The Structure Of The US Printing Industry Is Quietly Changing

- May 06, 2020-

The industry's printing structure is transforming into what economists call the oligopoly market structure, and some people call it the "barbell" structure. At one end of the barbell is a small group of large printing companies, while at the other end is more than 25,000 small and medium-sized printing companies.This is the result of the merger of the printing industry after three or four decades. According to a survey by the American Printing Industry Association, larger printing companies (limited to more than 100 people and a turnover of more than 10 million US dollars, about 2,500) are in the process of expansion again,they are making "containment" mergers and acquisitions of poorly managed small businesses, and these small business owners are willing to take action before the situation gets out of control. Generally speaking, large printing companies have better marketing teams and pricing power, and they can preferentially select the customer base of those shrinking companies through better quotations and operating capabilities.

The total sales of the printing industry in the United States have been declining since 2007, the total number of companies has been declining since 1995, and the printing batches, the number of printed pages and the average number of orders have also declined over the years.If an oligopolistic market structure is really formed (this will happen to a large extent), then the printing industry will be dominated by a small group of large enterprises, and 70% to 80% of the industry ’s profits will be controlled by them, and the remaining 20% 30% of the sales output value will be divided by many small enterprises, and the number of these enterprises accounts for about 80% to 90% of the printing industry. At that time, the number of small enterprises will be reduced from the current 25,000 to about 15,000. As companies with poor profitability withdraw or are annexed by large companies, the printing industry will slowly increase their profitability.