HOT MARKETS AT MID-YEAR — ECONOMIC DEFICIT DISORDER
THE ECONOMY is irration-ally exuberant. Consumers are borrowing and spending in advance of expected higher prices, and businesses are robustly investing in both productivity (read “down-sizing”) and market development. This year is on track for nominal GDP growth of 6.5 percent, with printing sales up more than 5 percent.
As economic power concentrates, nearly half the power of print will coalesce into finance, publishing, health and technology (nine of the top 25 demand sectors). Salespeople: focus below and cash in.
Banking and Insurance ($2.9T in revenues; with over $15B to print, +8 percent) is the biggest buyer and beneficiary of print. Sub-prime lenders and direct insurers are nearly doubling mail drops to $4B and print ads to $0.7B. Revenue leaders tell the results: Capital One (+38 percent), The Hartford (+27 percent) and MetLife (+16 percent). Regional banks (+14 percent) continue to merge and, along with the rest of the sector, are acquiring digital/business forms ($4.7B) and outdoor/point-of-sale ($2.3B).
Related at #11 is Investment Brokerage ($839B in revenues; with over $8B to print, +6 percent), the second fastest growing sector at 26 percent. Goldman Sachs (+60 percent) and both Morgan Stanley and Merrill Lynch (+28 percent) are setting year-to-year records as their second-tier participants lose share.
The soaring Dow and searing spate of M&As, including those of the exchanges, are setting records for digital printing and commercial web and sheetfed: $5.2B is the yield.
Within publishing, health and technology, printing is selectively robust by segment. In #2-ranked Publishing ($106B in revenues; with $14B to print, +2 percent), professional and educational books lead the sector at 8 percent. McGraw Hill (+26 percent) and Scholastic (+17 percent) are the bestsellers as federal spending and state adoptions increase.
Periodicals ($46B; with $7B to print, -6 percent) are shrinking in titles and run lengths. The USPS, however, which mails about one-half of all periodicals, reported equal weight through March. More ad pages! But don’t be content; new non-traditional publishing (+17 percent) must be developed by full-web printers ASAP.
Vincent Mallardi, C.M.C. is a Certified Management Consultant in the paper, printing and converting industries, and is an adjunct professor in economics. For the complete listing of all 1,500 of the largest print buying entities, including addresses and phone numbers for all 50 states, contact him via email at firstname.lastname@example.org