Graph showing product output across the print industry
Order output expectations are predicted to flatline despite the highest industry growth in two years, according to the BPIF.
In a report published by the organisation in November last year, it was predicted that there would be a boom in industry production leading to 2025.
All metrics appeared to follow this pattern except business confidence which slipped resulting in productions plateauing and confidence nosediving.
Comments responding to the Printing Outlook survey indicated several potential causes of this dip with the Government’s negative economic sentiment, the additional employment costs, and mounting regulations and administrative burdens on businesses being key reasons.
However, wage pressure has become the most serious business concern, with demand being held back, and competition remaining fierce leaving many companies unable to afford the investments they seek.
Kyle Jardine BPIF economist
Kyle Jardine, BPIF economist, said: “There was a slow but steady improvement throughout much of last year – so it is disappointing to see confidence evaporate at the start of this year.
“Wage pressures have become the most critical business concern, and recruitment intentions have been curtailed.
“Thankfully other costs, excluding energy, have been more stable.”
As 2025 rolls on investment is a key focus for companies as they look at AI and automation solutions to improve workflow, and efficiency and increase profits.
Charles Jarrold, BPIF chief executive, said: “Hopefully the dip in the forecast for Q1 is only a short-term blip, and it can be turned around.
“Companies are currently looking to adjust and adapt to Government decisions and searching for a way to invest so they can boost their productivity and increase profitability.
“If the Government can help stimulate business investment, then confidence could quickly turn positive once more.”
