UK Printing

UK Printing

This Market Report examines the printing market in the UK. Printing is central to the UK economy, its products feeding into every business sector. The market is also a net contributor to the UK balance of payments. However, a remarkable fact about the industry in 2006 was its failure to benefit from the strong growth in the economy, a fact that has given many in the industry pause for thought. The printing industry was once hailed as a bellwether of the UK economy, its performance generally mirroring that of the overall economy. However, 2006 has shown that this corollary no longer holds true and it remains to be seen whether the market's performance in 2006 represents just a blip or portends a sea-change in the fortunes of the printing sector.

Printed products include: publications, such as books, magazines and newspapers; business items, such as continuous stationery and account books; hard-bound stationery, such as exercise books, diaries, notebooks and calendars; promotional products, such as brochures, catalogues, direct mail and corporate literature; and packaging for manufacturers.

Key Note estimates that the market was worth around £12.51bn in 2006. As the year came to a close, it was clear that the industry had weathered its worst year since the recession of the early 1990s. The market shrank and competition was intense, with price cutting the order of the day. Higher energy and paper prices cut into printers' profits even further and led to a large number of closures and receiverships. Merger and acquisition activity was also very high.

The UK printing industry is highly fragmented, supporting thousands of small and medium-sized firms. Official statistics reveal that, in 2006, there were around 11,825 VAT-based printing enterprises, of which 84.8% had turnovers of less than £1m and more than half (58.6%) had turnovers of less than £250,000. Just 3.2% had turnovers of £5m or more.

The market leaders remained broadly the same in 2006 as in 2005, the top ten companies (by turnover) being: De La Rue PLC, Chesapeake UK Holdings Ltd, Williams Lea Group Ltd, British Polythene Industries PLC, St Ives PLC, The Polestar Group Ltd, Nampak Holdings (UK) PLC, The Astron Group Ltd, Communisis PLC and Amcor Flexibles UK Ltd. However, their positions changed slightly, as a result of Williams Lea, for example, leaping up the league table. Most people in the industry expect to see some major changes in ownership during 2007, some of which might well be surprising, as was the case in 2006. As one leading figure in the industry pointed out in 2006, the current industry structure is unsustainable in the long term, a view that is shared by others. Consolidation is inevitable in the face of worsening trade conditions and the competition from online media and foreign printers. Key Note forecasts only modest year-on-year growth between 2007 and 2011.

Executive Summary

1. Market Definition
REPORT COVERAGE
MARKET SECTORS
Advertising Literature
Programmes, Tickets, Vouchers and Business Cards
Periodical and Journals
Packaging
Books, Brochures, Leaflets, Pamphlets, Reports and Accounts, etc.
Printed Labels
Business Forms
Security Printing
Stationery
Newspapers
MARKET TRENDS
A Weak Market
Fierce Price Competition
Use of Repro Firms is Declining
Growth of Print-Management Companies
Online Tendering
ECONOMIC TRENDS
Population
Table 1: UK Resident Population Estimates by Sex (000), Mid-Years 2001-2005
Gross Domestic Product
Table 2: UK Gross Domestic Product at Current and Annual Prices (£m), 2001-2005
Inflation
Table 3: UK Rate of Inflation (%), 2001-2005
Unemployment
Table 4: Actual Number of Unemployed Persons in the UK (million), 2001-2005
MARKET POSITION
The UK
Overseas

2. Market Size
THE TOTAL MARKET
Table 5: UK Manufacturers' Sales of Printing by Category by Value (£m at msp), 2002-2006
Figure 1: UK Manufacturers' Sales of Printing by Category by Value (£bn at msp), 2002-2006
bY MARKET SECTOR
Advertising Literature
Table 6: UK Printers' Sales of Advertising Literature by Value at Current Prices (£m at msp), 2002-2006
Programmes, Tickets, Vouchers and Business Cards
Table 7: UK Printers' Sales of Programmes, Tickets, Vouchers and Business Cards by Value at Current Prices (£m at msp), 2002-2006
Periodicals and Journals
Table 8: UK Printers' Sales of Periodicals and Journals by Value at Current Prices (£m at msp), 2002-2006
Packaging
Table 9: UK Printers' Sales of Printed Packaging by Value at Current Prices (£m at msp), 2002-2006
Books, Brochures, Leaflets, Pamphlets, Reports and Accounts, etc.
Table 10: UK Printers' Sales of Books, Brochures, Leaflets, Pamphlets, Reports and Accounts, etc. by Value at Current Prices (£m at msp), 2002-2006
Printed Labels
Table 11: UK Printers' Sales of Printed Labels by Value at Current Prices (£m at msp), 2002-2006
Business Forms
Table 12: UK Printers' Sales of Business Forms by Value at Current Prices (£m at msp), 2002-2006
Security Printing
Table 13: UK Printers' Sales of Security Printing by Value at Current Prices (£m at msp), 2002-2006
Bound Stationery
Table 14: UK Printers' Sales of Bound Stationery by Value at Current Prices (£m at msp), 2002-2006
Newspapers
Table 15: UK Printers' Sales of Newspapers by Value at Current Prices (£m at msp), 2002-2006
OVERSEAS TRADE
Table 16: Exports and Imports of Printed Matter by Value (£m), 2001-2005

