HH Global Acquires GBG Marketing Services Division

The Envelope Manufacturers Association (EMA) Foundation’s Institute for Postal Studies is releasing its 2023 U.S. Mailing Industry Economic Job Study, which reveals overall industry impact remains strong thanks to growth in e-commerce driven parcel delivery. In 2022, the industry accounted for approximately 7.9 million jobs and $1.9 trillion in sales revenue. This includes employment at the U.S. Postal Service (USPS), private delivery companies, printers, publishers, packaging manufacturers, and paper manufacturers that rely on the Postal Service as a supply chain partner.

The Manufacturing Standards and Specifications for Textbooks (MSST) Committee has updated the standard for the first time since 2020. Due to shifts in the paper market, leading publishers and printers in the industry were concerned about the potential scarcity of paper meeting current MSST testing specifications. The Committee looked at revising the MSST testing specifications to allow for the use of alternative paper stocks in the future without compromising the durability of textbooks. Following comprehensive testing in 2023/2024, the committee has approved minor adjustments, including a 10% reduction in the Machine Direction Tear specification for 40# and 45# paper grades and a 1-point reduction in the opacity specification for 50# grades. These changes aim to ensure a broader range of paper stocks meet MSST standards while maintaining textbook durability and quality.

Houghton Mifflin Harcourt announced a strategic restructuring to accelerate its digital transformation and align its cost structure with its digital first, connected strategy. These steps will further streamline operations and better enable HMH to support teachers and students with digital first, connected solutions that drive successful outcomes in remote, face-to-face and hybrid learning environments.“The actions we announced today will help us to realize our digital first vision by creating a more focused company with increased recurring digital subscription revenue that produces higher margins and free cash flow. We recognize the personal impact these actions will have on our HMH team members. We thank our departing colleagues for their contributions and are committed to treating them in a respectful and compassionate way.” Joe Abbott, HMH’s Chief Financial Officer added, “The actions we’re taking are intended to drive billings growth, position us to build our recurring subscription revenue base, simplify and strengthen our business model, reduce costs, and generate sustained and positive free cash flow." The Company’s restructuring includes both labor-related and non-labor expense reductions. The labor-related reductions involve organizational changes resulting in a 22% reduction of HMH’s workforce, including positions eliminated as part of the previously announced Voluntary Retirement Incentive Program and net of newly created positions to support HMH’s digital first operations.