Uncertainty created by erratic tariff policies and war in the Middle East, broad-based cost inflation ‒ labor, substrates, transportation, energy, overhead ‒ and resistance to price increases are pressuring profit margins across the printing industry. Clients are taking longer to commit to projects as uncertainty engulfs their markets but still expect faster job turns, creating an Amazon effect. And robust risk management has become a must.

Andy Paparozzi is the chief economist for PRINTING United Alliance, ASI’s strategic content partner.

Those are key conclusions of the PRINTING United Alliance “State of the Industry Report 2026.” The report, sponsored by Canon U.S.A., draws on contributions from more than 250 companies, including commercial printers, graphic and sign (wide-format) printers, package/label printers and apparel decorators with annual sales ranging from less than $500,000 to more than $500 million.

We asked our State of the Industry (SOI) panel how they’re responding to the trends above, and they said they’re focusing on these priorities:

• World-class efficiency. They’re increasing productivity not just in operations but companywide, automating, boosting production speed/throughput, controlling cost and strengthening quality control because markets are too competitive to pass inefficiencies on to clients.
• Artificial intelligence. They’re exploring how AI can enhance every mission-critical function from prospecting to cybersecurity and automate repetitive, low-value tasks, freeing time for activities that create value for clients, employees and the company.
• Diversification within printing. More than three-quarters have diversified beyond their primary printing segment, including 67.8% of commercial printers who have added graphic and sign production and 51.9% of apparel decorators who have added promotional products imprinting.
• Diversification beyond printing. Two-thirds have added services such as mailing, fulfillment, database creation and maintenance, and multimedia personalized market programs. By getting involved in their clients’ work earlier and staying involved longer, they’re building barriers to entry that help keep the competition out and barriers to exit that make it more difficult for clients to leave.
• Workforce development. They’re cross-training to build a flexible, adaptable workforce that can be where it’s needed when needed, rewarding top performers and releasing underperformers – no matter how tight labor markets are – creating competitive compensation programs that attract and retain the most desirable employees, investing in employee education, providing employees with a clear picture of how they’re doing and the next steps in their development, and hiring new skills to match changing business needs.
• The customer experience. They’re reducing response times, extending automation directly to the customer by enhancing e-commerce capabilities (web-to-print, customer portals, etc.) and expanding communication with customers through the channels they prefer (social media, podcasts, videos, face-to-face, etc.).
• Data-driven decisions. They’re building robust key performance indicators, dashboards and databases supported by superior business-intelligence systems and the analytic capabilities of AI and basing decisions on those assets.
• Business basics. They’re focusing on cash flow, planning, execution, promoting the value created for clients, strengthening core services and other timeless foundations of profitable growth in any business environment.

We also asked SOI participants about their capital investment plans because prudent capital investment supports every priority they defined. We learned that they would most like to invest in artificial intelligence applications, bindery/finishing systems and e-commerce solutions, that increasing productivity, cited by 76.3%, is their top investment objective by far (automation, serving current markets more efficiently and entering new markets follow), and that capital investment averages 5.1% of sales per year. 

19.5%
the percentage of printers that include risk management among their top business priorities (PRINTING United Alliance)

Significantly, just 19.5% include risk management among their top business priorities. That’s surprising because if COVID-19, followed by inflation accelerating to the fastest rate in 40 years, followed by no-one-knows-what’s-next tariff policies, followed by war in the Middle East has taught us anything, it’s the importance of managing risk and uncertainty. 

Let’s all remember the advice of legendary Business Educator Peter Drucker who said, “In business, one does not begin with the answers. One begins by asking, ‘What are the questions?’” Among the essential questions:

• What will we do better this year than we did last year? In our increasingly competitive, tight-margin business, we are either getting better or falling behind.
• What is our AI plan? How well is it working for us? How will we make it work even better?
• How will we better identify and manage risk, uncertainty and opportunity evaluation?
• What’s happening – trends, issues, developments – that we’re hearing about but not experiencing yet? Which are most likely to affect us, and how are we preparing for them?
• What are our biggest internal barriers to profitable growth? What internally is holding us back?

During periods of extreme uncertainty, the tendency is to wait for clarity. The opportunity, however, is to create clarity by moving ahead with capital investments that boost productivity, automation and production speed, workforce development, promotional programs and other foundations of sustained profitable growth. That doesn’t mean rushing into anything. It means conducting thorough due diligence, rigorously evaluating opportunities and managing risk, and always considering the cost of NOT moving forward.

Print & Promo Marketing is your source for news, commentary and strategy for the promotional products, commercial print and product decoration industries.