It's fair to say that the wide-format market is currently in transition. Manu­facturers are claiming that advances in technology are redefining and expanding the market,  allowing wide-format printers to offer a broader range of services to clients.  
It is no surprise, therefore, that the latest PrintWeek survey of nearly 700 wide-format printers and buyers found that many believe there is no better time to be in, or to be considering a move into, the sector.

Of the 490 printers that took part, nearly half considered themselves principally wide-format digital printers, while the remainder were digital sheetfed/web or sheetfed offset and screen printers.

Popular service
Around 64% of printers surveyed offered wide-format printing, with point-of-purchase (POP), point-of-sale (POS), banners and signs proving to be the most popular services.

The turnover generated by wide-format services fluctuated, with the majority of respondents noting it makes up between 10-20% of their sales, but interestingly, as many say it makes up less than 5%.

In a climate where market conditions are tougher than ever and where margins are continually being squeezed, it is therefore encouraging to note that nearly 80% of print respondents (198) said that wide-format printing is as profitable, if not more so, than other services they offer. Only 8.1% said that wide-format was the least profitable arm to their business.
Here lies the opportunity for those within the sector and equally those debating a foray into the world of
wide-format print: according to Marcus Timson, sales and marketing director for Fespa, printers that have wide-format equipment "are generally more profitable. They can carry out short runs, often employ fewer people and can be more efficient."

Steve Astins, general commercial manager at Harcourt Litho, which moved into the digital wide-format sector earlier this year, agrees.

"With each job we do, there is no doubt the margins on wide-format work are higher. A reason for this is that people are prepared to pay a premium for high-quality jobs that they need at the last minute," he says.

Market potential
Nearly 50% of the 192 print buyers that responded to the survey said that they would like their current print provider to offer wide-format.

Timson is not surprised. He says: "I think people want an easier life and to deal with a single point of contact. Some printers share capacity with other companies that complement their offering. Companies that are successful are selling themselves as market service providers that deliver. Quality and brand consistency are also important factors, as are the savings that can be made by ordering in higher volumes."

Real benefits
Harcourt Litho is living proof of this. The company has benefited from attracting existing clients to the company for its wide-format services but also, according to Astins, the printer has managed to cross-sell commercial print to its
solely wide-format clients. "It's a definite growth area," he added.

The majority of the print buyer respondents counted catalogues/brochures (69.8%) and posters (58.35%) as their main print requirement. The buying of exhibition graphics also featured highly.

More than half of those surveyed buy wide-format work, with the average spend on print generally varying greatly with a third spending less than £20,000, but 12% (23) spent more than £10m.

The most prominent spend on wide-format within these budgets echoes the most popular lines of work that wide-format printers report to be selling: 66.4% said they invest in POP and POS displays, 77.6% buy banners, while signs also featured prominently.
Likewise, the majority of print buyers (81.3%) purchasing wide-format work said that it was as profitable, if not more so than other forms of print. Only 12% said it was the least profitable element of the business.

This level of profitability, according to Timson, is afforded by the creative nature of wide-format printers and the technology available to them.

"Some wide-format printers are taking standard print and turning it into a concept. They are delivering significant value to the goods they offer. Going forward, I think we'll see more aggressive selling of print applications, more creative applications."

Time is right
Inca Digital's director of marketing Heather Kendle agrees. She says: "A customer recently told me that yesterday's miracle is today's expectation. As quality is shifting upwards too, people expect more of their print kit."

In an economy that is still in a recession, wide-format offers print companies a strong way to diversify their service offering and open up new revenue streams.

And with the technology  advancing at a rapid pace, more applications to offer than ever before and the ability to increase your margins, now is surely the time to make the move.

Click here to view the results of our Wide Format Survey (.pdf file).