During the September 2008 quarter new capital expenditure totalled $118m in the industry, representing a 28.5 per cent deterioration on the outcome for the same period a year earlier and a 9.2 per cent deterioration compared to the June 2008 quarter.
For the 12 months to September total new capital expenditure stood at $564m a result that is 8.4 per cent lower than for the same period of the preceding year.
Based on industry expectations, approximately $508m worth of new investments are currently being planned.
The results for the printing and related industries is also consistent with the reported deterioration in new investments outcome in the manufacturing industry. The mining sector and other selected industries reported increased new investments which helped to lift overall investments in the Australian economy.
At the Australian economy level new capital expenditure grew by 2.9 per cent during the September 2008 quarter to register an impressive 12.7 per cent rise during the year to September 2008.
Hagop Tchamkertenian, national manager for policy and government affairs for Printing Industries says while at the Australian economy level, the annual growth figures are encouraging, there had been a significant slowdown in the quarterly growth. If this slowdown was to continue it would start dampening the annual growth.
He says, “This must be a concern to the Australian Government as investment remains one of the key drivers of economic growth.”
Commenting on the reported deterioration of printing industry new capital expenditure, Tchamkertenian said the reported outcomes were expected.
He continues, “The September 2008 quarter represents the third consecutive quarter where new capital expenditure has been reported to have deteriorated.”
“Another factor that is dampening new capital expenditure is the ongoing industry rationalisation process which is helping to bring secondhand but reasonably good condition printing presses and technology on to the market allowing interested printing businesses to purchase cheaper rather than new printing presses.”
Tchamkertenian concludes that while the natural tendency for most businesses was to reduce their expenditure on new capital expenditure during periods of economic uncertainty, some businesses benefit from the prevailing opportunity and continue to invest in new technology to help deliver ongoing cost and productivity improvements.
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