Consolidation By the Numbers: II
In our previous post, we discussed how the commercial printing industry consists largely of small establishments—more than four-fifths (83.3%) have fewer than 20 employees—and how consolidation has been widespread across all company-size categories. In this post, we’ll discuss the regional profile of the industry. As the chart below shows, the Southeast continues to have the highest share of establishments, at 18.3%, having surpassed the North Central in 2006. The latter remains in second place, with a share of 17.6%.
Just as consolidation has been widespread among all company sizes, no region has skirted consolidation either. Regional declines in establishment counts over the 1998-2012 period range from 26.9% in the Southeast to 38.1% in New England. While consolidation has been universal and relatively uniform across regions, within each region there has been significant variation among states: Declines for the period range from 12.5% in Utah to 69.5% in the District of Columbia.
Establishment data by individual states show that our industry is relatively concentrated geographically. California has the largest number of establishments, by far, with an 11.8% share. Texas and New York followed, with shares of 6.9% and 6.4%, respectively. More than half (54.5%) of printing establishments are in the top 10 states and more than three-fourths (77.7%) in the top 20. For the most part, the rankings by state should not come as a major surprise. The size of a state’s printing industry is closely tied to the size of its economy. Nine of the top 10 states in terms of printing establishments are in the top 10 in terms of economy size (gross domestic product–GDP) and 18 of the top 20.
But as we cautioned in our previous post, there’s more to the story than just the numbers. Fewer printers no longer means less competition. The commercial printing industry is becoming something fundamentally different than what it was. Be on the look out for an upcoming download from NAPL on the updated printing industry establishment profile.
Andy Paparozzi Joe Vincenzino