It’s no secret that overall demand for commercial print solutions in the U.S. has changed as more communications and transactions are delivered by digital means. Nonetheless, commercial print sourcing remains a big economic driver nationwide. IBISWorld reports that corporate print suppliers in the U.S. still generate revenues of more than $75 billion annually and employ over 360,000 employees, making it one of the largest onshore manufacturing industries in the U.S.
As significant as print management strategies are to the U.S. economy, they are surpassed by the volume of commercial print sourcing that originates in the Asia-Pacific region. In 2023, roughly 40% of all revenue related to global print services was generated by Asia-Pacific companies, with China accounting for the dominant share.
However, these trends are now subject to significant disruption. With the tariffs recently levied on U.S. trading partners worldwide, the cost of purchasing commercial print solutions from overseas will likely increase. Indeed, the tariffs for print outsourcing solutions via China specifically may reach triple-digit percentages, leading to more onshore manufacturing and increased commercial print sourcing from U.S.-based corporate printing vendors. Conversely, the cost of raw materials (e.g., paper and ink) imported by U.S. corporate print suppliers may also rise sharply, potentially working against the trend toward onshore commercial print production.
How will all of this affect the commercial print management strategy of a typical U.S. business? What should American companies that rely on commercial print solutions do when tariffs disrupt global supply chains? The answer to that question depends on many factors, such as:
This blog will explore how tariffs affect the supply chain of the many U.S.-based print partners who deliver print management services. It will also highlight the key questions to ask a corporate print supplier about their tariff response and how you can mitigate risk of supply chain disruption.
Given the sheer volume of imported raw materials currently used by corporate print partners nationwide, supply chain tariffs will likely impact onshore commercial print production to a significant degree. Consider that onshore manufacturing of global print products commonly requires one or more of the following inputs.
Clearly, the effect of tariffs on the commercial print management supply chain in the U.S. varies widely by the type of raw materials being used. It also depends on whether onshore manufacturing resources are utilized or if print outsourcing strategies have sent the work offshore.
These six questions offer a good place to start with any corporate print supplier. Your ultimate goal should be to determine how tariffs affect the supply chain for your commercial print solutions and whether your corporate printing vendor is truly prepared for what lies ahead.
By asking your provider about the specific tariffs they are dealing with, you can gain a clearer picture of the challenges they — and you — may face going forward.
Are they sourcing materials from alternative suppliers in countries not affected by tariffs? Are they negotiating better terms with existing suppliers to offset the increased costs? By understanding their mitigation strategies, you can assess their ability to continue delivering high-quality printed products at competitive prices.
Ask your corporate print supplier how tariffs are affecting their pricing structure. Are they implementing price increases to cover the additional costs? If so, how significant are these increases? Understanding the financial impact of tariffs on your print partner can help you budget more effectively for corporate print solutions.
In addition to cost increases, tariffs can also affect lead times for printed products. Ask your corporate printing vendor if they are experiencing any changes in lead times due to tariffs. Are they able to maintain their usual turnaround times or should you expect delays? Knowing this information can help you plan your projects more effectively and avoid last-minute surprises.
Raw materials aside, it is entirely possible that your corporate print supplier utilizes outsourced printing services for some of the commercial print solutions that you purchase. Some of these services, in turn, may be provided by offshore print suppliers. If you aren’t absolutely certain that the commercial print you are buying is manufactured at onshore commercial print production facilities, now is the time to ask. If not, see if they are open to onshoring print production to facilities in the U.S. to help insulate you from the potential impact of tariffs.
Effective communication is key to managing the impact of tariffs. Your corporate print supplier should provide regular updates on pricing, lead times and supply chain issues. They should also have a dedicated point of contact for your tariff-related inquiries. Without these measures in place, it may prove difficult for you to stay informed and make the decisions your business needs to thrive in a time of uncertainty for the global print management industry.
Taylor is among the largest providers of commercial print solutions in North America, possessing a massive print production footprint within the U.S. As a true single-source print vendor, we deliver printing and fulfillment services across the entire spectrum of print with the vast majority of it produced through onshore manufacturing:
Looking for a print partner who can deliver the commercial print solutions you need as tariffs disrupt global supply chains? Is onshoring print production a strategic priority for your business? Contact your Taylor representative to learn more about our enterprise printing solutions and onshore manufacturing footprint.