Slow and steady seems to be the path the industry’s growth is taking with the BPIF’s Q3 Printing Outlook now publicly available
Slow and steady seems to be the path the industry’s growth is taking with the British Print Industries Federation (BPIF)’s Q3 Printing Outlook now publicly available.
Whilst the forecast was for stronger growth to come through in Q2, the BPIF’s Q3 report shows this expectation to have downgraded slightly and rolled over into Q3.
Despite this, the industry has still experienced three consecutive quarters of growth, with this improvement predicted to accelerate in Q3.
The hike in national minimum wage levels and high levels of inflation have both contributed to wage pressures for the industry with most having concluded their pay reviews in Q2.
Long-documented trouble sourcing skilled workers has also contributed to this pressure. Whilst these pressures surged further in Q2, they are expected to ease in Q3.
Another challenge highlighted is industry competitiveness with companies pricing, or being perceived to be pricing, below cost. This has become the top ranked business concern according to the BPIF Printing Outlook report.
However, controlling costs, researching new markets, and putting efforts into driving sales are all key target areas for companies striving to improve their profitability.
The full report features sections on industry turnover, business concerns, costs, pay reviews, paper, board, and more.
Kyle Jardine, BPIF Economist, says: “It might be hard for some companies to identify with the slow and steady sentiment – it is important to acknowledge that some companies have reported a quiet spring and summer, whilst others have rarely been so busy.
“The aggregated data represents the path the industry is taking – and that is one of improved, but still slightly subdued growth, but waiting expectantly for a stronger pick-up to come.”
Jardine continues to explain that with the economic backdrop continuing to improve, the BPIF is waiting to see when interest rates will also track down and whether the new Government can find a stable way to support business. This, he says, will result in improved confidence from the industry.
Charles Jarrold, BPIF chief executive, adds: “Whilst the recent growth status of our industry has been subdued, it reflects the period immediately prior to the announcement of the General Election.
“While it’s very early days, there is a new level of energy and focus within Government which I hope will feed through to economic confidence going forwards. We’ll be looking for that in our next survey. Meanwhile, we do know that companies have come away from drupa with clear intent to continue to invest, automate, and innovate.”
