NPES Industry Summit Portrays a Healthy Industry with Global Growth Prospects

RESTON, VA—April 4, 2007—The first NPES Industry Summit, held recently in Chicago, provided an optimistic view of print’s current and future prospects and a preview of the world’s most promising growth markets for the years ahead.

The Summit, presented by NPES The Association for Suppliers of Printing, Publishing and Converting Technologies, combined the 26th edition of the PRINT OUTLOOK® economic forecasting conference with the NPES Spring Conference and the Spring meeting of PRIMIRSM, the Print Industries Market Information and Research Organization.

“Bringing the annual PRINT OUTLOOK together with the PRIMIR Spring Meeting and the NPES Spring Conference in a central locale like Chicago provided a powerful return on investment for attendees, exceeding what any one of the individual conferences could hope to provide alone,” said NPES President Ralph Nappi. “Evaluations from our members confirm the concept has real merit,” Nappi continued. “The benefits of cross pollinating our industry’s best leaders and thinkers in a format like the NPES Industry Summit provide great strategic and operational benefits for those participating.”

PRINT OUTLOOK, which has previously been held in December in Washington, D.C., delivered a day-and-a-half review of how print is performing in the communications marketplace today and what lies ahead, both for the industry and for the national economy.

A series of speakers concurred that sustained economic growth and smart adoption of technologies to create new value-added services have helped put the U.S. printing industry in its strongest position in many years. Opening PRINT OUTLOOK, NPES Vice President William K. “Kip” Smythe commented, “I don’t think I have been this optimistic in at least 15 years. The last time we met, we had seen from 2004 that it looked like the industry was starting to come back. Now, it is clear we have had sustained growth.”

Ronnie Davis, chief economist at PIA/GATF, agreed, noting that U.S. printers’ sales reached $171 billion in 2006, a gain of 3.3 percent over the previous year and a major rebound from a low point of about $156 billion in 2002.

Davis said PIA/GATF forecasts increases of about 1.5 percent in 2007 and 2.5 percent in 2008. Significant growth is coming from new digital and “ancillary” services printers are adding to their portfolios, Davis said, adding, “This is still an opportunity industry.”

Joseph Truncale, president of NAPL, reported that “sales grew at their fastest rate in eight years in 2006 and will continue to grow, although at a noticeably slower pace, in 2007. Volume has finally regained pre-recession levels, and we’ve even regained some pricing power and profitability.”

He also described how successful printers are adapting their businesses to structural change in the industry, along with some of the barriers that still remain, including the need to develop “a whole skill set for the sales force” in many companies.

Keynote speaker Dr. Joseph Webb noted that “all media are experimental today because the relationships between them have changed so dramatically.” He said the challenge for printers was not only to be “modern” today but to “figure out how to be modern 18 months from now. It’s not your competitors you have to worry about, it’s your clients. You have to find a way to stay ahead of them.”

NPES Consulting Economist Michael Evans predicted there will be a slowdown in the national economy in 2007, but no recession. He said the media coverage of the recent reverses in mortgage lending was overstated and these developments did not represent a major threat to the total economy.

A highlight of the PRIMIR meeting was the preliminary presentation of the findings of the group’s latest study, “The World Wide Market for Print,” which forecast the national and regional markets likely to show the strongest growth in the near future. The presentation included a description of the top 10 future growth markets worldwide. The study is expected to be completed and the final report distributed to PRIMIR members this spring.

In addition, PRIMIR attendees heard an update on the recently completed study, “Effect of Postal Reform on the Demand for Print.” Between 2007 and 2008, postal reform and rate increases will remove between 800 million and 900 million catalogs from the mail stream, along with up to 350 million periodicals and 3 billion pieces of direct mail advertising, the study consultants projected. In many areas, however, a “wait and see” approach will be required as details of the new rate setting process emerge.

The PRIMIR gathering also included meetings of committees guiding ongoing studies in such areas as “Mega Printers’ Impact on the North American Print Market,” “Global Trends in Packaging Affecting North American Converters and Suppliers,” and “Trends in Sheetfed Lithography.”

About NPES
NPES is a U.S. trade association representing 460 companies that manufacture and distribute equipment, software and supplies used across the workflow of nearly every printing, publishing and converting process. NPES is a co-sponsor of PRINT®, GRAPH EXPO®, PackPrintSM and CONVERTING EXPO®. Complete information about the Association, its programs and its member companies is available at www.npes.org, by e-mail at npes@npes.org, by telephone at: 703-264-7200, or by fax at: 703-620-0994.

About PRIMIR
The Print Industries Market Information and Research Organization (PRIMIR), provides in-depth research and analysis for the graphic communications industry. Formed in 2005 when the NPES Market Research Committee merged with GAMIS, PRIMIR annually provides its members with current, relevant market data and detailed information on graphic arts and related fields. Members also benefit from meetings, market research skills building, and robust networking opportunities. For PRIMIR membership information contact Jackie Bland, PRIMIR Managing Director at: jbland@primir.org, or phone: 703-264-7200, ext. 287. Membership information is also available at www.primir.org.