By Melissa Donovan
Part 4 of 4
The graphic arts is a mature market. Consolidation is a serious consideration, whether it is between media suppliers or hardware manufacturers; in addition to one print service provider (PSP) combining forces with another.
Print Shops
According to Marc Raad, president, Significans Automation, “succession planning and mergers & acquisitions (M&As) occur as shop owners retire, and companies consolidate to gain strength and market share.” However, there is benefit to consolidation. “M&As can reduce costs by streamlining operations, while adding new employee skills, allowing companies to expand their products and services to attract a wider range of customers.”
Print shop consolidation will continue, especially if PSPs don’t remain versatile in their offerings. “We see consolidation continuing across the industry and I expect it will be harder for the small shops to compete if they do not differentiate. We also see versatility becoming more important—the ability to respond to fast changing demands and opportunities,” admits Erik Norman, president, swissQprint America.
“Whether through acquisition, strategic partnerships, or simply businesses closing their doors, the industry will keep evolving. Education and innovation will help ensure you’re not only surviving, but thriving in that environment,” notes Jay Kroll, director of product education, General Formulations.
Another point to contend with, the growth of ecommerce in print ordering and its impact on M&As. “It’s difficult to quantify, but the advent of the internet has allowed PSPs access to much broader service areas than ever before. This is naturally going to cause some consolidation as the smaller, local shops can no longer compete,” add Emilio Rangel and Tommy Simmering, product managers, Mutoh America, Inc.
While consolidation is real, Michael Richardson, business development manager – graphics media, Jessup Manufacturing Co., believes there is still a space for smaller, specialized shops. “Especially those that offer great service and technical know-how.”
Vendors
When it comes to vendor consolidation in this market, it is expected. Marco Boer cites in his large format viewpoint report, Remaining Profitable, in the August issue of Digital Output, “due to the consolidation pressures on both hardware—higher productivity printers, and PSPs, there will be less room for the number of hardware manufacturers serving this market. Acquisitions and partnerships will become more common in the next five years, with buyers of wide format print output as the winners.”
“Yes, consolidation will likely persist, and technology innovation from all areas of the industry will be a key driver and enabler of the industry change. Some companies will merge focusing on specific applications or verticals, others will merge to bring together diverse capabilities to offer more services to clients and consolidate to achieve large economies of scale,” explains David Preskett, VP EMEA & APAC, Kongsberg Precision Cutting Systems.
Activity involves mergers between smaller OEMs and distributors, for example. “Dealers are aligning with fewer manufacturers for more predictable support, while M&A activity remains strong in consumables, labels, and specialty packaging. In the future we will see more consolidation of regional dealers with national dealers, as well as OEMs acquiring software and ink companies to have more control over expenses and control over future development,” foresees Adam J. Tourville, channel manager, Fluid Color.
“Technology investment, margin pressures, and the need for scalable logistics and service will drive M&A activity, particularly among medium-sized players. However, the barrier to entry remains low for niche applications, so innovation from smaller providers will still thrive,” adds Tobias Sternbeck, CEO, Beaver Paper & Graphic Media, Inc.
The graphic arts functions despite both outside and internal pressures, most of which are expected, but the results remain uncertain. For further analysis on the state of the industry, read this feature article with commentary from many of the vendors quoted in this four-part series.
Aug2025, Digital Output
