Q1 Printing Profits Rebound; Large Printers Still Lag Smaller Establishments

Published June 7, 2016

The profits before taxes of US commercial printers rebounded in the first quarter. Profits for the quarter are estimated at $1.37 billion, the highest level since the third quarter of 2013, when they were $1.42 billion adjusted for inflation. Profits were $810 million for the first quarter of 2015, making this a significant turnaround.

Consolidating Printing Employment, Shipments End a Streak, and an Ugly Employment Report that Dresses Nice

Published June 6, 2016

Things are not what they seem. Streaking was not good in the 1970s, it’s definitely not good on presses, but streaking is great when it’s a growth streak in printing shipments. Unfortunately, the latter has ended, so let’s start a new one. The employment report was bad but that made interest-rate worriers happy. There’s nothing like getting statistically giddy over the numerical misfortune of others. Maybe they need to find a niche like a very happy Vancouver printer did.

Q1-2016 Real GDP Revised Up to +0.8%; Economy Already Recovering from Mini-Recession

Published June 2, 2016

The first estimate of Q1-2016 GDP was +0.5%, and that was revised up slightly to +0.8%. The concerns about recession are being reduced lately with some better economic news that show the economy on its sluggish pattern of sub-par growth in the +2% range, well below the post-WW2 average of +3.3%. As noted many times, there are numerous economic indicators that have yet to reach their pre-recession levels. Since this pattern has been so long in duration, even non-money denominated statistics, such as employment, have to be adjusted by population growth to discern true underlying levels. The chart shows Real GDP on a more conservative year-to-year basis as reported and with the volatile effects of inventory changes removed. The economy still seems to be digesting some long-term inventory rebalancing, some of which is related to global currency and other economic issues. The slowdown of the first quarter still seems to be limited to the first six weeks of the year. At the time of this writing, the Atlanta Fed's GDPNow estimate of Q2-2016 is at +2.5%. While that is a disappointing level, it is consistent within the lackluster level of economic growth that has come to be known these past years as “new normal.” Since 2011, real GDP has averaged only 2%. The difference in the average may not seem a lot, but a 2% annual growth rate will result in an economy doubling in size in 39 years; at 3.3%, it doubles almost 16 years sooner.

A Dr. Joe Potpourri: Meeker’s 200 Slides, Marriott Gives Points for (un)Cleanliness, and OECD Says the New Normal May Not be New, but It’s Still Here

Published June 2, 2016

A Dr. Joe Potpourri: Meeker’s 200 Slides, Marriott Gives Points for (un)Cleanliness, and OECD Says the New Normal May Not be New, but It’s Still Here

What Dr. Joe's Reading: USPS Makes No Cents, CMOs Seek Doers and Thinkers, Managers Work Overtime over the New Overtime Rules

Published May 26, 2016

What Dr. Joe's Reading: USPS Makes No Cents, CMOs Seek Doers and Thinkers, Managers Work Overtime over the New Overtime Rules

Retail Sales Growth Rates Reflect Changes in Competition and Consumer Preferences

Published May 26, 2016

Department stores are still having problems. Their year/year growth rate has been negative for more than a decade. E-commerce sales are maintaining a 15% growth rate. At that rate, they double every five years. The last peak in growth for retail sales excluding motor vehicles was in late 2011, and that rate, unadjusted for inflation, has slowed to the 2% range. Retail sales are a function of household income, and their costs, and they remain sluggish as median household income has still not reached the level it was at the beginning of the recession. In the meantime, shopping malls, the department stores that anchor them, and mall owners are having problems. A Weekly Standard article about Amazon has some insights into it. The downslide of brick and mortar retail stores and malls can create collection problems for printers who sell to them, but there are changes underway that might hold some opportunities for those printers who seek them. Developers are using mall complexes for new buildings that include office space and even hospitals and hockey rinks. There are also new efforts to treat the shopping experience not just as a matter of location, but holistically to include all digital touchpoints inside and outside the mall. How will much of this be communicated? It will often require signage, working closely with store owners and local mall management. Those printers, attuned to the nature of communications logistics and data management, can find opportunities there.

Government Shipment Revisions Make Everything New Again (Not Really)

Published May 23, 2016

Eventually, the numerous economic data published by the Federal government are right. Like wine, it takes time. As businesspeople, we can’t always be that patient.

Printing Industry Shipments Revised from 2007 to 2016, with Minor Changes Since 2009

Published May 19, 2016

The years 2008 through 2013 had slight revisions higher; the end of 2013 to present had slight revisions lower. The Commerce Department's revisions to all manufacturing data are leading up to a multi-year revision of GDP data at the end of July.

