Nov. 6, 2006—There have been rumblings recently about the Association of Graphic Communications (AGC) and its current state of affairs. Printing News talked to Chairman Joseph Brocato, vice president of sales, Sandy Alexander, to dispel any rumors.

At the moment, there is no full-time, paid staff at the organization?the first round of cuts were made in July, and more followed in August. Among the casualties was Vicki Keenan, who had taken over as president from Susie Greenwood at the same time Mr. Brocato was named chairman this past summer.

Mr. Brocato said that Ms. Keenan was not forced out, nor was she made to resign because of any misdeeds. In fact, he was quick to point out that Ms. Keenan is at the top of the list of people they would like to bring back on board when finances allow. According to Mr. Brocato, Ms. Keenan left for personal reasons; she decided to take a break from the very hectic schedule.

Financial Matters
Reports that the association is not as strong as it could be financially are, unfortunately, correct. H.R. Margolis Co. was brought in to do a full audit. The firm discovered that while the AGC has been and continues to show strong growth, there is way too much debt, and the budget is not balanced. Cash flow is poor, so a turnaround plan was created to bring things back to an acceptable level. The staff reductions were a part of that plan, although, Mr. Brocato noted, they had hoped it would not come to that, or at the very least they could phase personnel out over a longer time period.

One factor that prevented a more gradual trimming of personnel was the high rent the AGC is paying on its current office and classroom space in Manhattan. A new location has been donated, however the organization is currently in a battle to break its lease.

"We have the best intentions of making this organization work," Mr. Brocato noted. "We have great hopes for the new AGC." The new organization will include a more streamlined program, with more of a focus on member activities. Classes, which were temporarily suspended this summer because of the leasing issues, will resume either late this year or early next year. Some events, such as the Franklin Awards, are still being planned. Programs that will be cut include the Master's Degree program, which, while valuable, was proving to cost more to maintain than it was bringing in, and events such as the annual Graphic Communications Day in New York City, which also took more in outgoing finances than it was able to make up.

The AGC will be going through a restructuring period, bringing the finances in line and tailoring the programs more finely to coincide with what members need. Part of the problem, Mr. Brocato said, is that the board of directors is all volunteer, made up of people who have other full-time jobs. While that is part of its strength, it is also part of its weakness as, he noted, they just did not recognize what needed to be done as soon as they should have.

The organization is not going into bankruptcy?it is making the changes and working to fix things before they progress that far?but it will take work, and the support of the industry. Many in the industry have already stepped up to offer their support, including major commercial printers and AGC members in the city, as well as other organizations, such as the Printing Industries of America/Graphic Arts Technical Foundation. "It's all very positive," Mr. Brocato said. "I think we're going to make it."

In the next few weeks, the organization hopes to announce the appointment of a new president and make the many changes and tweaks necessary to build a stronger, more solid association.