Global researcher IBISWorld has identified the printing industry as one of five Australian business sectors facing a tough year in 2016.
In its list of Australian companies set to fly and fall in 2015-16, IBISWorld predicts bumper years for cotton growing, internet publishing and broadcasting, organic farming, houseware retailing and university and other higher education.
“However, some industries are in for a less than exciting year, as falls in global oil prices push down revenue for petroleum refining and petroleum fuel manufacturing. Revenue is also set to fall for diamond and gemstone mining, printing, and nightclubs,” according to the report.
“Over the past five years, the rising prevalence of online platforms has negatively affected demand for printed advertising materials such as catalogues, brochures, leaflets, and booklets,” said IBISWorld senior industry analyst Spencer Little.
“Advertising materials account for the largest share of industry revenue, at more than 60%, but as consumers have increasingly shifted online to access content, advertising companies have also sought to advertise products and services online,” he said.
“As a result, industry revenue is projected to decline at a compound annual rate of 3.8% over the five years through 2015-16, to reach $6.9 billion. Demand for printed advertising materials such as catalogues, brochures, leaflets, booklets and posters has declined as spending on advertising has been redirected to the digital space. These trends have led to a sharp decline in demand for industry services, with revenue expected to fall by 3.8% in 2015-16.”
Competition from imports has also increased over the past five years, as offshoring can provide a cheaper alternative to domestic printing services, he said. However, Little noted that “lower quality associated with foreign printers and the high costs of transporting low-value and bulky publications over long distances, combined with the time-sensitive nature of many printing projects, has kept import competition low over this period.”