Book Printing--Passing Grade

Heading into 1999, an excess in industry capacity is one of Boylan's primary concerns.

"The new presses being added to the existing capital stock provide substantially higher output than the equipment being replaced," he remarks. "The net impact is that capacity is increasing faster than the corresponding demand. The inevitable result is intense price competition among printers. Adding to this situation is the fact that very little of the old equipment is scrapped; it either continues on the floor or gets a new life at another company. This only magnifies the over-capacity situation."