Light at the end of the financial tunnel for print companies
October 24, 2011 by Lyndon
A report in Print Week has confirmed that there has been a substantial drop in the number of printing companies experiencing what they call ‘significant’ difficulties with their finances in the penultimate quarter of 2011.
The report featured data from Red Flag, a division of Yorkshire-based administrators Begbies-Traynor and it stated that 28% less companies were having severe financial difficulties than this time last year. The total number was down to 570 companies from 795 in 2010.
This update comes as welcome news to the sector as many firms have been experiencing tough challenges due to the economic downturn as companies look to make cost savings on services like digital printing. From Chesterfield to Chelmsford, many print shops have faced difficulties and will continue to do so as the UK’s economy struggles to pull itself out of the current financial slump it is in. Many companies are moving away from using web based or large print firms and instead are using local print shops to ensure that maximum value is achieved when print runs become smaller.
The report from Red Flag also stated that the number of print firms that were considered to be in a critical financial state were down by 16% year on year.
The report covered printing companies in the UK and also featured those companies who are classed as packaging firms. The end of year results for the printing and packaging industry will help to paint a clearer picture of whether the UK print industry really is seeing a return to form.