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by Andrew Brown
Industry data suggest a workforce comprising fewer, but more skilled, employees
Remember the parable of six blind men who are asked to describe an elephant? The first one touches the elephant’s side and says it’s like a wall. The second feels the animal’s tusk and says it’s like a spear. The third holds the trunk in his hands and says it’s like a snake, and so on.
Publishing a state of the industry report is like being a blind man. There are many ways to measure the health and vitality of the industry, more than we can cover in a single issue. So we decided to isolate one—employment data—but not to suggest it’s the only one that matters. Though we’ve excluded close examinations of other industry aspects, including the total number of establishments, total annual sales volumes, and total annual wages, they’re no less important to understanding the direction the industry is headed.
The profiles and features here aren’t meant as definitive statements. They’re meant to
illuminate certain aspects of the printing industry and help you think about your business in relation to them.
Macro/Micro
On the following pages, you’ll find a color-coded map that illustrates employment data for the printing industry. It’s a macro-level look at the industry, designed to show where printing establishments and their employees are concentrated. Take note of the vast number of counties colored the lightest shade of tan. According to the U.S. Bureau of Labor Statistics, nearly 70 percent of printing shops employ fewer than 10 workers. Whether these companies grow or go out of business, one thing is certain—the workforce is set to shrink. The Bureau of Labor Statistics reports that the total number of employees in the printing industry is projected to drop nearly 10 percent between 2004 and 2014.
Companies that survive the industry's competitive environment won't come out of it in their current forms. They will perform more work with fewer employees.
A contributing factor is innovative technology. Companies that survive the industry’s competitive environment won’t come out of it in their current forms. They will perform more work with fewer employees. Computer-to-plate technology already has eliminated the need for some workers. As prepress and web-to-print technology advances, the number of employees needed by companies will continue to decline. In its place, however, the need for employees with strong computer skills will increase. According to the Bureau of Labor Statistics, “Despite the projected downturn in overall employment, retirement and turnover will continue to generate job openings in this industry throughout the decade, especially for the most skilled.” Experienced sales reps also fall into this category. Those who learn how technological applications can solve clients’ problems will be more valuable than ever.
Consolidation also will contribute to a decline in printing industry employment, the Bureau of Labor Statistics reports: “Some small and medium-size firms are also consolidating in order to afford the investment in new technology, which is expected to lead to a drop in employment.” Unskilled workers and sales reps who don’t distinguish themselves will compete for fewer industry job openings.
Widespread Optimism
The map on page 30 is followed by profiles of individual distributors and manufacturers. Statistics and charts tell us the workforce is shrinking, but they don’t reveal what members of the industry think and feel. Despite its ominous overtones, the Bureau of Labor Statistics’ employment projections are welcome news for some. A leaner, more efficient industry benefits distributors and manufacturers who currently compete with companies destined to disappear in the next decade. These companies often drive down prices. When they start to consolidate or cease operations, more stable companies hope to regain pricing power. At any rate, distributors and manufacturers with superior customer service and innovative solutions are confident they can hold on long enough to see that day.