Boston Print Buyers - Margie's Print Tips, What Lies Ahead for the US Print Market? part2

Boston Print Buyers - Margie's Print Tips:

" What Lies Ahead for the US Print Market? by Margie Dana

"... key findings about the print industry market, based on a recent presentation by Ron Davis. Davis is the Chief Economist for PIA/GATF (Printing Industries of America/Graphic Arts Technical Foundation).

Economist Davis prefaced his predictions with, 'I hope I'm wrong.' He predicts an economic slowdown for 2007-08 like so:

2006: 3.3%
2007: 1.5%
2008: 2.5%

5 Opportunities, 3 Threats

Davis went on to list the major opportunities and threats to today's printers for the next few years.

The 5 major opportunities are:

1. Survival of the fittest - the companies with strong balance sheets, well-trained employees, strong customer relationships, and strategic vision will survive.
2. Digital printing - even though digital/toner-based printing is only about 10% of total print shipments right now, it's been growing twice as fast as ink-on-paper shipments. This will continue.
3. Ancillary services - such sales have grown faster than ink-on-paper sales for a few years already. Included in this category are mailing and fulfillment services.
4. Market segments - printers in certain segments are predicted to show the most growth. These segments are direct marketing, labels/wrappers, packaging, and catalogs.
5. Improved management performance - according to PIA/GATF, print industry profit leaders consistently outperform other printers in good times AND in bad. An interesting aside: these leaders outspend other printers in one category: education and training. Today's print profit leaders develop strategic positioning.

The 3 threats to US printers are:

1. Slowing economy and print market growth - Davis noted that recessions come about every 10 years, and we're entering the 7th year in this cycle. If the US economy enters a recession, 'print markets will be more seriously impacted in a negative direction than the economy as a whole,' according to Davis' report, 'Navigating Print Markets in 2007-2008: An Environmental Scan of the Economy and Printing Markets for 2007-2008.'*
2. Cost pressures - particularly in wages/salaries, paper prices, health care, and energy costs.
3. Continued intense competition and pricing pressure - there are 40,000 printers in this country. That's competition."

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Full story on http://www.bostonprintbuyers.com/printtips/index.html

About Margie Dana was never a printer and never worked for a printer. However she "Parlez-Vous Printing" in plain English. Margie Dana is the founder of the Boston-area Print Buyers Club. Located in Newton, Ma, she can be found at http://www.bostonprintbuyers.com/ and reached privately by email at mdana@bostonprintbuyers.com