Just How Well is the Printing Industry Performing Financially?

The following report was compiled and written by MargolisBecker and Printing Industries of America’s Ratios Study Program.

The Great Recession of 2007–2009 was a dramatic departure from the relatively mild recessions of the past two decades. The sluggish economy and slowing print markets picked up steam and reversed their trends in 2010. As reported, the industry incurred an average profit for 2010 of 1.4% for all printers participating the in the 2011–12 Ratios Survey. This is an increase of 2.8% from last year’s average loss of 1.4% and ends the three prior years of consecutive decreases. Looking back over the last 90 year history of the Ratio Studies, an astute business person could predict the reversal of the industries recessionary trends, as it has always happened. But with the ever changing environment, even the veteran industry leaders have expressed concern over the recovery.

The Ratios report should start to alleviate some of their concerns. At this rate, the industry showed approximately $2.1 billion in total profits over the course of the year, quite the opposite from 2009’s approximate $1.9 billion in total losses. In 2010 38% of printers participating in the Ratio Study posted a financial loss for the year, down from the 55% who reported losses in 2009.

The industry’s profit leaders, printers in the top 25% of profitability, saw their profits also rise significantly over the year, increasing to 9.5% from 7.0% the previous year. Considering the conditions of the economy and the overall industry results, these top performers should consider themselves fortunate. For more information on the Ratios and to order the volume that best matches your company’s business go to www.printing.org/page/6529.

For further information or questions please contact Ed Gleeson at egleeson@printing.org or leave a comment on this post.