One Printer Uses “Print is Dead” to Get Into the Minds of Content Creators and Decision Makers

Published May 19, 2016

One printer has taken the “print is dead” concept and is making presentations to communicators about how print works with digital media.

Manufacturing Still in Contraction

Published May 19, 2016

The latest Federal Reserve industrial production index showed a slowdown since late 2014 and an outright contraction since mid-2015 is still in process. The business press focused on the comparison to the prior month, which looked like an improvement. The chart, however, compares to the prior year. Recent consumer retail data have been more optimistic, and the premise that we had a “micro-recession” at the beginning of the first quarter seems to be justified. There is growing pressure to weaken the US dollar to make manufacturing exports less expensive to international customers. The Atlanta Fed's GDPNow estimate for Q2 GDP is now +2.5%. At that rate, it would be a rebound from Q1's +0.5%.

Graphic Design Employment Up +6%, Agencies up +2.8%

Published May 12, 2016

Content creation is in a strong uptrend based on the latest employment data. Graphic design employment is up +6%, and has taken over from public relations employment as the surging area of hiring.

Dr. Joe's Reading for a New Day

Published May 12, 2016

Recommended reading from Dr. Joe Webb: It's the end of days for London's print newspaper New Day. Atlanta Fed's GDPNow Model Estimating Q2-2016 GDP at +2.2%, Lingering Effects of Recession, Justice Denies Staples and OfficeDepot... Again. Rubbing Sahl in an Old Wound

Do You Have a Culture of Honest Data?

Published May 9, 2016

The latest employment report had analysts scratching their heads. One ugly report does not a recession make, and things may not be as bad as it seemed. It could just be the same old lackluster recovery. Joel Quadracci had some interesting comments about Quad's restructuring efforts that have a good lesson for all managers. Honest data can take a beating in politics, whether they're in elections or in business offices. Does your business have a culture of frankness in the way it reports information?

19 Consecutive Months of Improved US Commercial Printing Shipments

Published May 5, 2016

US commercial printing shipments have increased compared to the prior year for 19 consecutive months. March 2016 shipments were up +$85 million (+1.1%) in current dollars compared to 2015, and +$22 million (+0.3%) after adjusting for inflation. February 2016 shipments were revised up by $2 million.

What Dr. Joe's Reading about Apple, Digital Signage, and USPS Worker Mood

Published May 5, 2016

What Dr. Joe's Reading about Apple, Digital Signage, and USPS Worker Mood

Recovery Indicators Better than the Recent General Economic News

Published May 5, 2016

The recovery indicators are more positive than the general economic news. One of our indicators, the NASDAQ, is down -1.7% since last month. It's been on a rocky road for the last three quarters. Its recent peak was 5218.86 in July, and it has not gotten really close since. Stock market concerns have focused on a decline in the rate of corporate profits, and Apple's recent financial report did not really help matters. There was a bullish rise in non-manufacturing orders. Manufacturing new orders index might look like a decline, but it is still indicate moderate growth. Proprietors income, a measure of the health of small business, was up only slightly. Other reports of small business health have not been good, especially the recent NFIB Small Business report. This month's recovery indicators don't indicate recession, a word that is bandied about with greater frequency lately, but support the continuing unsatisfying levels of slow but positive growth.

Q1-2016 GDP +0.5%; Inventory Correction Finally Arrives

Published April 29, 2016

US real GDP for Q1-2016 was reported at annual growth of only +0.5% compared to Q4-2015. On a year-to-year basis, the growth rate was +1.95%. The inventory adjustment that the economy has needed finally came, with the lowest net inventories in two years. Real GDP growth less inventories was +2.3% on a year-to-year basis.

S&P 500 Revenue Per Share Still Lags Economy

Published April 28, 2016

Everyone knows that the stock market is up from its lows at the bottom of the recession,but one obscure but key measure underscores how sluggish the economy has been. The S&P 500 should have a bias of steadily increasing revenues. It has most of the best companies in the world, with international presence in the globe's growing markets and a foundation in the established ones. It is rare for companies to be dismissed from the S&P 500, but companies are added all the time. When S&P companies merge, they create a new entity of combined revenues, and another company is added with new revenues to add to the index. The other upward bias should be the high level of stock buybacks buy these large companies, as they borrow money at low interest rates and create “shareholder value” by reducing the number of shares and increasing the value of each share of stock. We've called this cowardly, as it increases earnings per share (EPS) without needing to increase total profits. So this revenue per share should be steadily increasing with a growing economy in a recovery that started in mid-2009. It seems that companies have done a much better job of financial engineering than they have in creating revenues.

