SIC 2893 Printing Ink

Contenidos

• NAICS CODE(S).
• FURTHER READING.

SIC 2893

This classification includes establishments primarily engaged in manufacturing printing ink, including gravure ink, screen process ink, and lithographic ink. Establishments primarily engaged in manufacturing writing ink and fluids are classified in SIC 2899: Chemicals and Chemical Preparations, Not Elsewhere Classified. Those establishments manufacturing drawing ink are classified in SIC 3952: Lead Pencils, Crayons, and Artists' Materials.

NAICS CODE(S)

325910

Printing Ink Manufacturing

The printing ink industry is one of America's oldest, dating back to the pre-Revolutionary War days. After more than 200 years of similar operating procedures, there was little change in the structure of the industry entering the 1990s. However, the 1990s brought massive consolidation to the sector. Because the market for printing inks was mature and profits were low, the largest ink companies acquired smaller firms as a way to boost market share. By September 1999, four companies controlled more than half of the global printing ink market, according to Chemical Market Reporter.

During the recession at the beginning of the 1990s, raw material prices stabilized considerably. Purchasing experts in the ink industry found that there were only a few areas where upward price pressure could continue throughout 1990. The major factor affecting prices was the stable price of crude oil, from which more than 75 percent of the raw materials for ink was derived. The industry's membership sought to take full advantage of the relatively low raw material costs, resisting any price increases from raw materials suppliers unless they were fully justified. In some product areas, the companies were able to negotiate price reductions, which helped the industry hold the line on its own prices. Between 2000 and 2004, the cost of materials for the industry increased from almost $2.4 billion to $2.5 billion.

The National Association of Printing Ink Manufacturers (NAPIM)—the trade organization representing ink producers in the United States—reported that industry shipments were valued at $4.83 billion in 2005, up from $4.04 billion in 2002. Printing ink shipments had increased steadily throughout the late 1990s and early 2000s, before declining in 2001 and even further in 2002.

The printing ink industry is classified by ink type. In 2005 lithographic and offset printing ink shipments comprised the largest category, with shipments...