2005 COMMERCIAL PRINTING outlook -- A Win-Lose Proposition

Still, printers need to stay aggressive because this isn't an industry that can easily pass costs on to customers. "Printers have to be prepared to offset cost increases, whatever the cause. They have to continue increasing their productivity and efficiency," he says.

PIA's Davis agrees that printers need to be proactive in running their businesses, particularly when it comes to reducing costs. He notes that the association's aforementioned quarterly market survey already found an average paper price increase of 5 percent over three months. Yet, printing prices remained relatively flat, with current prices up an average of just 0.3 percent from year-ago levels.