Economic growth data shows that the printing industry was one of the fastest growing sectors of the Australian economy during the March 2013 quarter outstripping national economic growth according to figures released by the Australian Bureau of Statistics (ABS).
The printing industry expanded by 2.5 per cent in trend terms during the March 2013 quarter the fourth fastest growth rate of the broad industry sectors comprising the Australian economy. In fact, the printing industry grew by a robust 18.3 per cent during the year to March 2013, according to analysis conducted by the Printing Industries Association of Australia (Printing Industries).
The printing industry's contribution to the economy stood at A$4,137 million during the year to March, an increase of 5.0 per cent on the previous period, according to the new data from the ABS.
Hagop Tchamkertenian (pictured), Printing Industries national manager for Policy and Government Affairs, welcomed the growth figures as an indication that the industry seems to be on a sustained path to economic recovery.
"On an annual basis the printing industry was the outstanding growth sector of the Australian economy during the most recent quarter. The industry is crawling back some of the activity that was lost during the most recent economic downturn caused by the Global Financial Crisis (GFC). There is still some way to go as even after this impressive figures, the printing industry's gross value added remains 15.8 per cent lower than the peak reached prior to the GFC," he said.
Tchamkertenian reported that during the past week a number of other pivotal industry economic indicators were released by the ABS covering sales, pre-tax profits and investment in new capital expenditure.
"The latest quarterly sales data shows sales in the printing industry rose for the fourth consecutive quarter to register a 4.2 per cent growth on the previous quarter. Compared to March quarter of the previous year the increase in sales is in the order of 17.5 per cent. At $7,634 million during the year to March, printing industry sales have improved by 3.9 per cent on the previous period's reported outcome," he said.
Continuing the recent trend, Tchamkertenian confirmed that the good news did not spread to pre-tax profits or new capital expenditure outcomes.
"The ABS data on pre-tax profits covering larger printing business (those employing 20 or more employees) show that there has been a massive deterioration both on a quarterly basis as well as on a yearly basis,” he said. “The March quarter represented the seventh consecutive quarter reported fall.
"The reported pre-tax profit figure of $195 million for the 12 months to March represents a deterioration of $406 million or 67.6 per cent on the previous period's outcome. Once again the profit data confirms that industry margins are under considerable pressure.
"New capital expenditure figures also show ongoing deterioration with the March quarter outcome representing the sixth consecutive quarter reported fall. During the March quarter new capital expenditure fell by 5.3 per cent compared to the previous quarter and was down by 33.3 per cent on the previous year's quarter," he said.
Tchamkertenian also reported that the capital expenditure data showed that the printing industry spend some $159 million on new capital expenditure items over the 12 months to March 2013, a 41.3 per cent deterioration on the previous periods reported outcome.
"Clearly one needs to be careful when examining the new capital expenditure data especially for an industry such as printing that is undergoing massive restructuring and consolidation. Many operators are no doubt realising certain commercial benefits by purchasing used but reasonably new and efficient assets and such activity is distorting the new capital expenditure data," Tchamkertenian said.