Growth in online substitutes will affect demand for printed products such as newspapers and books
Melbourne, Australia (PRWEB) June 19, 2012
Consumers are increasingly choosing to receive information via alternative mediums, such as the internet, rather than via printed materials, leading to a decline in the preference for printed materials and Printing industry revenue. New media is encroaching as the printed word proves slow to produce and costly to distribute. According to IBISWorld industry analyst Nigel Fitzpatrick, “the Printing industry is expected to generate revenue of $8.29 billion and employ 37,667 people in 2011-12, making it one of the largest manufacturing industries in Australia”. However, the industry is stagnating and revenue is expected to decrease by 3.0% in 2011-12 (following decreases in the previous three years). Industry revenue is expected to decrease at an annualised 4.2% in the five years through 2011-12.
Sluggish growth in the Australian economy and in advertising spending has affected print volumes. The internet is becoming a more important platform in communications and advertising. Fitzpatrick adds, “competitive price pressures, exacerbated by excess capacity, will also affect the performance of the industry”. The Printing industry is characterised by a large number of independent, small to medium-size operations. The Printing industry’s market share concentration is therefore low. The major players in the industry are IPMG, PMP, Geon Group, Blue Star Group, and OPUS Group.
While the Australian economy is expected to be strong in the five years through 2016-17, the Printing industry's revenue is expected to decrease. Excess capacity and competition from substitutes such as online information and advertising will continue to affect industry activity over the five years through 2016-17. The increases in electronic transactions, electronic distribution of documents and data, and online distribution and hosting of media content all represent significant risks to most industry segments. Over the next five years, the increasing use of substitute technologies such as e-commerce, e-mail and the internet will affect the demand for bank cheques, business forms and directory printing.
For more information, visit IBISWorld’s Printing report in Australia industry page.
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IBISWorld industry Report Key Topics
The Printing industry consists of commercial or job printing establishments and includes commission printing of paper stationery and printing onto textiles or other surfaces.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
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