Printers predict pick up for industry

Business sentiment is high amongst printers in the latest Trends Survey Report, but uncertainty remains over whether this optimism will translate into real improvement.

According to the March 2011 quarter Printing Industry Trends Survey Report, trading conditions within the printing industry are still subdued but businesses are expecting conditions to get better. Of all the states surveyed, Western Australia was the most hopeful, with a net balance of 54.6 per cent, followed by Victoria which reported a 27.6 per cent net balance.

Folding cartons, greeting cards, calendars, diaries and trade binding sectors are expected to decline, though respondents predicted improvements and increased investment in most other sectors.

According to Hagop Tchamkertenian, national manager, policy and government affairs at Printing Industries, who prepared the report, the confidence comes across most areas.

“Mid-size businesses are more optimistic about business conditions than their smaller and larger counterparts,” he said. “But when it comes to capital expenditure intentions, the larger businesses still have positive sentiments.”

This swing is not surprising given that the industry is moving towards one of its busiest quarter. “As you’re approaching June you expect things to pick up,” Hagop said, “there’s no surprises.”

He is, however, concerned that over-enthusiastic printers may be letting themselves in for a fall. “My guess is that expectations will probably not be met if recent history is any indicator,” Hagop said. “There is still uncertainty over what will happen in the future due to things like the carbon tax. We just have to see if the forecasts do materialise in the June quarter.”