HOT MARKETS FOR 2006 — NEW YEAR CELEBRATIONS
The roof is raised in Number 4-ranked real estate ($1.90 trillion, +20 percent; with $11.8 billion to print, +19 percent) following the storms of late 2005. Under way is the largest residential/new single housing ($2.8 billion to print, +52 percent) construction boom in history, with one-half the growth in the Gulf Coast region.
Residential resale ($2.9 billion to print, +11 percent) is similarly situated and will surpass 9 million units transferred in ‘06. Look for cold web and digital color promotional printing, as well as large-format screen, digital and sheetfed litho for outdoor advertising and signage. Mortgage fees ($0.8 billion in print, +34 percent) will rise with property transfers and values, with forms and outdoor advertising.
Rental housing ($1 billion to print, +9 percent) is up because of temporary living during reconstruction, but not as much as manufactured housing ($0.5 billion to print, +49 percent). Condominium/ second residences ($2.3 billion to print, +29 percent) developing in city cores and along the coastlines are the fastest growth sheetfed and digital print demanders of all sector categories. Trailing will be now-overbuilt commercial real estate ($1.5 billion to print, -17 percent). There will (must) be a fallback of this sector in the fall of 2006, so move fast.
Computer software ($315 billion, +0 percent; with $10.4 billion to print, +5 percent), at Number 5, will boot up the new year. Packaged/download software ($3.5 billion to print, +8 percent) will turn around as Microsoft introduces Vista, its biggest upgrade in a decade. A trend to 64-bit computing will foster many new software offerings. Video cards (VRAMs), dual-core, two-chip processing and copious storage products for HD video/DVD and Blue-ray recording will build in late ‘06 for double-digit 2007 sales.
Memory and storage ($2.8 billion to print, +7 percent) will continue to heat up. Network and mainframe computing ($2 billion to print, +10 percent) is building, but hosting ($1.5 billion to print, +0 percent) is hanging. Some printers will partner with Google or another search engine in reciprocal promotion and ad programs.
Vincent Mallardi, C.M.C., is a the chairman of the Printing Brokerage/Buyers Association International (PBBA) and is a Certified Management Consultant in the paper, printing and converting industries. He is also an adjunct professor in economics. Contact him via email at firstname.lastname@example.org