Now What?

By Andrew Paparozzi
In February 12, 2009

That’s the question on everybody’s mind as the economy struggles and the government puts forth massive
stimulus and financial rescue packages. Will they work? The answer to that question may depend on what your definition of the word “work” is. Going forward, they’ll make a difference, creating more demand and firm up the underpinnings of the financial system. Will they have been worth it? That’s a
debate for another time. As you can tell, there are more questions than answers. In publications from NAPL’s State of the Industry Series we’ve been suggesting action steps companies can pursue to deal with the recession. Here’s another suggestion: Don’t get bogged
down in the overall size of the programs.

Pay attention to the details—not only the details that will impact you directly, but also those that may impact your clients. Here are some more questions: What provisions are expressly targeted toward small businesses? What elements impact our clients? What indirect impact may other provisions have on us or our clients? While we cannot control the macro impact of these programs, we may be able influence how some of the individual components impact us. The message: Don’t get caught off guard.

In challenging times when there’s no shortage of uncertainty, there’s a danger of inertia looking like the safest path. And based on responses from NAPL’s Printing Business Panel, there’s no question that these are challenging times for our industry, as well as the overall economy. More than three quarters of the Panel (75.6%) reported that business is slowing, with almost 27.0% reporting that it’s slowing a lot. As would be expected, confidence is very low. More than half of the Panel (56.1%) expects business to continue declining over the next six months. Only 12.5% see conditions improving. Is standing pat the safest option? It may be for some companies, but for others, it may be the most dangerous.

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