UK Printers' Winter Quarter Worse Than Predicted

UK Printers found the traditionally slow winter quarter to be considerably worse than forecast and worse than any other period in the last three years.

UK Printers found the traditionally slow winter quarter to be considerably worse than forecast and worse than any other period in the last three years.

That is according to the latest British Printing Industries Federation's (BPIF) 'Directions' quarterly survey of trends.

The report said that the climate of rising costs, increasing pressure on prices and squeezed margins shows no signs of dissipating.

Order books were worse than normal for the time of year for 38 per cent of respondents to the survey, whilst a balance of 33 per cent of respondents reported a worsening in the general state of trade.

The report added that the spring quarter of this year is expected to improve slightly, however the balance of respondents that expect it to be better than the corresponding quarter last year is only three per cent - worryingly low for an industry with a history of optimistic forecasts, added the BPIF.

The printing industry is struggling with an inability to raise its selling prices in the face of irresistible pressures on costs.

Paper, board, inks and plates costs rose and energy costs spiralled, whilst average selling prices reported a significant negative balance.

Unsurprisingly, profit margins continue to suffer in most companies.

The BPIF commented that the situation shows no signs of improvement, as costs are forecast to increase and prices are expected to fall further in the coming quarter.

BPIF information services manager, Kyle Jardine, commented: "It is no secret that printers can't make money just by being busy, they must ensure efficiency in every aspect of their businesses.

With prices sinking and costs inflating it is vital that printers know their true costs and how these compare to those of their competitors and the best performing companies in the industry.

He said that tt is clear that many companies are seeking to address the squeeze on margins in several ways.

They include attracting new business (when investment in sales and customer service training is crucially important), cost reduction (through lean manufacturing programmes from Vision in Print and more efficient technologies) and through reductions in numbers employed (when upskilling of the workforce becomes key to maintaining operating performance).

Andrew Brown, BPIF corporate affairs director, said: "Now more than ever is the time to focus on controlling costs and getting more performance from your assets and people.

Developing services that add value to customers and investing in skills should be key priorities.

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