Traditional customers, such as finance and advertising firms, are increasingly moving online and reducing demand for printing services.
Melbourne, Australia (PRWEB) February 26, 2014
The Printing industry has been hit hard over the past five years as a number of social and economic trends have worked against it. Consumers are increasingly choosing to receive information via alternative mediums, such as the internet, rather than via printed materials. This has led to a decline in demand for the services of professional printers. IBISWorld industry analyst Alen Allday states, “New media continues to encroach into the domain of book and periodical publishing, as the printed word proves slow to produce and costly to distribute. Consumers and businesses are increasingly trading and conducting business online without the aid of printed materials.” The Printing industry is expected to generate revenue of $7.9 billion and employ 34,800 people in 2013-14, making it one of the largest manufacturing industries in Australia. This revenue figure includes a forecast decline of 3.4% in 2013-14, making it the ninth-straight year that industry revenue has declined in real terms.
Industry revenue is expected to decrease at an annualised 4.3% over the five years through 2013-14. According to Allday, “the internet is becoming a more important platform throughout all sectors of the economy, especially in areas where demand for printing services has traditionally been high, such as finance, retailing, communications and advertising.” Advertising spending is being redirected to the digital space and online shopping is growing at the expense of bricks-and-mortar retailing. A strong Australian dollar has made imported printing more cost-effective, while also negatively affecting the competitiveness of some of the industry's customers. Competitive pricing pressures and high fixed costs, exacerbated by excess capacity, are also affecting the performance of the industry and contributing to smaller profit margins. The Printing industry's problems are expected to continue over the five years through 2018-19. Excess capacity and competition from substitutes are expected to continue to put pressure on the profitability of industry operators. Internet use and the trend towards conducting trade and business online show no sign of abating. Despite recent depreciation, a relatively strong Australian dollar and high industry wages will make overseas printing more attractive, leading to less demand for local printing services.
The four largest firms in the Printing industry account for a small share of industry revenue, indicating a low level of market share concentration. As the industry is characterised by a large number of independent, small operations, it has a low concentration level that is expected to remain low over the next five years. However, concentration is much higher across some industry service segments (e.g. heat-set web printing and the sheet-feed market). The major industry players include PMP Limited, IPMG Pty Limited and Blue Star Group Pty Limited. 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
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