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Wednesday, January 24, 2018

Commercial Printing 2018: What to Expect from the Industry

With minimal growth and a shift towards digital media, how can commercial printing adapt?

The once dominant industry of commercial printing has been on the decline over the last several years, and with the adoption of new digital technologies, many fear the commercial printing industry as we know it could be obsolete within the next few decades.

Industry reporting firm Idealliance reported that the commercial printing sector grew by 1% in 2017 which, while a positive sign in the right direction, is not impressive for this once booming titan of an industry. The good news is, with the acceptance of changing times and investment in different printing technologies, the same report predicts that in 2018 the commercial printing industry could grow by as much as 3%. 

Many experts believe that the industry must continue investing in new technologies to prepare for the future while also promoting the benefits of traditional printed materials to remain relevant.


2018 Will Be a Big Year For 3D Printing

IDC, an industry intelligence reporting firm, made a promising prediction that companies will invest nearly$12 billion in 2018 towards Discrete Manufacturing for the production of unique items like plane parts, toys, and other objects. Additionally, experts predict continued investment in emerging medical-based printing such as bioprinting and regenerative medicine. This is a great opportunity for the commercial printing industry to innovate and adapt to changing times as a shift away from traditional printed materials like business cards, newspapers, and direct mail flyers.

A Look Back at Financing in 2017

2017 was a big year for new print equipment financing. EDA, and industry reporting firm recently published their yearly insight report for 2017. In the report, they list the top equipment financers and buyers for 2017 with specific emphasis on November. The top financiers for the month including the five that tied for fifth place are the following organizations:

GENEVA CAPITAL                                     17
TCF EQT FIN INC                                      11
HEIDELBERG USA INC                              8
BOBST NORTH AMER INC                        5
CIT BANK                                                    4
KBA NORTH AMERICA                               4
PNC EQUIPMENT FINANCE                      4
MACDERMID PRINTING SOLUTIONS       4
WELLS FARGO EQUIPMENT FINANCE    4

All of these top companies combined for 65.6% of total new printing equipment financial statements. Even the top lender alone, Geneva Capital financed enough equipment to account for 18.3% of the total. The same report also lists the top U.S. printing equipment buyers as well:

Marketing Instincts California Epson          4
School of Visual Arts New York Epson       3
GameTime Wraps Arkansas HP                 3
RR Donnelley & Sons Delaware KBA         3
Quality Printing Massachusetts Ploar         2

From this list, you can see the company, their location along with the units that they financed.

Moving Forward into 2018

With more companies choosing to embrace the digital age and investing in more advanced technologies, shifting focus away from traditional printing methods, the commercial printing industry could be ready for its next phase. We'll just have to wait and see, but with experts predicting slightly more growth this year, 2018 might be a prominent year for the industry as a whole.