PrintingNews.com

People in the printing industry often bemoan consolidation. The number of printers in North America has declined year by year recently, and many less efficient businesses without the most modern equipment have succumbed to economic pressure. Consolidation has also come to the trade associations that support the industry. Most notably, members of the now-defunct Association of Graphic Communications (AGC) recently joined with the Printing & Imaging Association of New York State to gain the efficiency necessary in the 21st century.

Consolidation is also occurring at the national level. The Printing Industries of America and the Graphic Arts Technical Foundation are now one. And perhaps the healthiest of organizations—NPES, the association for suppliers of printing, publishing, and converting technologies—recently consolidated three events into one to gain operating efficiency and create the critical mass necessary for effective meetings. Chicago was the site chosen for the March meetings of the NPES Spring Board of Directors, the quarterly meeting of PRIMIR (the NPES market research and economic study group), and Print Outlook (the annual review of the state of the printing and publishing industries). The combined events, all at the same venue, meant attendees—who use the information disseminated at the meetings to formulate their business plans—could devote one block of time rather than two or three to the process.

A Look at the Economy

For most printers and suppliers, the most important of the meetings was Print Outlook 2007. Previously held annually in December, the meeting had been under some criticism for occurring too late in the year—after most companies had already completed planning for the year to come. So by moving Print Outlook 2007 to March, NPES provided an economic framework that benefits the industry over the entire year.

The meeting was opened by industry guru Joe Webb, who observed that the capital intensity of printing influences the marketing decisions made by printers. Advertisers have many media options, he said—both electronic and print—but the investment required in presses often focuses printers' minds only on print. Dr. Webb's advice: "Don't worry about competitors. Just stay ahead of clients."

He continued by characterizing the current economy as "…stronger than most realize, but definitely not robust." He told the attendees that "...the Fed is very worried about inflation, and more likely to raise short-term rates, than to not do so." The current U.S. economy, said Dr. Webb, consists of the largest civilian workforce in history, and record levels of household net worth, although he sees a slower pace ahead. The trade deficit is decreasing, which will yield a slower economy ahead.

Looking at the world economy, Dr. Webb said that freer economies are creating wealth, especially in Asia, although the demographics of aging will continue to make Europe and Japan less important in the overall world picture.

The Pattern of Growth

Also speaking at Print Outlook 2007 was Michael Evans, the NPES economist who watches printing equipment and supplies, as well as the overall economy. Dr. Evans did not foresee a near-term recession in the United States, but predicted a slowing of growth from the present 2 to 1.5 percent later in 2007, and then only 1 percent growth in 2008.

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Source: PRIMIR-NPES, PIRA International