3. Industry Background
INTRODUCTION
RECENT HISTORY
INDUSTRY SYNOPSIS
Table 17: Financial Analysis of Printing Companies (£000, % and £), Latest Financial Years
NUMBER OF COMPANIES
Table 18: Number of UK VAT-Based Enterprises Engaged in Printing by Turnover Sizeband, 2006
EMPLOYMENT
Table 19: Number of UK VAT-Based Enterprises Engaged in Printing by Employment Sizeband, 2006
REGIONAL VARIATIONS IN THE MARKETPLACE
HOW ROBUST IS THE MARKET?
LEGISLATION
Recycled Paper
Hazardous Waste Directive
KEY TRADE ASSOCIATIONS
British Printing Industries Federation
Institute of Paper, Printing and Publishing
Picon Ltd
Pira International
Printing Industry Alliance
Vision in Print

4. Competitor Analysis
THE MARKETPLACE
MARKET LEADERS
Table 20: The Top 25 UK Printing Companies by Turnover and Pre-Tax Profit (£m and £000), 2004/2006
Amcor Flexibles UK Ltd
Company Structure
Current and Future Developments
Financial Results
The Astron Group Ltd
Company Structure
Current and Future Developments
Financial Results
British Polythene Industries PLC
Company Structure
Current and Future Developments
Financial Results
Chesapeake UK Holdings Ltd
Company Structure
Current and Future Developments
Financial Results
Communisis PLC
Company Structure
Current and Future Developments
Financial Results
De La Rue PLC
Company Structure
Current and Future Developments
Financial Results
Nampak Holdings (UK) PLC
Company Structure
Current and Future Developments
Financial Results
The Polestar Group Ltd
Company Structure
Current and Future Developments
Financial Results
St Ives PLC
Company Structure
Current and Future Developments
Financial Results
Williams Lea Group Ltd
Company Structure
Current and Future Developments
Financial Results
MARKETING ACTIVITY
Exhibitions
Industry Journals

5. Strengths, Weaknesses, Opportunities and Threats
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS

6. Buying Behaviour
CUSTOMER PROFILE
Public-Sector Customers
Private-Sector Customers
Non-Profitmaking Organisations
Individuals
FACTORS INfluencing BUYING BEHAVIOUR
Price
Quality, Speed and Service

7. Current Issues
MARKET WOES
CORPORATE ACTIVITY
Acquisitions and Mergers
Management Buyouts
Closures
New Plants
STRIVING FOR GREATER EFFICIENCY
OVERSEAS CONCERNS

8. The Global Market
MARKET size and trends
Table 21: The Global Market for Printed and Electronic Media by Value (£bn and %), 2002-2006
MAJOR AND EMERGING MARKETS

9. Forecasts
INTRODUCTION
Economic Forecasts
Table 22: UK Government Economic Forecasts (000, % and million), 2006-2010
FORECASTS 2007 TO 2011
Table 23: The Forecast UK Printing Market by Value (£bn at msp), 2007-2011
Figure 2: The Forecast UK Printing Market by Value (£bn at msp), 2007-2011
FUTURE TRENDS
Corporate Activity
Automation and the Workforce
Technological Developments
A Changing Role
The Long-Term View

10. Company Profiles
The Astron Group Ltd
British Polythene Industries Plc
Chesapeake Uk Holdings Ltd
Communisis Plc
De La Rue Plc
The Polestar Group Plc
St Ives Plc
Williams Lea Group Ltd

11. Consumer Confidence
METHODOLOGY
KEY FINDINGS THIS QUARTER
THE WILLINGNESS TO BORROW
Confidence Slips Slightly
Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), November 2005-2006
Significantly More Adults Are Willing to Borrow
Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), November 2005-2006
SPENDING FROM SAVINGS
Little Change in Spending from Savings
Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), November 2005-2006
Saving Grows in Relative Importance
Table D: The Average Amounts Adults Are Confident Spending to Purchase Expensive Items (£ and %), November 2005-2006

12. Further Sources
Associations
Publications
Government Publications
Bisnode Sources