Special Report: Offset and Beyond -- Today's Model: Distribute-Then-Print

PI: What about future industry consolidation?

Kelly: Underutilized capacity in the printing industry, combined with a no-growth market, forces everyone to share what crumbs of business are left out there. No one is safe. Big and small companies alike are all on shaky ground trying to figure out what comes next. Everyone is taking hits. Transcontinental recently invested $200 million in a new plant that opens in June 2009 to print the San Francisco Chronicle, which recently reported that it may be sold or closed. Big competitors are now bidding on small projects that they would have laughed at a year ago. So, industry contraction would seem inevitable.