Reduction in Federal Government Spending Impacts Work for Private Sector Printers
Printing work from the federal government to private sector printers declined for the third straight quarter, according to data from the U.S. Government Printing Office (GPO). First quarter 2011 (1Q11) volume, to the more than 1,300 printers that produce approximately 70 percent of GPO’s printing, was $61 million for January through March compared to $66 million for 4Q10, $82 million for 3Q10 and $90 million awarded during 2Q10. The last increase in workflow was from $73 million in jobs awarded in 1Q10 to the $90 million awarded in 2Q10.
Work done by the top 50 print suppliers during 1Q11 was valued at $39 million compared to $45 million awarded during 4Q10 and $45 million awarded in 1Q10. NPC (News Printing Corporation), located in Claysburg, Pa., won the most work during 1Q11 with $4,979,797 awarded to the firm. NPC also was the 4Q10 and 3Q10 leader with $6,341,567 and $5,650,511 in GPO work won respectively.
Rounding out the top five GPO job winners for 1Q11 were SourceLink, Miamisburg, Ohio, with $4,033,708, Cenveo, Stamford, Conn., with $2,189,457, Monarch Litho, Inc., Montebello, Calif., with $1,719,564 and Gray Graphics, Capitol Heights, Md., with $1,447,835.
“Even though GPO work has been decreasing due to overall spending reductions by federal agencies, GPO remains a solid market for printers. GPO awards more than $350 million annually to private sector printers, and that is worth being a GPO print supplier,” said Deborah Snider, senior vice president of e-LYNXX Corporation and division president of Government Print Management. “Printers that develop GPO as a dependable secondary market increase their profitability from an average of 2.5 percent on 70 percent production utilization to 14 percent or more on closer to 100 percent production utilization.”
Snider added that GPO utilizes all types of printers, large and small. To become a GPO print supplier, a printer must first register with GPO and then qualify to provide printing in one of five quality levels ranging from museum quality to functional quality. To be successful, GPO printers must be knowledgeable of GPO rules, regulations and procedures, must use historical data to analyze opportunities, must have or obtain the expertise requisite to bidding to win with the lowest qualified bid, and must receive all job postings for which they are qualified to bid.