The number of print businesses declined in the same period from 667,630 in 2018 to 587,934 in 2022, a drop of 11.9%.
While every region in the world registered a drop in the number of print houses, western Europe managed to escape the worst of the fall, with a drop of just 2% to 80,706 companies across the region.
Structural changes, including automation and wider workforce changes, however, contributed to the region’s fall in employee numbers by 9.2%.
While investment in automation has allowed some companies to produce work at lower cost and with fewer staff, investment in tech has also squeezed profitability at some smaller companies, the report said.
Adam Page, Smithers’ director of research and reports, told Printweek: "Across all press types, better on-press automation and smarter software mean that overall print room efficiencies are improving.
"This trend mainly favours larger print houses that can make the necessary investment in new equipment, and integrate other innovations, such as web-to-print functionality, into their operations.
"Across 2024-2028, there will be further consolidation of printing businesses. The trend for reduced staffing will continue as well, with superior automation, enhanced workflows, and digital printing, improving operational efficiency, but with fewer staff, compensating for the ongoing shortage of skilled print room staff.”
Page added that shrinking demand in publishing and commercial print was at the root of the industry’s overall decline.
He said: “Among several reasons was the transition to online content distribution, which hit some sectors particularly hard, such as newspapers, magazines, and advertising print.
“The decline led to a global trend in the closure of many printing facilities and to staff reductions at many of those still in business.
“Among the exceptions are books, which showed positive growth during the Covid-19 pandemic, despite the wide availability of e-books.”
Packaging was another growing area for converters, he added.
"Multiple new entry-level and high-capacity presses, including digital and hybrid print systems, tailored for use in packaging are facilitating this transition.
"Resilient packaging converters are generally doing well, using automated processes to maintain efficiency and increase their competitive edge," Page said.
Page added, however, that the overall decline was unlikely to ease, at least at a global scale.
He added, however: “By 2028, a small number of countries will show some increase in the number of companies operating in the printing and allied industries sector. But a fall in the number of both establishments and associated employees is forecast for most large countries in all regions.”
China bucked the trend in the number of operational establishments, with 4.8% growth during 2018–22, but this was accompanied by a 19.1% fall in the number of employees, mainly due to staff reductions, Page said.
India was also an outlier, forecast an increase of 3.2% in the number of companies and of 1.8% in associated employees, as a result of significant GDP growth stimulating demand.
