Amazing Business Development Strategy: The 29% Growth Sector
Looking for red-hot growth in the printing industry? Look no further than the Printed Electronics sector.
Just how hot is hot? In an industry in which an overall flat growth rate is expected for traditional commercial printers, the field of Printed Electronics is projected to grow by nearly 30%.
According to a recent study on printed electronics from Electronics.ca Publications, the global market, which was valued at $3.5 billion in 2011, is expected to increase to $12.6 billion by 2016. That’s a five-year compound annual growth rate of 29.4%.
Industrial Specialty Printing concurs, stating that “printed electronics have been forecasted to grow by a factor of 30 over the next decade.”
Whichever numbers you choose, the trend is obvious: Printed Electronics is red-hot.
The Printed Electronics Marketplace
What are printed electronics? It’s essentially a set of printing methods used to create electrical devices on various substrates. These can include paper, plastic and textiles. Electrically functional electronic or optical inks are used in combination with standard printing processes such as screen printing, offset Lithography and ink-jet printing.
The result is low-cost, low-performance electronics for applications such as flexible displays, smart labels, and even decorated and animated clothing.
It’s red-hot not only because of the product, which can be dazzling, but also because of the low-cost volume fabrication.
This video provides more details on the process and its applications.
How Do You Fit In?
So where does that leave you? How do you gain access into this red-hot sector?
There are a number of methods:
Partner with a printed electronics specialist: Look, you may not know the industry, but if you’re an established printer, you likely have any extensive list of clientele. You can team up with a printed electronics specialist and expand their technical capability to an entire new audience.
Consider an M&A: Because of this sector’s explosive growth, a merger and acquisition should be a strong consideration. It allows you to leap-frog over traditional methods of acquiring equipment and gaining expertise.
Hire the right talent: The true differentiator, as is generally the case with a specialty, is getting the right people to run the technology. If you want to stay true to your organic growth track, consider bringing on an expert in the field.
Printed electronics is a field that has only scratched the surface in terms of growth potential. What other areas do you see printed electronics changing the marketplace?
(photo by Alex Orterwalder)
If you're looking to make a strategic acqusition, download Rock LaManna's Free Acquisition Criteria for Printing Companies.
Rock LaManna is the President and CEO of the LaManna Alliance. The LaManna Alliance helps printing owners and CEOs use their company financials to prioritize and choose the proper strategic transition – including mergers, acquisitions, organic growth, and exit / succession plans.