What Dr. Joe's Reading: Apple's Horrid Quarter Produces a Paltry 20% Profit; Smartphones and PCs; Labor Shortages

Published April 28, 2016

What Dr. Joe's Reading: Apple's Horrid Quarter Produces a Paltry 20% Profit; Smartphones and PCs; Labor Shortages.

Less Gets More, Models and Supermodels, and Why True and False Should Add Up

Published April 25, 2016

The latest government data show fewer commercial printing establishments, fewer employees, but higher pay. Now that more economic data are negative, we should really know if forecasting models economists use make any sense beyond predicting the past. Many of those models use spreadsheet software, and some programs can't make what's true and what's false add up. Yes it's a Dr. Joe potpourri.

NFIB Small Business Index: A New Recession for Main Street?

Published April 21, 2016

Economic data have been conflicting of late, but there is one consensus in the data that is clear: the small business economy did not recover from recession, and looks like it’s back in recession territory. There are many indicators we use for small business but one that is watched often is that of the NFIB. It is published monthly and has a long history. US government data focuses attention on the largest businesses because they represent big chunks of the economy and report some kind of data, especially payroll data, with great frequency. Think of it as counting whales rather than minnows. Their recent analysis said “The small business sector... is underperforming, doing little more than operating in maintenance mode. Slow economic growth is now just a result of population growth, more haircuts, retail customers, health care patients, etc. But there is no exuberance, no optimism and not much hope, the numbers make it clear.” Economies stuck in +2% growth mode tend to do that.

Dr. Joe’s Latest Reading About Marketing, Loans, Recession, Taxes

Published April 21, 2016

This week's recommended reading and articles of interest to media and printing executives.

2014 US Commercial Printing Capital Expenditures: New Purchases Down, Used Purchases Up

Published April 19, 2016

The US Department of Commerce recently released its Annual Survey of Manufactures Capital Expenditures report, issuing data for 2014.

The Fed Never Really Stopped QE3

Published April 14, 2016

This week’s chart shows the aggressive actions of the Federal Reserve after the housing bubble. For decades, the Fed’s balance sheet increased by about 6% per year, averaging about half inflation and half economic growth. The rocket-like rise when the bubble burst is clear, and then the three steps up of each of the quantitative easings are plainly seen. The Fed has wanted to raise rates for some time, but they have also wanted to stop the buying of government instruments that characterized the QE programs. They create shortages of publicly traded bonds which increases their prices, which makes the effective interest rates low. Rather than ending their purchases, the Fed has been replacing matured obligations. In effect, this keeps QE3 going. Can the Fed ever end it? They may hold on and hope that over time that economic growth and inflation catches up to them in time, but that can take forever, or perhaps longer. It will be difficult for the Fed to end its policy without robust economic growth that will give them the flexibility and opportunities to unwind their holdings. Should a recession begin, or a new financial crisis emerge (even an internationally) the Fed might need to create an additional QE effort.

USPS, Shiny Objects, Recovery, and Recession

Published April 11, 2016

The USPS exigent price increase has expired, and USPS says they “will lose approximately $2 billion in annual revenue resulting from a price reduction” which they knew was going to expire. The increase was to help “recover for the massive volume and revenue losses resulting from the Great Recession.” Yet, Dr. Joe shows that the declines in USPS volume kept declining after the economic recovery began in mid-2009. Then Dr. Joe talks about recession in light of recent economic data. Yeah, they’ll be calling him Dr. Doom again.

Can USPS Price Increase Rollback Get EDDM Moving Again?

Published April 7, 2016

The USPS is always in the news, and last month's Annual Compliance Determination report was not particularly positive. “The majority of products failed to meet service performance targets for FY 2015” read the Postal Regulatory Commission press release. The PRC directed “the Postal Service to improve service performance and provide a comprehensive plan within 90 days.”

Dr. Joe's Recommended Reading about Co-Workers, Presidential Candidates, and Disruption

Published April 7, 2016

This week's recommended reading and articles of interest to media and printing executives.

Twenty-one Months of Consecutive Increases for US Commercial Printing Shipments

Published April 6, 2016

The US Department of Commerce issued its latest report of US commercial printing shipments (NAICS 323) and the data show 21 consecutive months of positive comparisons to the prior year current dollar shipments. The trend started with June 2014, and has been an average increase of +3.3%, +$225 million per month, for that period.

Recovery Indicators Say “Recession? Don't Know the Word”

Published April 6, 2016

We may have gone through the first six week recession in history. That's said a bit tongue-in-cheeck, but many of the economic measures seem to have bottomed or are in the process of doing so. Besides that, recessions are measured in quarters, not weeks. The doom of the global economic slowdown and the worldwide currency crises seems to have left with a whimper.

