What do you feel were the main trends and key industry developments in 2022?
For commercial printers there’s been a new normal set in the post-Covid era which has seen in general lower demand for print volumes and higher demand for print jobs to be completed in a more efficient way therefore driving the need for automation. For packaging printers there are changes in demand led mainly by sustainability topics. And overall the supply chain realignment and the shift to operating in an inflationary driven market has affected all printing companies and suppliers to the market.
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?
There is a new normal in terms of post-Covid demand for printed volumes, especially in the commercial segment where volume demand is lower. For the packaging segment we’ve seen more stable volume demand but a change in volume mix which is led more by sustainability and supply chain effects. This is affecting infrastructure and future planning for all printers. On top, all players in the value chain have had to pass the inflationary effects through in order to preserve margins and profitability. Inflation is now established and will affect us in the longer term so the need to automate and find more efficient ways of production is higher than ever before.
How have your relationships with customers and their expectations from you as a supplier changed in the past 12 months?
Due to the pressures caused by supply chain and constant inflationary increases, our customers have relied on us more than ever before to have availability of stock and deliver all products reliably. Also we have seen an increased demand for solutions that include automation and process improvement.
What do you expect to be the main trends, key industry developments, and biggest opportunities for printers in 2023?
On top of the existing inflationary effects and getting to grips with lower volume demands that will both continue in 2023, printers also have to deal with extremely high energy cost increases, despite the short-term government support. We therefore expect to see increased consolidation in the commercial segment. This leads to more 'industrialisation effect' meaning printers will seek to invest more in automation and process driven solutions that enable higher efficiencies.
For packaging printers the demand for automation and leaner production will continue as they look to integrate the various sustainability demands brought about by legislation, carbon reduction commitments and brand owners' changing needs. Those who are able to master these challenges will prosper and be the successful and sustainable printers of the future and therein lies the opportunity for them.
How can suppliers better help printers navigate the challenges and seize the opportunities in 2023?
Suppliers must understand these changing needs and demands that affect our customers and we must ensure that we can package our various expertise, experiences and product/solution portfolios into models that our customers can access in the simplest ways. Suppliers have an important role to play in supporting printers through these multiple challenges.
How can suppliers do more to promote the effectiveness of print to the broader business community?
There are industry organisations that have strong existing initiatives to fulfil this role. Suppliers can help these organisations with their initiatives by providing support, knowledge and expertise.
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.