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 user 2005-04-10 at 10:04:00 am Views: 97
  • #8735

    The Digital Future for the Printing

    The printing industry will continue to evolve into new and exciting
    `electronic imaging driven by digital technology. Digital technology,
    economic restructuring, global competition, market changes, emerging new media
    and other market forces are combining to `dramatically` change the operating
    environment of the Printing Industry. The traditional printing industry is very
    mature with over capacity in the established countries. We are in the `emerging
    information society` driven by technology, where by the very nature of the role
    of the printer is changing rapidly, driven by customer demands.

    The major drivers are first, technology, particularly the digitization of
    data, is reshaping the communications industries. The rapid experience of the
    convergence of computers, telecommunications and television, plus the use of
    `multimedia` and the speed of change in the `information superhighway`.

    The second major driver is the changing macroenvironment, particularly the
    rapid restructuring of the world economy and global competition.

    The consequence of these two major drivers is the movement in print markets
    worldwide. The emerging `new` countries who invest into the print/communications
    industries with the latest equipment are global players whom will significantly
    drive down prices by the economies of scale.

    Print companies are redefining their business (or they should be) to one of
    identifying `customers` changing communication needs brought about by the
    digital processing and storing of information and delivering it through the most
    effective distribution channel. Since printer’s are/should already well
    established in `imagery`, they are well positioned to participate in new
    channels as they develop. If print companies do not take on board new
    technology, they will not survive in this rapid changing environment.

    Changes to Industry Structure and Profitability

    The structural changes to the industry are occurring as a result of
    `technology` changes and market forces on a global scale. This restructuring and
    the pace have quickened and the impact on profitability has been profound. Over
    the last 40 years, industry profitability has moved in cycles roughly
    corresponding to industry investment cycles. With the current need to invest in
    `new digital technology` coinciding with a slowing of market growth world-wide,
    printing company’s profits will be `squeezed` further in the remainder of the
    decade as structural change continues on a global scale.

    The implications for the printing industry structure and profitability in the
    future are;

    * The number of large printing plants is declining.

    * Large printing companies will become larger by acquisition, at the expense
    of less well-managed large companies and medium sized companies.
    * The
    less innovative companies will face serious issues in a slow growth business

    * The rate of failure for less well-managed small companies will be high.

    * Medium size companies particularly those without well-defined speciality
    niches will continue to be squeezed by larger companies.

    * The impact on the printing industry profitability will be a continuation of
    the pressure on overall industry profit margins.

    * The profit leaders will continue to make attractive profits by
    acquisition/cost controls/economies of scale/skilled personnel in all areas.

    * The impact of `Print Management Service` programmes on the manufacturing
    sector that does not participate in this customer driven environment.

    People = Performance = Productivity = Profit