Printing Profits Rebound (A Little)

Published March 31, 2016

Profits bounced back from a terrible third quarter which had an industry-aggregate loss of -2.57% as a percentage of revenues, and went back up to a more reasonable 4.38%. The difference was the massive writedowns of the third quarter which resulted in a -10.97% loss in printing companies with more than $25 million in assets.

Dr. Joe's Thoughts and Resources, and Some Road Warrior Advice

Published March 31, 2016

This week's recommended reading and articles of interest to media and printing executives.

Third Look at 4Q-2015 GDP Revised Up, Atlanta Fed Q1-2016 GDP Estimate Plummets

Published March 30, 2016

In a clear case of dealing with a two-handed economist when asked about economic conditions, the Bureau of Economic Analysis increased their estimate of fourth quarter GDP to +1.4%. The initial report was +0.7%, and then it was revised to +1.0%, and now it is +1.4%. They were off only by $100 billion from the first report, greater than the size of the printing industry, just to add some perspective about how big the US economy is.

Updated Commercial Printing Forecasts to 2021

Published March 24, 2016

Now that 2015 data are complete, we have run the forecasting models again and present them in this chart.

This Week's Dr. Joe Recommended Reading

Published March 24, 2016

This week's recommended reading and articles of interest to media and printing executives.

The Role of Print in the Media Mix and Shifting Economic Perspectives

Published March 21, 2016

Outsell, Inc., those folks who got our industry's attention by saying “print can be a legitimate spinoff from the Web,” are out with their latest estimates of media spending for 2016. Their latest data should make print owners and executives take notice because they offer a view into the problems that communications decision-makers face, and we're all about solving problems, aren't we. Dr. Joe adds his commentary to theirs and his insights into some of the latest economics news.

Advertising Agency Revenues Have Major Revision Down for 2013 & 2014, but Remain in Long-term Uptrend

Published March 17, 2016

The US Department of Commerce released its latest Quarterly Service Survey last week, and it reduced shipments for the third quarter of 2013 by -$4 billion (whoops – a -15% statistical error).

Fed Keeps Rates as they Are; Reduces Likely Number of Rate Increases in 2016 from Four to Two

Published March 17, 2016

This topic will be discussed in the upcoming Mondays with Dr. Joe on March 21. This news surprised no one as there are still great concerns about the economic conditions of world markets. The statement released at their prior meeting did not include comments about risk, but the one for this meeting did. They said “The Committee currently expects that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and labor market indicators will continue to strengthen. However, global economic and financial developments continue to pose risks.” It's likely that the first part was wishful thinking, since retail sales data were disappointing and prior data were revised down, and manufacturing activity still shows difficult time in that sector. The chances of no increases or only one in 2016 are now higher.

Dr. Joe's Neat Stuff in the Media

Published March 17, 2016

There have been several reports released recently that are of interest to media and printing executives.

Dr. Joe Ramblings: Small Business, Praise to Harvey, Great Reports, and the College “Bubble”

Published March 10, 2016

Dr. Joe Ramblings: Small Business, Praise to Harvey, Great Reports, and the College “Bubble”

Is the Positive Run for Commercial Printing Coming to a Close?

Published March 10, 2016

The latest printing shipments were discussed in the “Mondays with Dr. Joe” of March 7. The chart offers more details. Revenues turned around on a current dollar basis with June 2014 shipments (blue line) and the positive comparisons to the prior year kept going until the most recent report, January 2016. In current dollars, January’s shipments were barely above those of 2015, keeping the positive comparison streak intact.

Economic Data: It's Okay to be Less Worried

Published March 7, 2016

The recovery indicators bounced back from a scary month. Printing shipments beat out a weak grounder to keep their winning streak alive, unless the statisticians call it an error. And how does that relate to employment? Dr. Joe explains that, negative interest rates, adds his constant tirade against buybacks, and tells us not to get caught up in that saw about half of people not paying taxes. What can we say? It's Dr. Joe. You know how he gets.

Broadband Hours and US Commercial Printing

Published February 26, 2016

In 2014, US per capita hours using broadband is just over 900 per year (2.5 per day), and that's the entire population. The number of total hours has doubled since 2007. The population has grown in that period, but the average number of hours online per week has gone from 15.3 to 21.5 in 2014, and households with broadband connections grew from 76% to 89%. The cumulative effect has had most of its effect on mainstream commercial printing, especially information materials used for promotion and product support and advertising-funded products like magazines and catalogs. Printing's use is becoming more tactical, focused on specialty uses of printed images with higher expectations for impact, especially in concert with other media.

