Book Manufacturing Industry Faces Turning Point as Digital Printing and AI Gain Ground

A new report from the Book Manufacturers’ Institute (BMI) indicates that the book manufacturing industry may be approaching a period of significant transformation, driven by evolving market conditions, technological adoption, and supply chain uncertainties.

The report states that despite ongoing economic uncertainty and geopolitical tensions, 2026 presents an opportunity for manufacturers and publishers to rethink long-standing production and sourcing practices. One key factor is the removal of printed materials from the European Union Deforestation Regulation, which has eased compliance pressures on U.S. manufacturers and created room for operational changes.

BMI highlights a growing shift toward digital printing, as publishers reconsider traditional offset printing models. Historically, publishers prioritized minimizing unit costs by producing large print runs and holding inventory. However, declining demand amid digitalization, combined with rising storage and disposal costs, is prompting a move toward smaller, more targeted print runs.

While digital printing typically carries a higher per-unit cost, it allows publishers to better align production volumes with actual demand, reducing excess inventory. The report notes that this flexibility is increasingly attractive in the face of supply chain instability, which has been exacerbated by the COVID-19 pandemic, tariff uncertainties, and broader geopolitical tensions.

Domestic digital printing is also emerging as a strategy to mitigate risks associated with global supply disruptions, enabling shorter runs and faster turnaround times.

The report further underscores the growing role of artificial intelligence in printing operations. Citing findings from a 2025 study by Alliance Insights, BMI notes that 85% of surveyed printers view AI as critical to maintaining competitiveness, while 83% say it has created new business opportunities. Key benefits identified include improved production efficiency, enhanced quality and consistency, and reduced reliance on manual, repetitive tasks.

“2026 presents a genuine opportunity for book manufacturers to reset and adapt,” said Matt Baehr. He pointed to regulatory relief, alongside the adoption of digital and AI-driven processes, as enabling factors for industry evolution.