In Search of IT
The last day of EFI's Connect user conference ended with a panel discussion directed by the company's CEO, Guy Gecht. The panel was assembled to answer questions on the current, and more importantly the future, level of optimism for the printing industry. The panel was comprised of Tim Fischer of NAPL, Jack Kenny of Label and Narrow Web magazine, and Cary Sherburne of WhatTheyThink. On the topic of pessimism, the panelists seem to be gushing with depressed statistics and anecdotes about the industry. Tim Fischer spoke of a period in the industry he referred to as the fourth "Great Divide", a fast paced change period based on electronic communication. With 20% of the industry typically representing market leaders and 10% destined for failure, Tim implied that a large portion of the rest of the industry would suffer if they do not change their business models. Cary enforced this theme by stating economic research data collected by WhatTheyThink which indicates a further contraction of the industry. Shipments down to 58 billion from 87.5 billion that will be produced by 40% fewer establishments. "Reactive and inactive printers have to worry," said Jack Kenny which seems to sum up the general outlook. As for glimpses of bright spots, the panelists had less to say. Packaging, printed electronics, a re-focused media mix, social media, lean manufacturing, integrated manufacturing, and continuous improvement were mentioned as ways to grow profits. Companies not already focused on process improvements and aspects of lean manufacturing, I am afraid, are on the slippery slope to join Tim's 10% of the industry. Market leaders, no doubt, will also continue to seek out emerging niche segments of the industry that provide higher profitability like packaging and printed electronics. If recent history offers a guide, however, then printers who exploit technology to create new business models will win the game. After all, the printing industry is rapidly being driven by its symbiotic relationship with all things digital. If you are not sure what these pictures represent for the printing industry, find out now.