While the offset printing industry in the country witnessed growth of over 300 times in the last five to 10 years, Sivakasi recorded less than 15 per cent growth.
Automation, labour shortage, increase in raw material prices, power and logistics cost have been cited as the main reasons for this trouble, according to the town's printers.
"Sivakasi, which once ruled the offset printing industry, is now silent," said Rajesh Kumar, MD, Majestic Printers. With the number of printing units increasing not only elsewhere in the state but also in the other parts of the county, thanks to technological advancements, this "Kutti (small) Japan" is no longer the most preferred place for printing.
The industry grew just 15-20 per cent in Sivakasi to Rs 1,200 crore, compared with the overall domestic offset printing industry's growth of 300 per cent to around Rs 50,000 crore.
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To make matters worse for Sivakasi, cost of raw material like paper, ink and chemicals has increased by 20-25 per cent.
Not very long ago, the town was one of the highest sales/excise/Customs duty paying centres, and even achieved 100 per cent employment.
More than 1,000 printing units, including the tiny ones, currently employ a workforce of nearly 25,000 compared with 50,000 three years back.
Most workers have migrated to Chennai, Andhra Pradesh, Bangalore, Kerala, Mumbai and even to Africa and Dubai, where the printing industry is fast catching up.
Majority of these labourers are in the age group of 18-25, added S Ashokan, former president of the Sivakasi Master Printers' Association.
Good salary, exposure to metros and foreign countries are the major reasons for the exodus of local workforce. In Sivakasi, a labourer earns Rs 200 a day, while two years ago it was less than Rs 100 a day.
However, in Chennai and Kerala, they earn up to Rs 350 per day, including accommodation and food. In foreign countries, the amount is much higher.
Though the industry trains local people to bridge the gap between demand and supply, they move out of Sivakasi to bigger cities once the training is over.