Targeting Opportunities

Number crunching

On the whole, label printers were more profitable in 1998 than in '97. A survey of 100 leading label printers by packagePRINTING revealed an average pre-tax profit margin of 8.3 percent. When surveyed a year ago that same group reported margins of 7.9 percent.

Broken down by size according to sales of printed tags and labels, those in the $10-25 million range (medium-size companies) posted margins of 9 percent—the highest of any group surveyed. Label printers categorized as "small," in the $5-10 million range reported 1998 margins at 7.5 percent. That same group, however, also appear to be the most optimistic. They reported anticipated growth for 1999 at 13.3 percent. That's compared to 12.2 percent and 7.8 percent by medium and large companies, respectively. "Large" companies are those with sales greater than $25 million.