Semper International Releases Fourth Quarter 2015 Industry Insight Survey Report
BOSTON—November 4, 2015—Semper International released its quarterly economic insight report, the "Fourth Quarter 2015 Industry Insight Survey Report," which was created in partnership with Printing Impressions magazine. As this quarter ended, the survey results show marked concern on future business—businesses are husbanding capital as shown by a fourth consecutive quarter of reduced investment in diversification. Semper International's respondents are very concerned about keeping the profitability gains they made clearly in sight. It seems companies are expecting at least a short-term contraction in business and are looking to conserve resources in preparation.
On the world stage, the Middle East is in turmoil and Europe is under siege. The sudden Chinese slow-down, devaluation and brinksmanship with the U.S. are all sending waves through the global economic system. Some might find themselves asking, "When will we finally recover from this economic malaise?"
This year has shown some bright spots: the labor market is consistently stronger and a decent Second Quarter GDP report bolstered consumer confidence. Semper International expects the upcoming Third Quarter GDP numbers will reflect this turmoil and an inevitable hunkering down among businesses in the past few months. Specific to our industry, there is considerable excitement and hope for the future. After attending the recent GRAPH EXPO 15, and seeing the energy in the room, Semper International is excited to see where the next few months will take the industry.
This fourth quarter report reveals interesting results:
- Profitability roars back with 84 percent of firms positive in the third quarter
- Margin holds strong with 50 percent of companies living in the sweet spot (5 to 10 percent margin)
- Some troubling economic indicators surfaced:
• Sales forecast for the fourth quarter dropped below 50 percent
• Less companies are diversifying
• More companies are concerned about maintaining profitability