Presenter: Hagop TchamkertenianTitle: National Manager for Policy & Government AffairsOrganisation: Printing Industries Association of AustraliaTopic: Printing industry profile, challenges & outlook

National Conference

Coming of Age16-17 May 2012, Crown Conference Centre, Melbourne

19th National Conference, Melbourne 2012

Coming of Age

Association background: The Printing Industries Association of Australia

(Printing Industries) is the peak advocate and support organisation for companies operating in the paper, print, packaging and visual communication industry in Australia

The history of the Association dates from the 1880's as individual state bodies that later amalgamated to form a national organisation in 1924.

The Association has a diverse national membership representing some 1,400 companies

Printing industry profile, challenges and prospects

19th National Conference, Melbourne 2012

Coming of Age

Print is very pervasive

Have you ever imagined a world without print?

Common printed items – newspapers, books, magazines, greeting cards, labels, signage, outdoor display, brochures, leaflets, posters, print packaging, currency, stamps, security products, etc, etc, etc,

But print is also present in circuit boards, QR codes, RFID tags,

Printing industry profile, challenges and prospects

19th National Conference, Melbourne 2012

Coming of Age

Traditional printing processes are being supplemented by new ones – digital printing, 3-D printing, functional printing, nano-printing

Printing industry profile, challenges and prospects

19th National Conference, Melbourne 2012

Coming of Age

Print is a hybrid industry displaying characteristics of both manufacturing and services

Over the past decade the service component has grown in importance

The industry value chain is a broad one encompassing paper, printing, publishing and distribution/logistics

Printing industry profile, challenges and prospects

19th National Conference, Melbourne 2012

Coming of Age

Despite being an industry in transition, the industry value chain remains economically significant

4rth largest manufacturing employer

Printing industry profile, challenges and prospects

19th National Conference, Melbourne 2012

Coming of Age

Indicator Value

Employment 120,000

Turnover $M 32,160

Value added $M 13,758

Capital expenditure $M 1,726

Number of businesses 11,112

Exports $M 1,540

Imports $M 4,758

Printing industry profile, challenges and prospects

• Paper, print, publishing industry value chain industry demographics

19th National Conference, Melbourne 2012

Coming of Age

Printing industry profile, challenges and prospects

Recent Economic Performance - Printing

Indicator 2006 2011 % change

Sales $M 9,865 8,153 -17.4%

Gross value added $M 4,936 4,098 -17.0%

New investment $M 399 256 -35.8%

Employment 42,000 38,460 -8.4%

Number of businesses 7,923 6,822 -13.9%

19th National Conference, Melbourne 2012

Coming of Age

Printing industry profile, challenges and prospects

Critical issues facing the industry

• Industry in transition, movement from economies of scale to scope, from mass production to small scale personalisation, e-media impact• Misalignment of installed capacity and demand• Competitive landscape – internal, alternative media and imports

19th National Conference, Melbourne 2012

Coming of Age

Printing industry profile, challenges and prospects

Critical issues facing the industry

• Business management – SMEs mindset • Succession planning• Access to finance and cash flow management• Industry perceptions• Environmental sustainability

19th National Conference, Melbourne 2012

Coming of Age

Printing industry profile, challenges and prospects

Areas the Association is working on

• Promoting the concept of print as an integral part of the communications channel• Increased evidence that of strong synergies between print and alternative or e-media• Addressing industry misconceptions – establishment of Two-Side Australia• Looking at future industry skills sets to ensure industry participants invest in the skills of the future

19th National Conference, Melbourne 2012

Coming of Age

Printing industry profile, challenges and prospects

Areas the Association is working on

• Reducing business operating costs by introducing group purchasing schemes – such as power• Addressing commercial sustainability issues by emphasising proper estimating and costing processes• Encouraging businesses to become more lean and environmentally sustainable – benefits to the bottom line

19th National Conference, Melbourne 2012

Coming of Age

Printing industry profile, challenges and prospects

Areas the Association is working on

• Informing about emerging trends and new commercial opportunities• Working with the Government to implement an industry transition process/model that will encourage further industry consolidation and rationalisation• Looking at the issue of increased competitiveness through a focus on business innovation – engagement of Hargraves Institute

19th National Conference, Melbourne 2012

Coming of Age

Printing industry profile, challenges and prospects

Industry outlook

• Ongoing consolidation• Likely that more industry iconic companies will be placed in administration• Large segments of the industry are considered mature. Expected to grow at best by 1-2 per cent• Penetration of digital technologies to accelerate

19th National Conference, Melbourne 2012

Coming of Age

Printing industry profile, challenges and prospects

Industry outlook

• Traditional printing businesses moving into digital space. Danger of commoditising this segment• Print volumes will continue to shrink due to adoption of digital processes and as it competes with alternative media• Emphasis more on value added and solutions based activity• Lower volume but higher margins

19th National Conference, Melbourne 2012

Coming of Age

Printing industry profile, challenges and prospects

Industry outlook

• Will continue evolving and becoming part of the multi-media channel environment• By 2020, most printing businesses will operate as communication and multi-media providers• Increasing trends towards hub production facilities• Increased strategic alliances – invest in new technologies, enhance capabilities • Web to print platforms

19th National Conference, Melbourne 2012

Coming of Age

Printing industry profile, challenges and prospects

Industry outlook

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Source: Young’s Communications

Social media

3D Printing

FunctionalPrinting

19th National Conference, Melbourne 2012

Coming of Age

Printing industry profile, challenges and prospects

Thank you……