Commercial Printing

The US commercial printing industry includes about 35,000 companies with over $100 billion annual revenue. Large companies include RR Donnelley and Canadian printer Quebecor World. The majority of commercial printers are small or midsized local businesses that operate one production plant, employ fewer than 20, and have annual revenue under $5 million. Despite continuing consolidation, the industry is highly fragmented: the largest 50 companies account for about 30 percent of the market.

The commercial printing industry includes printing on apparel and textile products, paper, metal, glass, and plastics; it also includes typesetting, platemaking, and book binding. The industry doesn't include book or newspaper publishing.

COMPETITIVE LANDSCAPE

Demand is driven by advertising and product needs of business customers. The profitability of individual companies is closely linked to effective sales operations. Large companies have scale advantages in buying materials like paper and ink, serving large customers with regional or national needs, and making efficient use of expensive presses. Small companies can compete effectively by offering better local service in a specific product category. Annual revenue per employee averages about $160,000.

Digital technology has changed the competitive landscape of the commercial printing market. Prices for digital color pages are falling below offset printing prices and companies that fall behind in the shift to digital printing are at risk, especially in the pre-media portion of printing.

PRODUCTS, OPERATIONS & TECHNOLOGY

Commercial printers produce magazines, phone books, labels, advertising brochures, catalogs, newspaper inserts, direct ...