New Revenues for a New Industry

By Andrew Paparozzi
In January 26, 2010

NAPL State of the Industry participants expect services such as variable-content digital printing, static-content digital printing, fulfillment, mailing, and database management to provide 44.1% of their revenue by 2012, up from 18.2% in 2004. In comparison, lithography is expected to fall to 52.4% of revenue, from 76.7% in 2004 and 88.4% in 1999. (See the graph below.)

Two points about these data are particularly important:

• First, profitable diversification requires that we integrate services into a compelling value proposition that makes clients more successful for doing business with us. When we simply add services—as too many in our industry are doing—we are no more insulated from commoditization than when we were offering ink-on-paper alone.

• Second, there’s still tens of billions of dollars of lithography out there. But it is increasingly reserved for the fastest, leanest, and most effective at creating programs—as opposed to print jobs—that help clients communicate more effectively with their clients.

We’ll cover both points in more detail in the NAPL Strategic Perspective 2010, to be published in early spring.

Revenue Distribution

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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