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WIDE FORMAT PRINTERS:A HIDDEN PROFIT POOL
An IT Strategies Perspective, GraphExpo 2012
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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
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2011 U.S. Advertising Spending - $M
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Total: $205 billion
2011 U.S. Advertising
Spending - $MTV $68,000Direct Mail $50,000Internet $31,000Newspaper $30,000Radio $10,000Outdoor $7,000Point of Purchase $4,500Social media $2,885Video advertising $1,800Mobile Advertising $1,600
Wide Format Graphics is a $10B market
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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 SatelliteRadioNational Newspaper
Direct Mail
Directories
Direct Online
Source: Magna, Inc.
IT Strategies projection on POP: 11% growth
Wide Format Graphics is a Growing market
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Impact of Electronic Technologies on Document Print Volumes
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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
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US Wide Format Graphic Printer Units by Ink Type 2011-2016
6
6%
6%
-1%
CAGR 2011-2016
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US Wide Format Graphic Printer by Hardware Revenue - $M 2011-2016
7
6%
-1%
5%
CAGR 2011-2016
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Value
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Value
Ink/Substrate RangeLow High
High
Educate Your WF Graphics Customers About Ink Types
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Applications
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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?
– $1.62• What is the gross
margin on Offset?
– Single % digits??
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$M Retail Value of UV-curable WF Output
9% CAGR
7% CAGR
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Wide Format Digital’s Enduring Value as a Local Market
Analog to Digital
Evolution
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Wide Format Graphics:Digital & Analog Share a Divided Market
Total Print Volume: 67 Billion Square Feet WW, 2011
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The Efficiency Squeeze: Staff Requirements Up as Print Volume Decreases
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2011 2015 2018Set-up time/job/minutes 20 20 20Jobs/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 100Ave. run length 2,500 1,500 500total print volume 62,500 75,000 50,000
3 operators 6 operators 11 operators
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Thank You!
Direct dial 781-709-1633
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Go Forth, Help Your Customers Invest in the Growing Wide Format
Graphics Business