Offshoring and the Global Marketplace

Offshoring has taken on new meaning in recent years. The Web, electronic file transfer, advancements in foreign technology and faster, better ways to communicate globally have all stirred the waters of opportunity for tapping the American marketplace from overseas. A global marketplace has swelled beyond what many expected.

For some, this means greater opportunity, savings and growth. For others, it means the promise of more jobless Americans, more abandoned factories, more unfair labor competition.

For many book publishers, specifically, it means more options for manufacturing books cost-effectively. It means new options for digital content creation, design and editorial. It means increased profitability, growth and possibly the hiring of new American staff.

For many book printers, it has meant profit margins squeezed dry by competing for fewer print jobs left on American soil.

For many employees of both publishers and printers—executives included—it has meant a lingering concern for their jobs and families.

With more and more foreign products and services landing on America's shores, the debate over offshoring is picking up speed, and book publishers have a lot of questions. How does the book-publishing industry fit into the global marketplace? Is controversy and negative public reaction a risk for all publishers who source any part of their operations overseas? Are any overseas companies and countries fair game for publishers to explore? Does global sourcing or offshoring really mean more American layoffs?

This special report will answer many of the questions facing the industry as it teeters on the edge of the global marketplace.

Overseas: The Only Option for Complex Four-Color Work?

Traditionally, the book-publishing industry has relied on foreign companies for manufacturing complex four-color work, and those books that can withstand the longer productions schedules that shipping overseas requires.

"Almost all of our four-color work is done overseas," says Sandy Grebenar, vice president of design and production for global publisher Harcourt Trade. She is responsible for the selection of both domestic and overseas printers for all adult and children's trade titles. "We've used Asian vendors for many years. The main benefit of having the children's material printed overseas is the cost structure. Some products couldn't be done at all in the United States, or we just couldn't afford to do it here because of the large amount of handwork involved," she says.