Screen Printing Business Overview

Screen printing, also known as silkscreening, is a printing technique that involves stenciling a design onto a fine mesh screen and then transferring the ink onto a substrate such as fabric, plastic, or paper. The process involves several steps, including creating artwork, exposing the image onto the screen, printing, and curing the ink to ensure it does not wash out.

Screen printing businesses apply ink through mesh stencils to create designs on various materials, most commonly t-shirts, and apparel. Although custom apparel printing is the biggest product segment by far, making up almost 50% of the entire custom screen printing production, coffee cups, merchandise, posters, stationery, labels, uniforms, and large banners can also be screen printed.

The main business models in screen printing include:

• Full-Service Print Shop: Handles everything from design creation to printing and delivery, working with both small and large-volume orders
• Contract Printer: Partners with other businesses to fulfill their printing needs, focusing solely on the printing process without direct customer interaction
• Specialty Printer: Concentrates on particular materials or techniques, such as athletic wear printing or industrial applications
• Mobile Printer: Travels to events and locations to print on-site, offering immediate customization services

Related: Checklist to Start a Business

How Do Screen Printing Businesses Make Money?

Screen printing businesses primarily generate income by charging customers for printed products. They calculate pricing based on the number of items printed, colors used in the design, and complexity of the artwork. Most printers require minimum order quantities to maintain profitable operations.

Industry Statistics

Screen printing businesses operate under NAICS code 323113, Custom Screen Printing. This industry includes companies that print on apparel, stationery, labels, and promotional items without publishing.

Here are some highlights about the screen printing industry:

Screen Printing Industry Size & Growth: The screen printing industry generates $9.2 billion in revenue. Over the past five years, the industry experienced a decline in revenue, with an average annual decrease of 3.4%. Projections indicate modest growth of 0.7% annually through 2029, reaching $10.1 billion. This growth will stem from increased consumer spending and continued demand for custom-printed products despite ongoing competition from digital advertising. (IBISWorld)

Number of Screen Printing Businesses: The industry consists of 12,323 businesses. Two major companies dominate the market: Fort Dearborn Company and Multi Color Corp, which maintain market shares of 85.8% and 62.4%, respectively. The majority of screen printing businesses are small, local operations with fewer than five employees. (IBISWorld)

Screen Printing Average Profit Margin: Screen printing businesses typically see an average net profit margin of around 7%. These margins reflect operating costs, including materials, labor, and equipment maintenance. (IRS)

Costs To Start a Screen Printing Business

Starting a screen printing business typically costs between $15,000 and $100,000. This range covers basic equipment setups for small home-based operations to complete commercial print shops.

Here are some of the more expensive items needed to start a screen printing business:

Screen Printing Equipment: A manual screen printing press ranges from $3,000 to $8,000, while automatic presses cost between $20,000 and $50,000. Additional equipment like flash dryers, exposure units, and washout booths will add to the total equipment expense.

Workspace: Commercial space for a print shop requires proper ventilation, drainage, and chemical storage areas. Monthly rent for suitable commercial space ranges from $1,000 to $4,000, with additional costs for any necessary renovations or improvements to meet safety requirements.

Initial Supply Inventory: Starting inventory includes screens, inks, emulsions, cleaning supplies, and blank products like t-shirts and other printable items. Initial supply costs typically range from $2,000 to $10,000 depending on the variety of products offered and expected order volume.

Screen Creation Equipment: Screen making requires specialized equipment such as screen stretchers, coating troughs, and drying cabinets. For basic setups, these items cost between $1,500 and $5,000.

These estimates provide a general overview of startup costs. The actual amount needed will vary based on location, equipment choices, and size of operation.