Page 13 - BOSS Today Issue 20

BOSS OUTLOOK

The new quarterly state of trade survey on

the o ce supplies & services industry.

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BOSS RESEARCH - JUNE 2013
Q1 IMPROVEMENT IN ORDERS - - Quarterly Offi ce Supplies & Services Industry Trends Survey June 2013 Public Sector Q4 2012 and 35% did in Q3.
Public Sector
TO REALISE A Q2 INCREASE
TO REALISE A Q2 INCREASE
EOS
70% in Q3 2012).
70% in Q3 2012).
The share of respondents that are selling to public sector clients
The share of respondents that are selling to public sector clients
has remained steady at 71% (compared to 69% in Q4 2012 and
has remained steady at 71% (compared to 69% in Q4 2012 and
Public sector - almost three-quarters working for the public sector
IN OUTPUT
Public sector - almost three-quarters working for the public sector
No
No
29%
29%
Respondents are increasingly reporting EOS purchase price
Order levels showing growth in Q1; positive outlook to continue in Q2.
increases. In Q1 2013 the vast majority (75%) claimed they had seen
price increases in the previous 12 months, whereas only 53% did in
Output volumes down but Q2 growth expected.
No
25%
Majority operating at 80-89% capacity. ■ O ce Supplies & Services Industry Trends Quarterly Forecasts recorded for Q3 2012. 71% Yes EOS - price increases in last 12 months 75% Yes
Employment levels have fallen but some pick-up forecasted.
Average prices increased in Q1 following decreases in the previous two quarters.
Staff costs and energy increased in Q1; distribution and other costs saw some decline.
Staff costs and energy increased in Q1; distribution and other costs saw some decline.
INCORPORATING:
Margins were squeezed in Q1 following some earlier improvements.
recorded for Q3 2012.
As the chart below shows, on average, public sector work accounted
As the chart below shows, on average, public sector work accounted
for 23% of Q1 2013 turnover amongst these companies, down
for 23% of Q1 2013 turnover amongst these companies, down
■ UK Headline Economic Data
from 28% in the previous quarter, but in line with the 23% average
from 28% in the previous quarter, but in line with the 23% average
Stock values continue to fall and stock turn continues to increase.
■ CBI Forecasts & Assessment
Public sector - value of work continues to decline
Public sector - average proportion of turnover supplied
Public sector - average proportion of turnover supplied
Mean
Mean
Product and process innovation is an investment priority.
■ Advertising Sector Data & Analysis from the Advertising
Upper quartile
Upper quartile
22.7
Those companies that are reporting EOS price increases are - on
4.7% in Q4 2012 and 6.1% in Q3.

Association / Warc Expenditure Report & IPA Bellwether Report
The level of bad debt appears to be in decline.
average - indicating that these were 8.7% in Q1 2013, compared to
Median
Median
UK ECONOmiC dAtA & fORECAStS 9 May 2013 2013* ■ Paper Sector Commentary & Price Index from PPL Research Ltd Lower quartile 0 0 10 10 17.0 20.0 22.7 35.0 Upper quartile Mean 8.7
EOS - average price increases in last 12 months
2014*
2014*
Public sector - value of work continues to decline
20.0

0.69
Lower quartile
0.69
2013*
0.5
0.5
17.0
17.0
2014*
2012
20
20
2.6
2.6
2013*
0.5 0.5 2013* 2014* % of turnover 30 30 40 Median 5.0 17.0
% of turnover
2.2
2.2
Apr 2013 3.1 3.1 2.6 2.6 Very few (6%) of the companies supplying the public sector Lower quartile
2012 2.9 recorded a change in the value of their public sector work in the last 4.0
Annual for year and latest available
2014*
UK Base rate (%) 3.2 2.8 2.4 2013* 2014* change. 0 5 10

Very few (6%) of the companies supplying the public sector
change.
2013*
2.0
2.0
Source: Bank of England
recorded a change in the value of their public sector work in the last
three months. This indicates a substantial difference to the picture
three months. This indicates a substantial difference to the picture
presented in Q4 2012, when 37% stated that there had been a
presented in Q4 2012, when 37% stated that there had been a
Q1 2013 1.0 1.0 The share of sales to the public sector is declining on average, % change 15 20
Annual for year and 12 month % change 0.3 2013* 1.18 for Q4 2012. Those respondents that are witnessing EOS price increases almost
RPI (%) 2012 0.3 2014* although this is now levelling off. Amongst those for whom there had
2014*
CPI (%)
1.18
2013*
The share of sales to the public sector is declining on average,
for Q4 2012.
1.20
Source: ONS May 2013 1.20 1.52 1.52 2013, although this is significantly lower than the 10.5% fall recorded customers. While Q1 2013 also saw the majority (96%) of respondents
although this is now levelling off. Amongst those for whom there had
May 2013
been a change, the average difference was a decline of 1.9% in Q1
been a change, the average difference was a decline of 1.9% in Q1
1.55
Annual for year and latest quarter
invariably pass them on to their customers to some extent. In Q3 and
1.18 1.55 pass increases on, it is clear from the chart below that companies are
GDP (%) 2012 1.53 62% only passed some of the increases on.
2013, although this is significantly lower than the 10.5% fall recorded
Q4 2012, 90% or more passed all the EOS price increases on to their
1.23
on previous quarter
Source: ONS 1.59
becoming more wary about applying these in full, since as many as
Exchange rate (€/£)
Annual for year and latest available month
Exchange rate ($/£)
Source: OANDA
* CBI forecasts
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