NAPL State of Industry Update Helps Printers Prepare for Expected Economic Slowdown
PARAMUS, NJ—10/12/2006—The NAPL 2006 State of the Industry Update: Preparing for a Slowdown explores how graphic communications companies can help prepare for the slowing in the economy that’s likely as we move toward 2007. Recently released by NAPL (www.napl.org), the trade association for excellence in graphic communications management, the State of the Industry Update explores how a slowing economy will affect printing company clients; how printers can gain a strong foothold with their customers, and how they can protect their already pressured bottom lines.
“For every one percentage point slowdown in the gross domestic product—GDP—print sales drop by more than $1 billion,” said Andrew Paparozzi, NAPL vice president and chief economist. “Therefore, when we see the economy slowing from 3.5% - 4% growth to more like 2.0% - 2.5% growth, it’s very significant.”
Paparozzi notes, however, that “graphic communications company leaders should not feel helpless about an economic slowdown. There is plenty they can do to prepare their companies so their organizations can be stronger coming out of the economic slump than they were going into it.”
The State of the Industry Update explores the various factors behind the forecasts of an impending economic slowdown and offers practical strategies printers can implement to protect their companies. “It’s important that printers begin to prepare for the slowdown now and not be caught off guard,” said Joseph Vincenzino, NAPL senior economist, advising that graphic communications companies:
-- Continue/enhance efforts to achieve productivity gains and efficiencies.
-- Review employment needs carefully and frequently; don’t ignore organization development.
-- Continue to pursue service diversification if that aligns with overall strategic objectives.
-- Monitor how the economy (local, regional, national, and international) may impact clients.
-- Be prepared to help clients meet their business challenges.
The State of the Industry Update also provides a valuable tool to help printers assess their current status and strengthen their positioning as the slowdown approaches. Called “Questions to Ask Before the Slowdown Hits,” the exercise helps companies focus on the critical areas to address at this critical juncture.