From printers to communications solutions

Despite changes in customer demand and slow growth in the industry, printers still have the opportunity to diversify their operations.
What is the prospect of commercial printing? Regardless of the long-term and short-term perspective, the answer can be attributed to the following two factors.
First, the printing industry is facing structural and cyclical changes. Structural changes such as moving towards networking, e-commerce, etc. will reshape the way people communicate and print play a role in communication; cyclical changes refer to the industry’s continued dependence on the economic situation. When the economy is prosperous, it develops well. On the contrary, when the economy is weak, Difficulties.
Second, the industry is in a transitional period. The growth rate of the industry is lower than that of economic growth. Since 1998, the industry has grown at an average annual rate of 2% (in addition to inflation), which is still less than half of the 4.3% annual growth of GDP.
On the surface, our market is saturated and is being replaced by other modes of transmission, but look closely at the plans of the printers: strategic diversification, positioning in the network, target investment in equipment and manpower, you can see: the industry is not In a landslide, our industry is making difficult investment decisions, which is important for future financing with long-term opportunities.
Where is the change?
The industry is conscious of its identity as a communicator, not the ink on paper and only business, and the way of communication has changed rapidly. The industry accepts these changes and at the same time begins to prepare to cope with the unfavorable conditions that the slow economic development brings to the industry.
Each year, the managers of about 200 printing companies, representing about 22 companies, come to the national ASSN to conduct a comprehensive survey of the industry. There is a survey report on the development trend of the printing industry market:
* Changes that have occurred in the traditional printing business. 61.4% of the respondents believe that the number of colors has changed, and 67.6% believe that the complexity will change. The number of people in these two areas will increase compared with the previous period, and 62% of people think that the delivery period will be shortened. Declined.
* Most people think that digital printing, electronic prepress, prepress and postpress are all growth trends.
* A few people think that the leveling, art design, and binding are growing. * Half think that more and more customers complete the printing business themselves, but two-thirds think that the customers are asking the printers for a wide range of services.
The real situation A change in the source of profit for the next two years, and a survey of the services the customer needs most shows:
* Most digital printing, database archiving management, network services, CD services, which will supplement rather than replace prepress centers, binding services, these core services provide profits account for 80% of the company's total profit
* Although digital printing is the most concerned, but from the management of the four-color or more flat-print database to electronic commerce is concerned, showing that diversification of printing has formed an investment direction considering what kind of investment the printer thinks of their long-term competitiveness and profitability. Ability is good:
*CTP ranked first, digital proofing, e-commerce, management information system, and network ranked in the top 10.
* Second, because the bookbinding equipment can greatly shorten the delivery time, and the stapling delay becomes a bottleneck in printing.
* Professional skills staff training and education ranked third.
* Fourth-grade offset printing above four colors.
Internet Opportunities Printers are also realizing that the Internet offers opportunities for them to increase customer communications to increase production output. Surveys show that:
*95.6% will use the Internet to exchange documents with customers, 91.2% will send and receive e-mails to communicate with customers; 33.8% will be used to study the printing industry trends; 30.9% will be used to find target customers; 23 .5% orders and collections, 11.8% use the Internet to place orders and payment.
*75.8 companies have their own website.
*83.1 believe that the network has affected their business or has a major impact in the next two years.
Taking into account changes in the industry, it is not surprising that printers are concerned about a series of issues. The top five are: the cost of hardware and software; the shortage of skilled production staff; the learning curve of new software and hardware; the increase in wages and profit margins;
Most of the printers in the economy have paid close attention to the economic trend. In the next two years, economic development will slow down. The reasons are:
I. The Federal Reserve Agency has raised interest rates six times in the past 16 months. 2. Soaring energy prices If the economy slows down as expected, the growth in printing sales will be 3.5% in 2001 to 5 in 2002. %, but if the speed is faster than expected, printing should increase to 5.5%.
Whether the road is flat or rugged, the economy will be "landing." Printers need to be prepared to consider:
* If the major customers cut their printing budget next year due to the economic situation, what should be good?
* When the industry shrinks, how do you make enough cash flow?
* How do people maintain the reduction of market and sales budget?
There are some companies whose growth speed and profitability are far ahead of the industry. When asked how they maintain a continuing success in a complex and changing industry, someone explained that, first of all, we recognize that the market is constantly changing. It is also changing to do business with customers, contact with customers, identify changes, recognize the value of new definitions in communication, our main goal is to establish cooperation with customers, cooperation, our new marketing concept, farewell only as a printing During the business period, we welcome the era of being a provider of communication solutions.
Of course, not everyone has shifted from "printers" to communications solution providers, but these as part of the industry will provide a wide range of communications services, so that the industry will develop better and faster, again surpassing the rate of economic growth.