The strength of the independent dealer community has been a feature over the last year. Overall they have grown at higher than average rates, aided by their close customer contact and operational flexibility during the downturn.

While there are a large number of office product trends affecting different parts of the market, my top three in terms of overall long term impact are as follows. It is worth keeping these in mind as you plan and make decisions for your business in the coming years.
Big issues for the decade

1. Managed print services (MPS) - growth and disruption for dealers. Specialist service providers (often the OEM print supplier themselves -eg HP) are increasingly signing contracts with businesses to provide automatic cartridge replenishment and maintenance services on a per page billing system. These agreements effectively cut out dealers who provide just product (cartridge) supply. It is clear this new system is set to escalate as it is favourable to the OEM's (and they are pursuing it) plus it is a compelling offer to businesses. With printer cartridges being such a major part of most dealers total sales (often up to 30%) the erosion of this sales stream will certainly be felt and dealers will be forced to search for other offers to businesses.

2. The technological revolution - both a demand stimulant and destroyer. There is no doubt the rapid rate of technology development will continue to transform the range of products used by businesses. So far this has served to expand the industry via electronically-oriented products - particularly those associated with in-house printing (paper, printer cartridges, machines and related products). I have no doubt this revolution will continue to ensure a healthy flow of new products through the OP channel.

However there is also now the looming threat that the combination of advances in software, online services and new electronic screen-based technology may finally be leading, if not to a paperless office then a much lower usage one. As this trend gains momentum a wide range of products related to paper usage will start to decline - and need to be replaced/supplemented with new offerings. In this environment it is likely the current ‘office products' offering will need to transition from providing just physical products to providing a range of products and services that revolve around business productivity.

3. The green revolution. This trend is in its infancy. At present the focus is on providing green variations of existing products (industry-driven), however there will be a second and more significant phase once businesses focus on creating low impact and more environmentally efficient processes. This phase will see completely new products/services emerge while at the same time reducing demand for existing products. More on this in a future edition.

Afternote. I hope these observations aren't perceived as painting a negative future for the office products market. I certainly don't view it that way. The future is full of opportunity - providing operators evolve and adapt with the market developments. Let me know what you think. andrew@penfoldresearch.com.au

In Australia, the printing industry has met these new printing trends with open arms as many have updated their workflow and production strategies to meet the changing demands. On the other hand, many of those who never made these important changes have struggled because of the growing competition by non-print and online media.

According to the Rochester Institute of Technology School of Print Media, there has been a growing media competition considering the fact that print advertising is driven by newspaper, magazine and periodical revenues while "the Internet is chipping away at traditional media usage and communication."

The recent developments in the printing industry can be attributed to several printing trends:

Workflow Digitisation

• One of the most important printing industry trends has been the electronic delivery of files as desktop publishing takes full control of the printing process.

• There's an emerging need for the electronic delivery of graphics and images, which has made film media process obsolete.

• The industry has adopted automated workflow processes that would link customers, printing systems and services like never before.

Technology Integration

•  Printing trends are gearing towards full workflow automation with the development of computer-to-plate imaging technologies that allow desktop publishing applications to output directly to a printing plate.

• Many printing presses are integrating "hybrid" printing by combining different reproduction processes since many print jobs are complex with specialised coating or printing requirements.

• There's a growing trend in cross media conversion from one file to any information distribution and electronic publishing methods.

• The advancement of digital technologies such as Direct Imaging offset presses and Inkjet printers have made colour printing cost effective.

Changing Demands

• Printing trends have also pointed towards shorter production runs and schedules in an effort to compete with digital printing.

• Printing production now shifts closer to the point of distribution as printing trends move away from being press-centric to printer-centric.

• A greater volume of printing jobs has moved away from printing companies to those produced by desktop printing and offshore printing firms.

The implementation of new printing industry trends such as the workflow digitisation, technology integration and changing demands have transformed companies into more efficient and effective businesses. However, some niche pre-print operations are now rendered obsolete because desktop publishing has eliminated the need for pre-press and film-based processes. The implementation of a digitised workflow has further automated the printing process and at the same time freed the operation from labour-intensive tasks that may hamper production schedules. Despite the growing significance of online-based services, the printing industry remains strong and enduring as it adopts new strategies to achieve success in the future.

Sources:

"An Investigation into Printing Industry Trends"
(http://print.rit.edu/pubs/picrm200405.pdf)

Top Commercial Printing Industry Trends
(http://industries.hoovers.com/business-services/commercial-printing/industry_trends)