Speaking in front of 400 people at the association's annual dinner at the Hotel Inter-Continental in London on 22 April, Cubbon, said merchants had to "adapt or die".

"It's not just a merchant challenge but also one for mills and our printer customers," he said.

Cubbon, who joined the industry in 2001, said since then the market for stock sales had declined, indent sales had increased, prices had risen, 1,500 printers had gone bust with merchants taking a cumulative 100m in bad debts and there had also been major consolidation in the market.

However, he added the way forward was not complicated and the four priorities were to know your customer, understand risk and reward, work with suppliers and work with people.

The association is planning to host a one-day supplier seminar in October with representatives from UK merchants and the UK offices of mills.

Cubbon said there was room for optimism because PaperlinX's acquisition of Buhrmann's merchanting arm showed that the UK was an attractive place in which to invest.

He also paid tribute to the association's former president Martyn Eustace for leading the NAPM through two of its most difficult years and focusing the body on the real issues facing the trade.

Cubbon, who presented Eustace with his past president's medal, said the former chief had also increased the association's membership during his tenure. The current president also mentioned NAPM's introductory certificate programme (PrintWeek, 1 April) and welcomed new director Tim Bowler, who has taken on the role of running the organisation.

"There is a route through the gloom by adding value by understanding customers, credit, supply and people and not just thinking about tonnes," said Cubbon.

Story by Andy Scott