Technical Articles
Seaboard Bindery: A Specialist's Specialist
Published in New England Printer & Publisher
by Frank Shear
Although
Seaboard Bindery was founded in the 1920s, president Frank Shear traces
the company's modern roots to 1955 with the adoption of its current
name. Two decades later, Seaboard Bindery was still a tiny company
with sales hovering around the $250k mark. Then Frank's father,
Harold Shear, bought the business in 1977 and installed professional
management systems for the first time. During the next sixteen
years, Seaboard Bindery grew five-fold.
In 1994,
Seaboard Bindery was at the cusp of a significant decision. The
highly profitable $1.2mm company was operating in a small production
facility in Chelsea, Massachusetts. Frank Shear's difficult choice
was this: Either play it safe and keep the company where it was or bet the
proverbial farm by moving it to nearby Woburn while simultaneously buying
a state-of-the-art Kolbus Ratiobinder perfect binder. Although risk
averse by nature, Frank was still in his 30's and decided to go for it.
Instantly, Seaboard Bindery entered the big leagues.
With
the move successfully behind them, Frank made another decision that
altered the history of the company. He believed that the key to
long-term value creation and profitability lay in product specialization,
not in trying to be all things to all people. With the raw
horsepower of the Kolbus rapidly transforming his company, he focused
squarely on book manufacturing and offered new services only if they
complemented the company's core competencies.
Another
fortunate event occurred in 1998 when Frank successfully wooed younger
brother Jim Shear into the family business. "Of course I wanted
Jim on board," says Frank. "Sure he's my brother, but the
company really needed his RIT background and fifteen years experience with
two leading printers in California and New York."
Services
Seaboard
Bindery offers three main bookbinding products: Adhesive binding,
mechanical binding and saddle stitching. Today, about half of
company revenues derive from adhesive binding. Shortly after the
Kolbus was installed, Seaboard Bindery took a chance and became the first
New England company to license the patented Otabind™ and RepKover™
layflat adhesive binding technologies. Under the marketing slogan,
"Sometimes It Just Has To Layflat," Seaboard created a market niche
for these user-friendly, cost effective adhesive bound products that allow
glue bound pages to lie flat without spine breakage.
However,
layflat wasn't enough. To further strengthen the company's
adhesive binding hand, in 1996 Seaboard invested in yet another gluing
technology; this time PUR glue binding. Strategically, PUR makes
sense because it doesn't melt or crack, even when exposed to the most
torturous environmental conditions. With its user-friendly Otabind
and RepKover, super-strong PUR and traditional perfect binding
capabilities firmly in place, Frank Shear completed his long awaited
adhesive binding "triple play."
Armed
with an arsenal of more than a dozen pieces of Wire-O™ binding (Wire-O
is a trademark of James Burn), plastic coil binding and automatic punching
machines, Seaboard's second strength is in mechanical binding. As
in adhesive binding, Seaboard specializes in mid-quantity Wire-O runs and
easily handles difficult jobs with fold outs, mixed stock, single sheets,
odd sizes, etc. The company's two full-size saddle stitching lines
round out the company's core service offerings.
With
its specialty binding technologies and first-rate equipment, Seaboard
Bindery's image in the marketplace quickly fell in step with its stated
mission of being a world-class bookbinding company. Seaboard offers
other post press services, such as laminating, folding, cutting, drilling,
single sheet collating and shrink-wrapping, intended to support the
company's core bookbinding manufacturing processes. On occasion,
they will accept a non-book binding job that involves fold-only or
laminate-only work, but these instances are increasingly rare.
"In
our early days, I'd never turn down a job," says company chairman,
Harold Shear, who holds an MBA from Harvard University. "But,
Frank has convinced me that we'd help our customers more by sticking to
our knitting. He focused us on our book binding niche and we are
much better off because of it."
Markets
Seaboard
Bindery is a regional player with New England as its major marketplace.
There are competitors with broader product lines, but the northeast
graphic arts market is large enough to accommodate both the specialists
and the generalists.
Even
though 1999 was a great year for many New England printing companies, the
area still lost two stalwart trade binderies: One permanently shut its
doors and the other was acquired. "These changes significantly
affected our competitive landscape," says Harold Shear. "We put
some expansion plans on temporary hold to evaluate market forces.
But, at this point, we're full steam ahead for 2001."
Recent Improvements
When
asked about changes in his company, Frank Shear points to management
systems and customer service before equipment. Although he
acknowledges that machinery is important, he insists that companies go
nowhere without knowledgeable people and good communication. Three
months ago, sales service team leader Jim Shear invited Cheryl Palmerino
to join the company as customer service representative. "Early
this year, we knew we needed a second CSR, but finding the right person
takes time," says Jim. "It took us several months because you
can't train a good attitude. It has to come with the person."
