The Australian Financial Review reported on PMP’s annual general meeting earlier this week, at which new managing director Peter George predicted major consolidation due to falling volumes and prices.

The newspaper reported George as saying PMP’s volumes had fallen by 7% this financial year.

He said the three biggest players – PMP, IPMG and Franklin Web – would be reduced to two via a merger or one of the parties “[falling] by the wayside”.

He also said that catalogue producer AIW Printing and magazine printer Webstar would become one.

It is hard to see how this would happen, considering the two firms are in different states and operate in different markets.

George said: “There is too much capacity, there are too many players not making any money… The pricing has been driven down as people clamour for volume.”

[Related: Ups and downs of PMP]

IPMG chief executive Stephen Anstice wrote to the AFR to slam George’s “lack of confidence”.

“A strategy that relies on industry participants to ‘fall by the wayside’ is not a strategy that drives innovation and growth within an industry,” said Anstice.

“It was disappointing to read that one of the major players has such a lack of confidence in print’s future.”

Anstice also said PMP should be able to cope with a 7% fall in volumes.

“This is not a dramatic fall and will be comfortably dealt with by the closure of many old presses in the Australian industry printing fleet,” he said.

“Printing is not the only business facing challenges and IPMG has no interest in seeing the industry casting itself as some sort of victim.

“We are in this business to be great at what we do, look after our customers and staff and provide a return to our shareholders. With continued innovation, the printing industry has a solid future.”

[Related: Ups and downs of IPMG]

Comment below to have your say on this story.

If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.  

Sign up to the Sprinter newsletter