Printing Equipment Industry 2018

More businesses are moving online. How will the commercial printing industry adapt?  For decades, the commercial printing has relied on the tried and true business staples of business cards, direct mail flyers, and newspapers to keep the industry profitable. However, these days more and more businesses are shifting almost all of their marketing attention to websites and social media. With this in mind, the industry has been facing many challenges to remain relevant all the while posting miniscule growth rates that signal stagnation for the once-booming industry.

Industry reporting experts, Idealliance, noted that the commercial industry as a whole grew by only 1.0% in 2017. While a sign of growth is appreciated after facing a sharp decline back in 2011, to keep up with the changing times and reclaim relevancy, growth must continue at an accelerated pace.

Who Financed Printing Equipment in 2017?

Insight specialists, EDA, recently updated their 2017 sales numbers from November. They compiled a list of the top lenders of print equipment of the month along with the units that they financed. Their list is as follows:

GENEVA CAPITAL                                      17
TCF EQT FIN INC                                      11
HEIDELBERG USA INC                              8
BOBST NORTH AMER INC                        5

Tied for 5th

CIT BANK                                                     4
KBA NORTH AMERICA                                4
PNC EQUIPMENT FINANCE                       4                     
MACDERMID PRINTING SOLUTIONS         4         
WELLS FARGO EQUIPMENT FINANCE        4

The top five (in this case ten since five tied for fifth place) accumulated enough sales for 65.6% of the total with the number one lender, Geneva Capital, taking 18.3% of the total by itself.

Who Was Buying the Equipment?

Marketing Instincts        California                 Epson         4
School of Visual Arts      New York                  Epson          3
GameTime Wraps           Arkansas                   HP               3
RR Donnelley & Sons     Delaware                  KBA              3
Quality Printing              Massachusetts         Ploar          2

Across the United States, buyers specializing in a variety of printing application were financing new printing equipment at acceptable rates. With new advancements in printing technology and more innovative applications, the industry could be ready for a long-awaited boom in 2018.

Increased Investment in 3D Printing

Industry reporting firm IDC predicts that in 2018, investment in 3D printing, specifically discrete manufacturing, will reach nearly $12 billion, which provides another opportunity for printing equipment finance companies. Discrete Manufacturing covers a variety of different sectors but is mostly focused on the production of specific items such as toys, automotive parts, and household goods. Also, many also see the rise of new medical-based printing technologies such as bioprinting organs and tissues and regenerative medicine as optimistic signs for the future.

Hopefully, these predictions hold true, and companies will increase their investment in these new printing technologies. If not, the industry as a whole could remain stagnant and lose its relevance as the world moves further down the digital path, leaving traditional printed materials behind. Referencing the Idealliance report mentioned earlier, they believe that with the new investment in these printing technologies, the commercial printing industry could grow by 1.5 to 3% in 2018.

We're still in the first quarter of 2018, so a lot remains to be seen if the predictions and forecasts from last year are accurate. With growing interest in the new technologies, financiers and buyers alike will have to change their business plans to adapt to the changing times.