The Only Constant
To no one's surprise, the makeup of the industry continues to change. Crabar bought GBF Graphics, Inc. Ennis bought Calibrated Forms. Large companies are acquiring large companies. And, this trend will probably continue, as large companies with cash to spend look for ways to keep growing.
Large printed products manufacturers will continue to acquire companies with compatible product lines to improve economies of scale. They will also diversify into other fields.
Another way to improve economies of scale is to band together into buying groups. UnigraphicsUSA (see accompanying article on page 8) consists of nine industry suppliers that want to improve bargaining power for raw materials. And, because they are spread around the country, they can act as an alternative resource for distributors with accounts that require national coverage. Expect suppliers to scrutinize UnigraphicsUSA this year. If the idea works, we will see more groups like it in the years to come.
Two areas ripe for consolidation are commercial printing and promotional products. Distributor commercial printing sales—which reached $484 million among the Top 100 Distributors last year—are still spread out among thousands of smaller establishments around the country. Promotional products suppliers, who mainly import and imprint products from overseas, are consolidating within their industry. Expect printed products suppliers to either branch into promotional products on their own or acquire promotional products companies outright.
The good news for this year is that despite difficult economic conditions, overall sales fell only approximately three percent. With the economy finally showing signs of bouncing back, there is hope for better fiscal tidings in the coming year.
Bill Drennan
Editorial Director
bdrennan@napco.com
- Companies:
- Calibrated Forms
- Ennis
- UnigraphicsUSA