Dr Joe Comments: Small Business and Their Media Use

Published February 26, 2016

Who would think that a company that sells bar code technology would have data about the media small businesses use to promote themselves. It's actually a worthwhile study that Wasp Barcode Technologies provides.

Being Well-Adjusted is a Good Thing

Published February 22, 2016

An inflated view of performance is good, if you’re well adjusted. Let’s be real: retail sales were better but not encouraging. Ad agency and graphic design employees may finally set a new record in 2016.

Services Can't Save the Economy if Manufacturing “Tanks”: It's All Connected

Published February 18, 2016

The economic turbulence of the last few weeks of a bad GDP report for Q4, the negative trends in manufacturing, commodities prices collapsing because of declining demand, have led to chat of recession.

Dr. Joe's Comments: Recession, Buybacks, and Windows for Warriors

Published February 18, 2016

E-Commerce Retail Sales Still Growing at Nearly 15% Per Year

Published February 18, 2016

E-commerce sales of all types, including industrial products, is still growing at a rate just under 15% per year.

Printing Was 1 of 8 Major Manufacturing Industries with Positive Growth in 2015

Published February 11, 2016

Part of print's good 2015 was how well it did compared to other industries. Of 21 major manufacturing industries, nine had positive years in current dollars, with commercial printing as sixth highest. Precipitous decreases in commodities prices caused manufacturing in metals and energy to have such a bad year that the entire manufacturing sector declined -4.3%. For the year, current dollar GDP growth was +2.9%. For the first time in twenty years, commercial printing growth exceeded GDP.

Dr. Joe's Recommended Reading: Negative Rates, Shock that the Supply and Demand Law Works, and Linking Into Your Audience

Published February 11, 2016

Dr. Joe's Recommended Reading: Negative Rates, Shock that the Supply and Demand Law Works, and Linking Into Your Audience

Printing Shipments Have a Good Year Despite Mixed Signals from the Economy

Published February 8, 2016

The unemployment improved to a level not seen since the recession began, but it doesn't feel that good. Have the statisticians been running their thermometers under running water until it gets to the number they want? Printing shipments beat GDP for the year for the first time since 1995. Where are the cheers? And then there's a beef with image campaigns. Yeah, it's Dr. Joe time again.

Commercial Printing Prices Less Than December 2007; Paper and Ink Higher

Published February 4, 2016

Since December 2007, the CPI is up by +12.6%. How have the PPI for commercial printing, ink, and paper changed? Commercial printing prices are lower, -0.8%. This means that a commercial printing business has to increase its productivity and profitability to reward its owners and employees to make up for the loss of purchasing power they have in their paychecks.

US Commercial Printing Shipments Best Since 2008

Published February 4, 2016

US commercial printing industry shipments are up for 19 consecutive months in current dollars and 16 consecutive months compared to the corresponding month of the prior year. On an inflation-adjusted basis, the industry has had five positive quarters.

Dr. Joe's Must Reads: Demographics, Apple, and Butchers of Books

Published February 4, 2016

Various topics that caught Dr. Joe's attention the last week: Demographics, Apple, and Butchers of Books

Recovery Indicators Show Economic Slowdown Underway

Published February 4, 2016

The monthly recovery indicators were uneven again. The NASDAQ fell almost -7% in the last month, and ISM non-manufacturing new orders and imports also declined.

4Q-2015 GDP Disappoints at +0.7%; 2015 GDP +1.8%

Published February 1, 2016

Real Gross Domestic Product (RGDP) for the US increased by an annual rate of +0.7% in the fourth quarter of 2015. On a year-to-year basis, RGDP was up +1.8%.

Cloud Product Usage in the Printing Industry

Published January 28, 2016

The chart shows the percentage of US commercial printing establishments of all sizes and their responses to the question about the cloud-based services they use today. The question did not ask them their frequency or intensity of use, just whether or not they use it today. Some of the “non-users” may not even be aware that they are using cloud services, since some services run transparently in the background, such as backup services like Carbonite and others. Others may not be aware that they are using a VOIP phone system. Some cloud services such as Dropbox allow customers to brand their service so it looks like a company file sharing site. Generally, larger printers are using more cloud services than others, but the disparity is narrow.

Dr. Joe: Effects of Digitization, the “Haves and Have-mores” and Not the “Haves and Have-nots”

Published January 28, 2016

Two topics caught my eye this past week. The first is that digitization is now characterized as the “haves and have-mores” and not the “haves and have-nots.” The latter may be referring to Venezuela's economic problems with high inflation and shortages of goods.

Revenues Go One Way, Profits Go the Other

Published January 25, 2016

Profits are the focus of Dr. Joe this week. His data show two halves of the industry at the same size but the profits are not divided that way. It's not what you might expect.

