Printing Business Improving...Or Is It?

Printing industry profits increased slightly over the past year according to the 2006 PIA/GATF Ratios Survey. The average printer’s before-tax profit on sales was 2.7 percent over this past year. While this was an increase compared to 2.5 percent for 2005, it is still below the 3.0–3.4 percent range experienced from 1995–2001.

Meanwhile, The Industry Measure (formerly TrendWatch Graphic Arts), in its “Printing Forecast 2007” report, says three out of 10 graphic design and production establishments expect business conditions in the next 12 months to be “excellent,” an assessment shared by 29 percent of commercial printers. Among those same printers, 22 percent said business conditions for the past 12 months had been “excellent,” better than they had been in the 12 months before that.

The PIA/GATF survey reports that sales per employee for all printers rose slightly in 2006 to $136,469 (up from $131,601 in 2005).

Despite this, Andrew Paparozzi, NAPL vice president and chief economist see signs of slowing.

“Commercial print sales are moderating and the economy is definitely on a slower growth path,” he says. “Granted, compared where the industry has been in recent years, sales are still quite healthy, but a continuing deceleration in sales growth is likely and printers need to take this into consideration as they plan for 2007.”

NAPL’s Printing Business Index, a measure of print activity, eased to 58.7 in October from 59.4 in September. (A PBI reading above 50.0 means more printers report activity is picking up than report activity is slowing down; a reading below 50.0 means the opposite.)

For more on these reports visit www.ratios-sample.com and www.theindustrymeasure.com.