Blog Publisher’s comments:
I would
venture to guess that pricing (pressure) conditions contributed partly to the
reason why printing industry sales have dipped in Q1 2013, but I also think
that the continuing “digitization” of documents and “electronic distribution”
of documents (meaning, people are printing fewer documents than they used to
print and when they do print, they print less than they used to print) are also
contributing to the problem printing firms are experiencing. Back in the late 1990’s, an executive of
Xerox Corp, addressing the audience at an IRgA Convention so much as said that,
“over the years to come, the number of documents that are created will expand exponentially, but the number of documents that are
committed to print and the quantity of those documents actually printed when
documents are committed to print will not expand proportionately. In spite of that, printing equipment manufacturers
continue to introduce faster, higher volume print devices of all types and
kinds.
By NAPL,
June 25, 2013
(Printing) Industry sales declined 0.2% in the first
quarter of 2013 as consistent growth remains elusive. Fewer than half the
printers surveyed saw sales rise―the lowest reading since mid-2010.
East
Rutherford, N.J. (June 18, 2013)―Industry sales from all
sources declined 0.2% in the first quarter of 2013, a disappointing drop
following sales increases of 0.8%, 0.7%, and 0.6%, respectively, in the
previous three quarters. The
results were reported in the summer edition of the National Association for
Printing Leadership (NAPL) Printing Research Center’s Printing Business
Conditions report.
“The
hope was that we were finally progressing from sporadic upturns in activity to
the consistent growth that begins to restore pricing power and profitability,
but we haven’t made much progress lately,” note report authors NAPL Senior Vice
President and Chief Economist Andrew Paparozzi and Senior Economist Joseph
Vincenzino.
“So
far 2013 has been a disappointment,” they write. “We haven’t sustained even the
modest gains made during the second half of 2012. Business is still maddeningly
inconsistent, and the pressure on prices and profitability still hasn’t eased.
Nothing suggests that we are turning back down,” they continue, “but nothing
suggests that our climb back up will be getting easier.”
The
report, part of the NAPL State of the Industry Series sponsored by KBA,
is based on regular surveys of the Center’s State of the Industry Panel,
comprising several hundred commercial and quick printers in North America. The
most recent survey found that sales were down for 57.8%, far surpassing the 47%
who experienced sales declines in the fourth quarter of 2012; only 42.2% of
respondents increased sales in the first quarter of the year, down sharply from
53% the previous quarter and the lowest reading since summer 2010.
Of
those whose sales decreased in the first quarter of 2013, more than two-thirds
(41.4%) saw sales fall 5% or more and one-quarter (25.8%) experienced a sales
decline of 10% or more. Of those whose sales rose, 26.6% enjoyed sales
increases of 5% or more, and just 21.1% had sales growth of 10% or more.
The
survey also found that prices were still at or below year-earlier levels for
more than two-thirds (69.4%) of those surveyed, more than double the 30.6% who
were able to increase prices at the beginning of the year. In addition, only
34.3% increased pre-tax profitability in April, down from 42.0% in January, and
well below the 39.2% for whom profitability decreased.
“The
disappointing start to 2013 hasn’t affected confidence, but it has heightened
uncertainty,” write the report authors. “Nearly 29% (28.6%) of the participants
in our research expect business to improve during the six months ahead, up from
27.3% in January, but nearly as many―26.5%, up from 18.2% at the start of
2013―say business is so erratic they don’t know what to expect.”
The Printing
Business Conditions Report is distributed to NAPL members as a benefit of
membership. The current issue also includes data on industry confidence,
economic conditions and prospects for growth, and workforce issues, such as
upgrading skills for new services.
For
more information on NAPL’s State of the Industry research, call (800) 642-6275,
Ext. 6303, or email jvincenzino@napl.org. To learn more
about membership in NAPL, contact NAPL Vice President/Member Relations Dean
D’Ambrosi at (800) 642-6275, Ext. 6314, or ddambrosi@napl.org, or visit www.napl.org/membership. ###
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