GPO Work to Private Sector Declines in First Quarter
CHAMBERSBURG, PA—April 22, 2010—First quarter 2010 (1Q10) data on work flow from the U. S. Government Printing Office (GPO) to private sector printers indicates that work has been steady from January through March but has dropped off from the first quarter of 2009.
The value of all GPO work awarded during 1Q10 was $73 million compared to $70 million awarded during 4Q09 and $78 million awarded during 1Q09. Work done by the top 50 suppliers during 1Q10 was valued at $45 compared to $46 million awarded during 4Q09 and $49 million awarded in 1Q09.
Of the more than 1,470 print suppliers that obtained GPO work during 1Q10, NPC (News Printing Co.) of Claysburg, PA, won the most work with $5,395,169 awarded to the firm. NPC also was the top GPO supplier for 4Q09 with $7,595,342 in work won and for Fiscal Year 2009 (October 2008 through September 2009) with $29 million won.
"The print industry is feeling the impact of GPO internalizing more production than a lot of people realize," said Deborah Snider, senior vice president of e-LYNXX Corporation and division president of Government Print Management. "Even though the private sector has historically produced about three quarters of the printing for federal agencies, GPO over the past six to eight years has been increasing its own print plant capabilities with new digital equipment—equipment that duplicates private sector capabilities. As an advocate for printers across the United States, we are concerned about this trend and would hope GPO would renew its partnership with the private sector. Outsourcing printing also saves tax payers money because private sector printers can do the same work that GPO does in-house for less."
According to the Printing Industries of America (PIA), the print industry consists of nearly a million small business people. The average commercial printer has about 25 employees and revenue in the $4.5 million range. This is no longer true, as many of these printers have been hit hard by the recession and are seeking work wherever they can find it. Government work keeps many in business, especially when developed as a secondary market to complement commercial printing, Snider said.
Approximately 10,000 print companies are registered to do work for GPO. The value of GPO work awarded to the private sector is approximately $425 million a year.
Related story: Top 50 GPO Print Suppliers in Q1 2010 (PDF)