The Mohawk Fine Paper company is steering a new course to adapt to an evolving marketplace.
Over the past three weeks the company has been unveiling its new strategic plan, designed to take advantage of the opportunities presented in a world where digital printing is becoming more and more prevalent. As part of the digital printing evolution, where printing plates are no longer required, the company is also simplifying its name to Mohawk.
According to Chairman and CEO Thomas O’Connor, committing to digital printing will create the opportunity to sell paper with a higher profit margin and make up for projected decreases in sales. He said the company had about $300 million in sales in the most recent fiscal year and is projecting $260 million in sales for the current year, but expects its “most profitable year.”
“In the first quarter we were well on the way,” O’Connor said.
He said the company’s traditional products from the past 50 years are still important to the business, but are not enough to sustain it.
As part of the focus on high-margin paper, the company is shifting its selection next week with a consolidation of its core paper lines. The company will go from offering 22 brands to six.
Aside from focusing on papers with higher profit margins, the company is also manufacturing products that have a clear value to the next generation of customers. Some of the specialty products Mohawk is developing are paper embedded with magnets and photo books.
Additionally, O’Connor said, Mohawk will enter into the software and photo business as part of its effort to become an all-inclusive company.
To expand its capabilities, the company is also developing business partnerships, including a relationship with the business card company Moo.com. The company also acquired the digital specialty substrates business Bravo in 2011 to expand its global reach.
The new rollout of the company also includes a redesigned website.
Mohawk has already accomplished many of its changes, with O’Connor predicting it will reach its final vision within the next year and a half.