Plunkett Research Competition
Now Viewing Plunkett Research's competition in: Book Publishers
Recent Developments
Paper Costs Help Drive Up Publishers' Prices - Book publishers have raised prices to distributors and major retailers, as the cost of paper has climbed. US book publishers increased prices 4.8 percent in April 2008 from year-ago levels; the cost to buy paper from mills rose almost 8 percent. Publishers' average annual producer prices increased 3.2 percent in 2007 and rose over 19 percent in five years.
Industry Employment, Wages Rise - Publishers are paying higher wages, mainly due to salaries of high-level staff, as employment levels fluctuate. US employment at book publishers increased 2.4 percent in March 2008 from year-earlier levels; wages grew 6.2 percent. Average industry employment fell 0.1 percent in 2007 after rising 0.2 percent in 2006.
US Book Publishers' Sales Rise - US book publishers' annual sales increased 3.2 percent in 2007 from 2006, according to the Association of American Publishers (AAP). Trade sales of adult hardbound books rose 7.8 percent and 0.2 percent for adult paperbound books. Sales of children and young adult paperbound books rose 4.1 percent, but hardbound books in the category fell 0.5 percent. Prices and unit sales affect total sales numbers.
Competitive Landscape
Demand for books is driven by demographics and is largely resistant to economic cycles. The profitability of individual companies depends on product development and marketing. Large publishers have an advantage in bidding for new manuscripts or authors. Small and midsized publishers can succeed if they focus on a specific subject or market. Because of the high value of the product, average annual revenue per employee is a high $300,000.
Book Publishers Industry Forecast
from Hoover's/D&B subsidiary First Research
The output of US book publishers is forecast to grow at an annual compounded rate of 4 percent between 2007 and 2012.
Book Publishing Growth Stabilizes
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Depends on consumer income
- Strong marketing skills required
- Risk: Slowing economy limits spending on non-essentials
Industries Where Plunkett Research Competes
- Media
- Information Collection & Delivery
- Internet Content Providers
- Publishing
- Book Publishing
