With the continuing advancements in technology, the printing market has experienced a shift of needs in order to remain successful. Print shop owner’s need to create a printer’s plan to stay on top of the latest trend and to simplify the way they operate their shop.
“Owners who are staying on top of the industry changes and have learned to calculate real costs for running their business, will not only continue to be successful, but will see dramatic growth in their business and their profitability” said Ron Teller Principle Consultant at Ron Teller Consulting.
Let’s look at the notable market shifts over the years.
Overview of the Market
Revenue Growth: The printing market has seen moderate growth, with a significant portion of this growth attributed to cost pass-through rather than production gains.For instance, sales increased by 14.4% in 2022, but much of this was due to inflationary cost adjustments.
- Operating Costs: Operating costs have risen sharply, with inflation averaging 12.2% over the same period. This includes higher costs for labor, substrates, consumables, transportation, and energy.
- Profit Margins: Despite the increase in sales, profit margins have been squeezed due to the rising costs. Companies that managed to increase profitability focused on business fundamentals and efficient execution.
Market Trends and Projections
- Digital Transformation: The market is increasingly driven by digital transformation. SMBs are investing in cloud infrastructure, managed IT services, and collaboration solutions. This shift is expected to continue, with significant spending on IT solutions projected to grow.
- Managed Print Services: There is a growing trend towards managed print and document services, which are becoming more integral as businesses seek to modernize their print infrastructure. This includes a focus on cloud, security, and user experience.
- Automation and AI: AI-powered automation is gaining traction among SMBs, particularly in areas like customer service, marketing, and finance. This trend is expected to drive further investment in SaaS solutions.
Market Expansion or Consolidation
- Expansion: The market is likely to expand as SMBs continue to adopt new technologies and digital solutions. The demand for managed services and IT solutions is expected to grow, driven by the need for business continuity, disaster recovery, and enhanced security.
- Consolidation: While there is potential for market expansion, there may also be some consolidation as smaller players merge or are acquired by larger firms to leverage economies of scale and enhance their service offerings.
Overall, the printing market is poised for expansion driven by technology and the ongoing digital transformation. Ron Teller continued to say “Print owners who are grasping on to the traditional and the old ways will find it extremely difficult to compete and remain profitable while businesses that adapt to these changes and focus on innovation and efficiency are likely to thrive”.
