So, here we sit at the end of yet another working year, left wondering where the last twelve months have gone. It is no secret that this last year has been another financially tough one for businesses of all sorts, including those throughout the print industry. And the negative news about the economy continues to pour out of news outlets around the country, keen to remind us of the position we all find ourselves in.
However, despite the ongoing doom and gloom we are treated to on a daily basis, there is a shining light that seems to continue to burn bright. Not a day goes by without news of print businesses posting positive news, whether it be a growth in financial figures, expanding workspaces, or simply investing in new kit to take on new business. Print is showing other industries in the UK that success is still possible, even in financially dark times such as these.
Just stop and think for a moment about all the news from the last year in the printing industry. Yes, admittedly there have been some negative points that have highlighted the ongoing difficulties in the sector, but there are also plenty of positive factors that have come to light during 2012.
We were treated to a host of new technology at Drupa back in May. Walking up and down the halls of the Messe, it was clear to see the confidence manufacturers had in print, displaying new solutions to boost the industry. Benny Landa had audiences gripped with his Nanographic technology that promises to be a major player in the market. In an exclusive interview with Print7 News at Drupa, Landa said this new printing method, ‘gives customers a high level of confidence’ in the industry, which he believes is something they have been lacking.
We are also handed a platter of new wide-format technology on home shores at Sign and Digital UK. This market has proved increasingly popular with commercial printers, with more companies diversifying into the sector in order to expand their services. And manufacturers have followed suit, with the likes of Mimaki, Epson, Fujifilm and Roland DG offering new and exciting technology. And with yet another edition of the popular event to come next year, this market is set to gather more pace.
OK, it is all well and good talking about the latest technology in the sector, but what good is this without success from the people who matter—the actual print businesses? It seems 2012 has proved a very successful year for a number of companies, which are now busy planning their next moves to ensure success in 2013.
Manchester Printers, a print and design company based in Trafford Park, boasts a variety of clients, from nationwide blue-chip firms, to local organisations and small- to medium-sized enterprises (SMEs). Having grown steadily over the past 22 years, the firm now employs a team of six professionals that have spent over 150 years in the print and promotional industries.
2012 has seen the firm enjoy further growth, having seen its annual turnover from July 2011 to August 2012 hit ￡1.2m. Managing director, Gavin Page, puts the success down to a growing customer base and launch of an ecommerce store, which he says allows customers to access a, ‘flexible choice when it comes to purchasing products’.
The market will still be extremely tight and buyers will continue to penny pinch, but print companies need to stand firm to survive”
“Our online ordering process and template system has reduced the time it takes to complete the full print cycle from uploading the artwork, to dispatching the final printed material and has generated a great deal of new clients for us,” explains Page, adding: "Furthermore, we have been able to increase our client reach to a national scale, which has contributed to our financial performance over the last year.”
Looking ahead to 2013, Page is hoping for more success: “We have ambitious growth plans for the business, with a projected turnover of over ￡1.5m for the period 2012/2013, including an estimated ￡100,000 from the ecommerce site, as well as a further ￡100,000 from capitalising on new business leads. We currently produce work for local and nationwide clients, but our aim it to capitalise on the vast number of businesses that require our services within a 25-mile radius of Manchester, where we can aggressively market ourselves, and buyers see us as an add-on to their business 24/7.”
Page has also counselled that print companies to look for more ‘niche’ areas where profit margins are greater, stating: “We have to look for more bespoke work, which other companies locally or nationally don’t have the expertise; alternatively they will see it more of a burden to produce. The market will still be extremely tight and buyers will continue to penny pinch, but print companies need to stand firm to survive.”
Keep on growing
Fellow print business, Gemini Group, has also enjoyed a successful 2012. With offices in Shoreham, Brighton and Bristol, the firm employs over 200 people and offers a range of printing services, from design and high quality print, to finishing and direct mail. 2012 has been a significant year for Gemini, with entrepreneur, John Boyle, increasing his half stake in the firm to 100 percent.
Additionally, Gemini has undertaken a major equipment upgrade, spending in the region of ￡3.4m on new kit, including a Heidelberg XL75-5 plus coater and Heidelberg 106-5. The firm has also launched its new service, Gemini Digital, which boasts a Nexpress SX3300 and Digimaster HD125.
“Like many print companies, the past few years have been challenging and our focus was on safeguarding jobs, rather than investing in the business. We believe in the past year we have turned a corner and with our new investment, we are even more confident of the future as customers discover the extraordinary range of high quality printing we can now offer,” comments Gemini Group managing director, Steve Cropper.
