The Quick Printing industry is facing significant challenges due to the past decade's swift decline in computer, software and peripheral equipment prices. “Rapid advancements in computer technology have allowed consumers and small businesses to complete tasks, previously serviced by quick print shops, from the convenience of their homes and offices,” says IBISWorld industry analyst Stephen Morea. “Moreover, consumers are increasingly favoring alternative mediums, such as online media and digital communications, over printed materials, leeching away industry demand.” Over the five years to 2013, revenue is expected to fall at an average annual rate of 3.7 percent to $2.9 billion. In spite of these trends, industry revenue has stabilized due to a modest bounce back in print advertising expenditure following the end of the recession. Consequently, industry revenue is expected to increase by 1.3 percent to $2.7 billion in 2013.
FedEx Corporation, a global shipping and receiving firm, dominates the industry. The Quick Printing industry's largest players include office retailers, shipping and transportation companies and business support firms. In the five years to 2013, the number of enterprises is anticipated to fall at an average annual rate of 3.3% to 4,920 companies; this trend is expected to continue as major players continue to gain market share and smaller companies exit the industry because of declining demand.
More recently, industry demand has shifted toward higher-value services, such as custom and high-quality promotional printing, and away from basic printing. “The popularity in web-to-print services, in which customers design materials and send them electronically for printing, is indicative of this shift toward technology-heavy processes that will increasingly be covered by the industry,” says Morea.
Industry revenue is forecast to break its decade long trend of decline by increasing in the five years to 2018. Although improving economic conditions will boost business demand for quick printing services, consumers' continued transition to the internet and do-it-yourself (DIY) printing will limit industry gains. In response, quick printers are expected to increasingly expand their operations to other high-value services, such as design and promotional printing for small businesses. For more information, visit IBISWorld’s Quick Printing in the US industry report page.
Due to the highly competitive nature of the industry and because most firms are small regional operators, it is difficult for players to capture significant market share. With apparel printing, there are websites that instruct consumers on how to screen print their own apparel, thereby making the services of industry operators less essential. Furthermore, industry products such as calendars, yearbooks, periodicals and invitations are becoming increasingly digitized, making it more difficult for industry operators to increase revenue. Therefore, the industry is estimated to have a low market share concentration.
Competition is anticipated to become even more fierce over the next five years, limiting revenue growth. Industry revenue will grow as consumer and business incomes continue to rise; however, these gains will taper off over the next five-year period, due in part to slowing corporate profit growth. Corporate profit rebounded strongly from the recession, growing at an annualized rate of 9.6% in the past five years. But this growth will slow in the five years to 2018. Gold Printing Group |
