NZ printers take price hit in wake of natural disaster

Confidence amongst New Zealand printers has been severely shaken after the Christchurch earthquake, according to the latest PrintNZ industry barometer.

PrintNZ’s barometer for quarter 1, 2011 indicates the most common concern from respondents continues to be the pricing in the market. One respondent commented that pricing has taken “a real hit as companies fight to fill capacity.”

Since the Christchurch earthquake, confidence is also on the decline, making a hard start to the year for NZ printers. “At the start of February there was plenty of optimism around, but since the quake down south confidence seems to have disappeared,” one respondent commented.

Another believes that the earthquake will have “a more serious effect on the wider South Island than originally anticipated.”

With 17 of the 22 companies surveyed responding, some report an optimistic start to the new year off the back of a good Q4 and pleasing February and March sales, while others are trying to read the situation as positive with fluctuating markets and wondering what the ‘norm’ is going to be.

Although the barometer indicates negative comparison to Q4 2011, competitive pricing continues, margins still remain tight and staffing levels are static. Respondents reported that regular customers found an improvement in debt collection while irregular customers and small businesses are struggling to pay.