Printers in the US are eyeing opportunities in adjacent segments to a greater extent than ever before according to new research from publisher Napco.
In the week that Labelexpo Americas opens in Chicago, the study says that label printing has a particular appeal to commercial printers.
The percentage of printers either already diversifying or planning to do so, has increased from the last time the questions were asked in 2018. “The rate of diversification is growing from all sectors,” the reports authors say. Then 80% expected or were investigating a shift sideways. Now 93% believe the grass is greener elsewhere.
The percentage of printers looking at moving into at least one new area is now 80% (77% previously); 66% are planning to expand across two additional sectors (50%) and into three or more areas is 51%.
Label printing has a particular appeal with 38% considering or already moving in this direction because barriers to entry are lower and there is less need for specialist finishing equipment.
Packaging printers are particularly keen to diversify into labels; their customer base is already buying label printing and the growth of ecommerce packaging during and since Covid has pushed through changes towards single-source supply of print and packaging.
It means that buyers are looking for convenience from suppliers, and the ability to buy the range of services from fewer suppliers.
Just as interesting is the list of areas that printers surveyed will not be considering. This is led by industrial print and printed electronics, followed by corrugated, flexible packaging, apparel and for those already in packaging, commercial print.
The authors believe a technology convergence is helping to drive the convergence of services. The technology is easier to come to grips with. They comment that print service providers “have to shift to match changing expectations” from customers.
It finds that one-third of printers have starting this expansion; another 39% are doing the research; 28% have set aside a budget for the necessary investment while half are in active discussions.
While the survey was focused on North America and the US market, the same prevailing conditions exist across much of Europe, including the UK.
