Does Establishment Size Matter When It Comes to Structural Change?

By Andrew Paparozzi
In January 4, 2010

A company’s size may provide some advantages that could make it more adaptive to cyclical change. But does it provide any protection when it comes to structural change? According to NAPL’s new Printing Industry Profile: Structural Changes Increasingly Evident Within Industry Demographics, not really.

The Profile shows companies of all sizes being affected by structural change. For example, between 1998 and 2008 the number of printing establishments in the United States declined by over 7,800, or nearly 21.0%. Losses ranged from nearly 4,300 establishments, a 17.3% decline, for establishments with 1-9 employees, to 124 establishments, a 29.9% decline, for establishments with 250 or more employees. (See the table below.)

So what does it all mean? Simply, that the strong consolidation happening in the printing industry is happening across all company-size categories. In other
words, there is no real optimum company size that will prevent a company from being affected by structural change. It is up to the individual company to determine whether structural change is a threat or an opportunity.
(See the Profile for projected establishment counts through 2010 by establishment size, region, and state.)


Andrew Paparozzi

Epicomm's Andrew Paparozzi, Vice President/Chief Economist, is well-known for his accurate and thoughtful discussions on the economy and US commercial printing industry. A foremost author and speaker on economic business trends in the printing industry, Paparozzi heads Epicomm's Printing Economic Research Center.

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