Spring 2013

NEWSLETTER

Spring 2013

Letter from the President

As I was beginning to write this article, I had the television playing in the background and heard the State of Illinois unemployment rate stood at 8.7%. I immediately went to the Graphic Arts Education and Research Foundation (GAERF) web site to learn that many jobs in the graphic arts industry go unfilled because potential workers do not have the required knowledge and skill set, required by the industry. I also learned that the bindery industry, similar to the envelope industry, find the hardest position to fill is that of operator. Workers are aging or have left the trade and applicants are having trouble reading simple application forms and the math skill levels are below a 4th grade level. Our educational institutions are failing our children and not preparing them for the real working world. Did you know Two United States Congressmen introduced a bipartisan resolution that seeks to reverse the recent federal push toward going paperless for a variety of information and services, ranging from income tax forms to Social Security checks. The resolution points to the fact that more than 30 million United States households do not have internet access at home nor at work making it a lot more challenging to e-file tax form, and manage their finances online. Congressman Sean Duffy (R-WI) and Congressman Mike Michaud (D-ME) are seeking support of the colleagues to slow federal decisions to go paperless while directing every federal agency to ensure that Americans can receive paper information and services. The Consumers for Paper Options Alliance has been behind this work and we need your support to continue this initiative. A few interesting facts for you to consider: 30% of households are NOT online 45% of U.S. senior citizens DO NOT own a computer AARP reports that 75% of the participants prefer paper to online delivery of retirement plan information. They can touch it, open it in private, and store it more easily and conveniently. The Social Security Administration learned the wrath of the elderly when they tried to convert all paper statements and checks to electronic format.

Alan Jania

Spring 2013

By: Al Urbanski www.dmnews.com Direct mail is a trusted channel, in every sense of the word. Indeed, four in ten consumers say they prefer to receive sensitive health information in sealed envelopes from their mailboxes, according to Epsilons 2012 Channel Preference Study, released today. The reason: Privacy issues with email. Consumers dont trust the news media as much as they do regular mail when it comes to personal information, says Epsilon SVP of product marketing and insights Warren Storey. They feel more secure with direct mail because they can touch it, open it in private, and store it more easily. Its also harder for important envelopes to get lost in the shuffle. Seventy percent of the nearly 2,000 U.S. consumers responding to the survey said they received more emails in the past year than they did the year before. More than a third of consumers also singled out insurance and financial services as industries from which they preferred postal mail. Email is favored, Storey says, for hobbies and interests that people are more directly engaged in and which present fewer privacy concerns. What we tell our clients is that there is a level of trust you need to gain with consumers through traditional media, Storey says Though social media is gaining in importance, traditional media still leads in numbers and in trust. So its important to build a strong presence with radio, TV, or print and then using new channels to connect further with consumer segments based on their behaviors. Storey adds that Epsilons study detected little variance in the trust issue across different age groups or regional locations. Gender did produce slight different attitudes toward social media, however. Women are more trusting of recommendations from family and friends, he notes. Men trust emails more. Officialsand letter carriersat the beleaguered U.S. Postal Service will be bolstered by Epsilons finding that 62% of all consumers say they enjoy checking their mailboxes for mail. Not so happy will be retailers eager to send offers to the smart phones of shoppers flagged in their stores through near field communication (NFC) technologies. A resounding 80% of consumers said they did not wish to be engaged in this fashion.

Michael Jania michael@diamondenvelope.com

Spring 2013

$8.4 million mailing industry jobs (6% of U.S. Jobs) The results show that the Mailing Industry touches every private and public sector of the economy with jobs in every congressional district. There are 10 times more mailing industry jobs in the private sector than Postal Service employees. $1.3 trillion in sales revenue, and over 8.6% of U.S. GDP. Policies that have a dramatic influence on the mailing industry impact many workers: Over 76% of mailing industry jobs depend upon the delivery infrastructure of the USPS.
# of Jobs Mailing Industry Airline Industry Oil and Natural Gas Industry 8.4 million 10 million 9.6 million Revenue $1.3 Trillion $1.0 Trillion $1.1 Trillion

Sales of Mail Delivered Products & Services had an overall sales revenue increase of 12.0%. Significant gains were observed with: Direct mail at 12% with total sales revenue generated of $506 billion Catalogs at 12% with total sales revenue generated of $126 billion Electronic Shopping and mail-order at 29% with total sales revenue generated of $221 billion Many of you have heard from the news reports recently, Postmaster General Donahoe announced his decision on cutting Saturday delivery in order to control healthcare costs. The PMG made no comments about increasing revenues. After the announcement, the PMG was critiqued by many in Congress for his actions. Senator Carl Levin (D-MI) wanted to know what legal grounds the USPS had for violating the intent of Congress. Senator Tom Coburn (R-OK) asked for substantiated and current costs on the real savings of eliminating a delivery day. None of the unions, nor the USPS or the consultants could provide him with this information. Congress needs to act quickly by passing legislation that leads to a viable postal service and a healthier economy. The actions of the PMG seem to have Congress paying attention to this crucial agency, suggesting that Congress will have to act this year to pass a bi-partisan/bi-cameral bill. Information above has been provided by the Envelope Manufacturers Association (EMA): EMA, 02-11-2013 EMA Mailing Industry Job Study. 14 February 2013. EMA Legislative and Regulatory Update. EMA Foundation & Maynard Benjamin. More information on specific statistics by state and congressional district is available upon request. Please e-mail your customer service representative or susanj@diamondenvelope.com. Thank you, Susan Jania

