Page 25 - inPRINT Issue 63
P. 25


                                                                               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                                 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
                                                                       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.
                                                                       n Export orders exceeded 5% of turnover for 21% of
                    20                                                 n The burden on margins remains heavy.
                                                                       n Printers have reported a profit distribution in July
                                                                        that is marginally more negative in comparison
                                                                        to that reported in May, which was of course
                                                                        significantly more negative than the situation in
                                                                       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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