How are NC libraries’ business partners affected by our budget constraints? We are a service providing only what our customers provide to us for rebinding. Impacted in a few ways; 1)Budget $ being cut for this service 2)Staff cuts and not enough resources internally to pull/prepare binding

Budget constraints have a considerable impact on library binders. We continually face increasing costs as prices fluctuate, and are often lowered. While this sounds like a good thing, it becomes a big problem in the long run. Next slide…

As costs and budgets move farther apart, a “sustainability gap” is created. Budget constraints have an impact on both sides of the gap. Next slide…

Budget Constraints Affect Both Sides of the Gap “Costs go on whether or not the bindery is full of work or only partially operating.” Dudley A. Weiss,Executive Director – Library Binding Institute 1952 -1982 In the Bindery… Ongoing manpower costs Ongoing operating costs Capital expenditures, R & D In the Library… Reduction of manpower Fewer volumes bound Compromised collection maintenance As Dudley Weiss noted, our “Costs go on whether or not the bindery is full of work or only partially operating.” As binders, the cost of doing business is seen in a number of areas: Ongoing manpower costs: wages, benefits, training. … ongoing operating costs: utilities, materials, transportation, insurance and so on. We also work to ensure the future of our business and our industry through our capital expenditures and an aggressive Research and Development program. As librarians, you also face challenges: Reduction of manpower, fewer volumes being bound and, ultimately, a compromised collection maintenance program. ****Big issue; if budget doesn’t get cut, it could still impact binding if library faces staff cuts. Not enough people to pull/prepare and even though the money is there, we don’t receive as many volumes to bind because it can’t be pulled together in the library.

The “sustainability gap” has brought notable changes to our industry. Looking at this chart, we can see that 40 years ago – in 1963 – there were 55 Certified Library Binders in the United States. Now, in 2003, there are 24. I can say that most, if not all, of the missing 31 binders have ceased to be in existence because they could no longer sustain their businesses as the gap widened between costs and revenues.

We contribute to the overall economy of the In We contribute to the overall economy of the states in which we have operations. We work very hard to avoid falling victim to the sustainability gap, but it’s not easy. Not only is this important for us, as a company, but it is especially important in states such as North Carolina in which have operations. When our business is healthy, we are able to contribute to the local as well as the state economy. Those tax dollars are revolving and go back into the education system to help support libraries. It is a free market and surely it is within each libraries right to use the vendor that they feel they get the best service, price, product, etc. We have a lot of business in States where we do not have a manufacturing facility. However, in those States where we do operate, every little bit helps when the money allocated for such services like binding are staying in State.

Improve products and services while holding costs. New products and services To keep our business healthy, we continually look for new ways to improve our products and services without increasing our costs. We also work to expand our services with new products and services, such as our new CUSTOM ENCLOSURES. But we can’t do it alone…

What can we do to close the gap? In There is a symbiotic relationship between libraries and binders. We can’t survive w/o your business, and the library can’t meet its preservation and collection maintenance goals without your binder. Budget cuts are never easy. They impact your vendor and they impact the library, its staff and its collection. It is imperative that we work close together to find new ways to meet our mutual objectives now and in the future. to close the gap?

State of the Market Nationwide Funding Trends Little to no budget increases Painful situation everywhere Texas Oklahoma North Carolina Serials Conference

Government Funding Library Services & Technology Act (LSTA) Funding Support ALA’s effort to get a new version passed that will increase funding levels for libraries Management meeting with Government leaders to discuss state of the industry March 6, 2003 - Voted on and overwhelmingly passed in the House Must continue building support and momentum to get bill to the Senate floor

That’s fine, but what about me? Renewal Business Pricing Flat to minimal increases over the last two years for most ProQuest products Handled on a case by case basis New Business Pricing Flat to minimal increases for new products over the past two years Some product prices reduced and more content added One-Time Purchase Options Easier to come up with than subscription monies Utilize gift funds Products – EEBO, APS, Ethnic NewsWatch: A History, PQ Historical Newspapers, Acta Sanctorum Spread the one-time purchase out over three years interest free

Conclusion How do we ease the pain? Push for Funding Must be flexible in pricing; Renewal, New Product, One-Time Listen to our customers and work within the budgetary limits Continue to assist the library in moving forward