Media and Credit Freeze Snafu Print
-- Graphic Arts Online, 11/4/2008 2:38:00 PM
Elections and Olympics boosted printing, but can't overcome a slowdown hitting all media, Internet included. As retailers contract, printers see orders for long-run publications, catalogs and mailings
shrinking. PIA/GATF chief economist Ron Davis says 2009 printing shipments could decline -1%, or even -5% in his worst-case view. Aiming to retool for short-run digital (up +4% to +5% predicts Davis) printers are hampered by the credit freeze also bankrupting many of their customers.U.S. News moves to monthly; the one-time newsweekly switched to biweekly last year. Macy's is cancelling magazine ads through June 2009, though retaining newspaper ads. Two mailing printing giants have cut back capacity as money-lenders reduce orders.
Getting operating and expansion capital is challenging for some printers, at least those whose credit has eroded. Small Business Administration-backed loans can entail pledging homes as collateral, which have lost market value lately. SBA Acting Administrator Sandy K. Baruah asked lenders not to call loans. “We recognize that small business owners are faced with challenging decisions right now," she sayd. "By providing three-month deferments to qualifying borrowers who are struggling, our lending partners can help."
Journal Communications Printing Services said Q3 revenue from printing services decreased 12.2% to $16.1 million and mailing services fell 7.1% to $6.7 million "due to a decrease in our mailing services business partially offset by an increase in offset and laser printing." Some firms are moving to barter as the cash flow slows. Printer Stand Up Stuff, Charlotte, NC, is trying to barter to buy a new press. Tom Haines, owner, told a local paper he’ll trade printing services in exchange for high-tech equipment. Other printers (and bankers) say reports of the credit freeze are exaggerated.
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