Printing Industries National Policy and Research Manager, Hagop
Tchamkertenian, said that with the federal election imminent and uncertainty
surrounding its outcome, industry sectors were reporting declining business
confidence about future business prospects.
He says, "It remains to be seen whether business confidence will bounce
back after the election."
The September survey showed a number of developments including:
* Increased orders and production
* Increased sales and net profits;
* Increased employment and overtime levels;
* Increased investment in plant and machinery during the past six months;
* Finance reported more easier to obtain;
* Labour availability was reported to have deteriorated once again for the
13th consecutive quarter;
* Increases reported across all production cost categories;
* Selling prices reported to have fallen for the 27th consecutive quarter;
* Reduced levels of raw material stocks; and
* Increased numbers of outstanding debtors.
The report shows high capacity utilisation/activity rates were achieved by the
Cheques and Securities, Labels, Desktop Publishing and Graphic Design and
General Promotional and Commercial sectors.
Considerable levels of excess capacity appear in the Book Binding, Books,
Magazines, Periodicals and Newspapers, Business Forms and Continuous
Stationery, Graphic Reproduction, Screen Printing and Folding Cartons sectors.
Most product sectors are expecting improvements to take place in general
business conditions during the December 2007 and March 2008 quarters.
The majority of sectors are forecasting either increased investment or no
change in plant and machinery over the next six months, while the graphic
reproduction and greeting cards, calendars and diaries sectors are forecasting
reduced investment.
A close examination of the survey outcomes show some interesting developments.
A number of trends have become entrenched such as skilled labour availability
continuing to remain a problem for printing industry companies operating and
expectations for a continuation of the problem. Selling prices continue to
fall as well despite expectations to the contrary.
Material costs seem to be moderating on the back of a much stronger currency
with the net balance outcome reported for the September 2007 quarter being
significantly lower than the corresponding outcome 12 months ago.
Raw material stocks were also reported to have declined for the second
consecutive quarter. Average wage outcomes continue to be significant and the
September quarter saw a much higher net balance outcome.
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