Economic recovery to bring the impact of the British printing ink industry

Ink providers currently are suffering from various aspects of economic pressure, and the loss of the phenomenon is relatively common, and we today to discuss economic recovery is to give these companies to bring some help.

The past two years, the collapse of a large number of printing companies to ink a heavy burden on the market, bad loans continued to increase and the rising prices of raw materials to make ink manufacturing industry's business environment has become even worse, and make it more difficult to establish the future development strategy. Despite the gloomy outlook, but some vendors still want to be able to re-optimized to win the chance of survival for themselves.

Then, in the end how the ink industry in the future? Economic recovery can bring to this industry, what change?

First, although the British Government announced that they have in the fourth quarter of 2009, out of the economic crisis, but the printing of the economic difficulties faced by enterprises, and has not been eliminated. Ink manufacturer, according to the company's general manager of StehlinHostag British DavidWard introduced bad debt is a major problem, last year's debt problem is very serious and for commercial sheet-fed a heavy blow to the area, while the ink manufacturer of course, not spared.

Flint Group's Marketing Director PeterBaird also agree with the above view, he predicted the level of bad printing industry will continue to increase within the next few months, while the ink business in order to avoid further injury, we must take effective measures.

Victory to defend the fruits of economic recovery

Baird said: "Britain will emerge from the economic downturn on the entire value chain of the printing for both a good news, but we must remain vigilant. The end of the economic crisis has prompted many companies started to re-increase in inventory to meet future contingencies. Although we all want to see the market demand as soon as possible, but this desire might not be realized in a short time. Therefore, if there is no caution, bad debts is likely to devour ink business future. "

Bad debt is a problem, the product pricing is another issue. To compensate for the loss of businesses in recent years, to the product price hikes is the simplest one solution, but Arets, director of the company's UV products are ColinMcKenzie not think so.

He said: "If the exchange rate of euro against the pound fell to below the current 1.14 to 1, that is to improve the ink even if the price does not help."

When you calculate the cost of ink, when, in addition to considering the exchange rate factors, but also pay special attention to raw material costs.

At present, crude oil prices fluctuate on a daily basis, it gives people predicted the price of it will bring about changes in the market caused serious difficulties. Although many printing companies that ink prices had soared in recent years, but in fact its price has fallen 25 years ago. For example a set of A4-format color printing ink 25 years ago, the price of expensive than it is now about 20%.

Cost Control

ShackellEdwardsDruckfarben General Manager GrantPenfield said: "The printing business has always benefited from the low-cost policies. With the increasingly fierce competition and the growth of raw materials and manufacturing costs, ink prices are still a large amount of pressure. Printing can not afford to to pay more for ink and consumables costs, while the depreciation of sterling is compressed ink corporate profit margins. "

Therefore, Penfield that the ink companies should raise prices, but he is expected to ink prices will continue to decline in 2010.

He said: "We have time to adjust its own business model, and in low-cost to maintain a reasonable profit. However, there are a number of ink and consumable suppliers due to lack of effective management have emerged in recent years, a loss situation, so they Only by closing branches and layoffs to reduce operating expenses, thereby increasing profits. "

So, if you do not improve the product, ink manufacturers and how to ensure the sustainable business development? The first is to engage in corporate restructuring, and developing new business opportunities. Stehlin company attaches great importance to technological research and development, so they have sent a number of new products and new applications (for example,!-Check online to improve management systems), and in 2010 is expected to give you a surprise.

Ward said the company's innovation and enable the company's loss-making situation had improved markedly, he said: "Our target for this year was to re-is to achieve profitability, and our parent company, Huber so far have maintained a good momentum of development." While the hopeful about the future, but Ward also placed in front of them until the road is not smooth.

Flint Group's Baird also have the same view, he considered that printing companies will conduct a large-scale mergers and acquisitions and restructuring, it will not only result in reduction in the number of enterprises, but also so that the printing ink suppliers and transactions between enterprises change was more transparent.

Ink and consumables suppliers are paying close attention to each client's profitability, and in some cases, they will refuse to cooperate with certain printers, so to will result in the loss of business.

Although all indications are that the economy is recovering, the market opportunities are also increasing, but these opportunities are still very limited. In the new year, ink manufacturers should be more proactive to get close to their customers and help them to develop realistic development strategy. As Penfield pointed out: "You do well during an economic boom, and nothing but do well in the economic recession is really good."

Future trends: low-profit

Ink manufacturer, according to forecasts, the market for low-odor, low transfer rate of the food packaging demand will increase in 2010 because there are more and more brand owners are hoping to lower the transfer rate of folding cartons to improve of food safety standards.

The low transfer rate of ink manufacturers are currently facing the biggest challenge is to make their products with the same standard ink printability. Printing industry sources, the entire ink supply chain should unite together to find a sustainable ink solutions.

According to ColinMcKenzie introduction, the use of low transfer rate of the UV ink is to reduce the carton the best way to transfer rate, which will become the most popular field of food packaging a solution.