wide format printers: a hidden profit pool [global channel partners summit]

www.it-strategies.com

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

3

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


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


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


US Wide Format Graphic Printer Units by Ink Type 2011-2016

6

6%

6%

-1%

CAGR 2011-2016


US Wide Format Graphic Printer by Hardware Revenue - $M 2011-2016

7

6%

-1%

5%

CAGR 2011-2016


Value

8

Value

Ink/Substrate RangeLow High

High

Educate Your WF Graphics Customers About Ink Types


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


Wide Format Digital’s Enduring Value as a Local Market

Analog to Digital

Evolution


Wide Format Graphics:Digital & Analog Share a Divided Market

Total Print Volume: 67 Billion Square Feet WW, 2011


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


Thank You!

[email protected]

Direct dial 781-709-1633

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Go Forth, Help Your Customers Invest in the Growing Wide Format

Graphics Business

wide format printers: a hidden profit pool [global channel partners summit]

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