In this four-part series, we’ll take a look at how each indicator from the Monthly Conditions Dashboard is affecting your business based on the survey results from the past 11 months. Charts are also provided to show the trends in an easy-to-read format, so you can benchmark your current market conditions with hundreds of other printers. Where do you expect your sales to go in 2013? Earlier this month in Industry Trends Report: Part 1—Monthly Sales, we told you about printers’ wide swings and recent modestly rising sales based on the Monthly Industry Conditions Dashboard.* This report is a new industry market trends report from our Economic and Market Research department that allows you to plan your business strategies each month. How does it all work? Survey respondents provide information in five principle areas—1) Monthly Sales, 2) Sales Expectations, 3) Profits, 4) Print, and 5) Paper Prices. Current sales and profits are compared to the previous month. Printing prices and paper prices are current-month compared to 12 months earlier. Sales expectations are expectations for next month compared to the current month. Respondents are asked to report the directional change of each of the five key indicators (increasing, decreasing, or no change). We’re taking a little vacation in July, but check back in August to see the latest industry profit trends in Part 3 of the series! The findings you will read are based on May 2012 to May 2013 calculations using a net diffusion index, where the percentage of respondents reporting an increase is subtracted from the percentage of respondents reporting a decrease. The net diffusion index provides a simple snapshot of printers’ market perceptions for each variable. Part 2: Sales Expectations Printers’ sales expectations have also experienced wide swings over the past 13 months and generally are a leading indicator for next month’s sales. The expectations index peaked at 39.6% in February of  2012 after hitting a low of –18.9% in November—one of only three negative readings during the past 13 months. The overall sales expectations index average for the period was 14.6%. In the first quarter of 2013, the monthly sales diffusion index and sales expectations index changed drastically from month to month. The end result was no growth in the first quarter of 2013 according to our Quarterly Print Market Survey. So far the first two months of the second quarter point toward slightly more consistent and moderate growth. Our panel expects the second quarter to end strong with 21% more expecting June sales to be stronger than May sales than those expecting sales in June to decline compared to May. Printing Industries of America members respond to a survey to uncover some of the key...

In this four-part series, we’ll take a look at how each indicator from the Monthly Conditions Dashboard is affecting your business based on the survey results from the past 11 months. Charts are also provided to show the trends in an easy-to-read format, so you can benchmark your current market conditions with hundreds of other printers. We watch the weather each morning to help us plan what to wear and if we’re taking our umbrella to work that day (and trust that the meteorologist is accurate!). You can find a reliable “economic weather report,” the Monthly Industry Conditions Dashboard*, which is an established industry market trends report from our Economic and Market Research department that provides the information to plan your business strategies each month. How does it all work? Survey respondents provide information in five principle areas—1) Monthly Sales, 2) Sales Expectations, 3) Profits, and 4) Print and Paper Prices. Current sales and profits are compared to the previous month. Printing prices and paper prices are current month compared to 12 months earlier. Sales expectations are expectations for next month compared to the current month. Respondents are asked to report the directional change of each of the five key indicators (increasing, decreasing, or no change). See how your sales compare with the industry below. Check back in two weeks for Part 2 of the series and find out where your sales are expected to go in 2013. The findings you will read are based on March 2013 calculations using a net diffusion index, where the percentage of respondents reporting an increase is subtracted from the percentage of respondents reporting a decrease. The net diffusion index provides a simple snapshot of printers’ market perceptions for each variable. Part 1—Monthly Sales   A look back over the past eleven months shows wide swings in printers’ monthly sales. With a high reading of 47.9% in October of last year and a low of –23.1% in December, and an eleven-month average of 10.8%. This 10.8% sales diffusion index reading is consistent with our quarterly findings of modest growth in 2012. The latest reading of 36.9 in March shows that printers’ sales generally trended higher in March, so the typical printer is experiencing modestly rising sales. As forecasted in our Charting a Path for 2013–2014 report, we expect stronger industry sales in the first quarter of 2013 and growth to taper off slightly throughout the year. Printing Industries of America members respond to the survey to uncover some of the key areas of their business to develop the Monthly Industry Conditions Dashboard from the Economic and Market Research department. With regular updates on current market trends, printers are better able to benchmark their...

