HOT MARKETS FOR 2006 — NEW YEAR CELEBRATIONS
Investment banks/mutual funds ($4.3 billion to print) should experience 25 percent growth as the third largest demander of digital printing at more than $3.2 billion, primarily in viewbooks and trading proposals. Brokerages will also return to heavy advertising as class-action lawsuits against them are settled favorably. ROP spending could rise to $2 billion.
Checking in at Number 13 is security ($480 billion, +10 percent; with $7.5 billion to print, -8 percent). Radio frequency identification (RFID) chip embedment and reading hasn’t penetrated, so to speak, but nanotech and biometric recognition will—after 2006—have greater value in tags, labels, passports, licenses, decals, legal documents, folding cartons, P-O-P, books and most every other form of printing and converting.
Smart labels and packaging for product/personal identification will change appearance and visual information, and provide instructions for home appliances and other consumer devices ($3.9 billion to print, +4 percent). Locks, safes and equipment ($3 billion to print, +0 percent) and data/document security ($0.9 billion to print, +4 percent) will open UV sheetfed, screen, hologram and micro/embed work for keyless entry cards, anti-counterfeiting/copying, theft warning/detection, and other visual, electronic and chemically reactive products.
Off will be uniformed security apparel and sign work since the Transportation Security Administration and its private derivatives are completely fitted out.
Home improvements ($907 billion, +25 percent; with $7.5 billion to print, +1 percent), with disaster demand, needs no new print, and falls to Number 14. Floors, walls and windows ($1.8 billion to print, +37 percent) are ratcheting up web and screen work along with home appliances ($2.1 billion to print, +11 percent), furniture ($0.8 billion to print, +24 percent), and tools and materials ($1.8 billion to print, +29 percent). Remodeling services ($1 billion, +25 percent) will demand sheetfed, duplicator and digital output.
Discount retail ($997 billion, +10 percent; with $5.7 billion to print, -25 percent) overlaps as a big-box sector at Number 16. Hypermarkets and clubs ($3.9 billion to print, +0 percent) are leveling with fewer new outlets and grand opening publicity. Instead, stores are remodeling and repositioning with in-store and brand extension screen and heatset web printing. Off-price stores/outlets ($3.4 billion to print, +7 percent) are taking over local merchants and will lead the sector in sales and locations.
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