According to the latest Printing Outlook report from the British Printing Industry Federation (BPIF), output and order growth in the UK printing and packaging industry continued to improve slowly but steadily in the second quarter of 2024.
Although stronger growth was previously forecast for the second quarter, this expectation has been slightly lowered and extended to the third quarter. BPIF said that the printing industry has now achieved three consecutive quarters of growth and the improvement is expected to accelerate in the third quarter.
In the latest survey, wage differentials associated with increases in the national minimum wage continue to have a significant impact on businesses as most companies concluded their pay reviews in the second quarter. Among them, the difficulty in finding suitable skilled labor also exacerbated wage pressures. Rising labor costs remain the main cost concern for businesses, and pressures in other areas continue to increase, especially paper and paperboard prices.
The report also found that pricing below costs has also become a concern for companies. When it comes to companies' plans to improve profitability over the next 12 months, cost control remains the top area of focus, as it has been since July 2023. Researching new markets and working to drive sales are other key target areas for companies working to improve profitability.
Charles Jarrold, BPIF chief executive, said: “As the leading industry trade association, we are looking closely at how we can support the printing industry as the new government announces its priorities, as we have done previously on issues such as raising the National Living Wage, gathering information and responding to government calls for evidence and consultation as it designs legislation.”
The report also found that industry capacity utilization in July was still concentrated in the range of 70-89%, similar to the April report. In addition, as in the first quarter, most printing companies were able to maintain stable profit margins in the second quarter, but overall, profit margins are still under great pressure due to continued cost increases and squeezed output prices.
The survey was conducted between 1 and 17 June 2024 and received responses from 111 companies employing 7,515 people and with a combined turnover of £1.2 billion.
