The UK printing and printed packaging industry has recorded its strongest growth for more than three years during the third quarter (Q3), according to the latest BPIF Printing Outlook survey. The findings show a major boost in activity and a notable turnaround in industry confidence.
Output and order levels grew strongly in Q3, exceeding the already positive forecasts from the previous quarter, with further growth anticipated in Q4, stated the BPIF. Concerns about the general state of trade have eased, and confidence has sharply improved. The increases in output and orders were supported by gains in capacity utilisation, recruitment, cost control, and strategic efforts to improve profitability.
Despite the positive results, the survey noted that challenges remain. These include competitive pricing pressures, rising wage levels, external threats to print, and concerns about government policy. Not all businesses have yet experienced the upswing – some reported tightened budgets ahead of the Autumn Budget, and companies further down the supply chain may not yet have seen increased activity, the survey highlighted. Nonetheless, the overall improvement marks a significant boost for the sector, the BPIF said.
Last years’ survey serves as a cautionary note, with a similar rise in Q3 confidence subsequently undermined by a weaker economy and a disappointing Autumn Budget. Many in the industry are now awaiting the next Budget announcement on 26 November with cautious optimism.
Survey respondents also identified several areas of opportunity for the industry, including enhancing creativity, expanding sales through online platforms, advancing sustainability initiatives, communicating the value of print, engaging younger generations, utilising artificial intelligence, and integrating print with digital solutions.
A majority of companies continue to make progress on sustainability, though a small proportion remain either unable or unwilling to take action. However, progress has been made in measuring carbon emissions, setting and validating targets, securing accreditations, and investing in sustainability initiatives, the report highlighted.
Currently, 31% of respondents report measuring Scope 1, 2, and 3 emissions – down from 35% in April and 37% a year earlier, though still above previous years’ figures. Another 38% are measuring Scope 1 and 2 only, while 7% are unsure of their coverage.
Kyle Jardine, BPIF economist, commented: “The third and fourth quarters are traditionally busier periods for much of the printing industry, but in recent years there has been concern that the uplift wouldn’t materialise. However, we have now seen a significant improvement in confidence during Q3 and in the outlook for Q4 – despite little change in the performance of the UK economy.”
Charles Jarrold, BPIF chief executive, added: “Printing has undergone enormous change but remains a large and important industry. We are engaging with government more than ever on critical issues, and that dialogue is valuable. The sector has a strong record on productivity and investment, but recent government policies have increased business costs, particularly in employment and compliance, which affects reinvestment. We’ve communicated these concerns clearly and now await the Autumn Budget.”
