Content area
Full Text
Alexandria, VA)--Of the three major traditional printing processes, non-heatset printers were the most profitable over the past year, averaging 4.6 percent profit rate as a percentage of sales, according to data in the Printing Industries of America's 1997 Ratios Study. Sheetfed printers averaged 3.2 percent profit rate compared to 2.7 percent for heatset web printers. Combination offset sheetfed and web printers averaged 3.3 percent profit rates on sales. PIA's chief economist Dr. Ronnie Davis says profit rates by printing process reflect the competitive situations of the product markets being served by the various processes. "Also, the technological and market changes are, in many cases, blurring the boundaries between traditional processes and digital printing." For sheetfed printers, the 1997 profits were the highest rates achieved in the '90s. Excluding payroll costs, paper is the biggest single line item for printers. Paper costs typically account for over one out of five dollars in sales, depending on the process. PIA Ratios data is based on financial surveys of printers in Canada and the United States. Close to 1,000 printers participated in this year's study.