The slow and steady improvement for output and order growth in the UK’s printing and printed packaging industry has continued in the second quarter of 2024 according to the BPIF’s Printing Outlook report for Q3 2024.

The forecast was for stronger growth to come through in Q2, but that expectation has been downgraded slightly and rolled over into Q3. However, there have now been three consecutive quarters of growth.

Wage pressures, linked to historically high inflation and the knock-on effect of maintaining wage differentials connected to the hike in national minimum wage levels has continued to have a significant impact on companies in the latest survey – as most concluded their pay reviews in Q2. A difficulty in finding suitably skilled labour has also contributed to the wage pressure.

Industry competitiveness is fierce – companies pricing below cost (or the perception that some are doing so) has become the top ranked business concern. However, controlling costs, researching new markets, and putting efforts into driving sales are all key target areas for companies that are striving to improve their profitability.

BPIF economist Kyle Jardine said: “It might be hard for some companies to identify with the slow and steady sentiment – it is important to acknowledge that some companies have reported a quiet spring and summer; whilst others have rarely been so busy. The aggregated data represents the path the industry is taking – and that is one of improved, but still slightly subdued growth, but waiting expectantly for a stronger pick-up to come.

“The economic backdrop has continued to improve – growth is positive, inflation has come down and we are waiting to see when interest rates will also track down. If the UK economy continues to improve – and the new Government can find a stable way to support business, then confidence will return more strongly.”

BPIF chief executive Charles Jarrold added: “Whilst the recent growth status of our industry has been subdued, it reflects the period immediately prior to the announcement of the General Election. While it’s very early days, there is a new level of energy and focus within government which I hope will feed through to economic confidence going forwards.  We’ll be looking out for that in our next survey.  Meanwhile, we do know that companies have come away from Drupa with clear intent to continue to invest, automate and innovate, and we will of course take every opportunity to discuss with the Labour government how to fully support that.

“As the leading industry trade association, we are closely engaged in identifying how we can support the sector as the new government announces its priorities, and as we have done previously with issues such as the increases to National Living Wage, gather information from the sector, and respond to calls for evidence and consultations as government designs legislation. That’s our opportunity to ensure legislation is business friendly and we’ll continue to engage fully and positively.”