Print diversification can look like the obvious answer when growth stalls in a core segment. For many Ontario printers, packagers, and graphic communications firms, the first instinct is to look at equipment. Labels, packaging, wide format, signage, or specialty applications all seem within reach. The problem is simple. Just because you can produce a new product does not mean you can sell it profitably or run it well.
The better starting point is not the press or finishing line. It is the business case. OPIA’s view is straightforward. New technology may make it easier to enter another segment, but it does not make that segment the right opportunity for every company.
Start with customers, not machinery
The strongest print diversification decisions usually begin with existing customer relationships. Before looking at capital spending, leaders should ask what customers are already buying elsewhere and whether those products fit the company’s current strengths.
- Customer demand: Are clients already asking for products you do not offer?
- Account growth: Would a new capability help you capture more of the work your customers already source from multiple vendors?
- Business fit: Does the opportunity align with the markets you know and the buyers you already serve?
That is a very different approach from buying equipment first and then telling the sales team to fill the schedule. A segment may be growing across the industry, but that does not mean your company is positioned to win in it.
Capacity is only one part of the job
Diversification talks often turn into equipment talks too quickly. In reality, production capability runs much deeper. A new segment can affect estimating, prepress, colour management, substrates, finishing, workflow, scheduling, and quality control. It can also change service expectations and turnaround demands.
That means print diversification should be tested across the full operating model:
- Operational fit: Can your systems and processes support the work without creating costly disruption?
- Workforce fit: Will employees need training, or will you need to recruit specialized experience?
- Financial fit: Can realistic margins and volume justify the investment, added complexity, and working capital?
Poor planning here can lead to underused equipment, margin pressure, and management distraction. For smaller and mid-sized firms especially, those mistakes are expensive.
Sales capability can make or break the move
One of the most overlooked parts of print diversification is sales. A team that sells commercial print well may not be ready to sell labels, folding cartons, décor, or wide-format applications. Different segments can involve different buyers, terminology, decision criteria, and sales cycles.
Leaders need to decide whether the new offering can be cross-sold through current accounts, whether sales training is needed, or whether outside expertise has to be added. If demand is still uncertain, partnering or outsourcing can be a practical way to test the market before bringing production in-house. In some cases, acquisition may be the better path if it brings customers, people, and market knowledge together.
Build resilience, not just capacity
The real question is not which segment is attracting attention. It is where your company can create profitable growth with a credible path to execution. In some cases, that may mean expanding into packaging, labels, or signage. In others, it may mean deepening an existing specialty instead of chasing adjacent markets.
For Ontario’s printing, imaging, packaging, and graphic communications industry, this is a leadership issue as much as a production issue. Strong diversification decisions can improve resilience and customer retention. Weak ones can tie up capital and strain already stretched teams.
Frequently Asked Questions
This section addresses common questions about print diversification, offering guidance for Ontario printers, packagers, and graphic communications firms considering new business opportunities.
What is the most important first step in print diversification?
The most important first step is to assess customer needs and business fit before investing in new equipment. Understanding what your existing clients are already buying elsewhere helps ensure that any diversification aligns with your company’s strengths and market position.
How can print diversification impact a company’s operations?
Print diversification affects more than just production capacity. It can influence estimating, prepress, substrates, workflow, and quality control. Companies must evaluate whether their systems, processes, and workforce can support new products without causing costly disruptions.
Why is sales capability critical when diversifying print services?
Sales capability is crucial because different print segments often require different sales approaches, buyers, and expertise. A team skilled in commercial print may need additional training or support to succeed in new areas like labels or packaging.
What risks should companies consider before pursuing print diversification?
Companies should consider risks such as underused equipment, margin pressure, and operational disruption. Poor planning can lead to expensive mistakes, especially for smaller and mid-sized firms. A thorough business case and realistic financial analysis are essential.
How can print diversification help build business resilience?
Print diversification can strengthen business resilience by expanding offerings that fit customer needs and company strengths. When executed well, it can improve customer retention and create new growth opportunities, rather than simply increasing capacity.
