Graphics industry reports slight upturn
According to the results of the Viscom survey, profitability in the printing industry increased in the fourth quarter of 2005. The data collected in January and February 2006 also indicate optimistic expectations for the coming months.
According to the results of the Viscom survey, the earnings situation in the printing industry improved in the 4th quarter of 2005. The data collected in January and February 2006 also show optimistic expectations for the coming months. The economic survey for the graphic arts industry carried out in cooperation with KOF/ETH in the 4th quarter of 2005 covered a total of 92 companies with a total of 4566 employees. 33.2 percent of the responses evaluated reported an improved earnings situation, 51.2 percent an unchanged situation and only 15.6 percent a negative development compared to the previous quarter. Assessments of the competitive position were similarly positive. 90.6% of companies expect their position in the domestic market to remain unchanged, while only 1.8% saw a deterioration in their competitive position. The survey on expectations regarding the business situation in the printing sector shows positive expectations for the coming months. On the other hand, the prepress sector appears to have lost some momentum and is forecasting a slightly negative business trend for the coming months.
The expected trend for the industry as a whole remains positive, with only 2.4 percent of responses indicating a negative development in the first half of 2006. However, price pressure appears to have eased somewhat. In the 4th quarter, the continuing strong competitive pressure led to lower sales prices than in the previous quarter for almost 23% of companies, despite a considerable increase in purchase prices. However, the figure was significantly lower than in the previous quarter, which suggests that the price collapse has weakened. Capacity utilization also increased again in the 4th quarter, reaching a new high of 88.9%.
The expected trend for the industry as a whole remains positive, with only 2.4 percent of responses indicating a negative development in the first half of 2006. However, price pressure appears to have eased somewhat. In the 4th quarter, the continuing strong competitive pressure led to lower sales prices than in the previous quarter for almost 23% of companies, despite a considerable increase in purchase prices. However, the figure was significantly lower than in the previous quarter, which suggests that the price collapse has weakened. Capacity utilization also increased again in the 4th quarter, reaching a new high of 88.9%.
