COMMERCIAL PRINTING Outlook -- Shadows Cast on 2006

Lack of pricing power is a key part of the equation. Printers are finding it difficult to pass along rising costs—including direct costs such as ink, transportation and paper—much less boost their margins.

"Particularly starting in the second half of 2005, our tracking shows printers have been able to push some of the cost increases through," Paparozzi says. "They've been able to raise prices more than they have in a long time, but not enough to protect profit margins given their broadly rising costs.