Will print feel the pinch from Williams Lea deal?

How we think print fits into the business landscape has just shifted dramatically following Deutsche Post’s bid for Williams Lea.

The global mail and logistics firm, which operates DHL Global Mail in the UK, has described Williams Lea as a provider of “value-added document and mail-related services”. As so much print ends up in the post for whatever application, be it direct mail, bills, statements or all manner of other business and consumer communication, it seems to be a perfect match.

If the parent company can gain all Williams Lea’s fulfilment – the logistics and postage – then the deal could prove to be a cash cow, but that’s only part of it. InfoTrends CAP Ventures has claimed that of every £6 spent on a document only £1 is on print production, the rest comes before and after in document management, design, fulfilment and logistics.

Deutsche Post, has just carried out a pincer movement on print. It has a strong position in fulfilment and has bought one of the pre-eminent players in print and document management.

It shores up Deutsche Post against greater competition in its domestic mail market, and by moving further up the document supply chain provides alternative revenues to its physical distribution business should it be eroded by electronic distribution. Williams Lea gets the backing for its global ambitions in its document and print management markets.

For printers, though, the deal is salutary. Print managers rose due to their focus on fulfilling the client’s needs for greater levels of customer service and a wider range of services allied to print production. Handling fulfilment and logistics have been touted as value added services printers could offer to fight back and expand their businesses.

This deal points to a risk that the printer’s role could retrench further to solely that of a manufacturer and therefore only able to win that £1 slice of the £6 pie.