Page 12 - BOSS Today Issue 4

Industry watch

BUSINESS

TRENDS

A look at the industry’s recent experience – and what lies ahead

iven the fact that we capacity: and the total figure is for cautious optimism, from a some concerns remain that
have only recently and well above the five-year average. number of indicators. need to be addressed.
Gtentatively emerged Pressure remains on paper and Undoubtedly, the availability
from one of the most severe board prices, and indeed more Rising confidence of bank lending remains
recessions in living memory, increases are expected here. Advertising spend is always a a concern: and where it
the industry is actually in better Profitability has been hit good barometer of business is available, the cost can
shape than many pundits might by weaker selling prices, and confidence. The total UK sometimes be prohibitive. If the
have expected. there are still intense pressures adspend’s annual average industry is to invest in its future,
Business performance over on sales margins. Paper price change was negative since Q2 something needs to be done
the winter was not as bad as inflation has fallen, but this is of 2008; this is forecast to turn to free up this lending liquidity.
forecast. Many firms experienced likely to pick up again in the positive again for the first time Perhaps government initiatives
no further downturn, while near future. in Q3 of this year, with a further will bring pressure to bear on
some managed to improve. This is not a surprising gain in Q4. the banks in the months ahead.
It would be naive to assume scenario to have in place In addition, there are signs
that all our problems are over. following the torrid economic of a more benign environment. Raising the game
Many companies are still climate of the last two years. Domestic demand is picking In terms of environmental and
operating significantly under Nevertheless, there are reasons up. Exports are also performing sustainability credentials, the
better than expected. stationery and office supplies
Employment in the industry has sector is still too often seen
improved considerably from the as dragging its feet. Some
low point of mid-2009. of this is undoubtedly due
Another promising portent to misconceptions or even
is the growing number of firms misinformation, and we need
who are committed or plan to to set the record straight
increase their investment in wherever possible. But we
plant and machinery. also need to help companies
within the industry to raise their
Future challenges game, through environmental
As the recovery strengthens, it accreditations and other
is reasonable to suppose that assistance.
trading conditions will improve In the area of postal and
across the board. However, other public services, the BOSS

12 BOSS TODAY | June 2010