Paparozzi Gives a Glimpse Into the State of the Industry at Expo

On day one of PRINTING United Expo, some Expo-goers got an early start with an invite-only research breakfast presented by the Alliance Insights team. Nathan Safran, vice president of research, and Principal Analyst Lisa Cross led the discussion and also showed an insightful video from PRINTING United Alliance Chief Economist, Andy Paparozzi, on the State of the Industry research report sponsored by Canon U.S.A.

During his video presentation, Paparozzi acknowledged the challenges of 2025, including uncertainty, tariff policies, and increased operating costs. He also identified the top business priorities for 2026, such as increasing productivity, controlling costs, and exploring AI.

Paparozzi explained that the data he was presenting is preliminary, from 106 participants to date, in Alliance Insight's current State of the Industry survey. By the time the survey closes, Paparozzi said Alliance Insights will have 250 to possibly over 300 participants. Alliance Insights will publish the final results in the third quarter State of the Industry update next month, which Alliance members will be able to download at printing.org

Here are some key industry findings from Paparozzi's presentation:

• An overall 0.6% sales increase for 2025.
• 62.9% participants reported flat or declining sales.
• Operating costs increased 4.4%, while prices rose 6.2%, leading to a 23.8% profitability decrease.
• Tariffs impacted 90% of participants, with 50% delaying investments.

Paparozzi explained that the issue isn't so much the tariffs themselves, but the uncertainty of the administration's erratic tariff policies.

"If we know that the tariff on product x is going to be y percent, we prepare and adjust, but it's very, very difficult to adjust to policies that border on the random," Paparozzi said.

However, despite uncertainty, Paparozzi urges those not to fall behind with investments, especially investments in AI and automation.

“There is, however, a lesson in all of this turmoil that is worth carrying into 2026, and the lesson is, yes, moving forward during times of extreme uncertainty is risky, but sitting still and waiting for clarity is even riskier,” Paparozzi said.