5 Reasons Why Investors Should Consider Wide-Format Digital

FESPA Digital 2011
FESPA
FESPA Digital 2011
23rd August 2011
For investors looking to make an acquisition in the printing industry, the obvious choice appears to be wide-format digital.

 

Whether you're a manufacturer looking to add an important capability to your portfolio, or a printer wanting to keep pace with the times, the numbers bear it out: Wide-format digital printing (primarily 30" and above) will lead our industry in growth.

 

Here are 5 reasons why any investor, big or small (and that you means you, Mr. Mom-and-Pop Shop), should consider a merger and acquisition (M&A) as a potential growth strategy:

 

1. Wide-format digital printing is leading the pack. Tim Greene of InfoTrends noted that worldwide revenue for signs and graphics companies is expected to grow at a 5% rate over the next five years while the overall printing industry will grow 1% of the same period. And the best part? Those numbers are strictly retail. They don't include any installation services, which will only add to your revenue totals. Take a look at the FESPA Economy Survey 4, conducted by Infotrends, here.

 

2. Who knows where eReaders will take us? Any offset or screen printer who walks into a Barnes & Noble bookstore should be shaking in their boots, as the first thing you see is a promotional table for the NOOK. eReaders are transforming the printed word, and who can say for sure how big the sector will grow? Some books, magazines and newspapers will persevere – but which ones?

 

3. Outdoor billboards will continue to be a viable media source. Has anyone invented a cure for the common traffic jam? Not that I noticed on my last commute. Yes, car traffic will always flow through the streets of the USA, which is why road signs and outdoor billboards, especially LED boards, will be needed.

 

4. Digital is the place to be. Period. Let's shorten the "wide-format digital" label just to "digital." Almost anything digital in the business world will be a source of growing revenue for the foreseeable future. As the power of the computer grows exponentially, you can ride a *wave of innovation that has no end in sight.

 

5. Lenders want you to make the right call. Lenders are still very choosy about who they lend to and for what they're lending. The long-term projected growth of wide-format digital makes it the safest bet in printing – a fact that would make any lending officer happy.

 

As the number of M&As continues to grow in our industry, we're seeing more investors of all sizes look for faster, smarter ways to expand their businesses. Wide-format digital fits the bill, and it deserves a prominent place at the top of any investor's wish-list.

 

*FESPA and their research partners Xaar and InfoTrends are pleased to present this brief summary of the Evolution Project research results.