On Aug. 1, Standard Register rocked the industry with some startling news. The company had acquired Dayton, Ohio-based WorkflowOne in a transaction valued at $218 million. Media outlets promoted the acquisition created "one of the largest printing and print management companies in North America." While confusion and guardedness would be natural responses, leave it to our distributors to write an alternate headline: Distributors Take Back Industry.
After two years of stagnant numbers, this year's Top 50 Distributors list put forth encouraging totals. To provide a bit of perspective, the final tally in total annual revenue from all participants shot up to $2.76 billion compared to $2.31 billion in 2012 and $2.30 billion in 2011. Once again, this figure does not include WorkflowOne sales. Because of the company's unique position in the market and its inability to disclose how much of its sales can be categorized as "distributor revenue" versus "manufacturing revenue," Print+Promo was unable to accept its submission. Still, it is important to note that this year's top three generators enjoyed a financial boost. For instance, InnerWorkings Inc. reported $798.0 million in sales compared to last year's $633.8 million. Meanwhile, Proforma's numbers jumped to $430.3 million from $394.8 million in 2012. Finally, American Solutions for Business climbed to $190.3 million from its previous $182.6 million.
Individual product sectors, for the most part, followed this trend. Promotional products maintained its No. 1 spot, though it had a substantially higher finish at $317.9 million (2012: $284.5 million); direct mail accounted for $86.4 million (2012: $72.6 million); plastic products/cards inched to $22.9 million (2012: $18.0 million); and envelopes/folders/stationery consisted of $67.0 million (2012: $55.0 million). The Web solutions category (e.g., PURLS, QR codes and software) kept in line with the top suppliers, only producing $24.8 million. However, this is a slight bump up from last year's $24.0 million, and an even bigger departure from 2011's $14.3 million.
The "other" category also took a step in the right direction, supporting the idea that new life is being infused into traditional product categories. Sales landed at $61.7 million (2012: $53.0 million. Common responses for this sector included:
- Digital printing
- Large format/signage
- Wearables
- Graphics/art creation
- Warehouse fulfillment
- Data and office supplies
- Bar code equipment
- Furniture
- Packaging materials
- Shipping/handling/special services
- Freight
- Statement services
Some of these entries may skew the "other" category; the decision to consider wearables, for example, as miscellaneous instead of promotional products is left to the distributor's discretion.
The most drastic spike this year belonged to e-commerce. With a grand total of $203.1 million (2012: $99.4 million), e-commerce knocked printed forms out of its No. 3 rank. But speaking of forms, this sector showed it has fight left, with $159.8 million, although that figure took a hit from last year's $165.2 million.
Our two remaining categories saw a similar fate. Labels & tags dropped to $78.9 million (2012: $82.0 million), and commercial print consisted of $220.5 million (2012: $222.1 million)-nevertheless, enough to secure second place.
The Top 50 Promotional Products Distributors chart returned for another year. Published in May 2013 from our sister publication, Promo Marketing (PM), the list is based on 2012 revenue. According to PM results, the industry is fueled by creative minds and an emphasis on company culture.
It will be interesting to see how things play out in 2014 as the industry becomes even more removed from the "ink on paper" label. While this may signal danger ahead for the unprepared, the rest will reap the benefits of change, proving a fighter's heart will always overcome.
We congratulate each and every company that made either list, and toast to a bright 2014. Happy new year-may your ideas be big, your profits even bigger!
(Editor's Note: Factors to consider when interpreting sales figures are ongoing industry consolidations and responses reporting idiosyncrasies.)
Related story: Top 50 Distributors Chart 2013
Elise Hacking Carr is senior production editor for Print & Promo Marketing magazine, and managing editor for PRINTING United Journal.