Graphic Media Alliance

06/24/2025

Our Industry Is Challenged

Source: Ralph Williams, June 16, 2025

We open by assessing our industry using Michael Porter’s Five-Forces model. Then we share some findings from our February/March 2025 “Printing Industry Performance & Insights” study. Compared to our industry assessment, our study's findings are a bit surprising. One might see our findings as “striking.” We close with some actionable takeaways.

Michael Porter’s Five-Forces model provides a good framework for assessing the profit potential of an industry's companies. Porter's model points to assessing these five areas: Threat of New Entrants, Supplier Bargaining Power, Buyer Bargaining Power, Threat of Substitute Products or Services, and Competitive Rivalry. For each force, we rate it as low, moderate, or high. A low effect is good, and a high effect is concerning.

We asked AI to assess our industry from a Five-Forces view. Did we agree with every Five-Forces point AI provided about our industry… “No.” But AI’s points generally supported our view.

Threat of New Entrants

The high capital equipment, technology, and facilities investments needed to start a new printing company may form “Barriers to Entry” for firms seeking to enter our industry. Also, current printing companies’ long-standing relationships with current customers may deter newcomers. A new printing company may face challenges in reaching the level of scale needed to price their printed products competitively with existing firms. Therefore, we see the threat of new entrants as having a Low Effect on our industry.

Supplier Bargaining Power

When I led a printing company, a decade or so ago, paper was a commodity that was easy to shop for and purchase. But, as shown in the post-pandemic paper shortages, the paper supply chain has changed. The present paper purchasing environment is not as challenging as it was a couple of years ago. But we continue to see paper mills closing or converting to corrugated material. Adding to the paper supply chain challenges, a relatively small number of suppliers dominate printing equipment. Furthermore, the current international trade and tariff environment may adversely affect the paper supply chain and printing equipment, as it has affected printing plates. As the paper supply chain has improved over recent years, and tariffs have not had a substantial impact, we see supplier bargaining power as having a Moderate Effect on our industry.

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