North America's Development of the Printing Industry in the Next 6 Years (4)

· With the shift from the prepress production department to the client, the cooperation between the printing factory and the client's creative team is increasingly important.
• Training and customer service centers are also critical to the success of digital printing plants.
· Automation can further personalize the industry, becoming a very large company and a very small company. The merger of the printing industry will continue and large companies will merge or acquire SMEs that cannot afford new technologies.
Progress of equipment
In the printing industry, equipment and processes are constantly improving. However, the pace of progress has accelerated and the number of processes has increased. Today's situation is the key to the success of how a printer can use the equipment creatively and adopt new processes.
The main information related to the progress of the equipment in the printing industry in the next 3 to 6 years is:
The first technology demonstrated at DRUPA 95 has now reached commercial availability, especially for "direct-to-class" technologies such as computer-to-plate (CTP), direct imaging (DI), and printing of toners. The price has also come down. Small and medium-sized printers need to be more familiar with these technologies.
· Print buyers today are looking for printers who understand their needs and provide better solutions. The innovative use of equipment can reach this point today. It is still lagging behind that the business is still seen as a printing factory that is connected to a live-shop production.
In the future, successful printing plants will continue to use a variety of printing processes. In order to meet the needs of market changes. Manufacturers have been providing a variety of printing process capabilities, and printers will accept this reality.
The printing economy is to reduce the cycle of the job, shorten the preparation time of the press, and reduce the waste of materials. Manufacturers provide methods to achieve these goals.
Successful printers will find new ways to introduce new equipment into the factory and use them to meet customer needs.
· Printing can still be maintained, but it must continue to progress, printing companies must use digital printing capabilities to supplement, in order to be more complete. Many buyers of print products choose to print according to their digital production capabilities (on-demand printing, distribution, reprinting, personalization, customization, etc.) before they follow traditional print orders.
· The digital and offset markets are not mutually exclusive, and they are usually carried on each other. They are constantly complementary. Printers need to understand the power of this complementary relationship.
In the future, printing customers will not stand for printing jobs that have been overprinted. Printing plants should pay more attention to the efficiency and capability of post-processing.
The Printing House on the Internet Today, all the printing plants have been connected to the Internet, using e-mails and web pages. In the next few years, the Internet will become more popular as a commercial tool for printers to connect with customers and suppliers to sell, distribute prints, manage print production and order consumables.
In corporate practice, this revolutionary change is primarily aimed at allowing printers to properly align their online capabilities with their own printing processes, customers, and jobs.
In the next few years, we hope to see three Internet-like business models to meet the needs of printing companies:
· Trading patterns for small print shops to serve smaller customers.
·Functional collaborative service model, providing process flow and communication tools between printing plants, customers, and suppliers, is the medium-sized printing plant service medium-sized customer's agent.
· An electronic network hub type that serves multiple printers and customers for larger printers serving larger customers.
The three models include service versions of Internet-based application service providers, as well as patterns from the printing house and suppliers themselves.
Various analyses have estimated that there has been a marked increase in the use of the Internet by businesses in the coming years. In particular, business-to-business connection business will increase at a noticeable rate. Printing industry inline business will increase accordingly. We estimate that after the on-line promotion of printing industry sales and supplier transactions will reach about one-quarter to one-third in 2003, it is expected to reach two-thirds to three-quarters in 2006.
Industry structure and benefits The printing industry in 2006 will be very different from what it looked like at the end of the 1990s. The structure of the industry will change as new processes and printing needs change the printing economy.
The number of company mergers has decreased in recent years, but the momentum remains strong. The economy is tightening, interest rates are still relatively low, and the economy is still rising strongly. The potential for more than one million transactions in large companies means that the entire sales value level and the total amount paid to purchase printing companies are still high.
There are several economic motives for corporate mergers across the entire industry. To obtain regional representation, critical quality, diversification of production, and cheaper access to existing technologies, other companies have mergers and acquisitions with the printing industry. Various economic motives to stress. However, the strongest economic driver is the ability to expand economic strength and purchase market share.
The competition from the electronic media has been driving the transition from the printing industry to digital technology, which has given these economic drivers another fire.
In this changing environment, the key for all printers to benefit is to focus on their customers, on the company's strategy, and the right price and management.
Printing houses will face common pressure in the next 10 years because they will work hard to expand their interests.
· A more stable paper market will lead to a continuous increase in paper prices.
The labor market is still tight, and printing companies still have to face stronger needs from other technical departments because they can work hard to attract good employees.
· In the most recent period, the biggest cost pressure the printing industry has to face is energy costs. The limited supply of electricity and the price of natural gas used to generate electricity rose rapidly. Abnormal electricity and water caused the price of electricity to triple in 2000. Electricity prices are expected to remain stable in the coming years and will rise again in 2003-2004.
· The price of capital (adjusted with quality improvement) is expected to rise more slowly than inflation in the next 10 years. Printers need to factor in the different depreciation rates for printing presses, bookbindings, and computer equipment when looking at profit margins, especially those that turn to computer-to-plate, digital imaging, digital process flow, and toner-based digital imaging systems.
· The profitability of the bottom line of the printing industry is getting more and more stressed in the next 3 to 6 years, but similar to the latter years, its average pre-tax interest rate is about 3% of the sales value. Those large profit-tax companies, that is, companies that make profits in the first 25%, have an average value of around 10%.
Key to Success The central idea of ​​Vision 21 is that the printing industry will move from a growing industry to a mature industry, and there will be opportunities for innovative printing plants that seek to develop and expand their businesses. To take advantage of these opportunities, the printing plant also needs to change in the form of operation. They may shift from slower market share to faster-growing markets, changing the type of printing and the ancillary services they provide. They must redefine their business.
For printers, the key to success is to realize that changes have already begun. To understand the impact of their business, to make appropriate countermeasures to make their technology, equipment, processes, products and services with their customer base. Corresponds to the market. (Finish)

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