Predictions of Industry Mergers --DeWese

Conference at the Javits Center in New York. The last day is when everyone is packing to go home and there might not be much of an audience, so I'll give it to you first.

Certain segments of the printing industry, principally the largest—the general commercial segment, have too much press capacity (i.e., supply). Underutilized capacity is press and other equipment time that exceeds the present demand. Whenever supply exceeds demand, prices go down, profit margins shrink, employees are laid off, companies default on debt payments, companies go out of business and some excess capacity is removed from the market. I'm not sure where all of that equipment is going.