Page 25 - inPRINT Issue 63

inFACT

Summary of key findings
For further information
on Printing Outlook and n The UK printing and printed packaging industry
to read the full report, go hit a record low in the second quarter of 2020. printing outlook
to www.britishprint.com/ The COVID-19 outbreak hit at the end of Q1, but
printingoutlook it is Q2 that has taken the brunt of the impact as
both output and orders recorded their worst ever
balances.
n The crisis in confidence deepened in Q2 as
continued restrictions and lingering uncertainty
this was selected by 43% of Q3 2020 report goes into limited the demand from industry clients.
respondents. further detail.
Overall capacity utilisation Kyle Jardine, BPIF n Dealing with the economic impact of COVID-19
was noticeably higher in July, Economist, said: remains, by far, the most important business
in comparison with May. “In these most challenging concern for businesses.
Whilst 2% of companies were times we are eagerly
in the less than 50% category searching for signs of n A ‘lack of demand’ was by far the most commonly
in January, 51% of companies positivity and a pick-up in selected operational challenge, chosen by 70% of
were operating at less than business. Undeniably Q2 was respondents.
50% capacity in May, but in the worst performing quarter n Overall capacity utilisation was noticeably higher
July this has fallen to 30%; ever, however the recovery in July, in comparison with May.
still some way off ‘normal’ but is set to get underway in Q3.
an improvement nonetheless. Expectations for output and n Employment decreased, on balance, in Q2 as
The most common capacity orders are more positive, fewer companies recruited and more decreased
level in July was 60-69%, with confidence getting ready employment levels.
24% of respondents. to recover and capacity n Negative pricing pressure has continued to
The BPIF Printing Outlook utilisation is improving.”
intensify in Q2.
Capacity – Less Than One-Third Operating At Under 50% Capacity n Cost pressures remained subdued in Q2, though
some did experience increases – especially for
% OF FIRMS MAY 2020 JUL 2020 ink but also for paper and board.
30
n Export orders exceeded 5% of turnover for 21% of
respondents.
20 n The burden on margins remains heavy.
n Printers have reported a profit distribution in July
that is marginally more negative in comparison
10
to that reported in May, which was of course
significantly more negative than the situation in
January.
0
n The number of printing and packaging
companies experiencing ‘critical’ financial
% CAPACITY Source: BPIF Printing Outlook distress increased very slightly in Q2, whilst
those experiencing ‘significant’ financial distress
also increased.

Featured in Printing Outlook this quarter: If you have any questions on Printing Outlook,
please email Kyle Jardine, BPIF Economist, at
n COVID-19 restart – challenges and desired [email protected]
Government action
n Brexit – effect of no trade deal on business
n Costs – paper & board, ink, labour and energy
n Exports – orders and price trends
n Industry insolvency and financial health statistics
n Pay Reviews – activity and average % changes
n Data on capacity, productivity, margins, and more
n Consumables – paper consumption and printing ink data

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