Semper Survey Finds Increased Pessimism, Negative Industry Outlook

BOSTON—August 10, 2011—Semper International, the leading placement firm for skilled help in the graphic arts and printing industry, has released the findings of its most recent printing industry quarterly survey. The expected second quarter revenue dip was reminiscent of the drop previously experienced before the 2008 recession. Stagnant hiring and an upward trend in layoffs suggest entrenched pessimism in the marketplace.

Since February 2003, Semper International has provided a quarterly survey offering estimates of trends in the printing and graphics industries. Survey participants include more than 300 small, medium and large printing companies—both clients and prospects of Semper International.

“Responses show concern for the rest of the third quarter. We expected to see the sales start to increase for this time period. Several respondents cited the debt ceiling debate as a threat to sales,” noted Dave Regan, CEO Semper International. “While outlooks remain negative, the slow down in revenue and profits appears to be comparable to the second quarter lag we typically saw before the recession.”

The most recent survey indicates more negative business trends:

• 62 percent of companies surveyed reported a profitable Q2. This represents a decrease of 2 percentage points from Q1.

• Looking at the first two weeks of Q3, current sales are down 8 percent over the last quarter, likely an indication of the traditional second-quarter slowdown. The number of companies reporting a decrease in sales is up nearly 12 percentage points.

• 20 percent of the companies interviewed expected sales to decrease through the remainder of Q3, 2011. Last quarter, only 11 percent expected a sales decrease.

• The vast majority of respondents indicated that hiring levels will remain the same, or increase. These results were nearly identical to last quarter. The number of companies laying off employees has been trending upward very slightly over the last year.

• For the sixth straight quarter, a large majority of companies reported that healthcare is the labor cost component that increased the fastest during the past quarter. Although healthcare remains a concern, it is decreasing in importance; concerns over healthcare costs are down 10 percentage points over last quarter.

• The greatest competitive threat to printers remains the current economic climate. Concerns over the state of the economy increased by 17 percentage points over last quarter.

• Print buyers place the greatest pricing pressure on offset printing. For the first time this quarter we see an increase in pricing pressure on digital print.

• There was a surprising 5 percentage point increase in traditional help wanted ads as a way to find employees. Referrals (33 percent) and online searches (27 percent) continue to be the most popular ways to find employees.

To participate in future surveys, please email always@semperllc.com. More information is available at the Semper International website.

About Semper International
Semper International is a temporary help placement firm founded and staffed by professionals who were raised and trained in the printing and graphic arts industry, and who understand the innate needs and demands of the profession. Semper has a thorough understanding of all the positions, equipment, and software essential to the business, which assures a perfect employee—employer match.

The Semper team constantly monitors job market trends in the industry. They understood the changes that occurred in job responsibilities when electronic prepress replaced the typesetter and mechanicals, and similarly understands the impact trends such as direct-to-plate and digital print have on staffing. Semper most recently introduced TechCreative professionals whose skills encompass both artistic, design and technical skills to output to any media.

To provide career growth, Semper offers Semper University, an online training program for its employees to help prepare conventional printing professionals for upcoming changes in the industry. Realizing how the Internet is revolutionizing the industry, Semper also works with the most talented web designers, graphic designers, desktop publishers and production managers.

Semper has offices in Boston (HQ), Atlanta, Baltimore, Chicago, Dallas, San Francisco, Los Angeles, Long Beach, Minneapolis and Wayne NJ. Direct Hire services for sales and management positions are conducted throughout the country.

Source: Semper.