Putting Print into Perspective

For Printing Industries of America’s President & CEO, Michael Makin, you can’t talk about trends in the print industry without also taking into account the events and environment going on in the rest of the world. No industry is an island, and there is no denying that what happens elsewhere resonates and impacts printers on every level.

Michael Makin
President & CEO
Printing Industries of America

“Right now the political environment is the key driver of trends,” says Makin. “The biggest question mark facing print right now is everything going on in Washington regarding tax reform (corporate and individual), health insurance reform, postal reform, and trade policy. The mix of these policy outcomes will shape the direction of the economy for the foreseeable future, and will have a direct impact on print volumes.”

He went on to take a closer look at the economy, in particular, and how the next few years could play out, depending on what factors actually end up being relevant. “The current economic recovery is now over eight years old—one year beyond the normal post-war average,” he notes. “Also, the second year after a Presidential election is generally twice as likely as the other three years to slip into recession. PIA’s economic outlook is for the economy to continue to grow at a modest pace. However, if there is meaningful corporate tax reform, the economy would likely accelerate beyond our recent two percent growth trend—a 20% chance according to our outlook. On the other hand, continued political gridlock could cause the next recession, a 30% likelihood in our outlook, but probably not until next year if at all.”

So, what does that mean for the average PRINT 17 attendee?

“Knowledge of the overall economic, political, and print market environment is always important in managing a business, but it is even more important in times of change and increased risks, and we are certainly in those times today,” stresses Makin. But for attendees of PRINT 17, there are some actions you can take right now, while at the show, to help position the shop for the best possible future—no matter what the economy or government ends up doing. He gives three strategies to make the show as productive as possible:

• First, make sure you have your business plan and strategies worked out in advance. Any purchases need to fit into your plans, strategies, and business model. Always keep these in mind—avoid impulse purchases on the show floor.
• Second, evaluate your needs—what are the gaps in your equipment in light of customer opportunities? Have a firm handle on your current equipment inventory, and understand your production, equipment, and software needs.
• Third, to the degree you can, plan for the worst, and yet hope for the best. Try to understand and plan how you would manage any new purchases in an economic downturn. But, on a more positive note, think about the opportunities that are out there that you want to capture.

“I know this all sounds extremely difficult, and it is,” says Makin. “However, PIA’s business model is designed to help printers in this situation. I invite printers and suppliers to stop by Booth 3802 and discuss their particular situation with our team of experts in government affairs, economics, and print market trends, management, technology, and other areas.”

Makin stresses that he believes the print industry has a bright future overall—but using the show to gain insight into the key technologies and trends that can help move your individual business forward—and making thoughtful, well-researched purchasing decisions—will lead to better efficiencies and an increased bottom line, no matter what direction the wind blows.