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FLEXO Magazine : June 2012
Industry Indicators Redefining the U.S. Printing Industry Structurally, U.S. printing is a big business with many small operators and an increasingly diverse revenue base. At 27,200, there are more printing businesses in the U.S . than any other form of manufacturing. Print ranks ninth, in terms of numbers of people employed (434,000), and 20th in terms of value of sales ($78 billion). More than 65 percent of American commercial print- ing establishments have annual sales of $1 million or less and better than 85 percent have annual sales of $3 million or less. Just 3 percent have annual sales of $20 million or more. Collectively, however, the largest 3 percent account for nearly half of the industry ’s revenue, while the smallest 85 percent account for less than one-fifth. “ We define the commercial printing industry as com- mercial printers, quick printers, digital printers, and other groups included in the North American Industry Classifica- tion System (NAICS) code 32311—Printing,” explains Andy Paparozzi, chief economist, National Association Printing Leadership (NAPL). “Some of these companies (just under 1,000) offer flexography and more will as they diversify into packaging. But, we do not include converters, publishers, in-plants, or trade shops in our data.” Services such as variable-content digital printing, data- base management, mailing, fulfillment, and cross-media marketing (including PURLS, QR codes, and campaign tracking/reporting) are increasingly important to compa- nies of all sizes. In fact, participants in NAPL State of the Industry research report that something other than lithog- raphy now accounts for nearly 40 percent of their revenue, up from 24 percent in 2006 and 13 percent in 2000. NAPL expects printing industry sales to grow 1 percent to 3 percent. It forecasts sales to continue growing, by an average of 2 percent to 3 percent per year, through the middle of the decade as the industry enters its first sus- tained upturn since 2004–2007. Printpack Inc. to Build new Facility in Rhinelander, WI; Closing Plants in Rhinelander and Hendersonville, nC Printpack Inc. has announced plans to begin construc- tion of a new plant in Rhinelander, WI, in the fall of 2012 as part of its strategy of aggressive reinvestment to improve production efficiency. The transition to the new Rhinelander plant will take place in the second half of next year. With the additional capacity created by the new Rhine- lander plant, it will be necessary to close Printpack’s Hendersonville, NC plant and transition that business to the new facility in Rhinelander. “ T he decision to close Hendersonville was very difficult for us. However, our goal has always been to provide our custom- ers competitively priced, high quality packaging materials, utilizing the best technology available. This new investment will enable us to continue to meet this goal,” said Dennis Love, president and chief operating officer, Printpack. Founded in 1956 and headquartered in Atlanta, GA, Printpack is a privately held manufacturer of flexible and specialty rigid packaging. Employing 4,220 associates worldwide, the company operates 28 manufacturing facilities in the United States, Mexico, the United Kingdom, Poland and China. 42 FLEXO june 2012 www.flexography.org PRESSIng ISSUES 27,200 Number of printing businesses in the U.S.; more than any other form of manufacturing 9th Rank of print in the total number of people employed (434,000) 20th Rank of print in terms of value of sales ($78 billion) 65% of American commercial printing establishments have annual sales of $1 million or less 85% of American commercial printing establishments have annual sales of $3 million or less 3% of American commercial printing establishments have annual sales of $20 million or more