Commercial Printers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 21,000 commercial printers in the US produce brochures, ads, books, packaging, business cards, and other output for clients. They are in the midst of a transition to digital technologies and electronic media.
Rapid Technological Change
The transition to digital technology has accelerated the rate of equipment change in the printing industry.
Weak Printing Demand
The commercial printing industry has seen falling demand for printed advertising materials caused by the shift to electronic media.
Industry size & Structure
The average commercial printer has fewer than 15 employees and generates $3.7 million in annual revenue.
- The industry consists of 21,000 firms with 276,000 employees, and revenue of $78 billion.
- Digital communications are replacing print for advertising, direct mail, magazines, books, and other business publications.
- Digital printing has reduced the barriers to entry for commercial printing. The new competition consists of quick printing companies and companies doing their own printing in-house.
- Industry-wide employment fell 15% from 2013 to 2022.
- Most firms are privately-held and 85% of firms have less than 20 employees.
- Large firms include RR Donnelley, Quad/Graphics, Transcontinental Printing, and Cenveo.
Industry Forecast
Commercial Printers Industry Growth
Recent Developments
Nov 15, 2024 - Printed Catalogs Making a Comeback
- Some large retailers are rediscovering printed catalogs, according to Printing Impressions. Brands, including J.Crew, Patagonia, and Amazon, are investing in printed catalogs to complement their digital strategies. In late October 2024, Dan Brown, an executive with promotional products firm ASI, was a guest on the Today Show on NBC to discuss the resurgence in catalog interest. Brown said catalogs are about driving interest by expanding the brand universe with engaging articles and more artistic photography. Instead of pricing info, catalogs often include QR codes that drive consumers to brand websites.
- Commercial printer shipments increased by 0.1% in September 2024 compared to the previous month, according to the US Census Bureau. September’s printing shipments were up 4% compared to a year earlier. On a year-to-date basis, printing shipments in September rose 1.7% compared to the same nine-month period in 2023.
- Lead generation marketing firm PostcardMania notched $104.6 million in sales in the third quarter of 2024, up 18.6% compared to Q3 2023. The company said the large leap in quarter-over-quarter revenue suggests more business owners and marketers are choosing direct mail for their marketing strategies. PostcardMania’s third-quarter results were driven by the company’s partnership-driven PCM Integrations (PCMi) arm, as revenue in the division jumped 58% compared to the same period a year earlier. PCMi partners with providers of customer relationship management (CRM) and marketing software, allowing the partners’ users to launch direct mail campaigns with scalable, programmatic targeting and delivery. Direct mail advertising is a key demand driver for commercial printing services.
- Commercial printers’ sales in midyear 2024 were up about 1.1% compared to a year earlier, according to a recent survey by PRINTING United Alliance and NAPCO Research. While 43% of printing firms surveyed said their sales increased in the first half of 2024 over the same period in 2023, 57% said sales were flat or had decreased. About 20% of firms reported sales increases of 10% or more, but 18% reported sales declines of 10% or more. More than 70% of printing firms said the economy, interest rates, and inflation had a negative impact on their business in 2024. Despite headwinds, over 82% of printers plan to make capital investments over the next 12-18 months. Artificial intelligence applications topped the list of planned investments, with 35.6% of printers planning to spend on AI, followed by bindery/finishing equipment (34.7%), digital infrastructure (33.7%), ecommerce solutions (32.7%), and workflow software (30.7%).
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