In this four-part series, we’ll take a look at how each indicator from the Monthly Conditions Dashboard is affecting your business based on the survey results from the past 11 months. Charts are also provided to show the trends in an easy-to-read format, so you can benchmark your current market conditions with hundreds of other printers. We watch the weather each morning to help us plan what to wear and if we’re taking our umbrella to work that day (and trust that the meteorologist is accurate!). You can find a reliable “economic weather report,” the Monthly Industry Conditions Dashboard*, which is an established industry market trends report from our Economic and Market Research department that provides the information to plan your business strategies each month. How does it all work? Survey respondents provide information in five principle areas—1) Monthly Sales, 2) Sales Expectations, 3) Profits, and 4) Print and Paper Prices. Current sales and profits are compared to the previous month. Printing prices and paper prices are current month compared to 12 months earlier. Sales expectations are expectations for next month compared to the current month. Respondents are asked to report the directional change of each of the five key indicators (increasing, decreasing, or no change). See how your sales compare with the industry below. Check back in two weeks for Part 2 of the series and find out where your sales are expected to go in 2013. The findings you will read are based on March 2013 calculations using a net diffusion index, where the percentage of respondents reporting an increase is subtracted from the percentage of respondents reporting a decrease. The net diffusion index provides a simple snapshot of printers’ market perceptions for each variable. Part 1—Monthly Sales   A look back over the past eleven months shows wide swings in printers’ monthly sales. With a high reading of 47.9% in October of last year and a low of –23.1% in December, and an eleven-month average of 10.8%. This 10.8% sales diffusion index reading is consistent with our quarterly findings of modest growth in 2012. The latest reading of 36.9 in March shows that printers’ sales generally trended higher in March, so the typical printer is experiencing modestly rising sales. As forecasted in our Charting a Path for 2013–2014 report, we expect stronger industry sales in the first quarter of 2013 and growth to taper off slightly throughout the year. Printing Industries of America members respond to the survey to uncover some of the key areas of their business to develop the Monthly Industry Conditions Dashboard from the Economic and Market Research department. With regular updates on current market trends, printers are better able to benchmark their...

Printing Industries of America has recently released the 2012–2013 Ratios volumes. The Ratios will help you and your company assess your performance compared to industry leaders, determine which aspects of your operations need improvement, and ultimately increase profits. The Ratios are an important tool for industry leaders. Printers use the Ratios reports to evaluate their performance against industry profit leaders. Specific reports are available for various firm profiles by size of firm, printing process, and print market segments. In all, there are 15 different volumes of the Ratios for you to choose which is best for your business. Here is a sample of what you can expect to find in the 2012–2013 Ratios: According to our 2012 survey results (2011 fiscal year-end numbers), materials accounted for the largest single cost category for the typical printer—approximately 35.5% of sales. Total materials expenses increased slightly in 2011 from their previous level of 35.2% in 2010. Paper alone consumed more than one-in-five sales dollars last year. Other major costs incurred by printers last year included factory payroll at 24.8% of sales (down from 24.9% in 2010), factory expenses of 17.6% of sales (down from 18.0% in 2010), and administrative and selling expenses at 19.6% of sales (up from 19.4% in 2010). Each Ratios volume includes a report on the following areas: Operations; Profitability and Sales Factors; Cost Drivers and Expenses; Balance Sheet Statistics; Basic Payroll Data and Employee Profiles; and Inventory Turnover and Billing Cycles. View a complete listing of the Ratios by visiting www.printing.org/2012ratios. If you have any questions, you may contact Ron Davis at 434-591-0527 or...

