Confidence in printing inks sector at all time low

The latest BCF Business Confidence Index, based on research with coatings and printing ink manufacturers in June 2020, shows that overall confidence has fallen to its lowest level since the survey began in 2012. 50% of printing ink companies are forecasting a decline in the second half of this year.

However, business confidence differed amongst sector groups. For example, decorative paints and woodcare are optimistic, with 67% expecting to see UK sales volumes higher in the second half of 2020 than in 2019. This reflects the growth in DIY sales experienced in lockdown with householders spending more time at home, which is expected to continue into the autumn. It’s a very different outlook for industrial coatings, where 95% of companies are predicting lower sales in the second half of 2020. Overall, smaller companies are more likely to be predicting lower sales (72%). The outlook will be heavily linked to how quickly the UK manufacturing and construction sectors recover. The majority of BCF members don’t expect a return to pre-Covid business conditions until at least the end of 2021. BCF Chief Executive Tom Bowtell said: “It’s clear from the latest confidence index that our members have been through a hugely challenging period, and are now faced with the possible implications of at best, a hard Brexit, likely to include a separate chemicals regulatory regime for the UK. We urge the UK Government to conclude the EU FTA talks with a deal, which includes the closest alignment of chemical regulations as possible.”