Performance Indicators Update: Value Added/Sales Rising

By Andrew Paparozzi
In February 8, 2010

The value added/sales ratio rose to 64.4% during the six-months ending in September 2009
from 63.6% during the six months ending in February 2009 for NAPL Performance Indicators 
participants. Furthermore, as the graph below shows, the 6-month moving average (red line) has been trending above the 12-month moving average (black line) since last March, indicating that the uptrend is gaining momentum.

That many Performance Indicators participants are already coming out of recession isn’t surprising: The program is about leaders and companies determined to become leaders. And as NAPL has long emphasized, leaders recognize the following:

We now either prepare for recovery or get left behind. Where our recoveries were inclusive—the rising tides that lift all boats—because of the structural change redefining our industry they are now increasingly exclusive—increasingly reserved for companies prepared for what our industry is becoming.

The foundation for substantial gains in market share as recovery progresses is laid right now—well before meaningful recovery starts and while most others are still in the wait-and-see mode.

For additional analysis of NAPL Performance Indicators trends and how leaders have dealt with the recession and are preparing for recovery, please consult the NAPL State of Leadership Report, scheduled for release in May 2010.


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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