Getting on the Right Side of the Redistribution

By Andrew Paparozzi
In January 8, 2009

Over 63.0% of the NAPL Printing Business Panel now expect business to decline over the next six months, double
the 31.3% at mid-2008 and the highest reading on record. (The previous record, 37.9%, was set right after 9/11.)

The concern is justified. Our industry is in a deep recession that will continue well into 2009. Expect sales to decline as much as 3.5% this year, after declining around 2.5% last year. And expect recovery to be painfully slow at first, not feeling like recovery until 2010. Remember, the end of recession simply means the contraction has stopped, not that all’s well again.

Remember, also, that recessions redistribute market share. The opportunity is to grow at someone else’s expense. Maybe it’s someone who’s trying to wait the recession out: As the NAPL State of the Industry Report, Seventh Edition emphasized, that doesn’t work anymore because our industry is being redefined
by structural change. We now either prepare for growth or we get left behind. Or maybe it’s someone who doesn’t know what to do about the recession or who doesn’t believe anything can be done or who knows what to do but can’t execute.

Our opportunity is to get on the right side of the redistribution by regularly asking this question: What are we doing to come out of the recession stronger than we went in by getting more efficient, competitive, and more valuable to our clients? As the November 2008 NAPL Printing Business Conditions showed, you can be sure that our industry’s best are.

Andrew Paparozzi     Joseph Vincenzino     Kong Lue Wang

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.

Leave A Comment