The survey report showed that selling prices had fallen for the 40th consecutive quarter with respondents reporting finance harder to obtain for the 12th consecutive quarter.
December 2010 quarter results also showed that 75.2 per cent of respondents were operating at capacity levels of 70 per cent or over, significantly up on the 63 per cent reported outcome of the previous quarter and slightly up from the 70.9 per cent proportion reported this time last year.
Some 76.2 per cent of survey respondents ranked lack of orders as the primary barrier to increasing production levels, an outcome that is lower than the 88 per cent proportion reported during the September 2010 quarter and the 87.3 per cent proportion reported during December quarter 2009.
Hagop Tchamkertenian, national manager for policy and government affairs at Printing Industries says looking forward the challenge for the industry is to manage the expected modernisation in trading conditions over the next quarter.
He says, “While the Australian dollar is likely to continue to provide some welcome relief on the material cost front, printing business operators are likely to face challenges to their margins brought about by continued pressure on selling prices and weaker trading conditions.”
Over the next six months the survey respondents expect to increase investment in plants and machinery.
According to Printing Industries the outlook for general business expectations over the next six months remains favourable across most states.
While a significant number of sectors are forecasting improvements to take place in general business conditions during the next six months, the paper merchants, folding cartons, general promotional and commercial, books, magazines, periodicals and newspapers sectors are forecasting deterioration.
Over the outlook period the most optimistic sectors are the digital printing, other packaging and paper converting sectors, according to the Association.
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