The Inside Scoop

Last year doesn't bring back fond memories for print professionals. Numbers were down. Budgets were cut. Acquisitions and 
 mergers weren't surprising, they were expected. Were suppliers able to rebound from the loss? The answer may seem obvious but, then again, nothing is ever that black-and-white.

Many participants reported an increase in overall sales compared to 2010. On the other hand, total annual sales figures for the top 100 suppliers took a small hit from last year's $2.71 billion, coming in at $2.53 billion. There are several possible explanations for the decline. More suppliers, especially some major players, opted not to participate this time around. While their reasons remain uncertain, it would be fair to assume they were hesitant to reveal any recessionary shortcomings in sales. Perhaps some were privately owned companies as well.

Unfortunately, the individual product sectors did not offer any consolation. In line with past trends, printed forms still put forth the highest showing at $566.4 million. Nevertheless, this figure is far from last year's $683.6 million.

The "other" category, by far, suffered the most, only reaching $55.7 million (2010: $136.3 million). Common responses for this sector were:

• CDs and DVDs

• Screenprinted decals/overlays

• Printed electronics

• Checks

• Packaging

• Lottery tickets

• Point of purchase and engineering rolls

• Laser cut and copy paper

• Index tabs

• Label and sign installations

• Cosmetic/pharmaceutical device products

• Digital book, manual, catalog, looseleaf printing

• Flag and banner hardware

Note, some of these entries may skew the "other" category because the decision to consider checks as something miscellaneous instead of a form product is left to the supplier's discretion.

There were product categories that saw a more modest decline. Once again, labels and tags took second place overall, but resulted at $394.5 million (2010: $456.9 million); commercial print averaged $331.5 million (2010: $391.7 million); digital print came in at $69.5 million (2010: $81.2 million); promotional products accounted for $303.8 million (2010: $313.6 million); plastic products/cards only reached $106.9 million (2010: $148.4 million); and envelopes/folders/stationery comprised $164.9 million of sales (2010: $190.1 million).

While this year's findings may not seem too 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 disclose how these numbers are broken down. As a result, there will be discrepancies between last year's findings.

Still, it's not all doom and gloom. Direct mail sales were up at $90.5 million (2010: $71.4 million) and e-commerce sales soared to $52.2 million (2010: $25.2 million).

Print Professional also added two new product categories for tech-savvy suppliers. Barcodes/RFID sales consisted of $15.9 million. And web solutions (e.g., PURLs, QR codes and software) finished with $14.1 million in sales.

So take a minute to regroup and reevaluate your business strategy. Have you researched the latest technologies? Have you tested any cross-media campaigns? The Print Professional staff remains optimistic for those who understand what's going on around them and where things are headed. The time to adapt is now.

Lastly, talk to your customers—they will provide some of the answers you seek if you listen.

We congratulate each and every company that made this year's list and wish them the best of luck in 2012.

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.)