Mark Hahn

Reprographers were some of the earliest adopters of fully digital workflows. Their familiarity with wide-format monochrome printing devices and digital workflows enabled a wide variety of services to a diverse client base. Clearly, this convergence is still eminent in modern-day printing companies and M&A activity.

Success in the market now depends on delivering a value proposition to customers that is more meaningful than just owning a wide-format printing device.

Despite the increased postage costs and degradation of postal delivery standards, marketers continue to utilize direct mail printing as an effective communication channel. As a response to the relaxed delivery time standards, direct mail printers have responded by acquiring companies distant from their home base.

Many printing and packaging companies are struggling to procure the paper they need, the grades they require, in a quantity necessary.

Wide-format printing technologies now have specialized variations serving niche markets. This has resulted in competition within the industry as the business evolves into sub-segments. Now, success in wide-format depends on delivering a value proposition to customers rather than just owning a large printing device.

The supply and demand curves have crossed, and the paper mills are in charge. While labor strikes and supply chain disruptions have shifted pricing leverage to the mills, one trend not likely to reverse is the conversion of papermaking machines from printing paper grades to packaging grades.

As the industry converges and consolidates, so have many trade associations. This might be best exemplified by the recent merger of SGIA and PIA, which is reflective of the ongoing consolidation in the highly fragmented and diverse universe of companies that make up the industry.

The Target Report looks at some of the more recent merger and acquisitions, along with a summary of equipment manufacturing deals.