IBISWorld Reports Declines in Print Media
The printing industry has endured a variety of challenges over the past five years, with consumer preference trending toward digital alternatives to printed materials, such as online media. According to an August printing market research report from IBISWorld, new media types are a leading factor in declines in the print industry. Additionally, demand for print advertisements has consistently fallen during the past five years. Because of these changes, printing industry revenue is expected to decrease during the five years to 2014. The increased price of paper will also play a role in the expected decrease of revenue in 2014.
Investing in new equipment is essential in remaining competitive in the industry, especially when capacity is at a high. Because of the decrease in orders, overcapacity has contributed to the long-term trend of industry consolidation. Consequently, during the five years to 2014, the number of commercial printing companies is expected to fall. With industry consolidation becoming a reality, larger printers have been able to add equipment, while cutting staff and salaries. Employment in the five years to 2014 has also declined because of a wave of printing facilities closing.
While the next five years will likely see more contraction in the printing industry, the decline is expected to slow. Increased paper prices and more availability to online media will remain an obstacle, but printers can adapt by adding cross-media products, like multimedia layout and design to their repertoire.
