Renewed business activity will spur increased industry demand in the short term
Los Angeles, CA (PRWEB) December 15, 2013
The Office Stationery Manufacturing industry has been hit hard in the five years to 2013. Since the industry is highly reliant on business activity, revenue dropped significantly during the recession. Likewise, the rising use of electronic communication and storage reduced demand for traditional paper stationery products, such as envelopes, letters and file folders. Subsequently, industry revenue is expected to decline at an annualized rate of 4.7% over the five-year period to $6.7 billion; with an expected decrease of 1.0% from in 2013.
While industry revenue has slowly recovered from the recession, email and other technologies continue to reduce domestic demand for stationery products. According to IBISWorld Industry Analyst Brittany Carter, “The percentage of services conducted online increased 1.5 percentage points from 2009 to 2010 alone and is expected to increase 3.4 percentage points in the five years to 2013.” Most players have responded by eliminating unprofitable product lines and focusing on core product offerings, with several moving operations offshore to take advantage of lower operating costs and growing markets.
As companies continue to consolidate facilities, profit margins are expected to rise in 2013. Unstable demand conditions, increasing input prices, and difficulty passing rising costs on to customers have led to volatile profit levels for the average industry operator. Many small to medium-size companies that could not pass on rising input costs were forced to shut down, consolidate, merge or be acquired. Consequently, the total number of enterprises declined at an average rate of 2.9% per year in the five years to 2013, totaling to 378 industry players.
While the long-term outlook for this industry is less than promising, increases in business activity will partially mitigate the increase in use of electronic substitutes. “As companies attempt to compete in a saturated and declining market, downsizing and consolidation are expected to continue for domestic operators in the coming years,” says Carter. To offset declines, companies will develop higher-quality, niche products and continue to move operations abroad. Overall, IBISWorld expects revenue to decrease over the five years to 2018.
The Office Stationery Manufacturing industry has a medium level of market share concentration. The top players are The International Paper Company, Cenveo Inc. and ACCO Brands Corporation. Concentration increased during the five years to 2013 because many companies exited the industry or merged with other companies due to declining demand among consumers for many of the industry's products. Recent major player consolidation includes Cenveo acquiring National Envelope in 2013 and MeadWestvaco's Consumer and Office Products merging with ACCO in 2012. While establishments with fewer than 20 employees account for 53.2% of total establishments, suggesting a large number of small players, these establishments account for less than 3.0% of total revenue. In the next five years, IBISWorld estimates that companies will continue to merge and consolidate resources in an effort to increase market share and revenue.
For more information, visit IBISWorld’s Office Stationery Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
Operators in the Office Stationery Manufacturing industry process paper and paperboard. Companies produce a variety of stationery products used for writing, printing, filing, mailing and similar applications. Industry products are sold directly to stationery wholesalers, retailers and large enterprises. End users include businesses, students, home offices and households.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.