NAPL Reports ‘Free Fall is Over,’ Industry Heading Toward Growth
These positive signs are tempered somewhat by rising paper, ink, toner, and energy costs. Nearly two-thirds (65.7%) of the Panel members report paper prices have risen an average 5% this year, and 43.3% say that energy costs have increased an average 6.7%.
“More than four out of five (81.7%) of our Panel members are concerned that cost inflation will squeeze already thin margins,” say the NAPL economists. “They know that the cost of a broad range of materials and consumables will be rising, and, eventually, so will salaries, wages, and interest rates.
“Economic conditions make it difficult for them to pass these increases along to consumers, so slim profit margins are becoming even thinner,” they continue. “And some panelists express concerns that raising prices for any reason will drive clients away from print permanently.”
NAPL Printing Business Condition updates, based on surveys of NAPL’s 300+ member industry Printing Business Panel, are part of the NAPL State of the Industry Series, sponsored by Heidelberg, which also includes the annual NAPL State of the Industry Report and Strategic Perspective report. State of the Industry Series publications are provided as a membership benefit to NAPL corporate and associate members. For information, contact Membership Director Kristen Kitchen at (678) 594-0048, Ext. 104, or email@example.com, or visit www.napl.org/membership .
NAPL is a not-for-profit business management association representing companies in the $80+ billion commercial printing and graphic communications industry in North America. NAPL’s comprehensive slate of business-building solutions provides company leaders with the management tools they need to make informed business decisions in an ever-changing market environment. It addresses the unique concerns of small printers through the National Association of Quick Printers (NAQP). For more information on NAPL, visit www.napl.org or call (800) 642-6275.