Is Your Company Ready for Convergence?

Convergence shows no signs of slowing down. According to Nathan Safran, VP of research at Alliance Insights, widespread diversification has resulted in the blurring of traditionally rigid boundaries between very different segments of the industry.

“In the past, it used to be: ‘I'm a commercial printer,’ ‘I'm a graphic and sign printer,’ ‘I'm a package printer,’” Safran said during a session at PRINTING United Expo 2026. “Now it looks more like this: ‘I'm a printer that does a variety of applications.’”

There are several factors making this confluence possible. Firstly, customer demand. In Alliance Insights’ third report on convergence, “Profiting Through Convergence,” 91% of surveyed print service providers (PSPs) reported that customers increasingly expect a one-stop shop experience when they are looking for print products. It means PSPs are expected to offer everything from brochures and direct mail to banners and promotional products; if they lack something the customer needs, they might lose their business altogether.

Secondly, 90% of PSPs reported that new technologies are making it easier to move into new segments. For instance, digital printing equipment can lower the barrier to entry into segments that have traditionally required deep technical expertise or equipment with niche capabilities, such as flexible packaging or labels.

The trend toward convergence has been traced for years now, but this latest report highlights the financial implications for PSPs.

For instance, the data revealed that surveyed PSPs have seen revenue increase by an estimated average of 16.7% because of their diversification efforts. Meanwhile, estimated average profitability increased by 11.1%. Fifty-two percent of survey respondents said convergence offers higher margins.

Lisa Cross, principal analyst at Alliance Insights, pointed out that explicit financial gains are only one of the benefits convergence brings. Ninety-one percent of survey respondents said growing into new segments improved their resilience in the face of shifting demand and economic winds; 94% reported new growth opportunities; and 93% said their client relationships have become stronger.

“Offering more to your existing customers can really strengthen those relationships,” Cross explained, “and really creates what we would like to call sticky business — where your customers aren't going to leave you for cost per unit because you're so ingrained with them and offering them so much service … Your relationship is going to get better with them, because you're having more discussions with them and you're their go-to person.”

The potential is great, but how do you know if you’re ready to make that jump? Cross shared a checklist developed using insights from the “Profiting Through Convergence” report to help PSPs assess whether now is the right time for them to diversify.

Customers Are Asking

According to Cross, one of the telltale signs that a company is ready to move into a new segment is that customers are looking for products or services that are not already offered. Many times, if customers want to buy something a PSP doesn’t have, those jobs are being referred elsewhere — which can put strains on the relationship with the print buyer and limit how “sticky” a PSP is. Convergence can protect against this.

You Have an Outsourcing Partner

Another sign a PSP might be ready to diversify their portfolio is that they already have a partner they trust with outsourcing work. If customers are consistently asking a PSP for signage and POP displays, for example, they likely have a wide-format printing company they collaborate with to offer those solutions without directing the customer to an outside source.

Having this trusted partner can help PSPs ramp up to insourcing new types of work.

Production Capacity Is Available

Additionally, Cross noted that having a production floor that can absorb new work without disrupting current jobs is another crucial indicator of preparedness. However, she emphasized the importance of being realistic about this.

“A lot of times, we're not honest about our capabilities and what we can do,” Cross said. “We underestimate what the task or the project is going to take. So, you really have to be honest on that.”

Staff Is Willing and Able

Not only must a PSP’s production capacity enable convergence, but the people running operations must be able to learn and manage new processes. Because the strongest path toward convergence is paved by the existing workforce — rather than new hires with specific skill sets — getting employees onboard is critical.

“What does your workforce look like?” Cross said. “Do you have employees that would be willing to learn something new? Or is your staff [thinking]: ‘This is how we've done it ever since I came in the door; we're not changing it.’”

You Can Identify Buyers Today

Tying in with customer demand, Cross said PSPs must be able to point out three to five existing customers who would buy this new service or product from them should they offer it today. A foundational piece of convergence is having buyers for any new offerings, and the best place for PSPs to start is their own client portfolios.

If a company can check all these items off the check list, it’s time to create a plan for convergence — a specific and focused one, Cross advised.

“Some of the things that hold companies back: They expand without a clear focus or plan,” she said. “They're competing more on having a breadth of services over value. They're adding capability without alignment, and they're chasing everything at once. So, not very focused, not having a plan, and trying to do too many things.”

Want to learn more? Check out Alliance Insights’ “Profiting Through Convergence.” And be sure to save the date for next year’s PRINTING United Expo, Sept. 14-16, 2027, in Las Vegas.