Where we're heading
With the 2010 Widthwise survey of the UK and Ireland's wide-format print market just around the corner, Sophie Matthews-Paul talks to the sponsors of the last report about its findings and what it indicates about the ongoing direction and development of the sector.
The sponsors have different angles on the wide-format industry but their endgame is the same - wanting to attract customers. Growth within the wide-format sector appears to be a given, a fact noted by distributors and their channel partners who react to meet the necessary requirements - whether it be for kit, consumables or the right kind of trade event. Though Widthwise and other industry figures prophecy expansion and the opportunity within niche segments, some suppliers are sceptical that this will continue without there being some sort of change.
Neschen managing director Sarah Janes believes this perceived trend will be encouraged by new generations of machines that are kinder to the environment as engendered by user comments in the Widthwise report. "Additionally, at Neschen we feel that technology in wide-format printers will be dictated by the markets; growth will be individually different within those sectors," she comments.
Rudi Blackett, event director of Sign and Digital UK was encouraged by what he read in the latest Widthwise report. "There were certainly some interesting findings from the survey, the most encouraging being that wide-format is seen as a growth area in the current economic climate."
In investment terms, the Widthwise survey and subsequent round-table discussion both demonstrated the intention of printers of all sizes to purchase additional wide-format equipment kit. Nancy Janes, HP UK and Ireland country manager, is seeing this come to fruition. "We certainly see a trend for the installation of an increasing number of wide-format printers; I would even say that those machines best suited to the production of point-of-purchase/point-of-sale applications are seeing - and will continue to see - a healthy level of sales.
"Research has shown us that in-store promotion is more effective than price discounts. One report concluded that point-of-purchase/point-of-sale displays stimulate impulse purchases and, of all customers that came out of the stores with unplanned purchases, 24% referred to the influence of displays, 18% the influence of in-store demonstrations, and 17% to discounts."
Screen UK's managing director, Brian Filler, has his own views relating to trends and expansion. "There is no doubt at all that there is future growth in the wide-format sector. Customers are looking for new opportunities so I expect this market to grow steadily for the foreseeable future. In addition to working better and sharper and investing in new technology, print firms need and want to add new applications to their portfolio to stay ahead. That new equipment may be a digital sheet-fed printer or a wide format device, depending what fits with their business."
The numbers shown in existing data of emerging and niche markets are more difficult to extrapolate, with environmental concerns pitching against the current drive to keep production costs down. This combination of elements could, in itself, been seen as instrumental in directing trends and Blackett feels that Widthwise matched Sign & Digital UK's views on where the market is heading. "It is interesting to read that price has become a major headache for some," he states. "We can only hope that quality and service will come to the fore as key elements of the buying decision. I think this is actually already the case in certain areas, where customers are more aware of the need to maintain standards with their clients."
Dictating growth in new areas, and the drivers behind it, Blackett adds: "The environment is likely to come further up the agenda, but pricing can become an issue. At the point where environmental responsibility and price meet, that is when we expect there to be a big jump in take-up. It will also depend what legislation comes through in this area to force this to happen."
Filler deducts that the availability of lower priced printers will fuel the growth from companies that already have wide-format devices. "Printers will upgrade to the latest technologies to take advantage of better, higher-quality, faster and cheaper models coming on to the market. In particular we will see investment in UV to counter the limitations of current water-based and solvent-based machines."
Janes at HP is optimistic about niche trends. "The flexibility of emerging technologies allows much more creativity," she stresses. " The limitations on the types of applications that could be developed - due to factors such as VOCs - are being overcome so that latent applications, that's to say previously impossible applications, such as printing in enclosed spaces, can be developed. Examples are in lifts, or places where strict regulations apply, like in hospitals and restaurants."
Machines like the HP Designjet L65500 and L25500 printers will allow many new companies to enter the market in a cost-effective way, bringing fresh ideas and more competition according to Janes. "I believe that we will begin to see the rise of PSPs who build up expertise in a particular area and become known as specialists in that niche - for example in the production of vehicle wraps - but who also have the capability to produce more general print."
Filler acknowledges the desire to move away from more traditional production areas: "We expect to see a lot of growth in this technology to print onto and create new manufactured goods across a wide range of industries, not least interior d?cor," he conjectures. "Printing directly and quickly at high quality on to a range of substrates opens up huge potential for the technology in non-traditional print sectors. I predict that this will be an exciting time for large-format."
Neschen's Janes believes environmental concerns are really driven by the bigger companies, with HP being an obvious example of how these needs are being tackled with the introduction of more eco-friendly print solutions. "Neschen believes the desire for these products will continue to grow as our markets get stronger. Niche and specialist markets will increase as companies look to differentiate themselves from their competition."
Not surprisingly, Blackett identifies Sign and Digital UK as the UK's main showcase of emerging sectors. From the days when this event purely catered for the sign-maker it has evolved through computerised vinyl cutting, routing and engraving to become a market driver of wide-format digital print. "In keeping with market trends the 2010 show will focus on developing business through a wide range of products on display, specialist advice and new commercial opportunities," he says.
Whilst larger print companies have often been in the best position to invest with impunity, frugality has tended to be the crux for smaller businesses that only buy when considered be prudent and essential. Janes at HP sees this type of print operation as being one that will make significant moves in the direction of latex printing technologies. "In the lower end and entry level space there is a significant change coming," she claims. "I think we are seeing the first wave of print service providers who are thinking about replacing their old solvent machines with new technologies which have the potential to be future-proof, more environmentally responsible and ones which are cost effective. I believe that the HP latex machines offer them all of these things and more. In particular I expect the availability of the new L25500 printer will stimulate users to shift away from solvent."
This view is accentuated by Santiago Morera, vice president and general manager, Designjet large-format print solutions, imaging and printing group, HP. "Customers have been asking us for a versatile, cost-effective alternative to eco-solvent-based printing solutions for the production of a wider range of indoor and outdoor large-format applications, while reducing the impact of printing on the environment," he comments. "The expanded HP latex printing technology portfolio enables us to meet and exceed this demand for a variety of customers, allowing them to create a competitive advantage and seize new growth opportunities."
Technologies have to be balanced with logistics and availability of consumables and, as Neschen's Janes points out, customers are not wanting to commit to materials stock. "However, once they've secured a job, these people want the material straightaway and, furthermore, don't want to pay extra for the service. So, if you don't have the stock, they will contact every supplier until they find what they are looking for. Sometimes this doesn't work to their advantage - if the materials are in short supply, then a premium will be paid."
The Widthwise sponsors were united in their views on the environment, firming up comments made by participants that green issues will be easier to address when there is a clearer route to advice and ultimate legislation laid down. But everyone tends to be of the same opinion that, whilst the economy is tough, price remains a dominant factor and a compromise between supplier and end user will have to be reached to ensure that everyone can benefit where possible.
The world is always peppered with facts and figures; statisticians strive to bring accurate forecasts from everything from the weather to the strength of individual currencies. Boosting every analysis is the opinion of those working in the middle of the area being scrutinised; with analytical reports and their follows-up now being a major element of Image Reports's commitment to the digital display printing industry, Widthwise represents a true picture of where this sector is heading.
?
The 2010 Widthwise Survey of the UK and Ireland's wide-format print producers will take place this spring. To ensure that the findings best represent the state of the sector, and therefore provide you with the most accurate information, please complete the questionnaire that will be sent to you. A full report of the findings will be published in the summer and will be free to Image Reports readers.