This is my last column for Print21 as I will be finishing up at PIAA in early May. I thought this would provide a good opportunity to reflect on my time in the industry and note some of the significant changes I have observed in my relatively short time at the helm of one of the country’s oldest industry organisations.
I believe this time can be best summed up by the opening lines of the classic novel by Charles Dickens, A Tale of Two Cities – ‘It was the best of times; it was the worst of times’.
Like all areas of the economy the last 15 years has seen the emergence of a well-informed, value seeking consumer. They know what they want, how much they are prepared to pay and the way they expect to be treated. I took up my position just after the GFC when the dominant traditional small offset printing business model was having to adapt to the new consumer and declining demand for print due to the emergence of digital communication formats via the internet.
There was increased pressure on prices due to business consolidation driven by the entry of private equity funds, increasing use of more sophisticated digital printing technology and reduced margins as print brokers undermined long term relationships with customers through a combination of price reductions and targeted services. At the same time, the industry was confronted with a backlash from sections of the community for a perceived view that print undermined environmental sustainability. Print was seen as a mature industry with little growth potential.
40 percent decline in print businesses
Over the last five years our old production-focused printing businesses have emerged as customer-focused providers of print, communication and information services.
Today we have a much smaller and agile industry. PIAA estimates that ‘employing’ printing businesses have declined by nearly 40 percent since 2010. This has not just been through business failure but often due to merger/ acquisition or closure by choice.
Successful printers now offer a range of integrated services, print and digital, that meet the broad communication needs of their customers. Others have established a market niche by supplying a loyal customer base with a specified product. The intense pressure to compete solely on price still remains but is not as intense as several years ago. Most printers schedule their work between offset and digital presses depending on what is the most cost effective.
Consolidation has continued but in a more considered and structured way with established firms acquiring smaller players to increase market share, broaden their product offering or expand into new areas.
New products have emerged. Five years ago I can’t recall sitting on a bus covered in an appealing wide format produced marketing skin or driving past a building site and seeing high quality promotional hoardings. Attractive and innovative packaging is an essential component of capturing the opportunities for food exports in Asia.
Apps, online, eBooks not measuring up
At the same time the growth trajectory of digital communication has flattened. Sales of eBooks have plateaued at around 20 percent of the market. New tracking systems mean that digital marketing is being more closely scrutinised as it is now recognised that it does not provide the benefits that were initially thought. It is recognised that printed marketing material such and catalogues and promotional mail provide a better ROI. It will be interesting to see what impact recently released Apps that block ads on digital devices will have on the on line channel in the years to come.
Through Sustainable Green Print and Two Sides Australia, we have improved the environmental perception of print. The emergence of digital printers, big data, environmentally friendly paper-based products and the innovative capacity of the people who work in the industry provides me with confidence that those businesses who seek to evolve with the market will continue to survive. Remember, if you are standing still you are going backwards.
Over the coming months I hope to continue to work with you on the Future Print Transformation Project. I encourage all businesses to take advantage of the opportunities that this program provides whether it is benchmarking, transition management, business planning tools or training courses.
The industry has often been critical that it does not receive support from Government to adjust to changing times. Future Print provides businesses with $3million to do this.
I also would like to wish the revamped PIAA Board and new CEO all the best. We need a cohesive, well resourced, forward thinking body to assist members through the next round of changes in the industry. Hopefully this will involve the development of closer ties with other relevant bodies currently operating across the sector.
Finally, I would like to thank the members, board, staff and industry representatives I have had the opportunity to meet and work with during my time at PIAA. I have greatly appreciated your friendship and support and look forward to further contact.
With Kind Regards
Bill