Consolidation is Somewhat Different Than Industry Common Wisdom

Published January 21, 2016

Here are data from our survey at the end of 2015 where we asked respondents to identify the status of their companies in terms of consolidation. Generally, formal consolidations are executed by the largest print businesses, and small businesses close their respective shops and reopen a new business with new partners.

Recession Fears and Other Media Ramblings

Published January 21, 2016

Recession Fears and Other Media Ramblings: Recession Watch, Buybacks are Bad: I've Always Said It, Sniglets for the Digital Age, Courtesy of Mr. Tree, Duh! Tax Rates Make a Difference!

Dr. Joe Recommends: Finding International Economic Data

Published January 14, 2016

Need a global perspective of world economics and world events? Many of our readers do, especially those who sell equipment, supplies, software, and other products around the world.

NFIB Small Business Index Still Shows Weak Small Business

Published January 14, 2016

The latest survey of NFIB shows their index bouncing along the level of the early 2000s recession low, and down from the high prior to the December 2007 recession. Passing that level on the way up would have indicated a completed recovery of this sector but it just couldn't make it that far and break through. Using this indicator that means that small business did not emerge from the recession yet. Big business and the stock markets dominate the headlines, but small business remains the front line of the economy, and its difficulties are often hidden from view as being un-newsworthy. Its breakout above the bottom of the early 2000s recession took some time, and the recent trend in the chart looks like it's getting ready to fall below that again. It dipped below that level briefly a few months ago and climbed back out. Will it climb out again? It's worth watching.

Early Economic Confusion Puts 2016 on Uncertain Footing

Published January 11, 2016

It is times like these that make one yearn for one-armed economists. What should we believe? The crazy gyrations of the stock market? The collapse of commodity prices? Or what might be a surge in employment? No wonder Dr. Joe's lost his hair. He adds his comments to the economic stew.

What Share of Shipments is Sold by “Marketing Service Providers”?

Published January 7, 2016

For about a decade, many print businesses have marketed themselves as “marketing services providers” with varying degrees of success. Our recent survey showed less than half of print businesses market themselves in this or a similar manner.

Recovery Indicators Look More Like Recession Indicators – Are They?

Published January 6, 2016

Are the recovery indicators becoming recession indicators There's enough negative news of late to be wary about the state of the economy, and a lengthening list of geopolitical issues, for sure.

Eighteen Months of Industry Growth, Beating the Economy, Too

Published January 6, 2016

US commercial printing industry shipments are up for 18 consecutive months in current dollars compared to the corresponding month of the prior year.

Printing Profits Dive as Large Printers Have Massive Writedowns

Published December 22, 2015

The third quarter of 2015 marked a huge divergence in the performance of the industry, according to the Department of Commerce Quarterly Financial Report. Printers with more than $25 million in assets wrote down assets amounting to nearly -15% of revenues. This sent the quarterly moving total of inflation-adjusted profits before taxes to +$1.46 billion.

Happy to Be Content, But Not To Ship It

Published December 21, 2015

We took a survey of printers and they told us they were really happy. We got data about ad agency revenues and their revenues is still heading up. A big consulting firm says digital content will be bigger than ever. The post office data tells us there's less and less of their work in our mailboxes. The world is full of contradictory trends, and Dr. Joe sorts them out.

Dr. Joe Recommends: USC's Digital Future 2015 Report, New Rules of Marketing and PR Book

Published December 18, 2015

Dr. Joe Recommends: USC's Center for the Digital Future 2015 Report (PDF), e21's “Social Media Is Making Some Regulators Obsolete”, Content Marketing Institute Says “Lincoln Electric Believes Print is Relevant”, and “New Rules of Marketing and PR” Now in its Fifth Edition.

How the Business Structure of Commercial Printers Changed from 2008 to 2013

Published December 17, 2015

The recession started just before 2008 was beginning and the latest data from the County Business Patterns report shows how the business formats of the industry changed by 2013.

Commercial Printing is Closing 2015 with Historic High in Key Metric

Published December 8, 2015

Last week's unemployment report did it again, it was all wrapped up in a pretty package but it seemed empty when you looked inside. Contents must have settled during shipping. Speaking of content, employment in agencies and designers are up strongly compared to last year. The content creation business is doing well. Commercial printers are reconfiguring their businesses and produced an historic high in shipments per employee. Dr. Joe has the details.

Recovery Indicators Cause Concern

Published December 3, 2015

The recovery indicators turned in a mixed performance that warrants some caution, concern but not worry, yet. Some outside economic analysts starting to raise concerns about the economy in 2016. Citibank analysts peg the chances of recession in 2016 at 65%, the first such prognostication of a major investment firm that we have seen.

