BUSINESS PRINTING TECHNOLOGIES REPORT
JUNE/JULY 2005

TABLE OF CONTENTS:
FORMTRAC 2005 Preview
Order the full FORMTRAC 2005 report
The Source Hotline Online

 

FORMTRAC 2005 Preview

DMIA is pleased to announce that FORMTRAC 2005 will be released July 18, 2005. After countless hours of tabulation, researching manufacturer shipments and distributor sales, we're almost ready for press. We didn't want to keep you waiting any longer, so we put together a summary that gives an accurate snaphot of the forms industry today. Readers that want more information on FORMTRAC 2005 can click on the link at the end of this article.


The State of the Forms Industry
FORMTRAC 2005 estimates and projections show that overall sales of products manufactured internally by industry participants will be in the $12.5 billion range through the forecast 2005-2009 period. Sales of conventional forms will continue to decrease, but will be offset by increased sales of other products. Distributors will be able to grow their business and increase their share of industry product shipments, while many trade manufacturers of conventional forms and major direct selling manufacturers will see a decline in product sales. The forms industry as a whole has become smaller with the 2004 sale of Moore/Wallace to the commercial printing giant RR Donnelley. In addition, other factors played a role in the shrinkage that has occurred over the past three years. Those factors are:

<>  Commercial printing produced by Moore and Wallace can no longer be considered part of forms industry shipments in 2004 and beyond after these companies were merged into RR Donnelley on February 27, 2004.

<>  The major direct-selling manufacturers have experienced more severe cutbacks in production capacity, product lines, market coverage and sales than anticipated.

<>  Demand for some conventional forms has declined faster than expected.

<>  During 2001-2002, demand for direct mail printing experienced a steep decline due to curtailment of sweepstakes promotions, economic disruption following the September 11, 2001 attacks on the U.S., and the subsequent impact of anthrax-poisoned mail.

<>  Advertising expenditures dropped during 2001-2002, triggering a decline in demand for commercial and direct mail printing. Recovery has been slow due to additional negative impact from competing business communications technologies. Direct-selling manufacturers were affected more severely than distributors.

The good news is that there are many growth areas that savvy manufacturers are taking advantage of today. Some growth areas were distinctly spelled out by four panelists at the recent DMIA Manufacturer and Supplier Print Conference in Philadelphia.

At the Philadelphia event, RIT professor Frank Romano facilitated a panel of four DMIA manufacturers: Dale Dembski, of Data Management Center; Tim Dust of F.P. Horak, Co.; George Phillips of ProDocument Solutions; and Linda Poole-Bova of Primadata Incorporated. The four manufacturers told attendees how they have evolved their traditional companies for future growth while facing a challenging document market. Each of the four has poised their companies in different areas of specialization.

Dale Dembski of Data Management Center, Schaumburg, Ill., delivered a message that documents and document fulfillment go hand in hand but due to the ramp up costs involved, document printers would be best suited by partnering with a mail-processing document fulfillment company. Dembski told the group what was important in choosing a document fulfillment center.

Tim Dust of F.P. Horak Co., Bay City Mich., explained how a traditional forms printer evolved into digital printing, eventually opening up a separate digital printing facility to complement the work being produced at the traditional form plant. Dust's presentation focused on the workflow issues surrounding the creation of a whole new production facility.

George Phillips of ProDocument Solutions, Paso Robles, Calif., spelled out how their company chose to become a full-service security document provider. Phillips expressed the critical nature of what's involved in making your printing plant a &ldquo;secure document facility&rdquo; Phillips cited the plant's ability to commit to knowledge, training, and involvement in creating a secure plant environment that customers will trust.

Linda Poole-Bova described how Primadata, a mailing facility in Green Bay Wis., was purchased by Libman business forms, a traditional forms printer that was looking for ways to get into the complex world of variable data printing and document fulfillment market. Poole&ndash;Bova also announced that Libman Business Forms would soon become &ldquo;Primagraphics Inc.&rdquo; as an evolution of the entire operation.

So, while the printing industry is being challenged on many fronts, there are viable products and services that forms printers can turn into profits. In the tables and summary below, we'll look at an industry overview, the independent segment, the direct-selling segment, and a summary of today's business document market.

 

FORMTRAC 2005 Industry Overview --
To view this chart, open this issue in your web browser:
http://www.dmia.org/sol_center/bptr/05jul_bptr.html


Manufacturers should be aware that the relative stability of projected total industry sales masks some of the turmoil within the traditional forms industry due to major product mix shifts, declining value of products and consolidation. Projected industry sales growth through 2009 is below the expected general rate of inflation, which means that product shipments in terms of constant dollars will actually decline. Part of the reason is lack of pricing power by manufacturers in an environment of excess production capacity. The core conventional forms product group that defines the forms industry will drop from 53.9% of total retail product sales of distributors and directs in 2000 to 41.2% in 2009. The product mix of current forms industry participants may contain less than 40% conventional forms by 2010.


