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CAS/Commercial Growth Rate Slowed in 2000
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By Carol Shea, Wade Swormstedt
Methodology In March, we sent a letter and survey to a sample of ST subscribers identified as being part of the CAS/commercial business. The letter requested their help with this industry survey. Then, our research supplier, Smyth Marketing Resources, randomly selected 500 participants by telephone. Smyth's Carol Shea coordinated all of the research. ST sees none of the actual results, only the totals in chart form.
Our 2000 CAS/Commercial State of the Industry (SOI) closely parallels the results of the 2000 Electric SOI published last month. Yes, there was growth since 1999, an estimated 8% from $4.3 billion to $4.6 billion, but that rate of growth is the lowest we've seen in the five years of this study. Similarly, on the sobering news front, the 11.6% average net profit is the lowest this study has reported by a relatively large margin, 2.2%.
Respondents reported an average sales growth of 14% from 1999 to 2000, which should make most businesses happy. Again, however, it's the lowest growth rate this study has shown, and it's only half of the growth rate reported two years ago.
The best news in an apparent feast-or-famine situation is the highest sales-per-employee figure yet, $73,200. The previous four were relegated to the $61,000-$68,000 range. Additionally, the average sales volume reported per respondent, $356,000, is more than 25% higher than in any of the past three years, even though the median figure did not change from 1999. This simply means that the bigger companies contacted were significantly bigger.
Generally, the percentage of business coming from brand-new customers is 30%, with only a slight trend that, the smaller (and perhaps, newer) the company, the more it would rely on new business.
Despite the business slowdown, respondents don't expect to measurably curtail their equipment investments in 2001, although they've streamlined the variety of types of equipment they plan to purchase.
The percentage of companies involved with digital imaging maintained a slow but steady growth to finally reach a majority. The first year of this study, 1996, the percentage was only 30%. In terms of "market share," inkjet grew while the three other technologies waned over the past year. Thermal transfer dipped a bit last year, but has gained overall over the past two years. Meanwhile, superlarge-format use has plummeted.
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