Capital Investment Rates

By Epicomm
In February 7, 2008

NAPL State of the Industry Update participants invest 7.9% of sales per year in capital equipment. Individual investment rates vary widely: Capital investment is lumpy, with multi-million dollar investments one year often followed by far more modest investments the next year, and vice-versa. But 41.4% of our survey group invest between 2% and 5% annually and 35.0% invest between 6% and 10% annually. Just 3.4% invest less than 2% of revenues per year. As mentioned earlier this week, despite deep concern about the economy SOI Update participants plan to increase or maintain their capital investment rate over the next three years.

Where are they investing? Bindery/finishing, four-or-more-color litho presses, and variable-content digital presses were the most frequently cited investment priorities for the next three years. But we’ll know a lot more about investment priorities—future, past, and how, if at all, they differ—after our current SOI Critical Issues survey is completed.                                     Andrew Paparozzi

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