Changing Composition of Revenue
As we discussed in our previous post, NAPL estimates that commercial printing industry sales showed their first increase since 2007, rising 0.6% in 2012 to $78.0 billion. Of course, the increase for the industry, which still leaves sales more than 20.0% below pre-Great Recession levels, represents only part of the story. Many companies far exceeded the industry’s performance, while many fell far below. For example, in 2012 sales increased an average of 22.7% for the top 20.0% of State of the Industry participants and decreased an average of 10.8% for the bottom 20.0%. As 2013 unfolds, in all likelihood, the drivers for growth still will have to be generated internally. See the upcoming NAPL Printing Business Conditions—part of the NAPL State of the Industry Series, which is proudly sponsored by KBA.
In the previous post, we also mentioned that even a distribution of sales data doesn’t tell the whole story, and that the composition of industry revenue has changed dramatically. Based on available data from State of the Industry participants, digital printing and value added services such as fulfillment, mailing, and database management accounted for nearly one-third (31.1%) of commercial printing industry revenue in 2012 compared to 13.2% in 2000. Conversely, lithography’s share stood at 63.2% in 2012, down from 85.6% in 2000. See the table below.
Although it would appear that the recent downturn seems to have slowed the movement toward diversification, according to responses from State of the Industry participants, the rising trend is expected to continue. Their expectations show digital rising to 22.2% of revenue in 2014, while value added services are expected to increase to 15.1%. On the other hand lithography is expected to decline to a 56.8% share. There will be a more complete discussion of diversification in the commercial printing industry—the benefits and challenges, as well as lessons learned—in the NAPL State of the Industry Report, 11th Edition to be unveiled this September at PRINT 13.
Andy Paparozzi Joe Vincenzino