Phil Payter, managing director, PPG
The recession will change print for the better. I believe there has been overcapacity in the print business in recent times and a less crowded marketplace will mean unscrupulous print brokers and management companies will lose their grip on the industry and disappear. Reputable printers that can prove their efficiency, professionalism and environmental credentials will thrive. Additionally, the return of reasonable prices will bring value and opportunity to the industry and there will be an end to the ridiculous ‘price war’ of recent years that has companies cutting each others throats for work.
Malcolm Carter, managing director, First Class Post
The ongoing recession will continue to affect all UK businesses. For many companies, the only way to keep moving forward is to cut costs to the business while maintaining historical levels of turnover. With the decreasing credit available to business in general, any funds required for investment in new kit will have to be generated from cashflow – which is only possible if profitability increases. As there is no scope to increase market prices at present, the only option is to operate more efficiently, trimming costs as far as possible.
David Laybourne, managing director, Real Digital International
Recession has focused companies on changes that were already in motion. Real Digital identified these market changes some years ago, establishing its services to reflect demand for lower volume, targeted campaigns, produced in an environmentally conscious way. Interestingly, both small and large print businesses are struggling in this climate. It’s not all about a lack of finance. Large businesses struggle because of inflexible and surplus capacity, while smaller companies struggle partly as a result of the punitive admin burden generated by government, and accreditations including FSC and ISOs.
Terry Watts, chief executive, Proskills
Preparing for changing credit levels is absolutely the right thing to do as credit levels will not return to previous levels and print is extremely geared as it is. It will be worse when the recession is over otherwise. Responding to the changing nature off supply chains is also vital. Printers need to respond because print as a commodity business will not survive. Print companies need to integrate themselves into part of the supply chain and also add value to their customers. Regarding flexibility, I think a flexible workforce will evolve, but it is often the working practices that are inflexible not the employees themselves.
