Perhaps it was the momentary shudder when presented with a restaurant bill on your European summer holiday, or maybe you stumbled across the endless hoards of French tourists trudging down British high streets remarking how ‘bon marché' everything was, but whichever way the point hit home, the one certainty is that it has done, for it is almost impossible to escape the fact that our currency is at historically low levels against the euro.

Having sunk to near parity, the pound has now stabilised around the €1.15 mark, giving UK manufacturers a significant competitive edge over their European counterparts. That, coupled with the growing focus on environmental sustainability, is opening up a raft of opportunities for UK printers of all sizes to break into the European market.

However, for printers, much of the effect of the weak pound manifests itself in rising prices for consumables and kit. Press manufacturers in particular are feeling the strain.

Price rise
George Clarke, managing director of Heidelberg UK said that the weak pound had "made the cost of print in the UK more expensive".

"We are not able to absorb the cost of currency fluctuations as we don't have that sort of margin," he said. "So, we have had to pass the cost on, in the same way we pass favourable currency movements on. It is the same for every manufacturer as the yen has strengthened even more against the pound than the euro."

National Association of Paper Merchants (NAPM) director Tim Bowler added: "The pound has sunk to its lowest point ever. However, we haven't seen many direct price increases in the UK as a result of currency fluctuations, although the way
sterling is going it has to be a possibility.

"Sterling is 20% down, which is frightening. However, European mills do see the UK as an important market, but I wouldn't think we could stand many price increases at the moment."

In contrast, there are also signs of a positive impact of the weak pound on the industry and opportunities have arisen for UK printers to steal a march on their European rivals.

Last week, publishers H Bauer and PrintWeek owner Haymarket both repatriated titles citing the weak pound as a factor in their decision.

And with an estimated UK print spend of £300m in mainland Europe, there are more opportunities out there. Lateral Group is one printer setting out its stall to capitalise on the opportunities presented by the weaker currency. The group has recently recruited a new member of staff to promote its European business development.

Chief executive Nick Dixon said: "The weak pound makes us more competitive on longer runs, but we are also selling the concept of the other things we do on the continent. We are not just selling print, but other multi-media services," he said.

Stifling outsourcing
Stuart Scott, sales and marketing manager at Paragon Group, which exports around 5% of its work, added: "The weak pound has stopped a lot of the threats that were coming from South East Asia and Eastern Europe, with large print management companies no longer achieving the savings by placing work overseas."

A printweek.com poll this month found that 34% of printers reported that the weak pound was benefiting their business. However, that left 66% who said they only served UK businesses.

According to the BPIF, there should be more printers who can capitalise on the weak pound. Marcus Clifford of BPIF McInnes Corporate Finance said that there had "never been a better time" for the entrepreneurial printer to win work from Europe, as buyers were scrutinising their cost base.

"There is a real opportunity for UK printers," he said. "People are looking at alternatives and ways to save money. However, it takes time to build confidence and trust, as well as overcoming the language barrier."

In addition, Clifford said that companies needed to get a credit payment system in place and that goods should be paid for before they are shipped. "There are plenty of sources for advice, such as the Department for Business Innovation and Skills and banks who will have experience of cross-border transactions," he added.

Long-term problem
Market analysts predict the weak pound is here to stay. It is unlikely to return to the low levels nearing parity, but if investors lose their appetite for government debt, parity is not beyond the realms of possibility.

However, in the meantime, relative stability is predicted with the pound remaining around the €1.15 mark. This level enables printers to offer much cheaper print than their European counterparts, while not being crippled by press and commodity prices.

So, the next time you have to settle an eye watering bill on the continent, you could have the satisfaction of paying with your euro profits.