(Originally published at WhatTheyThink.com for Premium Access Members in January 2006) January 16, 2006 -- Much has been written about the struggle our industry has undergone over the last several years in terms of declining revenues and profits and accelerating competition from alternative media. According to WhatTheyThink’s economic commentator, Dr. Joe Webb, inflation-adjusted printing shipment and profits are again approaching the lows recorded in 2001. While printing shipments have been trending downward, it appeared that profits were starting to rebound, perhaps due to fewer but healthier printing establishments. But they are going the wrong way again over the last two reported quarters.

At the same time, according to PIA reports, while the number of U.S. print establishments has declined by an average of 1,000 per year since 1995, the number of print establishments took a bigger jump downward between 2003 and 2004, declining by 1,538. One of the primary reasons for all of this hardship, according to most of the literature, is the increased competition from alternative means of business communications—that is, as use of the Internet and other types of electronic media increases, they are being funded by dollars that might otherwise have gone to print. At the same time, it has been difficult for printers—especially smaller printers—to keep up with the investments required to stay competitive in an increasingly multichannel world.

WhatTheyThink spoke with executives at franchisors which combined represent about 98% of quick print franchise establishments. We asked them to share their thoughts about 2005 performance, their outlook on 2006, and their perspective on the print franchise business in general.