Confidence is clearly returning within the UK printing sector, according to the latest BPIF Printing Outlook survey. When questioned regarding the general state of trade during the final quarter of 2013, 55% believed that the market improved, with just 8% reckoning the situation had worsened.
The results are the best for five and seven years respectively.
In terms of trading prospects compared with a year earlier, 38% believe that the first quarter of 2014 will be better compared with 12% that is fearful of a weakening.
For the second quarter running, demand for print matched the forecast; this meant that the final quarter of 2013 was a busier time for many. The level of new business increased for 52% of survey respondents – the highest figure for three years and comfortably outweighing the 9% that suffered a drop in orders.
As expected, output levels rose in tandem with the increase in demand. The number of printers that saw a rise in production (58%) was the highest for six years.
The main business concern among printers remains the issue of competitors pricing below cost to attract custom. Almost three quarters highlight this process as being detrimental to growth. Replacing the worry that profit levels are not sufficient to allow for investment as the second key concern is the impact of expected paper and board prices on profitability. Also rising into third place and very much linked to the chief concern among firms is the financial effect of poor output prices. Late payments by customers, under-utilisation of capital equipment, survival of major customers and pre-pack administrations also feature highly among the main anxieties.
Kathy Woodward, BPIF CEO, said: “It is heartening to see the optimism created by the stronger trading at the end of 2013 continuing into the current year. Whilst there are still significant challenges to face the industry is looking at across the board investment to increase productivity and maintain and improve operating margins. 2014 promises to be an exciting year.”
