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The Future of Commercial Printing in the United States: Digital Technology Driving Change

Publication Date: February 2008
Service: Market Research

Introduction

In the world of graphic arts communications, buyers’ demands and expectations of print services providers are evolving. Although cost is still a very important metric of consideration, many are looking for more effective, multi-channel ways to communicate with their prospects and existing customers. To keep up with these changing dynamics, service providers need to strive for super efficiency and, more importantly, they must demonstrate their industry knowledge and marketing skills. Service providers must possess expertise not only in print services, but also in supply chain management, multi-channel communication, and specific vertical markets.

These changes present growth opportunities as well as challenges for print services providers as they expand their service offerings to meet the needs of the market. Among the emerging service opportunities for print service providers are value added services, such as mailing, fulfillment, Web-to-print, content management, 1:1 variable data, and multi-channel marketing campaigns. Nevertheless, deployment of these services requires a major transformation of the business model, organizational structure, and skill-sets of service providers.

Given the changing market dynamics, many are wondering what the future holds for the commercial printing markets in the United States. This study will take into account the full range of commercial printing establishments, from small quick printers to large commercial printers. It will examine where the industry is today and where future opportunities reside. The study will consider what changes in strategies, business models, and the staffing of these establishments will take place as service providers expand their offerings to include a range of higher value added services.

The study will also look at the speed and nature of the migration to digital printing and integrated workflows. It will determine the barriers and adoption rates of these technologies, as well as the future of the traditional tools of the trade. It will also provide a benchmark for InfoTrends’ previous study, The Changing Print for Pay Market: The Future of Commercial Printing, which was published in 2004.

Project Objectives

This report, The Future of Commercial Printing: Digital Technology Driving Change, will provide a comprehensive understanding of the nature of the commercial print and print-for-pay markets. It will address the following questions:

Business Strategy & Management

• How do commercial printers position themselves today? What plans do they have for the future?
  What are the future transition plans of these businesses?
• What services do they offer today and what are their plans for the next few years? Do these plans involve offering value added services such as mailing, fulfillment, Web-to-print, and 1:1 multi-channel marketing campaigns?
• Who are the primary customers they service? Which vertical(s) do they target? What level in the client organizations are they calling on?
• What geography do they service?
• What are their major print applications?
• How are they charging for various services? What are the pricing models?
• What revenues and margins do various services generate?
• How are they staffing to accommodate advances in technology and changing market needs?

Operational Questions

• What existing equipment do they own and what are future equipment acquisition plans?
• What workflow infrastructure do they currently have and what are their future plans?
• What is the print volume mix between offset and digital, and how is that mix trending?
• How much of their print volume today is submitted through the Web?
• By segment, how is a typical plant configured, and what is the market share, by vendor, for equipment placements?
• Who are the preferred vendors for prepress, printing, workflow, finishing, paper, and supplies?
• Who do they obtain financing from and how does access to capital impact capital investments?

Analysis and Project Deliverables

We will conduct extensive analysis of the desk research, personal interviews, and surveys to develop a comprehensive understanding of the opportunities and issues presented by the commercial printing market. The research will clearly define and detail this market segment, including market size and potential moving forward.

Clients will receive a combination of reports, presentation materials, and data for senior management, product managers and planners, and sales and marketing executives. These materials will include:

• An executive summary that addresses key issues, findings, and overall recommendations
• A detailed written report (approximately 150 pages) with text, charts, and graphs addressing the objectives of the study
• An electronic PowerPoint presentation for internal communication of the research results
• A data book of the Web survey research for additional analysis of key questions and market segments with extensive cross-tabulations
• A discussion of the key elements of a successful business plan for commercial printers as they guide their operations into the future
• Profiles of successful providers in this market space and key identifiers
  

Getting Started

For more information on the study or to sign up as a participant, contact Alison Hipp at +1 , ext. 126 or via e-mail at . Early subscriber discounts are available until September 21, 2007. Clients that sign up early can also provide input and review of the structured surveys.