Printing and Related Support Activities Industry Profile

Definition of the Industry

Printing manufacturing comprises establishments primarily engaged in printing and providing related support activities. Firms in the printing industry produce a variety of goods including newspapers, books, labels, business cards, stationery, business forms, and other products. Related support activities are comprised primarily of services such as data imaging, plate making services, book repairing and bookbinding.

The North American Industry Classification System (NAICS) codes are:

  • 323: Printing and Related Support Activities
  • 32311: Printing
  • 32312: Support Activities for Printing

Statistical Summary

Printing and Other Related Support Activities [NAICS 323] — Major Economic Indicators
(millions of $ CAD, employment in thousands)
Economic Indicators 2004 2005 2006 2007 2008 % Change
2007-2008		 CAAGR
Source: Statistics Canada, Trade Data Online.
Definitions: 
CAAGR: Compound Average Annual Growth Rate
Apparent Domestic Market = Shipments plus Imports minus Exports
Manufacturing Intensity Ratio (MIR) = Gross Domestic Product (GDP) divided by Shipments
Import Penetration = Imports divided by ADM
Export Orientation = Exports divided by Shipments
Domestic Market Share = Shipments minus Exports divided by ADM
Labour Productivity = GDP divided by Employment (in thousands of $ CAD)
Apparent Domestic Market 11,182.0 11,583.7 11,162.2 10,436.1 10,497.1 0.6% -1.2%
Shipments 11,536.5 11,933.8 11,286.1 10,416.5 10,245.5 -1.6% -2.2%
Gross Domestic Product 6,145 6,285 6,088 5,648 5,445 -3.6% -2.3%
Manufacturing Intensity Ratio 53.3% 52.7% 53.9% 54.2% 53.1% -2.0% 0.0%
Total Imports 1,235.5 1,256.0 1,359.9 1,394.0 1,459.4 4.7% 3.6%
Domestic Exports 1,590.0 1,606.1 1,483.8 1,374.4 1,207.8 -12.1% -4.8%
Trade Balance 354.5 350.1 123.9 -19.6 -251.6 1,186.5% -34.2%
Import Penetration 11.0% 10.8% 12.2% 13.4% 13.9% 4.1% 5.2%
Export Orientation 13.8% 13.5% 13.1% 13.2% 11.8% -10.7% -2.9%
Domestic Market Share 89.0% 89.2% 87.8% 86.6% 86.1% -0.6% -0.6%
Labour Productivity 156.4 163.9 154.3 144.6 145.3 0.4% -1.4%
Employment 73.8 72.8 73.1 72.0 70.5 -2.1% -0.9%

Economic Overview

The Canadian printing industry remains a significant contributor to Canada's manufacturing shipments, GDP and employment, despite marginal declines in these three indicators between 2004 and 2008. Shipments experienced an average annual decline of 2.2 percent between 2004 and 2008. The pace of decline slowed to 1.6 percent over the 2007 to 2008 period, compared to 2005 to 2006 and 2006 to 2007, with shipments standing at a significant $10.2 billion in 2008. GDP had a virtually identical drop over the 2004 to 2008 period, declining 2.3 percent although the pace of decline accelerated in 2007–2008 to 3.6 percent. The drop in both shipments and GDP was in contrast to the slight increase in the apparent domestic market, reversing an earlier downward trend which was largely attributable to the growth in on-line information products. The printing industry saw a five-year average annual drop in employment of 0.9 percent, going from 73 800 in 2004 to 70 500 in 2008. While there were fewer workers in 2008, their level of productivity showed a slight increase over 2007 reversing a two-year decline for this particular indicator.

In 2008, the largest sub-sector in the Canadian printing industry, making up 71.8 percent of total printing shipments, was NAICS 323119: Other Printing (which includes advertising material, bank notes, books, calendars, cards, catalogues, magazines and periodicals, maps and newspapers). This was followed by NAICS 323116: Manifold Business Forms Printing (e.g., cheque books, computer and business forms, manifold) at 9.4 percent, and NAICS 32312: Support Activities for Printing at 6.8 percent. In 2008, Ontario accounted for 44.0 percent of all Canadian printing output, followed by Quebec at 24.6 percent.

A small number of Canadian printing firms are foreign-owned; however, these companies tend to account for a disproportionately higher percentage of production than Canadian-owned enterprises. For example, a Statistics Canada survey of the book publishing sub-sector indicated that while approximately 6 percent of firms were foreign-owned, these same firms accounted for 47 percent of total revenues.

Over 8000 Canadian printing enterprises supply 86.1 percent of the Canadian market. This high level of domestic market share is due, in part, to the propensity of the industry to serve local markets because of knowledge of the languages, lower shipping costs and proximity to market. Consequently, the level of both imports and exports of printing products was small over the 2004 to 2008 period. Another notable aspect of trade was the emergence of a small trade deficit in 2007 which grew to over $250 million by 2008. While part of the increase in imports can be accounted for by the increase in the Canadian printing market in 2008, Canadian printers did, as a result, experience a slight ebbing in their domestic market share.

Major Issues

Major issues for the industry include:

  • Firms have difficulty accessing credit in order to operate their businesses. Lines of credit, financing for capital investments (including for new technologies) and financing for business acquisitions are cited among their financing issues.
  • Need for changes to the Scientific Research & Experimental Development tax credit and support for employee training.
  • A more rapid write-off of machinery and equipment used in manufacturing and processing, and equipment associated with information, energy and environmental technologies to encourage the upgrading of equipment and technology.
  • The industry remains concerned that, despite the end of the recession in Canada, economic conditions will continue to exert a strong negative impact the Canadian printing industry. In late 2009, however, a number of industry observers indicated that they are increasingly optimistic about the future of the Canadian printing industry.

Associations

The Canadian Printing Industries Association (CPIA) is the "national voice" for the Canadian printing industry. The CPIA has two permanent standing committees: the Government Affairs Committee; and, the Policies and Procedures Committee. A National Environment Committee also exists and is managed under the auspices of the Ontario Printing and Imaging Association. The CPIA has five formally affiliated regional associations:

  1. British Columbia Printing & Imaging Association
  2. Northern Alberta Printers Association
  3. Ontario Printing & Imaging Association
  4. Printing and Graphics Industry Association of Alberta

Canadian Printing Industries Sector Council (CPISC)
151 Slater Street, Suite 1110
Ottawa Ontario K1P 5H3
Telephone: 613-688-0293
Fax: 613-232-1334
Email: info@cpisc-csic.ca