Worst may be behind us: Hagop’s commentary

Small signs show business conditions may finally be improving for printers, but printing economist, Hagop Tchamkertenian warns that there is still a long way to go before the industry recovers.

In its recently released September 2009 quarter Printing Industry Trends Survey Report, findings showed that business confidence has continued to grow despite reductions in orders, production, sales, net profits and employment.

With this in mind, Hagop Tchamkertenian, Printing Industries national manager for policy and government affairs, believes that industry conditions are likely to remain challenging for some time. “The improving forecasts are a welcome development but so far they have not been reflected in actual reported trading outcomes,” he said.

“As the industry embarks on the path of economic recovery and expansion it will be faced with different challenges. A significant number of printing businesses will realise that the reductions in print volumes suffered during the recent downturn are simply not coming back due to ongoing structural changes as opposed to temporary cyclical changes.”

With the exception of Tasmania, which is expected to deteriorate further, general business expectations in most states remains favourable. Of all the states, Western Australia was the most optimistic, with a net balance of 70 per cent, followed by Victoria with a net balance of 58.6 per cent.

Hagop added that the September 2009 quarter Printing Industry Trends Report confirmed that business conditions are picking up in line with improvements in the general economic situation. “The industry seems to be on the path to economic recovery,” he said.