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Hagop Tchamkertenian  National Manager for Policy & Government Affairs Printing Industries  Association of Australia The C...
Contents <ul><li>Contemporary trading conditions </li></ul><ul><li>Main issues facing the printing industry </li></ul><ul>...
Section One Contemporary economic conditions
Economic Growth
Comparative rates of growth
Sales
Investment
Business confidence
Capacity Utilisation
Production Barriers
Labour & Finance
Section Two Main Issues & Challenges
Main Issues & Challenges <ul><li>Economic sustainability  </li></ul><ul><li>Constant pressure on margins </li></ul><ul><li...
Main Issues & Challenges <ul><li>Environmental sustainability  </li></ul><ul><li>Addressing misconceptions about paper and...
Main Issues & Challenges <ul><li>Globalisation </li></ul><ul><li>Printed matter being traded on global market </li></ul><u...
Main Issues & Challenges <ul><li>Technology </li></ul><ul><li>Both an enabler and inhibiter  </li></ul><ul><li>The Interne...
Main Issues & Challenges <ul><li>Succession planning </li></ul><ul><li>According to industry surveys 91 % of current owner...
Main Issues & Challenges <ul><li>Recruitment of labour </li></ul><ul><li>Despite its capital intensive nature, significant...
Section Three Key features of the print management models
Key features of the print management models <ul><li>Commercial printers </li></ul><ul><li>Focus on print, some have expand...
Key features of the print management models <ul><li>Commercial printers </li></ul><ul><li>No middle man – one margin </li>...
Key features of the print management models <ul><li>Hybrid model </li></ul><ul><li>Recent development </li></ul><ul><li>Of...
Key features of the print management models <ul><li>Hybrid model </li></ul><ul><li>Offers direct relationship for business...
Key features of the print management models <ul><li>Independent Print Manager  </li></ul><ul><li>Emerged in the past decad...
Key features of the print management models <ul><li>Independent Print Manager  </li></ul><ul><li>Margin-on-margin cost mod...
The “PPP” <ul><li>Printing Industries  Print  </li></ul><ul><li>Procurement Principles (PPP) </li></ul><ul><li>Formation o...
The “PPP” <ul><li>Supplier panels created based on printed product category and regional printing requirements </li></ul><...
The “PPP” <ul><li>Work destined exclusively for regional markets is allocated to the regional print supplier panel </li></...
The “PPP” <ul><li>In selecting printing companies,  Governments should specify minimum standards pertaining to the use of ...
Summary <ul><li>Contemporary printing conditions remain challenging </li></ul><ul><li>Printing businesses need to manage n...
Hagop Tchamkertenian National Manager for Policy & Government Affairs [email_address] Mob: 0414 953 271 Ph: 02 8789 7361
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Australian economy and printing industry market conditions

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Presented at the CIPSA Forum an economic snapshot of the Australian printing industry

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Australian economy and printing industry market conditions

