General confidence amongst printers and suppliers for 2017
Globally 42% of printers described their business as in a ‘good’ economic condition in 2016, with just 11% reporting it as ‘poor’, a net balance of +31%, the highest recorded global result of the report series. Prospects for 2017 are better with a net balance of +46%.
However market variances and regional variances are growing. Packaging at +39% net balance and Functional (Industrial/Decorative) at +34% are strongest while Commercial at +26% and Publishing at 23% follow behind. North America once again is the strongest region with a net balance of +49%, followed by Europe and Australia/Oceania at +33%, Central/South America at +29%, Asia at +20%, the Middle East at 19% and Africa at -3%, the first negative net balance of the report series. Indeed on many measures, the Middle East reported a very poor condition, while Africa and Central/South America reported fragile conditions.
Looking at the underlying financial performance figures, printers reported a well-established pattern of falling prices and squeezed margins, compensated for by increasing revenues assisted by higher utilisation. In terms of conventional print, the well-established trends continued of falling run lengths and lead times and an increasing number of jobs to be handled.
Notable pause reported in the growth of digital print and a clear fall in the number of Web to print installations
What was different this year was a possible pause in the historic rise in the proportion of turnover that is digital print (28% of printers in 2015 reported that more than 25% of their turnover was digital while the figure for 2016 was 27%). Nevertheless digital print has an ever-increasing hold on Functional print with inkjet the dominant technology for most applications, up from 61% in 2014 to 74% in 2016. Similarly digital continues to grow rapidly in Commercial print e.g. wide format print installations up from 37% in 2013 to 50% in 2016. The much talked of growth of digitally printed packaging is starting, with 34% of packaging printers offering digital print, up from 24% in 2014, although demand is patchy as yet.