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Printing Industry profile, challenges and outlook

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Presentation outlines the key attributes of the Australian printing industry, highlights some of the contemporary challenges facing the industry and examines its economic prospects within the emerging multi-content industry platforms.

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Printing Industry profile, challenges and outlook

  1. 1. Presenter: Hagop Tchamkertenian Title: National Manager for Policy & Government Affairs Organisation: Printing Industries Association of Australia Topic: Printing industry profile, challenges & outlook National Conference Coming of Age 16-17 May 2012, Crown Conference Centre, Melbourne
  2. 2. 19th National Conference, Melbourne 2012 Coming of Age Association background:  The Printing Industries Association of Australia (Printing Industries) is the peak advocate and support organisation for companies operating in the paper, print, packaging and visual communication industry in Australia  The history of the Association dates from the 1880's as individual state bodies that later amalgamated to form a national organisation in 1924.  The Association has a diverse national membership representing some 1,400 companies Printing industry profile, challenges and prospects
  3. 3. 19th National Conference, Melbourne 2012 Coming of Age  Print is very pervasive  Have you ever imagined a world without print?  Common printed items – newspapers, books, magazines, greeting cards, labels, signage, outdoor display, brochures, leaflets, posters, print packaging, currency, stamps, security products, etc, etc, etc,  But print is also present in circuit boards, QR codes, RFID tags, Printing industry profile, challenges and prospects
  4. 4. 19th National Conference, Melbourne 2012 Coming of Age  Traditional printing processes are being supplemented by new ones – digital printing, 3-D printing, functional printing, nano-printing Printing industry profile, challenges and prospects
  5. 5. 19th National Conference, Melbourne 2012 Coming of Age  Print is a hybrid industry displaying characteristics of both manufacturing and services  Over the past decade the service component has grown in importance  The industry value chain is a broad one encompassing paper, printing, publishing and distribution/logistics Printing industry profile, challenges and prospects
  6. 6. 19th National Conference, Melbourne 2012 Coming of Age  Despite being an industry in transition, the industry value chain remains economically significant  4rth largest manufacturing employer Printing industry profile, challenges and prospects
  7. 7. 19th National Conference, Melbourne 2012 Coming of Age Indicator Value Employment 120,000 Turnover $M 32,160 Value added $M 13,758 Capital expenditure $M 1,726 Number of businesses 11,112 Exports $M 1,540 Imports $M 4,758 Printing industry profile, challenges and prospects • Paper, print, publishing industry value chain industry demographics
  8. 8. 19th National Conference, Melbourne 2012 Coming of Age Printing industry profile, challenges and prospects Recent Economic Performance - Printing Indicator 2006 2011 % change Sales $M 9,865 8,153 -17.4% Gross value added $M 4,936 4,098 -17.0% New investment $M 399 256 -35.8% Employment 42,000 38,460 -8.4% Number of businesses 7,923 6,822 -13.9%
  9. 9. 19th National Conference, Melbourne 2012 Coming of Age Printing industry profile, challenges and prospects Critical issues facing the industry • Industry in transition, movement from economies of scale to scope, from mass production to small scale personalisation, e-media impact • Misalignment of installed capacity and demand • Competitive landscape – internal, alternative media and imports
  10. 10. 19th National Conference, Melbourne 2012 Coming of Age Printing industry profile, challenges and prospects Critical issues facing the industry • Business management – SMEs mindset • Succession planning • Access to finance and cash flow management • Industry perceptions • Environmental sustainability
  11. 11. 19th National Conference, Melbourne 2012 Coming of Age Printing industry profile, challenges and prospects Areas the Association is working on • Promoting the concept of print as an integral part of the communications channel • Increased evidence that of strong synergies between print and alternative or e-media • Addressing industry misconceptions – establishment of Two-Side Australia • Looking at future industry skills sets to ensure industry participants invest in the skills of the future
  12. 12. 19th National Conference, Melbourne 2012 Coming of Age Printing industry profile, challenges and prospects Areas the Association is working on • Reducing business operating costs by introducing group purchasing schemes – such as power • Addressing commercial sustainability issues by emphasising proper estimating and costing processes • Encouraging businesses to become more lean and environmentally sustainable – benefits to the bottom line
  13. 13. 19th National Conference, Melbourne 2012 Coming of Age Printing industry profile, challenges and prospects Areas the Association is working on • Informing about emerging trends and new commercial opportunities • Working with the Government to implement an industry transition process/model that will encourage further industry consolidation and rationalisation • Looking at the issue of increased competitiveness through a focus on business innovation – engagement of Hargraves Institute
  14. 14. 19th National Conference, Melbourne 2012 Coming of Age Printing industry profile, challenges and prospects Industry outlook • Ongoing consolidation • Likely that more industry iconic companies will be placed in administration • Large segments of the industry are considered mature. Expected to grow at best by 1-2 per cent • Penetration of digital technologies to accelerate
  15. 15. 19th National Conference, Melbourne 2012 Coming of Age Printing industry profile, challenges and prospects Industry outlook • Traditional printing businesses moving into digital space. Danger of commoditising this segment • Print volumes will continue to shrink due to adoption of digital processes and as it competes with alternative media • Emphasis more on value added and solutions based activity • Lower volume but higher margins
  16. 16. 19th National Conference, Melbourne 2012 Coming of Age Printing industry profile, challenges and prospects Industry outlook • Will continue evolving and becoming part of the multi-media channel environment • By 2020, most printing businesses will operate as communication and multi-media providers • Increasing trends towards hub production facilities • Increased strategic alliances – invest in new technologies, enhance capabilities • Web to print platforms
  17. 17. 19th National Conference, Melbourne 2012 Coming of Age Printing industry profile, challenges and prospects Industry outlook • Source: Young’s Communications Social media 3D Printing Functional Printing
  18. 18. 19th National Conference, Melbourne 2012 Coming of Age Printing industry profile, challenges and prospects Thank you……

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