Profiting from decline

News that Stralfors is scaling back its business forms operation is interesting for those, like myself, who make a point of studying "last iceman" markets.

I like to keep an eye on what's going on in areas of print that are considered to be on their last legs, for example carbonless forms, cheque books, and indeed business forms.

Stralfors stated that forms now account for less than 20% of sales (although that's still potentially circa £4.5m of work, based on their latest accounts) and "makes no positive contribution to profitability". It's worth noting that the firm said it will still continue to produce business form work for its own direct clients, though. The obvious conclusion to be drawn from this statement is that a print manager or two will be looking for a new business forms supplier in a hurry.

And this illustrates the opportunity for the iceman. As choice declines the savvy supplier who hangs in there with the right strategy and tactics can do very nicely thank-you. For the sort of business forms we're talking about here it seems to me there are a couple obvious contenders likely to pick up work as a result of Stralfors' strategic shift. And I would be willing to wager that any such work won will definitely involve a positive contribution to their profits.