FuturePrint Virtual Summit: Q&A With Mark Hanley, I.T. Strategies
We spoke to FuturePrint Virtual Summit speaker Mark Hanley, I.T. Strategies, about the restructuring of the commercial and PSP landscape, how COVID-19 has brought his business closer to its clients, and the heaviest hit sectors.
Don’t miss Mark’s session, Digital Print Production Markets: Financial Models for The Coronavirus Recession, on June 2nd.
Check out the full schedule here.
WHAT IMPACT IS COVID-19 HAVING ON PRINT?
Probable major restructuring of the commercial print and print service provider landscape - many companies leaving or folding. Labels and packaging are relatively less affected, but long term it will accelerate drive to print automation (and digital print where possible) because print staff skills will disappear as a perceived dead-end employment choice.
WHAT KIND OF LONG-LASTING IMPACT ON THE INDUSTRY WILL IT LIKELY HAVE?
Short term V recession. We will see a bounceback at the end of the year, but not very strong, and then flatfish market until the infrastructural damage is cleared in the economy (up to 2 years) . Even uncertainty after that due to unprecedented macro problems around debt and re-shoring of manufacturing to automated factories, and resultant domestic long-term unemployment. Print will be driven by this and as a secondary function (outside of labels and packaging) will be heavily rationalized.
HOW HAVE YOU RESPONDED TO THE CRISIS?
Clients have got closer to us and us to them as they need to talk about it (analysis being our particular function), and technology allows this better than ever, so primary function upticks but underlying economy supporting us, and everyone else less certain as acquisition of new technology plummets and for an unknown period and cyclicality.
WHICH SECTORS WITHIN THE INDUSTRY DO YOU BELIEVE HAVE BEEN MOST STRONGLY IMPACTED BY COVID-19 AND WHY?
Graphic arts, because it is a discretionary buy compared to things like packaging or transactional print. Also wide-format is being hit right now because retail and events are being decimated, and retail was going there before coronavirus. But wide-format will find a way back.
WHAT CONSUMER TRENDS DO YOU THINK WILL GROW AS A RESULT OF THE CRISIS?
We will see local, smaller scale buying, more e-commerce, no events, and less retail.
