The Great Recession’s impact on print - William Mitting drupa article

With the industry suffering from a paralysis invoked by the economic crisis eyes will turn to drupa 2012 to see how the future will shape up.

The impact of banks withdrawing support at the start of the recession was exacerbated by the effect of the internet on traditional printing services. Many companies in the sector reacted slowly while others spotted the potential of integrated multi-channel communications.

Another clear trend before the recession was the consolidation of the industry as traditional printing firms merged to realise the economies of scale required by shrinking margins.

Fortunately not all areas of the print industry have been hit as hard by the recession such as the packaging printing segment. However, almost all operations have had to adapt to survive and business models have evolved to meet the new market reality with overheads and staffing levels cut to retain sustainability. Business processes have also had to develop to realise increased efficiencies.

Manufacturers have been hit hard by the decline in investment and continue to monitor the current market movements. As well as cutting overheads and shelving new product development, they have adopted a new approach to help their clients through the recession by becoming consultants and offering business training and support in implementing new business models that can be enabled by their investments.

Trade Associations, too, have had to work harder to meet the demands of their members, particularly as the turnover, number of enterprises and employees in the industry declined.

Recessions are a tough but essential part of the economic cycle. Companies that innovate to survive, such as taking advantage of the digital revolution to add to their portfolio of client services, become stronger and more efficient. The traditional print business model, price-driven and product-focussed, is no longer fit for purpose.

Companies that have emerged have done so stronger and wiser and are competing in a smaller industry. As and when the economy recovers, these businesses will be well placed to reap the rewards of their determination.