Pressure on print industry to sustain momentum – Hagop's commentary

Industry activity is up amongst printers across Australia, but the next six months will be make-or-break for their future.

In the recently released Printing Industry Trends Survey Report for the December 2009 quarter, figures showed that business conditions are improving in line with an overall pick-up throughout the economy.

70.9 per cent of respondents said that they were operating at capacity/activity levels of 70 per cent of over – the highest outcome for two years, and a significant increase from the 50.4 per cent reported last quarter.

The outlook for general business expectations over the next six months remains favourable across all states. It may be the smallest in Australia, but Tasmania proved itself to be the most optimistic state, with a net balance of 40 per cent, followed by Western Australia, which reported a net balance of 30 per cent.

According to Hagop Tchamkertenian, national manager for policy and government affairs, Printing Industries, the next six months will be critical for the industry as it attempts to lock-in the recent gains.

“The improving trading outcomes and positive industry forecasts are encouraging,” he said, adding that the RBA’s recent decision to keep interest rates on hold is “a welcome development for our industry.”

He noted that capacity utilisation has lifted inline with improvements in general business conditions. “Hopefully, as industry idle capacity starts to get eliminated it will result in an easing of pressure on selling prices and margins,” he said.

Hagop also warned that printers are likely to face a battle in finding staff. “Assuming that the worst of the recent economic downturn is now behind us, the economic recovery and expansion phase will utter in new challenges such as possible shortages of skilled labour and rising production costs that need to be effectively managed,” he said.

Anyone interested in obtaining a full survey report can do so by contacting Printing Industries.