US Commercial Printing Shipments Have a Strong October, +$204 Million

Published December 3, 2015

For 17 consecutive months the US commercial printing industry has scored increased shipments compared to the same month of the prior year. In current dollars, the Commerce Department reported that shipments were $7.729 billion. That meant that October 2016's shipments were +$204 million compared to 2015, a +2.7% performance. For the year through October, shipments are +3.3% on a current dollar basis.

Mobile Plays Big Role in Black Friday

Published December 3, 2015

The rise of mobile marketing has been long expected, and it looks like Black Friday 2015 is key milestone: mobile was more than half of web site traffic for e-commerce sites. Black Friday “brick-and-mortar” traffic was disappointing, but retailers were aggressively pushing sales online because it reduces the risks of riot-like runs for bargains as stores open. Target Stores had so much online traffic for CyberMonday its servers could not handle the volume. It wasn't the first time that Target misforecast demand for online sales. Some of Black Friday shopping may have been “window shopping” for mobile ordering. IBM, which still has a big business in systems for retailers issued a free download report about what was learned on Black Friday. In that report is the chart we highlight this week. If you sell to retailers or to businesses that sell to retailers, the report is worth reading.

The Economy Stays Positive But Weak

Published November 30, 2015

The US economy was reported to be stronger in the third quarter than originally thought, but much of it was a rise in inventories. If retailers were stocking up for Black Friday, that might have been a mistake based on early reports. What's happened to the relationship of commercial printing and department stores? Dr. Joe has the history of that and also previews what's coming in this week's economic data.

Printing's Birth-Death Data Show Improving Industry Health

Published November 19, 2015

Even the usual industry dynamics are dynamic. The latest commercial printing industry birth-death data comparing 2012 to 2011 show a rising birth rate and a declining death rate. The +1608 births and -2262 deaths in 2012 were recent lows, as was the net change of only -654 establishments.

USPS EDDM Volume Decline Continues

Published November 13, 2015

What could be an important product for local retailers to make their baby steps into direct mail, keeps declining as the USPS raises prices on the Every Door Direct Mail (EDDM) service.

Dr Joe : Effective Nonprofit Marketing, Kauffman Index of Startup Activity

Published November 13, 2015

Dr Joe on: Five Things That Can Make Nonprofit Marketers More Effective, Apple Customers Are Older Than You Think, Kauffman Index of Startup Activity

Recovery Indicators Bounce Back

Published November 9, 2015

The recovery indicators had a better month than last. Five of the six indicators increased and one fell below the level of the start of the recession. New orders for manufacturing and non-manufacturing were impressive in their increases, in stark contrast to government reports about September's durable goods and factory orders.

Despite the Economic Muddle, Printing Shipments are Rising. What's Ahead?

Published November 8, 2015

The economic pundits were out in full force about the unemployment rate falling to 5%. Was it meaningful? Is this the sign of a bullish economic rebound? Then there's the 16 month rise in printing shipments. You'd think there'd be cheers from the audience that Dr. Doom is dead, and long live Dr. Boom! Instead, we hear nighttime crickets. What's behind the rise in shipments, is it real and will it last?

Can We Trust Government Data?

Published November 5, 2015

A recent academic paper published in the Journal of Economic Perspectives (Volume 29, Number 4, Fall 2015), “Household Surveys in Crisis,” illustrates the problems of government surveys that are used to make multibillion dollar and multiyear decisions of government and business.

Third Quarter US Commercial Printing Shipments Have Highest Growth Rate Since 1996

Published November 4, 2015

The US Commerce Department reported that commercial printing industry shipments are up for 16 consecutive months in current dollars compared to the same month of 2014.

Dr Joe: Fed Has Hurt Business Investment, Open Textbook Network, Economics for Real People

Published October 30, 2015

Dr Joe on Fed Has Hurt Business Investment, an "Open Textbook" initiative launching at the University of Minnesota, and a free economics textbook from Mises Institute called “Economics for Real People” by Gene Callahan.

Third Quarter GDP Not Good, but Better Under the Surface

Published October 29, 2015

The advance estimate of third quarter 2015 real GDP is +1.5%. We much prefer the year-to-year comparison, and also without the fluctuations of inventories. Those figures, also indicated in the chart, are +2.03% and +2.18% respectively. Net inventories have been running very high, but in the third quarter were $56.8 billion. This figure was cut in half from Q2, and is close to the 2010 to 2014 average.

Attracting the New Industry Workforce: Do We Know How to Do It?

