The results from a survey conducted before the outbreak of the corona virus and the postponement of DRUPA 2024, shows a global industry that remained positive but reflected more challenging global economic conditions. Packaging and Functional market sectors are better placed than Publishing and Commercial.
North America remains buoyant but confidence has slipped in Europe and across all other regions. Developing regions were held back by concerns about political instability and corruption, while developed regions are nervous of an inevitable cyclical economic downturn. There is constant pressure on margins but increasingly the better companies counter this by continual innovation. Investment plans remain strong, as printers and suppliers all recognize the need to remain competitive.
The Packaging market sector thrives best with Functional, Commercial and Publishing following in that order. Indeed, an increasing number of Commercial and Publishing printers are attempting to diversify into the other two markets. Financial measures confirm these trends with margins struggling in all market sectors, but Publishing showing the clearest evidence of active decline in revenues.
For several years printers have responded to the constant pressure on margins by increasing turnover and keeping costs to a minimum. However, printers are recognizing the need to innovate – by launching new products and services in their existing markets or by entering new markets. Hence, investment plans remain strong.
Finishing is the most popular investment target followed by Print technology and then PrePress/Workflow/MIS. While finishing plans vary too greatly to allow any forecasting, we can comment on planned Print technology investments. Digital toner cutsheet colour is most popular, followed by Sheetfed offset, but there are significant variations by market.
The industry coped with the last severe recession and will cope well enough with a global slowdown, though it will be exaggerated by the impact of the corona virus. The crucial difference is that, in most markets, the industry has adapted their business models to the challenge of digital communications. Investment is the key to keeping ahead of the curve.
