Print Trends and Savings Opportunities
Printed materials have long been the foundation of communication between information providers and information consumers. Before the proliferation of the internet and mobile communication technology, the print industry regularly enjoyed $130 billion in sales per year. Annual sales dropped to about $100 billion by 2007 and have settled at about $85 billion per year for the past three years.
Clearly, the foundation of how we exchange information has been significantly challenged.
To survive, the print industry has had to re-invent itself. They have done so over the past five years by virtually restructuring how the industry works and by developing far more efficient equipment. During this time, over 5,500 printing companies have either closed their doors or been purchased by other printing organizations. The number of employees who operate printing equipment has been dramatically reduced; at the same time, customers have more direct control of their printed materials.
Today, printing is commonly sold through consolidated printing groups, print distributors or brokerage groups, which dramatically reduces the cost of sale to the printer. These consolidated print providers have purged their equipment inventory of the least efficient presses and moved their print projects to the most compatible presses. They have also invested in new, more efficient presses that produce finished products faster while significantly reducing waste (ink and paper).
Changes like these have provided surviving printers with an opportunity to enjoy margins that had just recently slipped away. These opportunities could also mean reduced pricing to customers who understand how these changes impact their printed materials and/or how to align their print product needs within the new printing paradigms.
Print on demand, web to press, customer online ordering and inventory management from multiple locations, variable printing, "PURL" (Personalized URL) printing, QR codes (Quick Response barcode), digital direct mail -- these are just a few of the innovations available to print consumers today that weren't available just five years ago.
The most challenging issue for printers who offer these and other services is developing a sales staff capable of articulating how these services can benefit their prospective clients - while also reducing their cost. The challenge is made tougher by key-stakeholders within their prospective clients' organizations that are too busy to change from what has worked for them in the past and are unwilling or unable to affect change within their organization to realize the efficiency in these opportunities.
Many businesses today are challenged with reduced staff and employees who must "do more with less." In today's fast changing business environment, companies must ultimately choose between maintaining the status quo or investing in the future. In other words, it comes down to whether you see a long or short term future for your business.
The print industry has made a concerted effort to invest in their future. The reality is that for some businesses, it may not be worth changing how they do their printing and the print industry will be happy to accommodate them. But for those businesses that are willing to re-examine their printing needs in light of a much more efficient print supplier environment, there are savings opportunities galore.
Rene Ford is a Director with Expense Reduction Analysts, a leading global cost-reduction consultancy. He specializes in print projects.
His more than 25 years of senior-level experience in print media sales and marketing has afforded him an in-depth understanding of commercial print pricing and production. He has developed pricing, sales, and marketing strategies for major daily newspapers across the country, including developing and purchasing print advertising campaigns for newspaper distribution, direct mail, point of purchase, and special events.
Clearly, the foundation of how we exchange information has been significantly challenged.
To survive, the print industry has had to re-invent itself. They have done so over the past five years by virtually restructuring how the industry works and by developing far more efficient equipment. During this time, over 5,500 printing companies have either closed their doors or been purchased by other printing organizations. The number of employees who operate printing equipment has been dramatically reduced; at the same time, customers have more direct control of their printed materials.
Today, printing is commonly sold through consolidated printing groups, print distributors or brokerage groups, which dramatically reduces the cost of sale to the printer. These consolidated print providers have purged their equipment inventory of the least efficient presses and moved their print projects to the most compatible presses. They have also invested in new, more efficient presses that produce finished products faster while significantly reducing waste (ink and paper).
Changes like these have provided surviving printers with an opportunity to enjoy margins that had just recently slipped away. These opportunities could also mean reduced pricing to customers who understand how these changes impact their printed materials and/or how to align their print product needs within the new printing paradigms.
Print on demand, web to press, customer online ordering and inventory management from multiple locations, variable printing, "PURL" (Personalized URL) printing, QR codes (Quick Response barcode), digital direct mail -- these are just a few of the innovations available to print consumers today that weren't available just five years ago.
The most challenging issue for printers who offer these and other services is developing a sales staff capable of articulating how these services can benefit their prospective clients - while also reducing their cost. The challenge is made tougher by key-stakeholders within their prospective clients' organizations that are too busy to change from what has worked for them in the past and are unwilling or unable to affect change within their organization to realize the efficiency in these opportunities.
Many businesses today are challenged with reduced staff and employees who must "do more with less." In today's fast changing business environment, companies must ultimately choose between maintaining the status quo or investing in the future. In other words, it comes down to whether you see a long or short term future for your business.
The print industry has made a concerted effort to invest in their future. The reality is that for some businesses, it may not be worth changing how they do their printing and the print industry will be happy to accommodate them. But for those businesses that are willing to re-examine their printing needs in light of a much more efficient print supplier environment, there are savings opportunities galore.
Rene Ford is a Director with Expense Reduction Analysts, a leading global cost-reduction consultancy. He specializes in print projects.
His more than 25 years of senior-level experience in print media sales and marketing has afforded him an in-depth understanding of commercial print pricing and production. He has developed pricing, sales, and marketing strategies for major daily newspapers across the country, including developing and purchasing print advertising campaigns for newspaper distribution, direct mail, point of purchase, and special events.
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