Despite continuing consolidation, the industry is highly fragmented; the largest 50 companies hold only about 30 percent of the market. The profitability of individual companies is closely linked to effective sales operations.
The Printing industry, which includes large commercial printers and local print shops, endured a variety of challenges over the past five years.
Moreover, during the past five years, demand for print advertisements, a key demand driver for this industry, has consistently fallen. As a result, newer forms of media, such as digital, have been siphoning demand away from this industry.
Consequently, the printing industry is in decline with revenue expected to decrease at an average annual rate of 2. Inrevenue is expected to decrease 2. Decreasing sales volumes and downward pressure on unit selling prices have also hampered industry profit during the past five years. Printing requires substantial capital investment in new technology to remain competitive in times of excess capacity.
Since there have not been enough customer orders, overcapacity has contributed to the long-term trend of industry consolidation.
In the five years tothe number of commercial printing companies is expected to fall at an average annual rate of 3. Industry consolidation has allowed larger printers that have economies of scale and access to strong financing to adopt more efficient equipment, while simultaneously slashing employment and wages.
Additionally, plant closures and staff consolidations have caused industry employment to decline at an average annual rate of 4. In the five years tothe printing industry is anticipated to continue its decline, albeit at a slightly slower pace.
In addition to these projected declines, industry operators will also need to contend with the higher cost of materials. Furthermore, substitutes to commercially printed material, such as online media, will continue to adversely affect industry activity.
In order to adapt to declining demand, printers will need to diversify into cross-media products, including multimedia layout and design.Mar 06, · 6 Challenges Facing the Commercial Printing Industry The two largest American printing companies recently presented similar lists of the major challenges they face -- and similar strategies for growing in the face of declining demand.
The primary activities of this industry are Commercial lithographic printing Blank book, loose-leaf binders and devices manufacturing Newspaper Publishing in the US Publishers in this industry print their own newspapers.
Magazine & Periodical Publishing in the US Printing industry as a whole is in decline. In , revenue. The drastic decline of the printing industry started in Analysts greatly attribute the 20% decline of commercial printing to the rise of social media and digital marketing srmvision.comon: 19th Ave NE, Aberdeen, , SD.
The Future of Print as an Industry What's the future of print as an industry? If "an industry" is defined as a large number of companies structured almost identically and offering the same products and services, then the "printing industry" is seriously threatened.
Industry Overview. See Companies in the Commercial Printing Industry.
Amid lower overall print volumes and reduced revenue, the commercial printing industry is expected to consolidate as smaller players are less able to make the necessary investments in digital print and marketing services, and other technologies necessary to survive.
Amid ongoing contraction, third-quarter commercial printing shipments rose more than percent in the United States, marking the highest growth rate in 19 years according to statistics published by the U.S.