Are the predictions of a paperless office coming true? Are we approaching a time where paper and printing are pass & #233; and everything must move to a monitor or cellular phone or Palm Pilot screen? Not yet.
Over the past 50 years, many new technologies were supposed to mean the end of printing , radio, television, computers, desktop publishing, and now the Internet. The reality is, printing continues to grow.
Although the Internet has reduced the need for some types of printed products, it has created new demand in other areas. In fact, most companies trying to drive traffic to their Web sites use some form of print to attract attention.
The printing industry is showing continued, steady growth, even with the accelerated pace of communication that we are all becoming accustomed to receiving. In order to keep a competitive edge, printers are becoming full-service marketing and communication providers , offering other services such as multimedia, warehousing, Web site creation and hosting, and more.
Desktop publishing is the No. 1 nonprint service offered by printers. Other services that printers are focusing on to serve their customers are graphic design, database management, consulting on desktop publishing, and multimedia products. This expansion of services is the result of customers who want more from their printers , not less.
Look around you , printing is everywhere , magazines, business cards, labels, product packaging, direct mail, books, forms, tickets and more.
Studies show that printing is still the preferred method of communication for many avenues. Printing is convenient, accessible, easily retrievable and provides a colorful platform for providing information. It’s tactile and the various papers and finishes of coating, die cutting, foil stamping and others attract attention, provide dimension and enhance the communication.
Who buys printing? Almost every U.S. industry buys commercial printing, but advertising expenditures account for 44.8 percent of the total demand.
According to printing industry economist Ron Davis, “the demand for printed products and services is driven by many forces , overall economic growth, advertising expenditures, the Internet, changing customer behavior, population growth and school enrollments, to name just a few.”
– Marketing Printing Expected To Increase
The greatest growth in the industry is expected to come in direct marketing printing. The health of this type of printing reflects the continuing ability of printing to deliver customers in traditional sectors as well as new Internet businesses.
Other areas expecting strong growth are electronic prepress, manuals and catalog printing. It appears that the Internet is driving the demand for traditional paper-based catalogs. Magazines and periodicals are expected to show growth enhanced by advertising income.
Although Internet advertising has grown at incredible rates, traditional advertising is seen as complementary and often used to drive traffic to Web sites.
With changing customer needs and new technologies now available, many print buyers are looking for new printing sources. They frequently rely on word-of-mouth referrals, sales representatives that call on them or other industry suppliers.
To help print buyers find them, local printers have an “online Yellow Pages” called PrintAccess. It is on the Printing Industries Association of San Diego’s Web site, (www.piasd.org).
Other areas of the country have the same capability and can be found by going to (www.gain.net) and choosing the “Business Solutions” button. This same site provides information for print buyers on using these new technologies , designing for digital printing, innovative direct mail ideas, tips on variable data printing, packaging comparisons and more.
– Sizeable Number Of Local Printers
California is the No. 1 state in the country in number of printing establishments, employment and dollar size of shipments. San Diego ranks 29th nationwide in market size.
More than 9,000 San Diego employees from about 600 companies produced over $1.15 billion in printing in 1999 (the last year of available data). This makes it one of the largest industries in San Diego and one made up of many companies.
The printing industry in San Diego is similar to that of other markets around the country , primarily small businesses (80 percent have fewer than 20 employees). These businesses are run by entrepreneurs who are mixing their technical/production talents with sales and marketing skills to create a custom product for their customers.
The outlook for the printing industry is positive. It’s expected to grow but at a somewhat slower rate than the past few years. Some of the short-term reasons include higher interest rates and cost of paper, a continued tight labor market, a slower (yet stronger) economy, shorter runs due to on-demand printing, and the continuing emergence of electronic alternatives to print. It’s expected that the total U.S. 2001 print market should reflect growth of about 5 percent in total sales to $171 billion.
There has been a lot of merger and acquisition movement in the industry during the past couple of years and it’s estimated that it will continue, but at a slower rate. Some of the major drivers of the consolidation trend include competition from other media and other printers, the expensive need for investments in technology and financial considerations.
Other trends that will impact the industry’s economic structure over the next year will include a continuing decline in the number of small printing companies as we see less entrepreneurial activity and the growth of larger plants. The total number of printing plants will decrease and the average plant size will increase.
– Advances In Technology
About a year ago, printers were deluged with e-commerce companies which cropped up to present solutions to printers and print buyers in transferring files, tracking job status, collecting data, storing images and more.
Since then, many lost funding and closed. The players that are left are revising and clarifying their focus. It will take some time before the mass adoption of online print transactions occurs.
Factors affecting this are the low readiness of the printing industry, the existing technology gap between buyers and printers and the overall increasing demand for speed and customization.
Digital printing and e-commerce provide advantages in personalization capabilities, reduction in obsolete inventory, and expediting product distribution.
In a world accustomed to the immediacy of the Internet, print buyers are coming to expect solutions that provide fast turnaround to their print production needs. The advent of e-commerce allows printers to streamline their processes, while the flexibility of digital printing delivers solutions tailored to client needs.
Printing businesses are changing the way they are doing business by utilizing new technology but are still focused on providing a custom-manufactured product to meet their clients’ needs for communication.
Looks like print is here to stay.
Reimers is president of Printing Industries Association of San Diego, a local trade association affiliated with Printing Industries of America and Graphic Arts Technical Foundation.
