Printers saw a slight improvement in both demand and output in the final quarter of 2011, according to the latest BPIF Printing Outlook survey.

Despite confidence not reaching previous expectations, 23 percent of UK printers reported a rise in new domestic orders, with only 16 percent recording a drop.

Although little improvement is predicted for the first quarter of 2012, with 75 percent expecting a similar pattern as the previous quarter, there is a positive balance among the rest that expects some improvement..

However, exporters are less confident about prospective orders due to poor overseas markets and concerns about the Eurozone.

“Although we are concerned that the levels reported for demand and output by respondents this time remain below those previously forecast, we can nevertheless breathe a sigh of relief that both improved in the final three months of last year,” comments BPIF research and information manager, Kyle Jardine.

He adds: “Looking ahead, while we begin 2012 with confidence at a low ebb, prospects could pick-up as the Olympics and Euro 2012 boost advertising expenditure and Drupa stimulates investment activity.”

While energy and ink prices are set to rise during Q1, paper costs are expected to stabilise—offering printers slight respite.

Combating the squeeze on margins had been anticipated by the majority of printers, with 31 percent of printers expecting to raise their prices in Q4—but only 5 percent were able to do so.

28 percent were also forced to cut prices in order to compete for business, which was more than double the amount that had been expected.

This problem was also portrayed by the figure that 88 percent of companies consider ‘competitors pricing below cost’ as the most pressing issues—ahead of survival of major customers, paper and board prices, and late payment.
 
Printers are looking to combat these issues though, with 91 percent set to invest in new equipment, with more than a third expecting to spend more than in the previous twelve months.