Wages, Hires Slink Up in Tighter Economy

According to the 272 U.S. companies participating in Graphic Arts Monthly's 2001 annual salary survey, the domestic printing industry remains a fairly stable affair, with salaries in 2000 increasing slightly, industry challenges and technological investments staying consistent over the last few years, and the Internet and e-commerce recording little change in the way business is done.

During 2000, salaries on the whole increased an average of 4.7%, down from 5.4% in 1999. Increases were cited in departments and positions across the board, the only exception being that of quality control supervisor, which registered an average salary of $50,311 in 2000, down from $54,071 in 1999.

Quite a few more survey respondents reported company downsizing last year (36%, compared with 26% in 1999), cutting their staff by an average of 11 employees, the same amount noted for the previous year.

Most cutbacks occurred in the bindery, pressroom, prepress, and production departments, with support staff taking the hardest hit (67%).

This was followed by production management (25%), sales/marketing (24%), office administration (21%), management staff (19%), department foremen (9%), and finance departments (4%).

But new staff was added as well, with 55% of firms participating in the survey reporting that they added an average of seven new employees in 2000, reflecting an increase from the average of 5.3 in 1999. Personnel was added to the pressroom (26%), bindery (23%), sales (19%), prepress (12%), production (12%), and customer service (10%).

The overall size of the companies polled in this latest study is larger than in previous years. In 2000, the average number of employees among survey respondents' firms was 95, up from 77 in 1999 and 37 in 1998. Sales levels also reflected the participation of larger-size companies, with average billings in 2000 totaling $8.39 million, up from $6.05 million in 1999 and $3.01 million in 1998.

Of the companies surveyed in this latest study, most described themselves as small general commercial printers (43%, down from 50% in 1999) or medium-size commercial printers (37%, up from 33% in 1999), followed by large commercial (11%), specialty (3%), other (4%), and book/publication printers (2%).

Most respondents were based in the East North Central region of the country (23%), South Atlantic (17%), Mid-Atlantic (16%), and West North Central (14%), followed by the Pacific (9%), East South Central (6%), New England (6%), West South Central (5%), and Mountain (4%).

In terms of benefit packages, 70% of firms participating offered life insurance, followed by 401(k) plans (61%), disability insurance (53%), merit bonuses (30%), profit sharing (29%), tuition reimbursement (28%), and retirement/pension fund (27%).

Looking inward at the domestic graphic arts industry, printing executives once again cited finding qualified or competent help as their primary challenge. Other challenges noted included keeping up with technology, followed by the cost of technology and equipment, and shrinking profit margins.

Consistent over the last few years, at the top of the list for technological investment is computer-to-plate (CTP), with 66% of surveyed printing companies reporting that they are actively investing in a CTP system. Printers also are making investments in shop floor data collection and e-commerce/Internet-based printing services (tied at 31%), telecommunication systems (27%), sheetfed coating systems (22%), and four-color digital presses (21%).

Also holding steady are the non-printing revenue sources being pursued by printers. Mailing services (42% for 2000), art and design services (41%), and vended-out specialty work (34%) continue to hold the lead, as they did in 1999, 1998, and 1997.

Other sources being pursued include digital image storage and management (21%), Web site development/hosting (16%), facilities management services (8%), and digital photography (5%).

Looking at how the advance of the Internet or e-commerce has changed the way business is accomplished, nearly half of survey participants noted that the overall impact has been positive. Topping the list for positive Internet activity is sending and receiving copy (such as PDF files), followed by improved communication (more e-mails and fewer phone calls), and saving time.

Only 5% of the firms participating in the 2000 survey said that they are using the Internet for proofing. Fewer than 4% are purchasing supplies on line, and less than 3% are finding that customers are ordering printing on line.

On the negative side, say 10% of survey respondents, customer demand for quick turnaround times is now faster than ever because of the Web, thereby forcing them to work more quickly. Thankfully, only 2% of those polled reported that the Internet has cut into their business, while 30% said there has been little or no change.

A full copy of the salary survey, which contains information not included in this article, is available for $25. Please contact Wing Leung of Cahners Research at (212) 463-6789 for details on how to obtain a copy.