The report, Understanding the Print and Publishing Sectors in the City Fringe, argues that printers in the areas to the north and east of the Square Mile need to improve their capacity and management skills.

It suggests that printers should offer value-added services such as facilities management if they are to stay in business.

The report, published by the Corporation of London, says: "In the main, printers in the City Fringe do not compete on these added-value services but through a combination of flexibility, proximity to customers and price."

But it continues: "The danger is that further advances in technology will undermine the advantage of proximity, leaving City Fringe printers exposed on price."

The document says that inner-city property and wage costs, which are around 30% higher than outside London, have hit City Fringe printers harder than competitors in other parts of the country.

While the document states that demand for printed items in central London will remain strong, it also highlights challenges from overseas markets.

But the report, written by the Burns Owen Partnership and the City Fringe Partnership, recommends several schemes that could help City Fringe printers in the future.

It proposes that workshops and seminars should be set up to address gaps in printers' knowledge of marketing using the internet.

The report says that a local procurement scheme should be established to promote the industry in the city, while measures should be taken to improve cross-sector networking.

Other key areas, according to the report, include the improvement of production processes and streamlining supply chains, improving skill levels and training for new entrants to the business, and helping firms to review their competitive strategies.

Story by Josh Brooks