Like many print companies, the past few years have been challenging and our focus was on safeguarding jobs, rather than investing in the business”
Having achieved a 13 percent growth in turnover in the past year, the firm can also boast profits that have more than doubled. With this in mind, Cropper is positive about the future of both Gemini and print: “We are confident in the future of the print industry as we believe there will always be a place for high quality, professional brochures, leaflets, documents and other material, and our intention is to increase our share of that market.
“We’re very excited about the future of Gemini Digital and we’ll also be seeking to develop our Bristol division, Ambassador, so it is the leading one-stop-shop in the west for all printing and marketing solutions.”
Aggressive expansion
Essex-based Circle Services Group is another company optimistic about the future, having experienced growth, with director, Claire Austin, saying that the firm has been ‘aggressively’ expanding to offer customers the best services possible. Circle acquired Redlin Print and PDS Print and Design during 2013 in a move Austin says was a ‘proud’ moment for the firm: “We are now armed to provide exactly what our customers need, we have welcomed new staff of our partners, and in doing so have added to the wealth of knowledge and experience of our workforce.”
Austin acknowledges this did deliver some challenges, with the most apparent being the influx of jobs. However, she also states staff from the other companies have boosted the firm: “The managing director of PDS has assumed the role of sales director and in doing so has offered an increased level of focus across the sales effort and brings with him a vast level of industry knowledge.”
We are now armed to provide exactly what our customers need, we have welcomed new staff of our partners, and in doing so have added to the wealth of knowledge and experience of our workforce”
The last year also saw the firm invest in a Xerox Igen 4 digital press in order to expand its services further. Installed at Circle’s Essex headquarters, the new addition will sit alongside a host of other machines—including a 106 6-colour perfector, 74 6-colour with inline coater, and 2-colour GTO—all from Heidelberg—as well as a Presstek 52 DI and Presstek 9995 2-colour. With the new addition, the impressive equipment portfolio allows Circle to offer a wide range of print solutions.
Looking ahead, Austin remains upbeat about what 2013; a new website is due for release in the second quarter of the fiscal year, which Austin says will offer a new level of interactive workflow management and allow Circle to closer identify customer needs. Packed with new features and services, Austin believes the site will give the firm the ability to expand its customer base by, ‘simply listening to the marketplace and responding accordingly’.
All packaged up
One area enjoying growth is packaging, and 2012 has seen plenty of success stories from the sector. Privately-owned Benson Group is one firm based in the market and has seen a lot of business during 2012. Supplying printed folding carton and producing packaging products for the food and pharmaceutical industries, the firm boasts four operating sites in the UK with over 900 staff. The end of 2011 saw a management buyout take place at Benson Group—a move which marketing manager, Nikki Clark, says has allowed the firm to expand and put itself on track to reach sales of ￡120m for 2012.
“We provide a strong service ethos to support the continuous evolution of products on supermarket shelves. The company continues to invest in the very latest equipment to ensure that it can keep pace with the production demands of its customers, as well as staying ahead of the competition,” says Clark.
In terms of what the firm has experienced most demand for in the last twelve months, Clark points to one area in particular: “Printed packaging for food product continues to be the stand out area for the company. There has been, however, a growth in the smaller volume, niche product, premium-style product as well during 2012—we expect this trend to continue into the new year.”
Printers might well need to expand their range of communications capabilities and skills”
Clark says one project in particular stood out, this being the firm’s involvement, on behalf of Waitrose, with the hamper for the Diamond Jubilee picnic at Buckingham Palace. Benson Group created the cardboard inserts that helped keep everything in place in the hamper—the various platforms were then removed when the hamper was being used, enabling the layer to become a tray to hold food.
Looking ahead, Clark says that there is scope for expansion into Europe, but stresses this can only happen when the currency situation settles down. However, in the mean time, she believes both the food and pharmaceutical packaging markets will remain the same and continue to provide the firm with plenty of business. However, she counsels that the general print industry is changing: “Volume markets such as books and newspapers will continue to decline, bit will still be with us for some time to come. Printers might well need to expand their range of communications capabilities and skills.”
So, despite the grey clouds of economic unrest still hanging over the UK, it is clear that there is still room for success in the current market. 2012 has been a celebratory year for the UK, and it seems companies from right across the print range have felt in similar jolly moods after enjoying business throughout the year. And with plenty scope for further growth moving forward, print firms can enter into 2013 with confidence about the year ahead.