Overall economic conditions in the printing industry continue to remain sluggish with growth contracting for the fourth consecutive quarter, according to figures released today by the Australian Bureau of Statistics (ABS), although for the year 2010 that contraction only totalled 0.3 per cent. However that was in contrast to the economy as a whole, which recorded positive numbers for the quarter to December as the year 2010 with the Australian economy growing by a healthy 2.7 per cent.
Capex was particularly badly hit, with a 36 per cent drop in printing equipment investment for the year compared to 2009, with printers spending a total of only $311m in 2010. However 2009 saw the government’s capex incentives run all year, and they stopped in December 2009.
The ABS data shows that growth in the printing industry contracted for the fourth consecutive quarter declining by 0.3 per cent during the December 2010 quarter compared to the September quarter outcome, and by 2.7 per cent when compared to the December 2009 quarter outcome. During the year to December 2010 the printing industry growth rate fell by 0.3 per cent compared to the previous year.
By comparison the Australian economy grew in trend terms by a modest 0.5 per cent during the December quarter and by 2.7 per cent during the year to December.
Printing industry sales declined by a modest 0.4 per cent during the December quarter compared to the September quarter, and by 2.6 per cent when compared to the December quarter a year earlier. During the year to December printing industry sales stood at $8.6bn, a deterioration of 0.7 per cent compared to the previous period’s outcome.
According to the ABS data, pre-tax profits in the printing industry improved by 17.7 per cent during the December quarter compared to the September quarter. But when compared to the December quarter of 2009 there has been a significant deterioration, in the order of 25 per cent. During the year to December 2010 the reported printing industry pre-tax profit of $379m represents an improvement of 33.9 per cent on the 2009 year outcome.
Other major printing industry data released over the past week shows new capital expenditure was reported to have increased by 3.7 per cent during the December quarter compared to the previous quarter, but when compared to the same period a year earlier, there is a massive deterioration in the order of 61.4 per cent.
During the year to December some $311m worth of new investments took place in the printing industry representing a deterioration of 35.9 per cent compared to the same period a year earlier.
Printing Industries National Manager for Policy and Government Affairs, Hagop Tchamkertenian, said economic conditions remain very weak. He says, “The printing industry experienced a modest decline in both growth and sales during the December quarter compared to the previous quarter. But if we compare the latest December quarter with the previous December quarter, than the decline in reported economic activity and sales is even steeper.”
Tchamkertenian said the sluggish trading environment may be further undermined by the Federal Government’s announcement of a carbon tax to apply from 1 July 2012. He says, “Our industry is now faced with uncertainty. While the Government has announced the Carbon Price Framework, the details are yet to be released which can only create uncertainty amongst printing businesses. There is not even certainty whether the Carbon Price Framework will actually become law.
“Printing Industries will be taking the issue up with the Government to ensure that the commercial interests of participants in the printing industry are taken into account.”
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