Spotlight on Biz – Print-On-Demand business

Knowledge of the pitfalls will help avoid them.

Here are eight macroeconomic trends affecting print-on-demand companies.

Increased demand

Print-on-demand companies have seen a huge increase in product demand. There are many potential explanations for this: — a rebound in consumer confidence, the influx of money from government or simply relief that the economy is returning to normal. Whatever the explanation, companies that work in on demand manufacturing should be prepared to handle some unexplainable, yet welcome, increases in volume.

Labor costs increase as interest rates increase and supply is hindered

Another factor affecting print-on-demand is the increase in labor costs. Strangely enough, when hiring employees becomes excessive expensive, business owners turn to outsource the services they need.

This is very much in line with broader employment trends — a number of workers have rethought their reliance on second jobs and on traditional vocations in general, resulting in a labor shortage and thus a need for employers to pay their employees more, paying employees more means hiring outside
contractors, like printing companies, to perform functions that in-house employees may have performed in the past.

Supply constraints

Ever since the beginning of the pandemic, many economic forecasts have warned about eventual disruptions to the supply chain, leading to limitations in the available inventory. That’s very much what’s going on today, with global disruptions to the supply chain resulting in the slow-down of delivery of
goods and services, companies scale up to meet consumer demands. When stocking up printed material for an expected scarcity, orders increase to contractors.

Increased focus on sustainability

In recent decades, there has been a steady rise in expectations for corporate environmental stewardship. Consumers expect businesses to abide by basic standards of ecological responsibility, and many companies are seeing the value in doing just that. An emphasis on sustainability can also lead to some growing pains, temporary inefficiencies and short-term costs for business that needs adaptation measures.

Global trade issues

Most print-on-demand companies are well aware of tariff issues and other global trade concerns — issues that have been exacerbated by political upheaval. These regulatory concerns have no doubt factored into some of the broader supply chain issues.

Ever-present inflation

Inflation has always been, and always will be, and its impact on consumer spending habits, the cost of transporting goods, and more. Certainly, it’s a macroeconomic concern that would have a direct impact on print on demand drop shipping.


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