Transitioning Print Volumes from Offset to Digital Printing

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The print industry continues to experience a natural and organic shift from offset to digital printing, driven primarily by a growing demand for shorter print runs and greater customization. But a critical question persists: Are all potential digital printing volumes being produced digitally? If not, what barriers are hindering the transition?

The State of Offset vs. Digital Printing

Printing is one of the few industries where analog (offset) printing remains dominant despite the increasing adoption of digital technologies. This slow transition is largely due to cost differences. For example, consumables like ink remain significantly cheaper in offset printing—a factor that’s unlikely to change due to the fundamental differences between offset and digital inks.  

Offset printing continues to be more cost-effective for longer print runs due to its lower consumable costs and economies of scale. However, trends in shorter runs and customized print communications are still slowly shifting market dynamics in favor of digital printing, which enables more targeted and effective engagement.

While the organic shift towards digital progresses, analog printing remains resilient and relevant despite its decline. Notably, a recent survey revealed that several print service providers (PSPs) plan to avoid further investments in offset technology. But the real question of interest is: How quickly are PSPs transitioning to digital, and what factors influence their pace?

Key Drivers of the Offset-to-Digital Transition

The transition to digital printing has gained a significant momentum, fueled by changes in cost dynamics, operator labor challenges, and (again) the ongoing trend towards shorter runs and customization. The crossover point—where digital becomes more economical than offset—has shifted recently due to two major factors:

• Rising Offset Costs: Expenses associated with make-readies, paper waste, and plates have seen a significant increase.
• Falling Digital Total Cost of Ownership (TCO): Over the past decade, the TCO of large production digital printing equipment has dropped by more than half. Modern large production digital presses offer lower running costs, while producing far larger average monthly print volumes (AMPVs) compared to presses from over a decade ago.

Awareness of Cost Crossover Points

A major challenge for the market is that some PSPs seemingly lack awareness of their cost crossover points. Surprisingly, a recent Keypoint Intelligence survey found that 30% of US-based PSPs do not calculate their cost crossover points at all.

Equally concerning, 26% of PSPs rely on outdated methods that are time-consuming and potentially less reliable. This means nearly half of PSPs operate without cost crossover data or depend on outdated methods that do not incentivize them to keep up to date with their current crossover points.

Calculating cost crossover points is a crucial exercise for PSPs to understand the cost-effectiveness of their operations, yet many PSPs face significant challenges. For example, 40% of PSPs cite a lack of necessary data as a barrier, while 30% find the process too time-consuming. These obstacles often deter PSPs from performing such calculations. However, overcoming these challenges is essential as staying informed about cost crossover points enables PSPs to optimize production choices and improve profitability in the long run.

The Need for Efficient Tools

The printing industry urgently requires tools that enable PSPs to calculate cost crossover points quickly and easily. Recognizing this need, Keypoint Intelligence has launched a web-based Cost and Time Cross Over Point Estimator.

This tool addresses the data and time barriers PSPs face by:

• Leveraging market-average data to fill information gaps.
• Providing cost crossover estimates in seconds.
• Allowing for easy customization of inputs to reflect each individual PSP’s unique operational metrics, resulting in personalized estimations.

Designed for fast pre-qualification and decision-making, the tool ensures PSPs can allocate each job to the most cost-effective technology. Digital printing vendors can also utilize the tool to quickly identify which of their customers may fit the profile to benefit from investing in a new digital printing press.

Keypoint Intelligence Opinion

The shift from offset to digital printing represents a transformative opportunity for the industry. However, its success and acceleration hinges on PSPs’ ability to quickly, easily, and accurately determine their cost and time crossover points. Keypoint Intelligence’s innovative online tool, powered by market-average data, simplifies this process—empowering PSPs to make informed decisions in seconds and stay responsive to market shifts.

Want a free demonstration of this powerful tool? Contact us here.

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