www.it-strategies.com
WIDE FORMAT PRINTERS:
A HIDDEN PROFIT POOL
An IT Strategies Perspective, GraphExpo 2012
1
www.it-strategies.com
Helping to Create the Specification
for Next Generation Printers
• IT Strategies, Inc. is a digital
...
www.it-strategies.com
2011 U.S. Advertising Spending - $M
3
Total: $205 billion
2011 U.S.
Advertising
Spending - $M
TV $68...
www.it-strategies.com
Marketing Dollars Will Continue to
Shift to Digital
Forecast Growth 2010-2015
10.8%
-5.7%
2.1%
-6.2%...
www.it-strategies.com
Impact of Electronic Technologies on
Document Print Volumes
5
2011 2015 2018 2024
FSI/Coupons
Catalo...
www.it-strategies.com
US Wide Format Graphic Printer
Units by Ink Type 2011-2016
6
6%
6%
-1%
CAGR
2011-2016
www.it-strategies.com
US Wide Format Graphic Printer by
Hardware Revenue - $M 2011-2016
7
6%
-1%
5%
CAGR
2011-2016
www.it-strategies.com
Value
8
Value
Ink/Substrate Range
Low High
High
Educate Your WF Graphics
Customers About Ink Types
www.it-strategies.com
Applications
9
www.it-strategies.com
UV-Curable WF Flatbed Printer
Growth Continues…
• What is the ave. retail
price/sq ft for WF UV
outp...
www.it-strategies.com
Wide Format Digital’s Enduring
Value as a Local Market
Commercial Printer
20.13%
Photo Lab
2.58%
Dig...
www.it-strategies.com
Wide Format Graphics:
Digital & Analog Share a Divided Market
Digital
34%
Analog
Offset
46%
Analog
S...
www.it-strategies.com
The Efficiency Squeeze:
Staff Requirements Up as Print Volume Decreases
13
2011 2015 2018
Set-up
tim...
www.it-strategies.com
Thank You!
boer@it-strategies.com
Direct dial 781-709-1633
14
Go Forth, Help Your
Customers Invest i...
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Marco Boer - Global Channel Partners Summit 1012

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Marco Boer - Global Channel Partners Summit 1012

  1. 1. www.it-strategies.com WIDE FORMAT PRINTERS: A HIDDEN PROFIT POOL An IT Strategies Perspective, GraphExpo 2012 1
  2. 2. www.it-strategies.com Helping to Create the Specification for Next Generation Printers • IT Strategies, Inc. is a digital printing market research firm and consultancy, with a focus on non- consumer printer markets. • Established in 1992 and under the same private ownership since that time, IT Strategies has been a partner of Inkjet production printing manufacturers in helping to identify, size, and qualify new market opportunities for Inkjet printing technologies 2
  3. 3. www.it-strategies.com 2011 U.S. Advertising Spending - $M 3 Total: $205 billion 2011 U.S. Advertising Spending - $M TV $68,000 Direct Mail $50,000 Internet $31,000 Newspaper $30,000 Radio $10,000 Outdoor $7,000 Point of Purchase $4,500 Social media $2,885 Video advertising $1,800 Mobile Advertising $1,600 Wide Format Graphics is a $10B market
  4. 4. www.it-strategies.com Marketing Dollars Will Continue to Shift to Digital Forecast Growth 2010-2015 10.8% -5.7% 2.1% -6.2% 2.8% 7.8% -2.7% 4.1% 7.6% 4.9% 0.4% 2.3% -4.0% Local Newspaper Local TV Local Radio Outdoor Local Digital/Online National TV Magazines National Digital/Online Network and Satellite Radio National Newspaper Direct Mail Directories Direct Online Source: Magna, Inc. IT Strategies projection on POP: 11% growth Wide Format Graphics is a Growing market
  5. 5. www.it-strategies.com Impact of Electronic Technologies on Document Print Volumes 5 2011 2015 2018 2024 FSI/Coupons Catalogs Magazines College text books K-12 text booksTrade booksBooks Journals Newspapers Marketing collateral Direct mail Transaction statements Prospectus/annual report Directories Legend: Significant impact not yet felt under way has occurred Source: PRIMIR’s 2011 Impact of Electronic Technologies on Print Study Wide Format Graphics Not Under Foresseable Threat of Electronic Substitution
  6. 6. www.it-strategies.com US Wide Format Graphic Printer Units by Ink Type 2011-2016 6 6% 6% -1% CAGR 2011-2016
  7. 7. www.it-strategies.com US Wide Format Graphic Printer by Hardware Revenue - $M 2011-2016 7 6% -1% 5% CAGR 2011-2016
  8. 8. www.it-strategies.com Value 8 Value Ink/Substrate Range Low High High Educate Your WF Graphics Customers About Ink Types
  9. 9. www.it-strategies.com Applications 9
  10. 10. www.it-strategies.com UV-Curable WF Flatbed Printer Growth Continues… • What is the ave. retail price/sq ft for WF UV output WW? – $5.80 • What is the ave. cost per square foot? – $1.62 • What is the gross margin on Offset? – Single % digits?? 10 $M Retail Value of UV-curable WF Output 9% CAGR 7% CAGR
  11. 11. www.it-strategies.com Wide Format Digital’s Enduring Value as a Local Market Commercial Printer 20.13% Photo Lab 2.58% Digital Color Print Shop/ service bureau 5.30% Exhibit Builder 0.34% Quick Printer & Sign Franchise 38.60%Repro Shop 2.54% Screen Printer 24.04% Independent Sign Shop 1.05% Other 5.43% Global WFPSPsharesbysite count 2011 est. 375,000 Analog to Digital Evolution
  12. 12. www.it-strategies.com Wide Format Graphics: Digital & Analog Share a Divided Market Digital 34% Analog Offset 46% Analog Screen 20% Total Print Volume: 67 Billion Square Feet WW, 2011
  13. 13. www.it-strategies.com The Efficiency Squeeze: Staff Requirements Up as Print Volume Decreases 13 2011 2015 2018 Set-up time/job/minutes 20 20 20 Jobs/Day 25 50 100 Total Set-up time (hours) 8 17 33 Hours/Staff for set-up 3 3 3 Staff needed 3 6 11 jobs/day 25 50 100 Ave. run length 2,500 1,500 500 total print volume 62,500 75,000 50,000 3 operators 6 operators 11 operators
  14. 14. www.it-strategies.com Thank You! boer@it-strategies.com Direct dial 781-709-1633 14 Go Forth, Help Your Customers Invest in the Growing Wide Format Graphics Business

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