Hot Markets for 2007 — Prepare for Growth
Radio frequency identification (RFID) chip embedment and reading haven’t penetrated, so-to-speak, but nanotech and biometric recognition will have greater value in tags, labels, passports, licenses, decals, legal documents, folding cartons, POP, books and most every other form of printing and converting.
Smart labels and packaging will change appearance and visual information, and provide instructions for home appliances and other consumer devices ($3.9B to print, +4 percent). Locks, safes and equipment ($1.7B to domestic print, -41 percent) market share is going to Chinese producers.
Home improvements ($939B +4 percent; with $7.1B to print, -5 percent) will drop one rung to Number 15 as the big-box dominators push non-brand, low-price imported products. Packaging for home appliances ($1.6B to domestic print, -25 percent), furniture and fixtures ($0.5B to domestic print, -38 percent) and tools and materials ($1.4B to domestic print, -22 percent) are getting hammered because of discount imports, with print buys chiseled.
Coldset-web FSIs, coupons, swatchbooks, POP, packaging and labels will continue to plane. Some print building segments will be floors, walls, windows ($1.9B to print, +6 percent), lawn and garden ($0.3B to print, +7 percent) and remodeling services ($1.1B to print, +9 percent), which source to mostly local sheetfed, label, folding carton and copy shops.
Overlapping is discount-retail ($1.02T, +2 percent; with $5.2B to print, -7 percent) ranked at Number 17. Wal-Mart, Costco and Lowe’s are at less than 2 percent growth, maxed out in locations and deluded that their markets are captive. To improve “shopping experiences” and look more like top-drawer retailers, the hypermarkets and clubs ($3.5B to print, -10 percent) will have to reposition themselves by 2008.
Increased Web Work
Meanwhile, off-price stores and outlets ($1.6B to print, +5 percent) are “on” to offset. Ross Stores (+13 percent), Big Lots (+9 percent), Dollar Tree (+8 percent) and others are up to doubling their web offset print spends. The increased U.S. minimum wage will swell this category beginning in ’07.
Vincent Mallardi, C.M.C., is a the chairman of the Printing Brokerage/Buyers Association International (PBBA) and is a Certified Management Consultant in the paper, printing and converting industries. He is also an adjunct professor in economics. Contact him via email at firstname.lastname@example.org