Research Confirms the Lines Are Getting Blurry

A joint SGIA/NAPCO research study conducted in January 2018 confirmed the boundaries between printing businesses are beginning to disappear. The goal of the study was to evaluate the degree to which printers are expanding their service offerings across six different segments: commercial printing and publishing; graphics and sign production; in-plant printing; garment decoration; industrial printing; and packaging/converting (labels, folding cartons, flexible and corrugated).

During a Friday session entitled “Charting Industry Convergence,” Nathan Safran of NAPCO Research presented key findings from the survey. He also interviewed Terry Corman and Blaine MacMillan, two print-business owners who participated in the study.

Key findings

According to the convergence report, 95 percent of printers believe there is opportunity for expansion, and 93 percent believe others are expanding into new segments. Eighty-one percent believe this crossover will accelerate in the next five years.

Some of the market factors driving migration include: consolidation of print service providers; growth of the packaging market as consumer spending shifts online; the growing demand for variable print and personalization; and advances in print technology.

“Cross-segment expansion is occurring on some level across all segments, but the most significant crossover is occurring within the commercial, graphics and sign segments,” said Safran. “There is significant interest in the packaging, label and folding carton markets, followed by corrugated.”

He suggested the transition from single-process printing businesses to a one-stop-shops for all types of printing won’t occur overnight and advised attendees to consider where their shop falls on the continuum.

Comments from business owners

Terry Corman’s company, Firehouse Imaging Center in Indianapolis, specializes in wide-format graphics, but has experimented with offset printing. Corman said in the early days of wide-format printing it made sense to “go wide” and attract as many buyers as possible. Now that demand for large-format graphics has expanded, it makes sense to “go deep” within selected markets.

Blaine MacMillan, President of Cowan Imaging Group in Edmonton, Alberta, Canada, specializes in screen printing but has added high-speed digital printing to the mix. His business produces decals, fleet graphics, retail signage, architectural signage and promotional products.

MacMillan said his screen-printing business is doing well and attracting new customers as other screen printers leave the business. Many buyers of fleet markings, retail signage and
decals like the fact that screen printing costs about $0.05/foot compared to $0.45/foot or
more for digital.

Download a copy of the full research report here.