PRIMIR Non-Print Revenue Study Findings Released; Helps Identify New Paths to Profitability

In PRIMIR’s newly released study, “Evaluating and Understanding Non-Print Revenues of N.A. Printing Companies,” State Street Consultants investigated the non-print services that printers currently offer, their implementation successes and failures, as well as future growth opportunities. This key study provides an understanding of North American print revenues divided between traditional ink/toner on substrates versus other services print firms offer.

The research findings help firms in the printing industry supply chain understand the total opportunity for their products and services, along with potential growth areas for new offerings for both printers and suppliers.

According to the study, total 2011 printing industry revenue was $156.5 billion. However, as shown in Figure 1, only 86.5 percent of that revenue was generated from actual printing; the remainder was generated from a vast array of services print firms offer their clients today, such as mailing and fulfillment services, design, data management and marketing services.

The study examined 26 non-print (or ancillary) services. The leading non-print services offered by respondents in the 18 market segments (commercial printers, in-plants, service bureaus, etc.) include: mailing services, fulfillment and warehousing, design services, data management services, and marketing services. These and the other non-print services accounted for more than 13 percent of the total industry revenue in 2011 (see Figure 2).

By 2016, the non-print revenue percentage will increase to more than 20 percent. Over 70 percent of the non-print growth will be attributed to one key segment—commercial printers. Many will offer a full range of non-print services.

Clearly this information is important to printers, for whom the path to profitability will be these non-print services—many of which often lead to increased ink-onpaper revenues as well. Thus, manufacturers of equipment and supplies can expect to see declining shipment volumes for their products corresponding with the declining print shipments. Yet, astute suppliers will examine new business opportunities or ‘ancillary’ services that complement their primary business in order to support their print firm clients’ evolving needs.

The comprehensive PRIMIR study “Evaluating and Understanding Non-Print Revenues of N.A. Printing Companies” provides a complete look at the market, examines the vast array of services, analyzes the opportunities and threats, provides case studies, and offers recommendations to all firms in the print value chain. An “Executive Synopsis” of this study was recently mailed to NPES members.

For more information on PRIMIR visit: www.primir.org or contact Jackie Bland, PRIMIR Managing Director, at e-mail: jbland@primir.org or phone: 703/264-7200.