PIA/GATF Chief Economist Reveals Strategies for Improving a Printer’s Financial Performance
PITTSBURGH—January 11, 2007—At the most basic arithmetic level of any business, there are only three ways to improve profitability. Since profits are the difference between total revenue and total cost, the three basic paths to improved financial performance include pursuing pricing power, pursuing cost control, and pursuing sales growth.
These options provide printers three distinct strategic paths to improved financial performance. But the key questions are:
• Which of these strategies work best in the printing industry?
• Which one should senior management pursue?
PIA/GATF’s Vice President and Chief Economist, Dr. Ron Davis, performed statistical simulations with the PIA/GATF Ratios database on revenue, cost, and profits of all printers and industry profit leaders to examine these questions and estimate the impact on profitability from each of these three distinct strategic approaches.
Although there are some overlapping tactics, for the most part, these different strategies cannot be pursued jointly although certainly a firm may try some of each. They are generally mutually exclusive, and each requires a large degree of executive leadership from senior management. In choosing which strategy to pursue as number one, a printer must select a strategic intent or overriding strategic priority.
In an exclusive session at the upcoming PIA/GATF Presidents Conference, March 4–8 at the Sheraton Wild Horse Pass Resort in Chandler, Arizona, Dr. Davis will further reveal the results of his research, which are sure to surprise many printers. He will also review the specific tactics that are appropriate for each approach.
For more information or to register for the 2007 Presidents Conference visit www.presidentsconference.com or contact Diane Koch at (800) 910-4283, ext. 803 or firstname.lastname@example.org.
PIA/GATF is the world’s largest graphic arts trade association representing an industry with more than 1.2 million employees. It serves the interests of more than 12,000 member companies. PIA/GATF, along with its affiliates, delivers products and services that enhance the growth, efficiency and profitability of its members and the industry through advocacy, education, research and technical information.