Business Management – Market Research

NEW YORK—January 22, 2008—In the face of otherwise daunting marketplace challenges—including a substantial postage rate increase, higher raw materials costs and heightened competition from low-cost interactive media—U.S. direct mail spending continued to grow in 2007, climbing 5 percent from 2006 to total $58.4 billion in aggregate investment, according to a white paper released today by Winterberry Group, a leading strategic consulting firm serving the marketing industry. The white paper, entitled Vertical Market Trends in Direct Mail 2008, is the New York-based consulting firm’s fourth annual study of the direct mail sector, inclusive of both mailers and the production service providers who support their campaigns.

IPG's 2007 ranking of the largest In-plants.

Which in-plants are the largest in North America? We get asked this question dozens of times a year. To find out, we surveyed our readership. Most of the largest in-plants replied, allowing us to create two lists: The largest in-plants according to the number of full-time-equivalent employees (half of the part-time/temporary employees were added to the full-time figure). The largest in-plants according to sales. (If a sales figure was not provided, the annual budget was used.)

A recent study of the small commercial and quick printer segment by PRIMIR (Print Industries Market Information and Research Organization) reveals some interesting trends that could impact in-plants. Like in our industry, these print-for-pay providers are losing business due to the increased prevalence of copiers and desktop printers in their customers’ offices. They are trying to broaden their offerings as a result to capture more complex types of work. With much of their “walk-in” business drying up, they are focusing on sales-driven corporate work and boosting their sales forces. This means your customers will be receiving more sales calls. So it’s more

A recent survey completed by International Communications Research (ICR) revealed that even in today’s digital world, consumers prefer mail over other communications vehicles (such as e-mail) for receiving new product information and offerings as well as confidential business communications (bank statements, financial reports, etc.) The study, commissioned by Pitney Bowes, found that the majority of consumers (73 percent) prefer mail for receiving new product announcements or offers from companies they do business with, as compared to 18 percent for e-mail. Mail was also preferred by 70 percent of respondents for receiving unsolicited information on products and services from companies with which they are not currently

A new In-Plant Graphics survey reveals a rise in in-plant managers’ salaries in almost every industry. The three industries that pay their in-plant managers the most are also the ones boasting the biggest salary jumps over 2005: • Banking/Finance (up $24,628) • Transportation (up $17,725) • Utilities (up $16,582) Average salaries for in-plant managers in communications/publishing firms also rose an impressive $11,448. Also notable: salaries for college/university managers climbed $7,862 since 2005, closely followed by government in-plant salaries, which increased by $7,358. Dropping substantially were salaries for managers at architectural, construction and engineering firms. Their checks shrank by $12,000. The only other sector to suffer a salary decrease

Results of In-Plant Graphics' biennial salary survey.

There you sit, toiling away in your in-plant, confident your hard work is allowing your parent organization to run more smoothly, but not sure you’re being rewarded adequately for your efforts. If only you knew how much other in-plant managers were making. Well In-Plant Graphics is here to help once again with our biennial salary survey. This year we received an impressive 380 responses. From these we have calculated average salaries in a number of different categories—data you can present to your supervisors when it’s time to talk money. While in-plant managers’ salaries rose in almost every industry, some increased far more than others.

A new IPG survey of in-plants at wholesale/retail companies reveals that 59 percent provide variable data printing. 41 percent insource work from customers outside their companies, with the highest percentage coming from Non-profits. Only 29 percent have the right of first refusal for all printing/copying at their company, but 88 percent charge back for work. Watch for the full report in our January issue.

The Industry Measure (formerly TrendWatch Graphic Arts) has released a report entitled “Printing Forecast 2007: The Industry Measure Perspective on the Challenges and Opportunities for the Printing Industry in the Next 12 Months and Beyond.” The report contends that “business conditions for the printing industry have stabilized in the past two years, but more turmoil lies ahead.”  Among the figures it presents: • Three out of 10 graphic design and production establishments expect that business conditions in the next 12 months will be “excellent.” • 76% of graphic design firms cited “collateral print projects” as a top sales opportunity, up from 74% six months