Print remains in the red: Hagop’s commentary
No relief in sight for printing businesses around Australia, according to March 2009 Printing Industry Trends Survey Report.
The March 2009 quarter saw the worst net balance reported outcome for capacity utilisation and falling selling prices despite rises in material cost pressures, Reported material cost pressures during the March quarter were the second highest in the history of the Printing Industry Trends Report.
According to Hagop Tchamkertenian, national manager for policy and government affairs, Printing Industries, the report confirms that the financial woes of the printing industry are closely aligned and not immune from the overall Australian economy.
Hagop believes that difficult trading conditions are likely to continue for some time. “Key areas ranging from production to sales and selling prices to net profit are pointing to further deterioration,” he said.
With the exception of South Australia, all states forecast deteriorations in their business. The most pessimistic state is New South Wales, with a net balance of 57.1 per cent, followed by Western Australia, with a 40 per cent net balance.
The Federal governments 30 per cent tax break for new investments has also failed to draw the attention of printers due to poor cash flow, idle capacity and weak business sentiment.
“A significant number of industry participants have not yet committed to new investments,” Hagop said, adding that the 30 per cent tax break applies to the end of June this year. “The window of opportunity is fast closing.”