IBISWorld Report: Commercial Printing Industry Decline to Continue, But Pace to Slow

Decreasing sales volumes and downward pressure on unit selling prices have also hampered industry profit during the past five years. Printing requires substantial capital investment in new technology to remain competitive in times of excess capacity. Since there have not been enough customer orders, overcapacity has contributed to the long-term trend of industry consolidation. In the five years to 2014, the number of commercial printing companies is expected to fall at an average annual rate of 3.2 percent to 22,946 operators. Industry consolidation has allowed larger printers that have economies of scale and access to strong financing to adopt more efficient equipment, while simultaneously slashing employment and wages. Additionally, plant closures and staff consolidations have caused industry employment to decline at an average annual rate of 4.2 percent to 413,164 workers in the five years to 2014.