment center in Atlanta was completed in February. In May, the company opened a printing facility in San Leandro, CA.
Dale Rosier, president of the company's Utah division, said K/P is expanding because its clients have demanded upgraded and additional services. The Internet economy has forced production companies to assume more diverse business models, he said.
"Our clients are coming to us with new needs," Rosier said. "We listen to everyone and then try and see if we can't arrange a business model that makes sense for them price-wise and us profit-wise."
K/P's Salt Lake City plant will add 29,000 square feet and computer-to-plate printing capabilities during the next six months. With space roughly doubling, it will also offer fulfillment services to online retail firms. The upgrades will cost about $2.5 million.
Rosier said his facility is generating revenue in excess of $12 million a year while serving six printing and mailing clients. After the expansion is complete at the end of the year, he said, the location ideally will serve 11 clients and produce $25 million to $30 million a year.
Rosier said his firm was nearing deals with four prospective clients but declined to name them. Microsoft Inc. and Dell Computer Corp. are K/P's most recognizable current customers.
K/P is negotiating a partnership with an undisclosed firm that would allow the company to offer e-mail marketing, Rosier said. E-mail marketing is a growing concern for clients, he said.
"I don't think there's much choice but to expand your operations," Rosier said. "Otherwise, you fall behind the competition. I know, for a lot of companies, it's painful and risky. But we'll do whatever our customers ask from us -- print, direct mail or whatever."