Experts are hopeful that new technologies could signal a shift in printing production. For as long as printing technology has been around, companies in the industry have focused exclusively on the tried and true business staples of business cards, direct mail flyers, and newspapers. All things considered, the days of relying on only paper and ink materials are coming to an end with more and more businesses shifting almost all of their marketing focus to digital media and online advertising.
To sum it up, the industry has been facing many challenges to remain relevant all the while posting minor growth rates over the last year. What will 2018 hold for the commercial printing industry and what changes should printing equipment lenders and buyers anticipate? Let’s start by looking at 2017’s sales data.
2017 EDA Finance Data
EDA is one of the leading industry reporting firms with data on the financial sales and loans for each year. They recently updated their 2017 report with the latest numbers from November of last year. Here were the top equipment buyers from that report along with their location and the units:
These top companies are spread out across the United States, specializing in different printing technologies.
That same report also lists the top financiers for the month. Here are the top five lenders along with the five companies that tied for fifth place:
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
When considering the top five financiers, they all combined for a stunning 65.6% of the total units for the month of November. Also, Geneva Capital, the top financier, financed enough equipment to bring in 18.3% of the total units within the month. Not much information was given about the exact type of printing equipment sold, but it’s safe to assume it was for traditional methods. In 2018, the equipment prominent printing manufacturers use could change drastically.
The Future of Printing
Many experts forecast 2018 to be a big year for the next evolutionary step of the commercial printing industry: 3D printing. Esteemed industry research firm IDC predicts that investment in 3D printing will come close to $12 billion with emphasis on the discrete manufacturing process of making distinct items like automotive parts, household items, and more.
Also, expect the healthcare industry to see an increase in printed technologies this year. New, advanced medical practices like bioprinting and regenerative medicine technologies are accelerating faster than ever, and with significant funds thrown behind the projects, they could potentially change the way that doctors treat patients around the world.
Other Factors Driving Growth
The market forecast firm Idealliance predicts that the commercial printing industry will see between 1.5 and 3% growth in 2018. In addition to 3D printing and bioprinting, there is also some demand for traditional printing services in emerging factories across the globe. Manufacturers will still need packaging printed for their products and with the foreign investment in factories in emerging economies, the demand for traditional printing to remain constant over the next few years.