Economics & Research Blog
Printing Profits Still Struggling, but Rebound from Q4-2012
US commercial printing profits rebounded from their tough fourth quarter of 2012,
By Dr. Joe Webb
Published: June 21, 2013
Note that profits are staying positive, while industry revenues are declining. This usually means that unprofitable printers are exiting the market, and their poor performance is no longer included in industry profit levels. While it's far more glamorous to talk about industry consolidation in terms of mergers and acquisitions, the exiting of profitless firms through closure or bankruptcy is far more common. The business of the defunct businesses is absorbed by better performing businesses with obviously better cost performance.
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