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Stocks Gyrate, CapEx Shuffles, and Dr. Joe’s a Video Star

The countdown for Dr. Joe’s departure continues with four months to go. Please, let’s hope his brief video stardom does not go to his head. That head of his may not fit through the doorway when it’s time for his exit. The stock market is up…and then it’s down…blame it on visibility. Small business optimism is booming, and maybe the economy will get the hint. The industry’s capital investment is changing, with the appetite for used equipment increasing. But wait…there’s more to this month’s Dr. Joe submission.

Monday, February 19, 2018

It was a privilege to deliver a keynote at EFI Connect—my first one—and I received many positive comments from vendors and print executives alike. I have not done a state of the industry presentation in a while, and if you wondered when there would be one, you now have access to it. Late in the presentation, I reviewed one of my regular topics—I don’t want it to be—the use of the phrase “print is not dead.” If this presentation helps push that combination out of the industry, I have done my job.

The video of the full presentation is online. I review “print is not dead” late, at about 47:45. I explain why “print is a baby” is a better approach that recognizes all of the amazing new benefits and possibilities that digital printing and other technologies offer. The groundwork for the discussion gets going at about 9:30 where I explain what’s happened as “mainstream printing” declined and specialty applications emerged. There were some nifty drawings about the metaphor of a river that had a change in its level, and what happened to the ships and boats in the process. The presentation began with some usual Dr. Doom stuff because I hate to disappoint the audience. 

At about 33:20, I explain the very curious profits and interest payment situation where small and medium size printers are outperforming the largest ones. This expands comments in my previous column. Legacy debts from soured acquisitions and capital malinvestment still haunt big printer financial performance. The slides from the event are at Slideshare.


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About Dr. Joe Webb

Dr. Joe Webb is one of the graphic arts industry's best-known consultants, forecasters, and commentators. He is the director of WhatTheyThink's Economics and Research Center.

Recent Articles from Dr. Joe Webb

Big Printers' Writedowns and Interest Payments Are a Big Drag on Printing Industry Profits

Big Printers' Writedowns and Interest Payments Are a Big Drag on Printing Industry Profits

Writedowns in the first quarter of 2018 for commercial printers with $25 million or more in assets were $157 million, or 1.9% of sales. The assets may be written down, but the borrowing that was created to finance them remains. Interest expense was 4.8% of sales. For the quarter, losses were -1.47% of sales. That rate of loss made average profits before taxes for the industry a mediocre 3% of sales—which means that printers with less than $25 million in assets must have done well. Read More

The Final Column: The Security Guard Will Take Your Badge and Escort You to the Lobby

Back in 2002, Dr. Joe agreed to do a regular column for WhatTheyThink for “only one year and no more”...for 15 years. This farewell column explains how it started, behind-the-scenes intrigue, the problems, and why it turned out the way it did. And then…he explains the exciting adventures ahead. Read More

Full-Time Employment, Sets New Record, Up +904,000, But Does It Really Feel that Good?

Full-Time Employment, Sets New Record, Up +904,000, But Does It Really Feel that Good?

The May employment report was regarded as good, but when you dig past the top-level numbers, it was better than it looked. However, while the 3.8% unemployment rate looks good on the surface, it really can’t be compared to when it was last attained nearly 20 years ago. So many workers left the workforce that this figure implies a tighter labor than it really is. We will really know we have a strong economy when the active labor force starts increasing. Read More

Good News Could Be a Full-Time Job, but for Most Economists It’s Only Part-Time

Some people say that the news is always bad, and they wish someone would report good news now and then. There is good news but no one seems to report it. You’d think that would be a full time job for someone. The economy has set a record for full time employment, and all we hear are crickets. The economy has been doing better lately in some key measures of employment, but the Fed is scaring markets by preparing to raise rates. TINA, meet TAMA, the result of the Fed’s actions; don’t worry, we’ll explain it. The statisticians at the Commerce Department revised printing shipments data. Revising data seems to be a full time job in the Beltway. Dr. Joe clarifies it all for one nearly last time. Read More

Consumer Durable Goods Orders Moving at Almost 2X GDP Rate

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Durable goods orders for consumers (less transportation) are growing at a rate almost two times faster than Real GDP. This data series remains -14% below where it was at the start of the recession in December 2017, and is a critical one to monitor for indications of an improved economy. Read More