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New Study Looks At Printing's Merger Mania

January 1998

Printing companies that can afford the latest technology have troubles of their own. Once they install new equipment, they must contend with downtime.

"One of the challenges you have if you invest in new equipment is that you must keep that equipment busy," Scharfstein notes. "Sometimes that's difficult to do because a piece of equipment can double your capacity overnight."

Acquisitions can absorb that capacity. New companies provide new sales; new sales provide work to keep equipment running. That's one reason why printers buy other operations.

Not that printing companies are the only buyers in the marketplace. Scharfstein notes that outside sources also see printing as a lucrative industry worthy of investment.

"People are looking at this industry as having niches that can be profitable," he says.

By Jerry Janda
 

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