Spring 2013

It has been a little over a year since Diamond Envelope transitioned to the computer to plate (CTP) system. The new addition of state of the art equipment has instantly impacted quality and customer satisfaction. The updated computer RIP (Raster Image Processor) and file organization system has led to a consistent and accurate output of finished product. With new procedures put into place, customer PDFs, Epson proofs, and final plates will be an exact replica with redundancy every time the customer orders their product. The transition from the old analog system to the new digital imaging provides the customer, and Diamond, with the flexibility to manipulate changes with great accuracy and minimal downtime. Diamonds EFI proofing system allows the customer to view the final product prior to the press run due to the fingerprinting of the presses to the EFI color profiles. This is done by running test targets on press, reading densities of the targets and then creating profiles that match the press proof. Diamond utilizes Flint flexo plates, one of the best in the industry, to hold close tolerances and dot sharpness. Diamond Envelope offers a full, state of the art Pre-press department to fulfill all customers needs.

Spring 2013

In Dedication for Linda Wilk

inda Wilk joined our Prepress Department in 2003. She brought with her at the time 28 years of experience in the envelope industry. Even with todays standards this is unheard of. During her time here Lindas knowledge of envelope layout and production was second to none. She achieved her Postal Partner Certification to guide customers in the proper design of business reply envelopes in line with postal regulations. She was able to train many new prepress technicians at our facility. Having a fully functioning prepress department in our plant is what sets Diamond apart from the competition. Having Linda on our prepress team is what made Diamond the best in the industry. n 2011 Linda was diagnosed with cancer and sadly lost that battle on February 14, 2013. Linda has left behind a legacy of her work and her teachings to our newest technicians. There will always be a part of Linda in everything we create out of our prepress department.

inda will be missed by our customers and co-workers who have become friends over the years. She will be in our hearts and thoughts for many years to come.

Spring 2013

UPDATE UPDATE UPDATE

those of you read last quarters newsletter, an For For those of that read quarters newsletter, an article For those ofyou you that that read lastlast quarters newsletter, an article article regarding Penn State Dance published. II wanted regarding the Penn State Dance Marathon Marathon was was published. wanted regarding thethe Penn State Dance Marathon was published. I wanted to present to you the great achievements of this student-run to present to you the great achievements of this student-run to present to you the great achievements th of this student-run th organization .. -17th organization from from THON THON 2013 2013 held held February February 15 15th-17 organization from THON 2013 held February 15th-17th. Here is total fundraised THON 2013, to the Here is the the totalfundraised fundraised for for THON 2013, to benefit the fight fight is the total for THON 2013 Here ,benefit to benefit the fight against against pediatric pediatric cancer. cancer. against pediatric cancer.

Thank you to that contributed from reading my article! Thank you to anyone contributed from reading my Thank you toanyone anyone that that contributed from reading my article! article! Sincerely, Susan Jania Sincerely, Susan Jania Sincerely, Susan Jania

The first use of envelopes was the clay wrapper used by the Babylonians in 2000 B.C. to protect documents such as bookkeeping accounts, deeds, mortgages, and, quite possibly, letters as well. Clay, in its plastics state, was folded over the original message, crimped together, and then baked. It was a foolproof system as the outside wrapper had to be completely destroyed in order to gain access to the tablet hidden within.

Did You Know?

What can go around the world but remains in a corner? Email your answer to krystaf@diamondenvelope.com for a chance to win a special prize!

Spring 2013

Diamond News is a publication of Diamond Envelope Corporation published in our main office in Aurora, Illinois It is directly available to our Employees, Customers, and Vendors.

Thank you to this editions contributors:

Joy Bailey Krystal Flores Alan Jania Michael Jania Susan Jania

Paul Kulick Mike Little John Mikelenas Debbie Peterson

We welcome any comments or article suggestions. Please send them to our editors. Krystal Flores krystalf@diamondenvelope.com Debbie Peterson debbiep@diamondenvelope.com Please contact our team with any questions or inquiries Tim Burgess David Graunke A.J. Jania Alan Jania Michael Jania Susan Jania Karen Johns-Wrobel Gina Michalak Debbie Peterson Julie Shauman Sandra Vahl Tony Waters

DIAMOND ENVELOPE CORPORATION 2270 White Oak Circle Aurora, IL 60502 Phone: 630-499-2800 Fax: 630-499-2801 www.diamondenvelope.com