Break It Down
“Adapt or go home.” “Regroup and reevaluate your business strategy.” “Explore new technology.” After years of touting the benefits of change, we decided to follow our own advice.
In September, Print Professional became Print+Promo, a name that stays true to our printing roots while creating room for new topics to be covered. To continue on this path, we made some tweaks to our 2012 top suppliers list. The most notable difference is in size: The “Top 100” is now the “Top 50.” This decision led to a more condensed look.
So what changes and surprises manifested from this year’s list? Were suppliers able to escape the “see-saw effect” of unstable sales? The answers are never that black-and-white.
While many suppliers reported an increase in overall sales compared to 2011, the remainder experienced a modest decline. To get a better idea of the entire picture, total annual revenue from all participants (beyond the top 50) took a small hit from last year’s $2.53 billion, coming in at $2.27 billion. But looks can be deceiving, because this number excludes sales from Champion Industries, which was unable to submit information before deadline. To provide some perspective, last year, the company ranked number-two on the list, with annual sales totaling $129.9 million.
In addition to Champion Industries, other suppliers (particularly major players) opted not to participate this time around. While their reasons remain unclear, it would be fair to assume they were hesitant to reveal any recessionary shortcomings in sales. Or, they are privately owned companies that never disclose financial information.
The individual product sectors proved to be a mixed bag. In line with past trends, printed forms put forth the highest showing at $513.3 million. Unfortunately, this is down from last year’s $566.4 million.
Other products also saw a drop in numbers. Commercial print averaged $267.4 million (2011: $331.5 million); promotional products accounted for $265.2 million (2011: $303.8 million); and e-commerce only reached $44.2 million (2011: $52.2 million).
While these findings may not seem reassuring, remember, this is only a small sampling of suppliers and does not represent the industry as a whole. Furthermore, even though all participants released their annual sales figures, a significant amount would not reveal what comprises the total sum.
Still, it’s not all doom and gloom. In fact, more product sectors than not had happy endings. Labels & tags took second place, overall, with $422.4 million (2011: $394.5 million); plastic products/cards were up at $124.9 million (2011: $106.9 million); and envelopes/folders/stationery came in at $182.6 million (2011: $164.9 million).
Despite last year’s dramatic tumble, the “other” category saw a positive turn this time around reaching $68.8 million (2011: $55.7 million). Common responses for this sector were:
• CDs and DVDs
• Index tabs
• Promotional print
• Seminar materials
• Specialty print
• Fulfillment and distribution
• Thermal ribbons
• Books and magazines
• Laminating film
• Point of purchase and engineering rolls
• Digital print
Note, some of these entries may skew the “other” category because the decision to consider promotional print as something miscellaneous instead of commercial print is left to the supplier’s discretion. And, digital print was removed from the list of individual options unlike years past.
Then, there were product categories that underwent dramatic increases. Direct mail sales consisted of $123.3 million (2011: $90.5 million) and barcodes/RFID finished at $57.0 million (2011: $15.9 million). Undoubtedly, web solutions (e.g., PURLs, QR codes and software) had the biggest jump, with sales soaring to $182.6 million (2011: $14.1 million). We now know that when we previously asked if your company tested any cross-media campaigns, the answer was a resounding “yes.”
Another addition to this year’s top suppliers issue was the inclusion of the top 50 promotional products suppliers (published in July 2012) from our sister publication, Promo Marketing (PM). This list is based on 2011 revenue, and according to PM’s results, there was an increase in numbers from 2010 to 2011. In fact, suppliers brought in roughly $450 million more in 2011 than in 2010. Such revenue increases have led to new product releases and add-ons to existing product lines. The conclusion? As the U.S. economy improves, so does the promotional products industry.
Principal officers are now signing off on 2013 budgets. Teams are strategizing their next move. Finally, people are doing what they do best: selling. The Print+Promo staff remains optimistic for the upcoming year as long as companies remember to talk with—not to—their customers.
We congratulate each and every company that made either list and wish them the best of luck in 2013. Check back in November to see how the distributors fared over the last year.
(*Factors to consider when interpreting sales figures are ongoing industry consolidations and responses reporting idiosyncrasies.)
Related story: Top 50 Suppliers Chart
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