Printing prices fall for 45th consecutive quarter: PIAA

However, the June quarter is forecast to produce increases in all four areas.

The trends report showed business sentiment at its lowest level since the Global Financial Crisis.

It also found selling prices fell for the 45th consecutive quarter, finance was harder to obtain for the 17th consecutive quarter and labour availability deteriorated for the ninth consecutive quarter.

The March quarter also saw increases in costs and outstanding debtors, falls in employment and a reduction in investment in buildings, plant and machinery.

Capacity utilisation rates were slightly better than the same period last year – 54.3% of respondents had capacity levels of at least 70% compared with 51.9% in March 2011.

According to the report, 86.7% of people named lack of orders as the main barrier to increasing production levels compared to 88.9% a year earlier.

June 2012 is expected to see further declines in employment, prices, costs and outstanding debtors, although labour should become easier to obtain and the availability of finance remain unchanged.

The next two quarters are expected to produce less investment in buildings, but more in plant and machinery.

Forecasts for a range of key indicators have firmed, but that won’t necessarily result in a boost for printing and associated industries, according to the Printing Industries Association of Australia’s national manager for policy and government affairs, Hagop Tchamkertenian.

“Over the past four years or so, the industry has tended to be overly optimistic in its projections concerning trading conditions,” he said.

“Now they are once again forecasting improving trading conditions over the June 2012 quarter. It will be interesting to see whether this time expectations will be met.”

Tchamkertenian recently told the industry it needed to embrace change, after reporting that 2006-11 had produced a 30% fall in business numbers, 17% decrease in revenue and 8% drop in employment.

The Printing Industry Trends Survey Report had 105 respondents: 33 from NSW, 27 from Victoria, 16 from Queensland, 14 from South Australia, 10 from Western Australia and five from Tasmania.

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