What do you feel were the main trends and key industry developments in 2022?
The print industry is starting to move back to its pre-Covid state, and one of the main trends we have seen in 2022 is brands, particularly within the FMCG industries, who ordered longer runs during the Covid-19 pandemic to ensure sufficient volume to meet consumer demand, are beginning to shorten their run lengths. We are seeing these brands move back to 'think marketing' to stimulate demand in today's slowing economy. This is making digital transformations all the more important, as print sites that are fully analogue risk having to refuse short runs, or print them whilst being inefficient, thus losing out on jobs or customers. This creates a great opportunity for HP, especially HP Indigo digital presses which are the perfect fit for short, micro runs or print-on-demand, with fast colour collaboration on recurring jobs.
We have also noticed that with the rising cost of living, converters in EMEA are reporting a massive growth in their energy bills. They are therefore taking measures to cut their energy consumption by installing renewable energy solutions such as solar panels and shifting production to tools consuming less energy.
Lastly, another industry development we have seen this past year is the difficulties to attract and retain labour. Converters are learning that digital equipment, such as HP Indigo presses, can bring significant advantages when it comes to labour retention. With digital, they are noticing that it is easier to attract younger generations, who are much more at ease with using digital technology and can pick up digital skills quickly, therefore decreasing the time it takes to train proficient operators.
How have the numerous economic, political, and supply chain challenges that have dominated 2022 affected you and your customers, and how have you had to react?
Supply chain constraints are impacting production facilities globally, therefore both converters and suppliers need to be creative to meet the surge in demand experienced in 2021 and the most part of 2022. The number one priority for HP Indigo is to ensure customer demand for ink and parts is met in full.
Our second priority is meeting the growing demand for presses. The shortage in materials and rising cost of energy is driving converters to revisit traditional break-even assumptions between HP Indigo digital presses and conventional equipment. Converters running an HP Indigo 6K press for PS labels, for example, can save around $10,000 (£8,300) a month in media if the 6K job basket is printed on conventional equipment.
What's more, the fluctuations in demand by different verticals has heightened the importance for converters to remain agile. As a supplier, HP has responded by making sure our customers are equipped with versatile digital production tools and have application experts on hand to assist converters to approach new markets. For example, we have seen customers investing in an HP Indigo 25K digital press with the HP Indigo Digital Pouch Factory and building a new business next to their existing business. By taking onboard Indigo investments and making strategic decisions to answer the needs of the market, converters will do more than catch up with the digital future - they’ll outrun it?
How have your relationships with customers and their expectations from you as a supplier changed in the past 12 months?
HP has continued to work closely with its customers to address their needs, whether that's helping them to manage their operations, remain agile, meet new market demands or provide technical support.
What do you expect to be the main trends, key industry developments, and biggest opportunities for printers in 2023?
As we move into 2023, we expect sustainability to be more than just a 'nice to have', rather, it will become the norm and printers will embed sustainability at the top of their agenda. As organisations accelerate their sustainability initiatives, converters must be looking at their business and workflow processes holistically, to ensure that they're delivering end-to-end solutions with a lower environmental impact. That includes everything from the materials they offer and where they source them from, right through to the print technology they use, the waste they generate, and the ability of the printed product to meet circular packaging standards.
Converters that invest in HP Indigo digital print technology will remain in a strong market position when it comes to sustainability. All HP digital presses are designed with the environment in mind, not only are they manufactured carbon neutral, they also offer reduced production waste and energy efficiency, support eco-certified materials and meet circular packaging and food packaging regulations.
We also expect to see printers be proactive to the ongoing energy crisis and implement solutions that allows them to save on energy costs. We are hearing many of our customers, especially those in Europe, report on significant energy price hikes, starting this winter. Many customers are already investing a lot in their efforts to decrease energy costs, including switching from UV lamps to UV LED, installing solar panels, and of course realising the energy-saving advantages of moving from flexo to digital print.
Lastly, and as referenced above, a trend we've seen post-Covid, is the supply of goods becoming less trustworthy, especially coupled with rising costs of freight. Production therefore has shifted from Asian markets which had strict lockdowns, back to US and European markets, which is benefiting converters in these regions, who can keep their production local and save on expensive shipping costs. We are also seeing an ever-predominant balancing act between supply vs. demand, particularly in the labels and packaging market, which is set to continue into next year. If you look back at 2021, brands and converters were occupied with filling the shelves to overcome supply chain issues and meet demand however today, demand is receding and there are growing concerns about the economy slowing down. We therefore anticipate that mindsets will begin to change, and converters will become more preoccupied with making sure that shelves are empty again. We are finding that more and more brands are rethinking their marketing tactics, which creates a brilliant opportunity for digital print, which can offer brands the benefits of personalisation, co-creation, as well as sustainability.
How can suppliers better help printers navigate the challenges and seize the opportunities in 2023?
Suppliers like HP have a responsibility to ensure that printers are fully equipped with the technology, knowledge and support they need to navigate the current landscape and grasp new opportunities with both hands that come their way. At HP, customer centricity is at the heart of our operations, and we are constantly thinking about our customers’ needs and look at developing whole solutions, rather than just focusing solely on the end product. We spend time and effort with our customers, offering a range of services to help grow their business and manage their operations end-to-end.
At HP, we are aiming to redefine the whole customer journey and are transforming the customer service lifecycle through the use of Mixed Reality (MR) at every stage of the journey. Powered by Microsoft Hololens 2, xRServices provides a 24-hour, immersive MR hyper real virtual presence system for troubleshooting, training, repairs, and process optimisation. Once users put on the headset, they can connect with HP engineers in split seconds - experiencing being physically present with a remote support coach who can advise them on any issue at any point of their print production. Today over 200 customers are subscribed to this service and we are moving the needle on support service transformation.
How can suppliers do more to promote the effectiveness of print to the broader business community?
Digital print has unlocked an enormous range of opportunities for brands and businesses alike, but there are still so many organisations out there who are yet to experience the possibilities that digital print can do for them. In today's environment, during which brands are concerned with clearing the shelves, effective marketing strategies has never been more important which creates enormous opportunities for suppliers to promote the effectiveness of print to the boarder business community.
One thing we're doing at HP is encouraging brands to think about how storytelling and co-creation can create unique customer experiences. Digging into megatrends such as personalisation and co-creation can allow brands to take on the point of view of the consumer and celebrate them through storytelling, which can ultimately help to drive engagement. HP did this recently with global confectionary brand Mondelez. Mondelez partnered with HP to launch a new campaign with Milka LEO, during which consumers had the chance to disconnect from reality and design their own boxes of the chocolate biscuit snacks. Designed using HP's SmartStream design software and printed using an HP Indigo 30000 digital press, the campaign showcased the capabilities of digital printing solutions to a vast audience, whilst also highlighting the extent of engagement that personalised, co-created packaging can offer.
There is an increasing demand from brands for these types of personalised solutions, that suppliers like HP Indigo is providing through our software and digital print presses. Suppliers should be promoting the unlimited creative potential that comes with digital print, in order for businesses to achieve the best possible results.
Note: This prediction is taken from a special Briefing article in the new issue of Printweek featuring insights from industry suppliers, hence it does not follow the same question template as the other predictions.
