What happens when one of Colorado’s few remaining commercial printing presses stops?
More than 80 Front Range publications found out this summer, when the national newspaper chain that operates The Pueblo Chieftain decided to close its Colorado printing facility with just two months notice — throwing many of the state’s local news publishers into a tailspin.
Some publications are now printing in Wyoming, Kansas or New Mexico. Some consolidated their brands. Some closed up shop. But almost all who remain in business are paying significantly more to produce their print products - which for most, still account for the vast majority of their razor-thin profit margins, thanks to dedicated local advertisers who recognize the value of their trusted, local brands.
While the Pueblo print facility closure was certainly a “fire drill”, it’s really best seen as a flashpoint in a slow-moving crisis facing an industry that has been slow to evolve its business and revenue models. For years local news publishers from across Colorado have raised concerns about steeply rising costs, decreasing access, and quality challenges associated with commercial printing options for publishers in the state.
These challenges were exacerbated by the COVID-19 pandemic, which spurred significant inflation that impacted the cost of printing, distribution and delivery charges, and the availability of paper.
This new report, commissioned and published by Colorado Media Project (CMP), was produced as part of the Future of Printing Working Group, an industry initiative led by the Colorado Press Association (CPA) and the Colorado News Collaborative (COLab) throughout 2023.
The working group was already underway when, in early June, the Pueblo facility announced it would be closing in mid-August. Working group members and leaders sprung to action — and already, many potential negative impacts were mitigated due to the collaborative problem solving that has emerged.
The full report maps and distills research on available printing facilities in Colorado, presents findings from surveys of Colorado publishers and printers, and presents three options for individual publishers and the state’s local news ecosystem leaders to consider as they navigate a sustainable future for local news.
EXECUTIVE SUMMARY: KEY FINDINGS
Colorado publishers are experiencing unsustainable cost increases for printing. Colorado publishers have experienced double digit year-on-year rises in printing and delivery costs, with the sharpest increases in the past two years. This has been exacerbated by decreasing supply of printing options across Colorado. The state’s unique geography, with mountain passes closed over the winter, and distance from printers decrease the affordable options available to many publishers
Existing printers are at or near capacity. Existing printers have indicated ‘some’ additional capacity to service new clients. Printers have faced sudden and sharp increases in raw costs (paper, ink, solvents etc.), which are being transferred to publishers.
The August 2023 closure of Pueblo’s printing facility rocked the Front Range. More than 80 Front Range publications were impacted1 by the closure of Gannett’s printing facility in Pueblo. According to a survey of publishers impacted by the Gannett press closure, one title has closed as a direct result. Several others have indicated that they may switch to fully digital and/or cease all printed products. In at least three instances, publishers of multiple papers were forced to consolidate titles.
Fewer printing options and continued cost increases are likely to bring additional newsroom closures. The majority of publishers impacted by the Pueblo closure have identified alternative printing providers. These alternatives tend to be more expensive, temporary in nature, and further in distance from their circulation areas. If another printer in Colorado or an adjacent state were to close, a number of publishers have speculated that demand for printing services would likely far outstrip available supply. The concern is that this would create significant backlogs and potentially lead to the closure of a sizable number of titles.
Three pathways may help stabilize Colorado’s print publishers, who remain optimistic. This report puts forth three potential avenues (not mutually exclusive) that could help reduce short- to medium-term pressures on publishers relative to sustaining their print products and related revenue:
Forming a Cooperative for Printing and Delivery Services
Adapting to New Printing Formats
Printing Press Acquisition
These approaches could be further explored, adopted individually, or grouped together depending on circumstances. However, no single approach represents a state-wide solution to the unsustainable trajectory of rising printing costs that publishers are facing. Despite the broader economic challenges of the last few years, Colorado publishers remain optimistic about the future. Over two thirds of respondents (68%) to a Future of Printing survey expect to see modest or significant growth in the coming three years.
Digital innovation of local news is vital — but still in process. The future of local media is increasingly digital, in terms of growing distribution, individual and institutional support, and revenues. However, a digital-first approach relies on the availability of ubiquitous high-speed internet access, which is not yet the case in Colorado. While the State of Colorado aims to connect 99 percent of households to high-speed internet by 2027 , at present having a print product available in all Colorado communities remains vital in terms of equity and accessibility. Further, to realize sustainability with a digital-first business model, publishers must leverage modern, robust content management systems that facilitate digital revenue opportunities and streamline online distribution. Some Colorado news publishers have already made or started this transition. Publishers also need support in converting advertising revenue streams towards a digital model, as current digital advertising revenues do not equal or exceed those generated by print.