Opportunities in Crises and Changes in the Printing Industry

Guðmundur Ragnar Guðmundsson owns and runs the printing company Prentmet Oddi with his wife, Ingibjörg Steinunn Ingjaldsdóttir. The couple has built up the company, which offers a wide range of printing services and operates branches in Selfoss and Akureyri. Guðmundur says there are great opportunities in packaging printing and that consumers are conscious of packaging. There has been an awakening among consumers regarding the use and consumption of paper for printing. The market has recovered significantly due to climate impacts and the demand for sustainability. “For example, we are seeing a significant increase in packaging printing and are feeling the demand from the market,” says Guðmundur, mentioning that within the food industry, sales can multiply when packaging is switched from plastic to paper.

Growing forests and paper printing go hand in hand

“This is a very exciting development. People's environmental awareness is becoming stronger, and we want to keep the conversation going. It's painful to listen to the arguments of people who think they have it all figured out and want less paper consumption,” says Guðmundur, noting that such arguments contradict the facts. “Commercial forests have grown tremendously in recent years. Every single day, Europe's commercial forests grow by an area equivalent to 1,500 football pitches, and that is largely due to the printing industry. In addition, almost all printing companies in the country are Swan-labelled,” he says, adding that fortunately, the customer is aware. “We feel this very strongly from our customers and therefore foresee significant growth in packaging in the coming years.”

A passion for continuing to print books

Guðmundur believes that book printing will not return to Iceland in its previous form but says the opportunities lie in reprinting smaller editions.

“Those who know the history know that Oddi sold its book printing line in 2016. It was clear then that book publishers were planning to take their business abroad. At the same time, we invested in book printing. We felt it was a realistic option to be able to handle reprints in Iceland. This was driven by a passion to strengthen the book segment. We enjoy working on books. It's not a large part of our turnover, maybe 10%. If I look at it objectively, I think we will mainly handle larger print runs for book reprints,” says Guðmundur, but notes that Prentmet-Oddi is increasingly handling book printing for individuals, institutions, and associations. “On another note, we recently produced 6,000 hardcover books in six days,” he says.

Have taken over the operations of seventeen companies

There have been major consolidations in the printing industry in recent years. At the time of writing, Guðmundur and Ingibjörg have taken over seventeen companies and integrated them into the operations of Prentmet Oddi.

Asked about this development, he says that further rationalisation is likely ahead.

“Unfortunately, the pie has been shrinking and changing, but we have wanted to look at the opportunities in these changes. There will be more mergers in the coming months and years.

“We see various opportunities in this, for example, to expand our operations. Most people are aware that there is tremendous technological development in the digital sector,” says Guðmundur, but reminds us that people should not overestimate that development. “They support each other, digital printing and offset printing. I see major changes ahead. Print runs in digital printing are constantly increasing, and formats are getting larger. The projects are more numerous and more diverse. There is a great opportunity for specialisation, changes to the print job, and more. It will probably be possible to produce various things here in Iceland that were not possible before,” he says.

Paper shortages and price increases

Guðmundur has been prudent in stocking up on paper while paper prices continue to rise due to a downturn. He says he is, of course, worried about this downturn. “We have tried to stock up, and it has gone well. This is a temporary situation that will hopefully pass in the coming months. Paper that we used to receive in six to seven weeks, we now get after five to six months. And significant price increases are pouring in. We may not be in the same boat as newspaper printing, which is facing an increase of 40-50%, but we are still seeing around 10%.”

A thriving printing industry is of great interest to the business community

And the future looks bright despite the industry downturn and the global pandemic.

“If we look at the Icelandic printing market, it has shrunk considerably. But things are looking bright at Lyngháls. We see opportunities and want to turn defence into attack,” he says, and points out that it is in the great interest of the business community that a diverse printing industry thrives in this country, one that can serve businesses. “Hopefully there will be more than two or three companies here that can offer comprehensive printing services. It is important that this service is available and that the knowledge is also available, and also that it is possible to maintain this knowledge.”

IÐAN - A Moment in Industry · A Changing Landscape in the Printing Market with Guðmundur R. Guðmundsson, owner of Prentmet Oddi