Globalization is sweeping the business world, placing mounting pressure on small and large companies to expand. But is bigger always better? To answer this question, I’m highlighting two companies with differing viewpoints on the merits of going global vs. staying local.

Going global is a game of pros and cons. It can be fortuitous for those ready and able to expand. However, others either find the demands of globalization too challenging, or simply want to continue cashing in on their local edge.

Which strategy is right? That depends entirely on where you want to take your business, and where it’s ready to go. Idencto and Lofton 
Label are two label printers with two different visions. As you’ll see, it’s not about the companies’ physical growth, but the way each approaches its strategy that determines success.

IDENTCO’s Global Vision
Identco, headquartered in the Chicago area, has been a manufacturer of innovative product identification products since 1986, but it’s the company’s focus on high performance labels for demanding applications that has helped it create a unique niche in the marketplace. 

CEO Scott Lucas plans to double the company’s growth with an ambitious five-year strategic plan, taking full advantage of the Identco’s international presence in North America, Latin America, Europe and Asia.

According to Lucas, the key to Identco’s growth will be to continue innovating and collaborating with customers in creating durable, innovative, high-value products in three distinctive vertical markets: automotive, electronic and industrial.

The Decision to Go Global
Identco’s decision to build lasting global relationships began six years ago, when it decided to focus on larger companies with locations across the globe. In doing so, it quickly began laying the necessary infrastructure in Asia, followed by Europe.

Now, with the infrastructure almost in place, the company turns its attention to ironing out a global strategy – finding international clients who value a long-term, globally-focused partnership.

It’s an approach that’s based more on the quality of the relationships than quantity. According to Lucas, he doesn’t want to add hundreds of new clients per year. Rather, he wants to grow in a controlled way, partnering with clients whose global footprint is parallel to Identco’s.

“We have to make sure that our clients and target customers want and value our global approach,” Lucas says. “We are extremely selective.”

While finding high-value clients is no easy task, Lucas believes a relationship founded on communication, collaboration and trust is the key to making it last. When facing conflicts, open communication and honesty between partners is crucial for moving forward. Trouble arises when conversations become too one-sided.

“When you can see the fit – our values are in sync with the client’s – I am convinced that is the essence of a long-term relationship,” Lucas says. “If you’re not willing to see us as a partner, then we shouldn’t go to the dance together.”

The Challenges of Globalization
Part of becoming a global player is being prepared to face a host of challenges head-on. Some of these challenges took Lucas by surprise.

For instance, cultural barriers can pose a serious problem. In some parts of the world, people can be extremely reserved, withholding more information than is custom in America. It’s an especially frustrating dilemma for a business trying to base partnerships on open communication.

“To deliver on our service commitment, we just have to have certain information,” Lucas explains. “If you really need the product tomorrow, tell us and it will be there.”

Globalizing can also throw a wrench on the home front as existing local partners begin to question the commitment of a company that is increasing its focus overseas.

So what’s a company to do? One word: adapt.

Lucas says any company looking to globalize must be ready to understand new cultures and adapt their expectations to that part of the world. This includes finding translators who foster effective communication, and who can help simplify complex subject matter, such as technical information.

As for the local challenges, a company can do more than just reaffirm its commitment to local partners. Lucas hopes new global partnerships can indirectly benefit local partnerships as Identco applies what it learns overseas to the US. “You need people who have that special ability to be open-minded and want to understand other cultures,” he says. “You might even find that other cultures have great strategies that will apply to US processes.”

Lofton’s Local Approach
While many label printers are trying to attract the big brands of the world through a global strategy, one printer is doing just the opposite. Minnesota-based Lofton Label and CEO Mike Lane are opting for a local approach, cashing in on the customers who value working with a locally-based vendor.

“We align with a company because they want a Midwest vendor,” Lane says. “They want direct access with the executive management team and the owners.”

Lofton started in 1981 with only three employees. Since then, I’ve watched Lofton’s owners embrace their local roots to grow the company to 100 employees and $20 million in annual revenue.

What drives Lofton’s local success? Lane believes the company’s focus on displaying absolute commitment to the customer from every employee is the ultimate secret.

“No matter what job you have in the company, we talk about how your role adds in the commitment to the customer,” Lane explains. “It’s the mantra in everything we do.”

How does “commitment” translate into success? Lane recalls an instance where a customer commented that Lofton prints colors with amazing accuracy. Upon hearing this, the ink technician led the client to the production floor to demonstrate the process of how Lofton could get within two delta of the requested color swatch. “It demonstrated his personal commitment to getting the color right,” Lane says.

Local Verticals Creating a Knowledgeable Sales Team
As a locally-based company, Lofton’s sales force doesn’t have geographical territories. Instead, it assigns sales reps to specific industry-based verticals, including industrial, chemical, nutraceuticals and other specialty markets.

Besides preventing the sales team from overlapping, the focus on these verticals emphasizes Lofton’s commitment to a customer.
“When you commit to really learning a customer’s industry, it gives you extra insight, and a leg up on the competition,” Lane says.

Give locals What They Want
Lofton’s success is derived from more than just being a local vendor. They’ve earned their stripes by listening and delivering.
For instance, Lofton currently uses nine different flexographic printing presses to meet clients’ demands, and fully embraces digital printing. “There is more pressure from brand owners,” Lane says. “They want unique products, with labels that pop.”

Focusing on digital printing also helps businesses to reduce their obsolescence costs. Bigger businesses don’t want to be stuck with a warehouse full of printing materials, which can be avoided with shorter-run digital printing.

Lofton Label’s focus on remaining a Midwest company appears to contradict many industry trends. But here’s the kicker – it’s working. Lofton is finding success in standing firmly by the post that most competitors have abandoned, strengthening its position with local customers.

Finding the Right Approach for You
We’ve seen how two label printing companies have found success in opposite approaches. But most importantly, what does it all mean for you? I’m going to share my insight on what makes globalization the right or wrong decision for your business:

Global is for big brands – Globalizing is specifically for the companies who are trying to reach bigger brands with a global reach. Lofton does not work with large, international brands, so it found it advantageous to remain local.

Going global is a huge commitment, only for those who are truly committed to make the leap. You must be prepared to invest in travel and new employees, as well as a host of other expenses. But if you’re looking to fish for the big boys, go for it.

Keep it small, keep it all – If you think you’ll be able to maintain complete ownership over your company while going global, you might want to think again. Globalization almost always requires numerous acquisitions and partnerships to establish multiple sites throughout the world. If you want to keep complete ownership, staying local is the way to go.

Multiple sites, excellent processes –  As your company expands, it becomes that much more critical to standardize your processes. As we saw with Identco, adaptation is always important. But it’s still important to go into partnerships with a working process solidified, so you can maintain your commitment to quality through your expansion.

A lot of companies are feeling pressure to go global. My advice? Don’t let keeping up with market trends sway your decision. As Lofton and Identco prove, success can be found on a local or global front. It all depends on who your company serves, and how you want it to grow.



Rock LaManna, President and CEO of LaManna Alliance, helps printing owners and CEOs use their company financials to prioritize and choose the proper strategic path. Rock can be reached by email at [email protected].