Traditional printing markets have been shrinking as a result of an increase in online technologies, and shifting consumer demands. This general change in behavior has also been reflected in a shattering of brand loyalties, and fostering the creation of new businesses, many who will both create and buy print products. This is all occurring against a backdrop where most consumers are increasingly aware of environmental conditions, with their concerns about sustainability rising in response to extreme weather and impacts of climate change. This changing landscape has a direct effect on print and packaging service providers. As a result, many are looking at new ways to expand their offerings and reach, through diversification.

Diversification in the printing industry is the deliberate expansion beyond a shop’s traditional core applications, markets, or business model to create new, more resilient revenue streams and reduce dependence on shrinking legacy work. Diversification across segments (commercial, packaging, wide format, labels, décor, inplant) means PSPs increasingly compete as multi?segment providers rather than single?segment specialists. Commercial printers are expanding into adjacent printing segments as 78% of the commercial printers, participating in the PRINTING United Alliance Second Quarter State of the Industry Survey, report diversifying beyond commercial printing. Nearly three- fifths (58.7%) have added graphic and sign (wide-format) production, 34.6% package printing/ converting,18.3% promotional product imprinting, and 15.4% apparel decoration.

Generally, diversification offers a more balanced revenue mix so a downturn in one application can be offset by others.Competitive differentiation as a “one?stop” provider spanning multiple print and related services. Higher customer retention and share of wallet by solving a broader set of brand and communication needs.