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Screen Printers Optimistic
The screen printing industry is feeling the effects of the economy as well as new technology. The economic challengea of the past few years have caused many shops to close their doors or dramatically change their business structure. These times seem to have polarized the industry into those who have done well and those who have not-there appears to be little middle ground.
Industry experts agree that the screen printing industry is mature and although annual revenue estimates vary, the Specialty Graphic Imaging Association (SGLA) in Fairfax,VA formerly the Screenprinting Graphic Imaging Association, conservatively estimates the annual U.S.industry revenues to be approximately $55 billion-produced by 20000to25000 commercial shops.
At one time the screen printing industry took most of its business from lithographic, letterpress,and sign shops. Screen printers produced products that were too large or required special materials or perhaps needed to be used outdoors. For all practical purposes these products were not feasible or profitable to produce by other means. Over time, printing processes advanced so that many more products could be produced by several different technologies, and therefore, blurring the line of compertition. In addition, companies with vision adopted new technologies to diversify their capabilities, thus handing a wider range of customer needs.
Screen printing also advanced to meet new challenges. Improvements in emulsions, mesh, and equipment kept the process competitive of screen printing so it will remain a strong contender in the specialty printing industry for years to come. But the business landscape is changing rapidly.
A recent survey of the industry indicates the primary markets served by screen printing companies are:
The products sold within these markets range from keypads and identification labels to garments and point-of-purchase (POP)signage. As you can see, screen printers are optimistic about a good year in 2004 with roughly 90% of all respondents expecting growth.
Optimistic is the key word with regard to industry growth. In a mature industry such as screen printing, growth of one company is usually at the expense of another-a zero-sum outcome. SGLA expects to see significant consolidation within the industry during 2004 and shortly beyond.