The book remains strong in print

Interview Charles was optimistic about the prospects of the print and paper industry at the Power of Print conference held in London on 4 November. At the conference, Charles went over the main facts and statistical data on the operations, challenges, and opportunities of printing companies.

Although the Icelandic and British print and paper markets are worlds apart, it is interesting to learn about the trends and directions and the development that is taking place in the supply of services. Global market trends always make their way to Iceland, although they are, of course, on a smaller scale.

The British print and paper market is the fifth largest in the world. “We are finally seeing growth again after a period of stagnation and contraction,” says Charles, adding that he is noticing an increase in packaging, signage, and label printing. He warns against focusing too much on volume figures and says that value-added services in the printing industry also yield greater profits.

What is the trend?

“The long-term trend is that the volume of advertising print is contracting. Book printing has remained stable for a long time. And that is remarkable because people have been expecting a contraction, even a collapse in book printing that never happened. Newspaper printing continues to decline, but packaging and label printing are growing steadily and are likely to continue to grow.

“Overall, volumes outside of packaging are contracting in the printing industry, but the value and quality of the service is greater,” Charles reiterates.

British industry is grappling with international turmoil. “We have managed to keep the printing industry open despite Brexit,” but he added that exports are now mainly affected by the significant turmoil in American politics.

He also mentions high labor costs, which have been progressively increasing. This problem is not limited to the printing sector.

How does the printing industry deliver greater returns?

“By participating in technological development and solutions that deliver more value to customers,” he says, pointing to solutions that Royal Mail has developed through its company Market Reach, which involves analytics for customers and smart, personalized solutions in direct mail. “In short, greater returns are achieved by creating more value-added services,” says Charles.

A pillar of the UK economy

He notes that the British printing industry is an important part of the economy. It has a turnover of £13.7 billion, contributes £5.9 billion to the GDP, and employs around 93,000 people in 6,800 companies. “The sector is one of the pillars of the UK economy and plays a particularly large role in the consumer market,” he says.

What are the main challenges in the British printing industry?

“We need more professionals,” says Charles, adding that this is one of the biggest challenges for the printing industry in the coming years. The BPIF also manages vocational training in the printing industry.

Charles also mentions that wage costs have risen much more than forecast. Almost all printing companies in the UK mention that wage costs and a shortage of professionals will hinder further growth. This needs to be addressed with a greater emphasis on training and apprenticeships, and support for innovation within the industry.

What kind of training?

“With more courses in digital printing, automation, and sustainable materials,” Charles mentions, adding that he is just scratching the surface. However, it is clear that sustainability is a key skill, along with greater knowledge of the latest technology and automation in the printing industry.

“The bottom line is that, despite everything, we are stronger than before. As an industry, we show flexibility, and if we continue to innovate, there are exciting opportunities ahead.”

Those interested can view Charles's presentation here.