Open Enrollment | Subscribe to Printing Impressions HERE
Connect
Follow us on
Advertisement
 

Commercial Printing Outlook : New Year, Similar Outlook

December 2011 By Mark Smith
Technology Editor
4
Looking ahead to 2012, it seems as   if the commercial printing industry, the country as a whole and even the global economy have been cast in a sequel to the Bill Murray movie that nobody wanted to see made—Groundhog Year. The first draft of the script for the coming year reads much like it did for the past two years:

• ongoing high unemployment rate—check;

• fallout from the banking crisis still causing high foreclosures rates and depressing the real estate market—check;

• gridlock in our nation’s capital as compromise is considered a dirty word by both parties—check; and

• Euro zone countries struggling with debt crises, keeping the global economy on edge—check.

If anything, the challenges that threaten printing industry growth, specifically, have intensified. The most notable is investment in tablets as a printing replacement by government agencies, schools at all grade levels and certain consumer sectors. The other is the attacks on printing, such as Do Not Mail efforts, in the misguided perception that printing is not sustainable, or at least less sustainable than digital alternatives.

There is, of course, the added wrinkle of 2012 being a presidential election year. With Washington approval ratings in the dumps, some hitting historic lows, politicians are under growing pressure to act on the jobs and economic front. However, judging by the collapse of the Super Committee, that motivation is still being out weighed by the need to not be seen as “caving in” to other side through any attempt at reaching a compromise.

Unlike Past Recessions

The recent course of the economy has been an anomaly, according to Dr. Ronnie H. Davis, vice president and chief economist at Printing Industries of America (PIA) in Sewickley, PA. Normally, the strength of the recovery correlates with the depth of the recession, but that hasn’t happened this time, Davis points out.

In comparing the 2007-09 and the 1981-82 recessions, there is a “tremendous recovery gap,” he says, which has resulted in lower growth of around two to three percentage points in Gross Domestic Product (GDP), or approximately $300 billion to $450 billion in lost output and millions of lost jobs.

“The pace of economic growth in the first half of 2011 was dismal—0.4 percent in the first quarter and 1.0 percent in the second quarter,” he continues. “The recovery picked up in the second half of the year, with the preliminary growth rate for the third quarter estimated to be 2.5 percent. Most likely, the economy will end 2011 with a full-year growth rate of around 2 percent.”
 
4

SPONSORED CONTENT

MORE ON BUSINESS MANAGEMENT >>

FROM THE BOOKSTORE

The graphic communications industry is facing some very serious challenges, but that doesn't mean there isn't still a lot of life and opportunity in our future. 

Competing for Print's Thriving Future focuses on how printers can create their own positive future by understanding and taking advantage of the emerging changes — the changes that are shaping the printing industry of today and tomorrow. 

Use the research, analysis, and forecasts in this book to: 
• Assess the changes taking place
• Understand the changes
• Design a plan to deal with the changes

Topics include: 
• Economic forces, life cycle, and competitive position
• Place in the national and global economies
• Industry structure, cost structure, and profitability trends
• Emerging market spaces--ancillary and print management services
• Competitive strategies, tactics, and business models
• Key practices of SuperPrinters
• Combating foreign competition
• Social network usage
• A ten-step process to survive and thrive Competing for Print’s Thriving Future

The graphic communications industry is facing some very serious challenges, but that doesn't mean there isn't still a lot of life and opportunity in our future. “Competing for Print's Thriving Future” focuses on how printers can create their own positive future by understanding and taking advantage of the  changes that...

ORDER NOW

 

COMMENTS

Click here to leave a comment...
Comment *
Most Recent Comments: