Operators are forced to adapt as demand is lost to digital media.
London, United Kingdom (PRWEB) May 14, 2013
Printed materials are increasingly being replaced by alternatives such as online media, as the printed word is proving slow to produce and costly to distribute. According to IBISWorld industry analyst Lewis Sutton, “consumers and businesses are increasingly trading and conducting business online and this is having a negative effect on demand for printed materials from retailers, financiers and service providers”.
In 2013-14, the Printing industry is expected to generate revenue of £8.9 billion, down 4.9% on 2012-13. The industry employs over 77,000 people, making it one of the larger industries in the United Kingdom but it is suffering from overcapacity and is in decline. This is resulting in a reduction in the number of businesses and the number of people employed in the industry. Employment numbers have dropped at a compound annual rate of 8.9% over the five-year period.
Revenue is expected to decrease at a compound annual rate of 6.9% over the five years through 2013-14. A weak UK economy and shrinking advertising market are adversely affecting the industry, as is the substitution of printed media for online or digital media. Declining sales volumes are being accompanied by downward pressure on unit selling prices. Capacity has been rationalised and firms have consolidated. Printing companies are now diversifying into complementary services that offer higher margins.
Industry revenue is forecast to continue to fall over the next five years to 2018-19. Sutton adds, “a pickup in economic activity and a stronger advertising market over the next five years will promote industry activity but the industry will continue to be hurt by competition from substitutes to commercially printed material, such as online information and advertising”. Furthermore, retailers, financiers and service providers are shifting their services online, reducing demand for printed materials. The ability to offer convenient and targeted products at an economic price will be important in many markets. There will be growth in shorter, digitally printed runs, which will make conditions difficult for long-run offset printers. Online printing operators will emerge as significant players in the short print-run market.
The Printing industry has a low level of market share concentration, with the four largest operators holding a combined market share of 10.3% and the largest firm contributing just 3.5% of industry revenue. Major companies include De La Rue and St Ives.
For more information on the Printing industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Companies in this industry print books, magazines, brochures, labels and tags, posters, diaries, calendars, maps, stamps, security papers, cheques, banknotes and other products. This industry excludes the printing of newspapers and periodicals appearing at least four times a week.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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