Published October 26, 2015

There's a new poster that hopes to attract students to the printing workplace. Dr. Joe wonders if it can. He's got some ideas. Is getting involved in events a real business opportunity? There are so many touchpoints in the event process that there are numerous opportunities to help your clients and build your business

Recession Coming? Third Quarter GDP Looks Weaker than Experts Forecasted

Published October 22, 2015

The latest estimate (October 20) by the Atlanta Fed's GDPNow model indicates that third quarter GDP will be +0.9%. That is, until the next data for their model comes in.

Economic Headlines Miss Factors that Explain Economy

Published October 19, 2015

There's no COLA for Social Security recipients this year, and that has nothing to do with the popular drink. The campaign trail leads to all kinds of abuse of economic data, so Dr. Joe adds a different perspective to things. Income isn't always income, because it's spending that really matters. Dr. Joe explains why. The winner of the Nobel Prize in economics explains the contentious political environment.

Recovery Indicators Mixed; Weak Employment Data Raise Downside Concerns

Published October 15, 2015

The Economic and Research Center Recovery Indicators had a mixed month but other economic data should raise some concerns.

Pew Internet Survey Shows Social Media Use Up, Way Up, in Last Ten Years

Published October 15, 2015

The Pew Internet Survey has released their latest survey (free download) of social media use and the long term trends are striking. The organization started tracking use in 2005 when social media use was by just 7% of the US population. Now, 65% of adults use social networking sites. Our chart shows the increases by age group.

Ninety percent of those between 18 and 29 use social media, which is not a surprise. Those social media users who are 65+ has more than tripled from 11% in 2010 to 35% in 2015. The report includes data about social media use by various demographics including income, race, gender, community, and education.

Commercial Printing Shipments in Uptrend: 15 Consecutive Months of Growth, Best Growth Rate Since 1996

Published October 14, 2015

US commercial printing industry shipments are up for 15 consecutive months compared to the same month of the prior year.

Changes in Commercial Printing Employment by State

Published October 8, 2015

The chart shows the changes in the average number of employees per establishment in the US and large printing states. The average size of printing businesses in an area offers clues to the kinds of printing produced there and the history of the industry in that area.

Profit Leaders Take It All, Again

Published October 5, 2015

The PIA Financial Ratios have been published for decades, and may be the most recognized of the association's publications. There are, of course, problems with all kinds of research gathering efforts, but the positives of the Ratios reports outweigh the negatives from a methodological standpoint.

Tax Foundation Report on the Postal Service and Other Resources

Published October 2, 2015

Debt as a Percentage of GDP

Published October 2, 2015

Many people confuse debt and deficit when they see it as part of the Federal government's annual budget. Deficit is the annual shortfall between a government's spending and its revenues. Debt is the accumulation of all of the deficits and surpluses of the prior years in that government's history.

Updated Printing Industry Capacity Utilization Data – Not What Everyone Thinks It Is

Published October 1, 2015

Even in the industry's most profitable and growing years, the mantra “there's too much capacity in the industry” was always heard. It's been a misplaced and inaccurate portrayal of the business, yet it persists.

The State of the Economy and Print

Published September 28, 2015

Dr. Joe wonders why there isn't a little spring to the industry's step with 14 months of better sales levels. It could just be that printers a feeling a sense of relief as they wonder what's next. And then there's the economy. Second quarter GDP look great, but was really less filling. He scratches the economic surface and finds some skepticism inside. If he didn't, he wouldn't be Dr. Joe.

Canada's Commercial Printing Shipments

Published September 17, 2015

Canada's commercial printing industry had a small rebound more than three years ago, before that of the US, and has been on a somewhat steady course since. In US dollars, however, Canada's gains market have been erased recently with the stronger dollar.

Advertising Agency Revenues Up +40% Since Bottom of Recession

Published September 14, 2015

Dr. Joe summarizes what he would say at Graph Expo 15 breakfast. Content creation is proving to be a big money maker for the ad agency business. Publishers are still having monetization problems which makes that whole “content is king” still questionable. Maybe it's because the real king is the marketplace of millions of content consumers.

Profits Per Employee Increase

Published September 10, 2015

The nearly $15,000 profit per employee of 2000 may not be in the cards for the US commercial printing business any time soon, but it looks like this measure is headed to its second best performance since the end of the recession. Using the latest data for the second quarter of 2015, and adding the previous three quarters to create a full year, profits per employee seem to be headed to $7,700, a thousand dollars more than the level of 2014.

Improvement in Industry Shipments, Profits Improvement Elusive

Published September 9, 2015

The 4-quarter moving total of inflation-adjusted US commercial printing shipments have been increasing, but unfortunately profits have not. Q2-2015 four-quarter shipments are up +2.3%, but profits are unfortunately down for the last four quarters -10.8%.