  1. 1. Hagop Tchamkertenian National Manager for Policy & Government Affairs Printing Industries Association of Australia The CIPSA Special Category Forum Buying Office Supplies and Print Print Communications – the evolving dynamics
  2. 2. Contents <ul><li>Contemporary trading conditions </li></ul><ul><li>Main issues facing the printing industry </li></ul><ul><li>Key features of the print management models </li></ul><ul><li>An overview of the print procurement principles (PPP) for government </li></ul>
  3. 3. Section One Contemporary economic conditions
  4. 4. Economic Growth
  5. 5. Comparative rates of growth
  6. 6. Sales
  7. 7. Investment
  8. 8. Business confidence
  9. 9. Capacity Utilisation
  10. 10. Production Barriers
  11. 11. Labour & Finance
  12. 12. Section Two Main Issues & Challenges
  13. 13. Main Issues & Challenges <ul><li>Economic sustainability </li></ul><ul><li>Constant pressure on margins </li></ul><ul><li>Printed matter treated as a “commodity” </li></ul><ul><li>Idle capacity encourages price competition </li></ul><ul><li>The dilemma of a “mature industry” </li></ul>
  14. 14. Main Issues & Challenges <ul><li>Environmental sustainability </li></ul><ul><li>Addressing misconceptions about paper and print </li></ul><ul><li>Exposing the true environmental cost of e-media </li></ul><ul><li>Domestic production delivers lower carbon footprint </li></ul>
  15. 15. Main Issues & Challenges <ul><li>Globalisation </li></ul><ul><li>Printed matter being traded on global market </li></ul><ul><li>Emergence of ‘China” </li></ul><ul><li>Who will replace China? </li></ul>
  16. 16. Main Issues & Challenges <ul><li>Technology </li></ul><ul><li>Both an enabler and inhibiter </li></ul><ul><li>The Internet and the proliferation of e-applications </li></ul><ul><li>Cost of new technology </li></ul>
  17. 17. Main Issues & Challenges <ul><li>Succession planning </li></ul><ul><li>According to industry surveys 91 % of current owners plan to retire within a decade yet more than 70 % have no plans in place </li></ul><ul><li>Critical issue for owners as without a plan the potential value of the business is at risk </li></ul>
  18. 18. Main Issues & Challenges <ul><li>Recruitment of labour </li></ul><ul><li>Despite its capital intensive nature, significant number of people work in printing </li></ul><ul><li>Poor industry image is affecting recruitment efforts </li></ul><ul><li>In WA and QLD competing with resources sector </li></ul>
  19. 19. Section Three Key features of the print management models
  20. 20. Key features of the print management models <ul><li>Commercial printers </li></ul><ul><li>Focus on print, some have expanded into other areas </li></ul><ul><li>Dominated by SME’s </li></ul><ul><li>Direct relationship with clients ensures quality, delivers greater responsiveness </li></ul>
  21. 21. Key features of the print management models <ul><li>Commercial printers </li></ul><ul><li>No middle man – one margin </li></ul><ul><li>Volume driven and limited product and service offerings </li></ul><ul><li>Most are single site operations </li></ul>
  22. 22. Key features of the print management models <ul><li>Hybrid model </li></ul><ul><li>Recent development </li></ul><ul><li>Offered by print groups </li></ul><ul><li>Clients offered in-house or outsource production options </li></ul><ul><li>Cap on in-house production facilitates outsourcing </li></ul>
  23. 23. Key features of the print management models <ul><li>Hybrid model </li></ul><ul><li>Offers direct relationship for business critical products </li></ul><ul><li>Establishment of procurement structure </li></ul><ul><li>Suitable for sophisticated high volume corporate clients </li></ul><ul><li>Time to implement </li></ul>
  24. 24. Key features of the print management models <ul><li>Independent Print Manager </li></ul><ul><li>Emerged in the past decade </li></ul><ul><li>Use of panel of suppliers to source lowest price </li></ul><ul><li>Outsource model, single point of contact reduces complexity </li></ul><ul><li>Sources lowest price on the day </li></ul>
  25. 25. Key features of the print management models <ul><li>Independent Print Manager </li></ul><ul><li>Margin-on-margin cost model </li></ul><ul><li>Supply base is contracting especially after the GFC </li></ul><ul><li>Product quality and consistency issues </li></ul>
  26. 26. The “PPP” <ul><li>Printing Industries Print </li></ul><ul><li>Procurement Principles (PPP) </li></ul><ul><li>Formation of clusters incorporating government departments/agencies who have similar print communication needs </li></ul><ul><li>The print spend of the “clusters” should be similar </li></ul>
  27. 27. The “PPP” <ul><li>Supplier panels created based on printed product category and regional printing requirements </li></ul><ul><li>The Print Managers have access to both printing supplier panels depending on the nature of the work. </li></ul>
  28. 28. The “PPP” <ul><li>Work destined exclusively for regional markets is allocated to the regional print supplier panel </li></ul><ul><li>Print procurement be based on the principle of value for money where a balance of quality, service, cost and turnaround is considered and not only on the cheapest tender/quote. </li></ul>
  29. 29. The “PPP” <ul><li>In selecting printing companies, Governments should specify minimum standards pertaining to the use of critical issues such as labour, sustainability, product & service quality and general capability </li></ul><ul><li>Direct and ongoing relationships between purchasing managers & government departments and printing companies </li></ul>
  30. 30. Summary <ul><li>Contemporary printing conditions remain challenging </li></ul><ul><li>Printing businesses need to manage numerous issues </li></ul><ul><li>Print buyers have the luxury of choosing from a range of print management models </li></ul><ul><li>The “PPP” offers policy guideline for government buyers of print </li></ul>
  31. 31. Hagop Tchamkertenian National Manager for Policy & Government Affairs [email_address] Mob: 0414 953 271 Ph: 02 8789 7361

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