American business printing prices will continue to fall

Recently, two printing enterprise, while the companies in the United States (R.R.D onnelley) and the Cape Cod by company (Quad/Graphics) respectively in their annual report to the commercial printing industry current challenges are summarized, and puts forward his own decline in demand for market response.

When the company in the annual report, the market competition and overcapacity will continue to traditional printing orders and contract renewal bring huge pressure on prices.This means that the utilization ratio of the printer and shrinking market demand is bound to lead to print a drop in prices.Similarly, as the second largest printing enterprise cape graphic company also pointed out in his annual report, the economic crisis led to the decline of the market demand of printing industry created serious excess capacity, and printing prices downward pressure continues to increase.

Facing the changing market and severe challenges, when he and cape graphic company chose to enhance their own strength through m&a.While the acquisition of the unified printing company (Consolidated Graphics), while in the last year bought the cape graphic vitesse (Vertis) holding company, and successfully extended its scope of business in the United States.

The two companies targets include not only the competition, but also includes the print media suppliers, such as translation service company and purchasing point panel manufacturers, etc.When the company said, was the cause of their acquisition of such companies want to "maximize meet the communication needs of customers".In other words, the printing needs of customers may fall, but they still need to communicate, so the printing enterprise to strive to become a comprehensive communication service providers, rather than just printing service provider.

Only this time, the two companies change ever released after the business tax revenue practice, for the first time in the annual report to the company facing difficulties are analyzed.In addition to the already widespread consensus overcapacity and falling prices, these two printing giant also summarizes the commercial printing industry faces the other four challenge - postage up menacing, digital technology, print marketing materials to reduce, and the rise of management of printing enterprises.