It’s here—that scenario you thought your business would not encounter. What do you do now? It is better to prepare for the worst than be left standing in the dust of the still-eminent Great Recession that is affecting so many in the printing industry. Our own Dr. Ronnie H. Davis, Vice President & Chief Economist, Printing Industries of America, provides today’s printers with useful resources and an action plan to assess and prepare for tough economic stretches. Action Plan for Turbulent Times Step I: Take stock of what is actually happening Evaluate your business and the current print markets. Members can download 2012–2013: A Planning Guide to get an accurate report on economic trends. Step II: Review likely economic scenarios By benchmarking your company, you can prepare for your financial future. Companies that benchmark are more efficient, better managed, and more profitable in the long run. Ratios 2011-2012 reports are a great resource that is available to you, as well as the ability to participate in Printing Industries of America’s annual financial benchmarking survey. Step III: Prepare for the worst “Those who fail to prepare, prepare to fail,” the always-inspiring Ben Franklin once said. Education is the antidote for uncertainty, and having a strong business and staff will sustain you through the tough times. Find great learning opportunities for any business aspect, including specialized industries like the financial and labels and packaging industries on our events calendar. Step IV: Focus on key management actions Unsteady times call for highly focused management strategies. Create your plan of action based on the operating keys of profit leaders detailed in Keys to Profitability. Step V: Review talking points before meeting with your banker Take a look at the liquidity, funding, and leverage ratios that banks and other lending institutions base their lending practices on. Review Ratios 2011-2012 to self-evaluate, then take it to the bank! Learn more at the 2012 Printing Industry Financial Executives (PIFE) Conference November 7–9 in Coronado (San Diego), California. Join Dr. Davis, who will be presenting “Competing for Print’s Thriving Future: Understanding and Taking Advantage of Emerging Economic and Industry Forces,” and other leading industry experts as they delve into the topics and trends that matter to you. The 2012 PIFE Conference is co-locating with the Label Printing Industries of America (LPIA) Innovation Conference. For more information or questions, please contact Justin Goldstein, PIFE Manager, at 412-259-1806 or via email at...

This article was contributed by Ed Gleeson, Director of Economic & Market Research, Printing Industries of America.   In 2011 we started off the year with fears of a double-dip recession, but much of those fears have subsided as the U.S. economy gained some momentum ending with fourth-quarter growth of 3.0%. Real GDP increased by 1.7% in 2011, and the printing industry–like the U.S. economy– experienced growth, but at lower levels than 2010. According to our Fourth Quarter Print Market Survey of over 250 survey printers, sales increased by 3.9%. Taking into account the number of firms that went out of business during the year, we estimate that total industry sales increased by 0.35% in 2011 to $145.1 billion from $144.6 billion. According to the U.S. Census Bureau, 2011 print shipments declined 0.47%. Since the beginning of the year, both our survey panel and the U.S. Census Bureau reported print sales weakening. Most reported industry growth is from companies with more than 100 employees. On average their sales increased by 5.1%, while smaller firms reported sales declining. Digital toner-based and ancillary service sales were the main drivers of industry growth in 2011. Digital toner-based sales increased 8.5% and ancillary services increased 4.7%. Weighted average* conventional print sales increased by 1.4%, while non-weighted sales declined by 0.6%. Larger firms’ conventional print sales increased by 2.9% while smaller firms’ sales continued to decline. Since larger firms account for a larger percent of total industry sales, their answers receive a larger weight and pull up the industry average. In 2011 our panel reported prices declining slightly by 1.1%. According to the Bureau of Labor Statistics’ Producer Price Index for the printing industry, prices increase by 1.8% in 2011. Smaller firms with 1 to 19 employees were the only segment in our panel that reported increasing prices in 2011, an increase of 1.2%. How did your company perform compared to the industry average in terms of percent change in total firm sales, conventional print sales, digital print sales, and ancillary services sales? Were you able to pass along price increases to your customers or, like our panel, did average prices decline? In the Fourth Quarter Print Market Update, available soon at www.printing.org/store/38806, you can compare your firm’s performance to the competition. The following are some of the main benchmarks available for comparison in the report: Percent change in year-end sales Sales expectations for 2012 Printing prices, profitability Material and labor costs Employment and employment expectations Capital spending and access to credit. We further segment the results so you can compare your company to companies of a similar size, in the same region, and using the same primary printing process. We recommend you compare...