New data from the British Coatings Federation’s business confidence index highlights a pessimistic outlook when it comes to printing inks.
Overall, during the first five months of 2021, UK paints and coatings sales were 24% higher than the same period in 2020, and business confidence is improving as the economy recovers according to the BCF’s latest survey results.
It is a different story for printing inks. Following a difficult 2020, with sales falling 16%, the outlook continues to be pessimistic, which is mainly due to the continued subdued demand for printed media. The latest survey highlights an expectation of poor results for printing inks during the rest of 2021.
BCF’s business confidence survey for Spring 2021, conducted in April and May this year, asked paint and printing ink manufacturers about their forecasts for 2021 compared with their results for 2020. In the latest survey, the results have improved and there has been a general shift upwards. The largest change is that a quarter of surveyed businesses are “very confident” about their performance. The improved result is not surprising given that in October 2020, the last survey period, the UK was approaching a tightening of restrictions over winter, whilst this latest survey was conducted when there was the prospect of further easing on the horizon.
The BCF said that despite the more upbeat mood in the sector in general, the coatings industry continues to face ongoing raw material availability challenges and price increases across all sectors, as well as the regulatory uncertainty and red tape caused by the post-Brexit Free Trade Agreement (FTA) and UK Reach. The federation is currently in dialogue with UK Government to try to create a more pragmatic and proportionate approach to regulating chemicals in the UK.