Some 'Really Good News' About the Economy

By Ashley Roberts

The following article was originally published by Printing Impressions. To read more of their content, subscribe to their newsletter, Today on PIWorld.

“This is what we’ve been waiting for.”

Leading up to those encouraging words, Andy Paparozzi, chief economist at PRINTING United Alliance, explained during the inaugural Leadership Summit that there is some “really good news” when it comes to the economy. In fact, he named three things attendees needed to understand if they want to know what’s happening in the economy: Productivity is finally increasing; supporting healthy gains in hourly compensation; and moderating increases in unit labor costs.

Paparozzi took the stage to explore results from both the State of the Industry and Leaders’ Key Financial Metrics studies. To begin the session, he explained that 2024 expectations mirror 2023 results, however, “expectations vary dramatically from company to company,” he said. The top 20% of participants in the State of the Industry survey reported an expected 2024 fiscal year average change in sales of 12.6%, versus a 3.7% increase for all survey respondents.

Some of the biggest concerns for participants for the first half of 2024, Paparozzi explained, are, understandably, maintaining profitability and increasing sales. When it comes to plans for building profitability, participants report that they have activities planned on “both the revenue side and cost side of the profit equation.” However, it’s important to market these activities more effectively. “We have to make sure our clients recognize our expanded range of capabilities and services,” Paparozzi stressed, “and how it will be a benefit to them.”

Attendees settled in for a morning of education.

The AI and Big Data Push

One of the biggest takeaways from the session is that it’s important not to count on the economy – since things are constantly evolving. Instead, focus on “building an organization with the skills and culture required to excel in the age of AI and Big Data.” Paparozzi explained that “AI is changing everything.” It’s revolutionary in that it has the potential to automate processes, operations, human resources, sales, marketing, content creation, customer service, and decision making.

Although Paparozzi provided 10 essential steps to getting AI right, he advised not to jump all in at once. “All experts agree, start small,” he said. Further, he suggested companies pick one area to start integrating AI into their operation, and then expand into other areas.

For those looking to integrate new solutions into their businesses, it’s also crucial to understand the biggest mistakes with AI. Paparozzi defined them as:

Failure to align AI initiatives with business objectives
Not considering the TCO
Poor data
Not preparing for disruption
Impatience

He also delved into Big Data, calling it the “other half of the revolution.” This includes advances in data storage, transfer networks, and analytics, which is providing access to an unprecedented volume and variety of data.

With all of this in mind, Paparozzi had a word of caution: “It’s not about amassing data, it’s about amassing the right kind of data.”

For more information on the reports mentioned in this article, visit PRINTING United Alliance's website.