Another
service enhancement came last February when the company launched its
website, www.seaboardbindery.com.
Contained on it are all of Seaboard Bindery's "Helpful Hints"
technical tip sheets and published trade articles. Seaboard's
management believes that arming customers with as much useful information
as possible makes for better communication. "Our website and
"e-tips" program is just another education tool," explains Jim.
"Anyone who wants to receive our monthly "e-tips" only has to
ask." (To subscribe to this complimentary opt-in service, send an
e-mail request with "SUBSCRIBE" in the header and your contact
information to jim@seaboardbindery.com.)
On
the machinery side, three months ago, the company installed a one-sided
D&K laminating machine capable of laminating virtually any substrate.
Not surprisingly, this versatile machine supports the company's core
bookbinding niche by efficiently laminating book covers. Moreover,
Seaboard installed a single sheet collating system twelve months ago,
allowing the company to compete in the growing on demand adhesive book
binding market.
Upcoming Improvements
In
early 2001, Seaboard Bindery will add another shift, enabling them to
accept longer production runs. For the past few years, the company
has focused on the 2,000- to 50,000-book quantity range, but after the new
shift is up and running, customers will notice that this maximum quantity
will start increasing.
During
the course of the year, Seaboard will focus on productivity enhancements
to equipment that already exists on its production floor. Likely
additions in the gluing arena will include folder produced hot-melt seam
gluing, spot fugitive gluing and pasted booklet making. Another
anticipated upgrade is in the cutting department with improved joggers and
off-loading systems. Although Seaboard Bindery has no definite plans
to expand into die cutting, it is frequently mentioned as a possible
expansion area. "One thing holding us back is that we enjoy
terrific outsourcing relationships with local finishing companies,"
explains Frank Shear. "It would take a very persuasive deal for us
to jeopardize the goodwill of our existing suppliers."
Management Style
When
walking through Seaboard Bindery's doors at 10 Linscott Road, visitors
are quickly put at ease by the company's friendly style. To ensure
that everyone knows the issues of the hour, customer service, estimating,
management and two support personnel share an open air office without
partitions. "We make our living getting communication right,"
says Jim Shear. "Good news or not, our customers deserve knowing
what we know, when we know it. Our physical work environment helps
us do this."
The
company has a strong team focus and an information-first attitude toward
customer service. "Our guiding principle is honesty," says Frank
Shear. "This means telling when we've made a mess and cleaning
it up as best as possible. The funny thing is that once we learned
to open up, we became far more successful at retaining clients in
difficult situations."
According
to Frank, "If we go to the marketplace 'telling' instead of
'listening,' we'd be like everyone else. Our customers know
that we won't take on a job if we think we won't be able to make the
deadline. Trust must be a given."
Although
Frank Shear believes that his strategy of buying the best available
equipment has worked well in the past, it is more important now than ever.
Very low local unemployment rates have made it difficult to find good
employees to fuel future growth. Since it's nearly impossible in
today's business climate to increase production by adding labor, growth
must come from improved automation and better management processes.
Consider six pieces of equipment the company installed in the past two
years: A laminating machine, folder, collator, Muller Martini perfect
binder, semi-automatic Wire-O binder and automatic Wire-O punching machine
all purchased brand new.
Jim
Shear's title is officially Vice President, but he describes himself as
"Chief Bottleneck Remover." Upon his return to the company in
1997, Jim quickly began improving operations through better process
engineering. Some of his contributions occurred in these areas:
workflow, shipping, plant-office communication, waste disposal, purchasing
and mechanical retrofits to improve productivity. Even though he's
in charge of customer service these days, he's currently working on
improving an existing semi-automatic Wire-O machine so that it can outpace
the company's fastest operators, thereby removing a current production
bottleneck.
*
* *
Since 1997, Seaboard Bindery's sales have averaged a remarkably steady 14% growth per year for the past four years and 2000 should end up with revenue in the $2.25mm range. Frank, Jim and Harold Shear all believe that the company's rock steady growth wouldn't have been possible without its relentless focus on bookbinding core competencies and a few difficult, but ultimately good decisions. Seaboard Bindery's phone number is 781-932-3908.
Frank Shear
is President of Seaboard Bindery, a service-oriented trade bindery located
in Woburn, Massachusetts. His company specializes in offering high
quality perfect binding, PUR and layflat adhesive binding, saddle
stitching, Wire-O, plastic spiral, and other bindery solutions. Call
Frank at (781) 932-3908 or e-mail him at frank@seaboardbindery.com.