The print industry has long been a vital resource for mass communication and general business operations. With the rise of digital transformation and e-commerce, consumer preferences have shifted. People now expect faster turnaround times, personalized products, and more environmentally friendly practices. This has prompted the industry to innovate and adapt, offering new opportunities for print service providers (PSPs) that are open to embracing cutting-edge technologies. Still, these changes come with challenges for PSPs, such as investing in new equipment, training, and, in many cases, the requirement for significant operational adjustments.
Despite these challenges, embracing new technologies like production inkjet presses can benefit PSPs that are looking to capitalize on the increasing demand for customized communication. This evolution can strengthen their competitive edge, create new revenue streams, and unlock business opportunities. This article discusses the rapidly changing landscape of print and explores why PSPs need to adapt if they hope to survive and thrive in today’s modern market.
A Disconnect Between Print Volume and Print Devices
With its demonstrated resilience and adaptability, our industry continues to navigate the evolving landscape of digital transformation. With this transformation comes good news — print volumes are forecasted to grow through 2028. According to data from Keypoint Intelligence, color print volumes are expected to experience a compound annual growth rate (CAGR) of 7.2%.
Figure 1: Black & White vs. Color Volume Growth
This resilience is a testament to the industry's ability to evolve beyond the limitations of how print was once manufactured to meet the changing needs of today’s market.
Although digital color print volumes are on the rise, unit placements for color production equipment are not experiencing the same growth. In fact, the number of devices sold is expected to demonstrate a moderate decline over the next few years. This seemingly contradictory trend can be explained by a two-pronged shift: consolidation of print technology and consolidation in the industry.
·Print technology consolidation is prominent in copy and reprographic centers (CRDs) or smaller commercial quick print shops. The drive to move print from smaller devices to larger production print equipment is directly related to the changing demands of marketers and consumers. Production printers offer precise color management, wider substrate compatibility, and high registration accuracy. This makes them ideal for high-value documents that require personalization and shorter print runs. According to Keypoint Intelligence’s forecast data, inkjet technology leads in unit placements due to lower operating costs and higher productivity when compared to electrophotographic (EP) options. Just as Apple’s iPod and later smartphones disrupted the music industry, new inkjet technologies are challenging the dominance of traditional and EP print.
·Industry consolidation continues to shift the competitive landscape. The onset of sophisticated production printers puts pressure on PSPs to invest in more capable digital presses like inkjet so they can stay competitive. As a result, there is a notable shift in industry consolidation as companies merge or acquire competitors to gain access to the necessary resources. This consolidation isn't just a passing trend; it has become a necessity. These larger entities created through these mergers and acquisitions are better positioned to innovate and adapt to evolving customer demands by combining their resources and leveraging the latest technologies. They are able to offer the speed, customization, and eco-friendly options that modern customers crave while also implementing advancements like process automation and artificial intelligence to improve operational efficiency and meet the needs of a diverse workforce.
Transforming High-Demand Print
While the intent of this article is to be informative rather than spurring a buying frenzy of inkjet production printers, it’s clear that PSPs willing to embrace new technologies face a golden opportunity. Consumer demand for customized communication continues to excel, and inkjet technology is perfectly positioned to capitalize on this trend. The rise in print volumes produced by inkjet technology reflects a booming market and potential for growth. Take digital promotional print materials, for example. Think direct mail, brochures, catalogs, inserts, coupons, posters, or banners — print designed to promote a business. Inkjet presses shine in all these applications due to the high plate costs associated with traditional print and the increasing need for shorter print runs. Of this particular mix of applications, direct mail and brochures hold the most significant print volumes, while catalogs boast the highest projected CAGR.
Figure 2: Promotional Print Volume Forecast by Application
With a solid plan in place, the future is bright for PSPs. What’s key to remember is that it’s not just about keeping up; it’s about unlocking a world of possibilities for brand owners through better customer communications. Effective promotional print products are crucial for companies of all sizes.
From Cassettes to Clicks: A Cautionary Tale for Slow Adapters
If you’re still not sure about production inkjet being the wave of the future, consider the music industry's initial resistance to digital music distribution. For decades, record labels held onto the cassette and CD model, dismissing Napster and peer-to-peer sharing as piracy, not a sign of evolving consumer habits. This rigidity meant they were slow to develop user-friendly and legal alternatives like iTunes or Spotify. While the industry eventually adapted, it lost significant control and revenues during that crucial window. This serves as a cautionary tale for any organization that is hesitant to embrace technological advancements and shifting consumer preferences.
If you’re a PSP that is already convinced of the need for change but unsure where to start, here are three practical steps to initiate the inkjet journey:
1.Conduct thorough market research to understand your specific customer base and their evolving needs. Look for business reasons that support short runs and personalized print. Perhaps your best customers are focused on improving their customer retention rates. Explore the opportunities to implement high-impact direct mail campaigns or catalogs.
2.Evaluate the financial feasibility of an inkjet investment. Consider factors like print volume, job mix, and jobs lost to competitors. If it's still not clear that an investment in an inkjet solution is the right thing to do (now), form partnerships with established inkjet print providers. Your customers will appreciate the benefits!
3.Seek expert advice. Whether it's from peer groups, research organizations, or a reputable inkjet technology vendor, their guidance and support can give you the confidence to make the right decisions. With several different types of inkjet solutions and even more add-ons or options, you can't ask enough questions. Their expertise will help you navigate the complexities of inkjet technology and ensure a successful transition.
The Bottom Line
With its ability to bridge the gap between affordability and quality, production inkjet is poised to democratize high-end printing, making it accessible to a wider range of creators. While overcoming initial perceptions of inkjet quality remains a hurdle, the future is bright. Production inkjet technology has matured significantly. Today, it offers exceptional quality, efficiency, and a pathway to a thriving future for the print industry. As production inkjet technology continues to evolve, a fascinating question arises — will inkjet become the dominant force, or will a hybrid future with traditional methods emerge? Only time will tell, but one thing's for sure: innovation is shaping a vibrant future for print!
Karen Kimerer of Keypoint Intelligence has experienced the many challenges of expanding current market opportunities and securing new business. She has developed a systematic approach to these opportunities, addressing the unique requirements of becoming a leader in our changing industry. She is well-versed in 1:1 marketing, web-to-print, direct mail, book publishing, supply chain management, data segmentation, channel integration, and photo products.
This article originally appeared in the September/October, 2024 issue of Mailing Systems Technology.
