Printing Business May be Down, But Profits are Up

Doc thinks it may not be the best of times for commercial printers, but for those hanging in there, profits seem to be up. At least, so it seems according to a report by industry statistics guru Dr. Joe Webb.

US commercial printing industry inflation-adjusted profits have risen for seven consecutive quarters, to $3.6 billion. This is the total profits for the period Q3-2010 to Q2-2011. The prior four-quarter period was $3.55 billion.

In reviewing the data, subject always to revision by the Commerce Department, it appears that profit rates are increasing slightly faster than the rate that print volumes are decreasing, and profit rates are increasing at a slightly faster rate than print prices are increasing. We know that prices are not keeping up with inflation, but it appears that the exit of weak print businesses, and stern cost controls and cost reductions are improving the lot of the surviving printers. There are still challenges ahead, as all of us are well aware.

That said, we must keep the following in mind:

• We are still lower than the previous profit levels of 2005, when the industry showed $3.77 billion of profits;

• We are much lower than the profits of the late 1990s, when in the Q2-1999 to Q1-2000 period, the industry recorded $15.85 billion in profits.

Doc is glad that profits are up for those hearty souls still sticking with the commercial printing business. It isn't an easy field to be in these days.