Worst of the downturn is over – Premier Partners Forum

Ongoing investment in capital equipment and a bottoming out of the contraction in advertising will see the printing and publishing industry in Australia return to growth, according to economist, Saul Estlake.

The leading economic commentator headlined an impressive line-up of speakers at the inaugural Fuji Xerox Premier Partners Thought Leadership Forum at the Gold Coast this week. He told the invited audience of major digital print producers that the sector has suffered a more serious downturn than the economy as a whole.

Pressure on profit margins will continue even while the worst of the economic recession in the industry is over. In a high-powered presentation he nominated higher costs of energy and capital, likely changes in company and payroll tax as some of major challenges ahead. Growing competition from overseas printers as a result of the rising Australian dollar and greater involvement in business from the Federal Government will have an increasing impact on the marketplace.

The well-known economic commentators wound up his presentation by making the point that at a time when economies are battered by recession and loaded down with excessive government debt; “You would still rather be running a business in Australia and New Zealand than almost anywhere else in the world.”