Growth in output and orders ramped up in Q3 thanks to boost in confidence with stronger growth forecast for Q4
The BPIF has published its latest Printing Outlook report, the Q4 2024 edition, showing that output,
orders and confidence in Q3 displayed the most positive values for two years. The UK printing and
printed packaging industry experienced a delayed recovery that had been expected to come through
earlier in the year. A similar pace of growth is now expected to continue into Q4, though businesses
will be required to make some adjustments when the impact of the Government’s Budget adjustments start to be felt.
Industry competitiveness remains ferocious – companies pricing below cost (or the perception that
some are doing so) remains the top ranked business concern, closely followed by sales levels, and
access to labour. Whilst some other concerns are further down the rankings, it is noticeable how
the share for taxation, business rates and red tape has grown most recently.
Charles Jarrold, BPIF Chief Executive, said: “After a very challenging 2023, and a slow start to this year, overall, it’s encouraging to see this quarter’s responses which show confidence strengthening, although it’s also clear that business conditions are as challenging as ever – finding skilled people and dealing with intense competition stand out as key challenges. While improved confidence usually bodes well for the future, the budget, which was made public just last week, is bound to have an impact on confidence too, with significant red tape and cost implications that are worrying businesses. Our message to government is that just when confidence has been rebounding, a new set of challenges are being introduced through the budget and other legislation, which carry the risk of setting us back.”
Whilst the use of capacity has improved, it could still be better; constraints on capacity have also
been building. In particular, a shortage of skilled employees has been identified as a significant issue.
Calculations suggest that capacity was restricted by just over 11% in October, up from 9% in
July, around 6% in April, and 4% in January.
However, the reported profit distribution was healthier in Q3, cash flow is being managed effectively
by most companies, and companies are specifically targeting improvements in operational
effectiveness, sales management and cost control as a means to help maximise future profitability.
Sustainability features once again in this report, the industry appears to be continuing its improving
path. More companies are involved in measuring, and minimising, their carbon footprint; and making
strategic investments that will improve their sustainability credentials.
