PRIMIR Issues Study on Non-Print Revenue

In 2011, PRIMIR, the Print Industries Market Information and Research Organization, commissioned State Street Consultants and John Zarwan Partners, to research non-print revenue trends for printers. After interviewing a significant sample of commercial printers, digital imaging service firms, transactional printers, direct mail and specialty printers, researchers delivered a comprehensive study that identifies current trends and projects future opportunities for printers to grow their business through key non-print services.

In all 26 non-print services were evaluated. Fulfillment and warehousing, mailing and design services are and will continue to be the top service offerings. By 2016 these three will account for approximately 65 percent of all non-print revenue growth.

Other key findings include:

• 2011: $21.2 billion in non-print revenue
• 2016: $33.3 billion in non-print revenue
• 2011-2016: 132 percent growth rate for Web/Internet services
• 2011-2016: 86 percent growth rate for marketing services
• 2011-2016: 83 percent growth rate for data management service

“To thrive in the coming years, printers will have to move beyond print and the direction in which they move should be based on customers’ needs and the ability to leverage skills to satisfy those needs,” said Dave Costa, President at State Street Consultants. “For example, by 2016, PRIMIR’s study projects that mailing, fulfillment and warehousing and design services will continue to dominate but other non-print services will gain in importance including Web/Internet services which is projected to increase its revenue by 132 percent.”

According to State Street, in 2011 the total industry revenue was $156.5 billion, however only 86.5 percent of that revenue was generated from actual printing; the balance was generated from a vast array of services print firms offer their clients today. The study identifies the most common non-print service offerings and benchmarks the revenue volume, types of non-print related services offered and forecasts trends through 2013. Findings are broken out by employee size, process and end-use/segment specialization.

In addition, the research outlines the impact of non-print services on the printer’s business including revenues, profitability, estimating, costing, staffing, workflow, equipment purchases and more. The report also makes recommendations to printers about tracking revenue sources through various systems as well as discusses opportunities and impacts for graphic arts equipment and consumables suppliers.

“It’s obvious that print is contracting and the communications industry is changing quickly, both with competing technology platforms and evolving print platforms,” said Andrew Gordon, Executive Committee Member, PRIMIR, Study Co-Chair and Director, Enterprise Product Marketing, Mimeo. “Now is the time for print service providers to expand their portfolios of non-print services, meet the needs of the transforming communications industry and reap new revenues and higher profit margins.”

The full study, over 500 pages, titled “Evaluating and Understanding Non-Print Revenue of North American Printing Companies,” is available only to PRIMIR members, while the executive summary is now available to non-PRIMIR members for $995. Eligible firms may join PRIMIR now and receive the full study at no cost. For more information about this study or PRIMIR membership, contact Jackie Bland, Managing Director at e-mail: jbland@primir.org or by phone at (703) 264-7200.

About PRIMIR
PRIMIR, the Print Industries Market Information and Research Organization, is a global source of data, analysis and trend information about print and related communications industries. PRIMIR research is funded by member dues as well as through support from NPES. PRIMIR annually provides over $500,000 in current research studies including relevant market data and detailed information on graphic communications and related fields. Members also benefit from meetings, market research skills building, and robust business networking opportunities.

Source: PRIMIR.