Product Group Sales in Current Dollars
at Retail Value -$ - millions --
To view this chart, open this issue in your web browser:
http://www.dmia.org/sol_center/bptr/05jul_bptr.html


THE INDEPENDENTS

2004 FORMS MARKET ESTIMATES &ndash; Independent Segment
<>     All sales amounts are shown in retail (end user) value of products and services.

<>     Trade manufacturers' shipments include house accounts, government sales and production by distributor-owned or controlled printing operations.

<>     Retail value of forms purchased by the directs for resale is included under trade manufacturer shipments.

<>     Trade manufacturer shipments include products manufactured by dedicated trade sales divisions of the directs.

<>     Advertising specialty sales in 2004 reflect the June 30, 2004 acquisition of Alstyle Apparel by Ennis.


PRODUCT CATEGORIES --
To view this chart, open this issue in your web browser:
http://www.dmia.org/sol_center/bptr/05jul_bptr.html


THE DIRECTS

2004 FORMS MARKET ESTIMATES -- Direct Selling Manufacturers
<>     Direct-selling manufacturer shipments include only internal production and services provided with internal resources.

<>     Excludes shipments by dedicated trade sales division of directs and sales of products purchased from trade manufacturers.

<>     Moore Wallace was acquired by R.R. Donnelley (RRD) on February 27, 2004 and most of the commercial printing produced by the two major forms industry directs was merged with RRD operations. This commercial printing volume is no longer part of production by forms industry participants and it was removed from forms industry sales starting in 2004.

PRODUCT CATEGORIES - DIRECTS --
To view this chart, open this issue in your web browser:
http://www.dmia.org/sol_center/bptr/05jul_bptr.html

 


MARKET SUMMARY

2004 PRINTED BUSINESS DOCUMENT MARKET
In addition to forms products and services manufactured and sold by forms industry participants, forms are also produced in three other segments of the broader printing industry:

<>     Forms produced by general commercial printers, service bureau operations, mailing houses and other types of document factories.

<>     Forms produced by quick printers and copy shops. Several quick printing franchise organizations have announced major initiatives in business document production and services using a combination of conventional printing, digital printing and electronic commerce technologies. Quick printers and copy shops produce a substantial volume of cut sheet forms and edge-glued carbonless sets.

<>     In-plant printshops continue to produce sizeable quantities of single and multiple ply forms. Some of these printshops have been combined with computer output operations to produce statements, invoices, direct mail and other types of forms using blank roll or sheet stock. After a period of gradual decline, in-plant printing operations are acquiring high speed digital monochrome and color printers/presses and are slowly increasing production of forms and commercial printing work that was previously outsourced or purchased from commercial suppliers.

Major national and regional directs resell products purchased from suppliers outside the forms industry. These sales are excluded from data on internally-produced shipments of products and services and are shown separately on the following summary of the printed business document market.

 

PRINTED BUSINESS DOCUMENT (FORMS) MARKET SUMMARY --
To view this chart, open this issue in your web browser:
http://www.dmia.org/sol_center/bptr/05jul_bptr.html

 

ORDER THE WHOLE REPORT!

FORMTRAC 2005 includes:
<>     Printing Industry Overview
<>     Forms Industry Overview
<>     FORMTRAC 2005 Product Category Data
<>     Shipments of Trade Manufacturers
<>     Shipments and Sales of Direct Selling Manufacturers
<>     Product Categories and Shipment Volumes

If you'd like more information about FORMTRAC 2005, or to find out how you can purchase a copy, please click here: https://www.printsolutionsmag.com/dmia/Ftrac05.html.

 


CHECK OUT THE SOURCE HOTLINE ON THE WEB!

You can search the DMIA Source Hotline Database through this state-of-the-art program featuring a comprehensive database of more than 30,000 suppliers organized by product category and region. With a few clicks, you can sort the capabilities of these manufacturing sources, identify your top five, and automatically send quotation requests via e-mail. It’s a fast, comprehensive and efficient way to develop and manage product quotations.

Built upon DMIA’s Source Hotline Database, this web-based service will save you valuable time and allow you to search for sources 24-hours a day, 7 days a week!

Start using this great member benefit today and see how it can help you make more sales, faster!

Just go to <http://www.dmia.org> www.dmia.org and click on "Source Hotline Database" to enter the Online Sourcing Service. There is a tutorial that will help guide you through the system and then you'll be off and running!

The first time you use the service, you’ll need to enter your Login Name and a special password. (This is different from your regular DMIA password.)

If you need your login and password, call the hotline at 800-333-2828. Enjoy this new service from DMIA and remember that we are always working to bring you new products and services that really make a difference for your business!


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