Overview of the Printing Industry in 2022
The printing industry faced various challenges over the past two years, including supply chain disruptions, labor shortages, and cost inflation. Despite these obstacles, the industry eked out moderate growth in real sells, with a 2.2% increase in the first three quarters of 2022. However, much of this growth resulted from cost pass-through, as operating cost inflation averaged 12.2%, and price increases averaged 12.3% during the same period.
Moreover, while sales increased for 78.4% of the State of the Industry (SOI) participants, only 48.8% saw increases in pre-tax profitability. Many companies credited their ability to focus on and execute business fundamentals for the increase in profitability despite the challenging market conditions. The market for major substrates and consumables is still tight, which leads to continued price increases.
Looking ahead, just over 30% of SOI participants expect business conditions to improve in 2023, with over half of them voicing concerns about maintaining profitability. To protect margins in 2023, more than 70% of companies plan to raise prices, while others plan to control costs more effectively, invest in capital equipment, and develop their workforce. The printing industry will likely slow down in 2023, with many companies planning to target industries that hold up well during economic downturns.
Printers mostly consider increasing investments in bindery/finishing equipment and systems, e-commerce solutions, workflow software, and MIS/CRM/ERP solutions. The primary investment objectives are boosting productivity and efficiency, increasing production speed while decreasing turnaround times, and automating operations.
Implications of the survey for web-to-print
According to the survey, e-commerce solutions and workflow software were among the top three most desired investments by printing companies. These responses indicate that the adoption of web-to-print technology continues to grow in importance for the industry.
Printing companies also cited management information systems (MIS), customer relationship management (CRM), and enterprise resource planning (ERP) systems as worthwhile investments. These systems can integrate with web-to-print solutions to provide a seamless end-to-end printing process, from order placement to delivery.
The survey results highlighted challenges and opportunities in the web-to-print market, and they offer important insights for printing companies looking to stay competitive in this changing industry. One of the key challenges identified by the survey is the need to offer personalized products and services, which can be a significant undertaking for companies without the right tools and technologies.
However, the respondents also indicated that printing companies recognize the potential of web-to-print solutions to overcome this challenge and are investing in automation technologies that include web-to-print capabilities. By integrating web-to-print solutions into their operations, printers can offer customers an efficient and personalized experience that sets them apart from the competition.
The survey drew attention to the additional challenge of printing companies creating an omnichannel experience for their customers. This task is easier said than done for companies that operate across multiple channels, but web-to-print solutions can help streamline the process and ensure a consistent experience for customers regardless of how they interact with the company.
The SOI participants also spotlighted the opportunities for printing companies in the web-to-print market, with the potential to grow their businesses by offering new products and services that cater to changing customer needs. By leveraging web-to-print solutions, printing companies can expand their product offerings and provide customers with a seamless and personalized experience that meets their unique needs.
Overall, the results confirm that printing companies continue to warm up to the idea of using web-to-print solutions to address challenges and seize opportunities in the industry. By investing in automation technologies and leveraging web-to-print capabilities, printing companies can stay competitive and thrive in this rapidly changing market.
Key takeaways
- The printing industry has faced challenges in the past two years, including supply chain disruptions, labor shortages, and cost inflation, but it has still seen moderate growth in real sales.
- Web-to-print technology adoption is becoming increasingly important for the industry, as e-commerce solutions and workflow software were among printing companies' top three most desired investments.
- By investing in web-to-print technology, printing companies can automate their operations, increase productivity and efficiency, and reduce turnaround times.
- Web-to-print solutions can help printing companies offer customers an efficient and personalized experience that sets them apart from the competition and create an omnichannel experience for their customers.
- The potential of web-to-print solutions offers opportunities for printing companies to grow their businesses by offering new products and services that cater to changing customer needs.
- To succeed in the years ahead, printing companies should embrace web-to-print technology and adapt to the changing market conditions by investing in automation technologies and leveraging web-to-print capabilities.
Conclusion
While the printing industry faces many challenges, web-to-print technology offers just as many solutions. Printing companies can improve their productivity and efficiency by investing in automation technologies and offering personalized products and services. With the growing demand for customized and convenient printing solutions, creating an omnichannel experience for customers is crucial to success.
Web-to-print will clearly play a crucial role in shaping the industry’s future as it continues to evolve. To discuss how Customer’s Canvas can help your printing company implement web-to-print technology and get an early start on the competition, contact us today. Companies that embrace this technology and adapt to changing market conditions will position themselves for success in the years ahead.
