The Federal Government’s commitment to the manufacturing industry has come under the spotlight with the announcement of a $6m – five per cent – reduction in print spending, under budget cuts announced by Penny Wong, minister for finance and deregulation.

Hadley says, “I think that it is important for any business to keep an eye on their costs and this decision is not unexpected and at least they are being honest in stating that they are trying to save money. I am concerned though about their recent decision to hold back on grants that were available that would have been of benefit to the printing industry for example the Energy Grant.”

The latest issue of the Printing Industry Trends Survey Report shows that there has been a decline in orders and production, sales and net profits, while employment and overtime has been reduced. However there has been an increase in plant and machinery investments during the past six months.

Hadley says, “It seems to me that the results of the survey ware really just a symptom of the underlying problem of the basic industry numbers not adding up. Depending on what reports you read, the number of printing companies ranges between 3500 and 5000 and revenues range between $8bn and $13bn. Regardless, those numbers don’t add up to an industry with businesses that can afford to make a sustainable reinvestment in themselves.”

“The lack of investment has resulted in an industry that as a whole is just far too hard for today’s customers to do business with, in comparison to other industries.”

Hadley says his passion for this subject is one of the main reasons for joining PeoplePrint.

“In my opinion, the consolidation of the industry is still far from complete and the winners will be the companies that make the best fist of streamlining the interaction between themselves and their customers. For example there is a company that has gone from nowhere to now being the eighth largest printer in just two years and has been pretty much ignored by the rest of the industry who say that their quality is not good enough. But reality says that they have a first class customer facing technology that makes the buying of print easy and as a result, they have gained loads more new customers in 2011.

“What is going to happen to the rest of the industry when they fix their so called print quality issues and start to look further afield and when their first time buyers become their regular customers?”

Hadley and John Weichard, CEO, PeoplePrint are aiming to get printers into the online world, where they believe the biggest efficiencies are to be made.

Hadley says, “I’m pleased to say that we have come to the end of the talking to investors stage of the business and we are now entering the talking directly to printers phase of the roll out. Our new website will be launched in the next week.”

“In talking to potential investors it was clear that the printing industry was seen to be ‘oh so yesterday’ and they all questioned why would anyone want to get involved in that. When the figures of $8bn-$13bn were mentioned, their eyes started to light up. There is definitely a lack of knowledge about printing.”

Hadley lists the following are needed to succeed in the print industry.

“An unblinking focus on customer needs for both today’s buyers and tomorrows. The need to understand that a customers needs are constantly changing ie: what worked well yesterday will not necessarily work tomorrow.”

“Understanding the importance of technology in dealing with customers increases every day. The internet is affecting the printing industry just like the way it has affected our well known and established retail businesses. It’s a case of either getting on-board the online bus or miss it.”

However Hadley is still bullish about the future of the print industry he says the internet, as well as being a competitor, will also deliver a renaissance for the industry, if not ignored.

“The challenges of having a customer as part of the manufacturing process will be finally dealt with and the new age printing industry will be streamlined ‘attractive’, high tech and profitable. The challenge for individuals and companies currently in the industry is to ensure that they are actually still in the industry with the right set up and the right mind set when the new dawn arrives. I am convinced that many will not survive.”

Hadley welcomes the merger of the Printing Industries and GASAA saying the economy of scale argument is too strong to ignore.

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