Print industry confidence has plummeted in the first part of this year as ongoing wars and turmoil in the energy markets eliminated hopes for growth in the current three-month period.
The BPIF’s Printing Outlook survey finds printers blaming US president Trump’s actions in Iran for an “under par” start to 2026. Almost two-fifths of respondents reported that output levels have fallen and that the outlook for Q2 is “the most negative for over five years”, back to the heady days of Covid.
Unsurprisingly concern about international events is now the main cause for concern for the majority of printers, followed by concerns about paper costs (due to increasing energy prices) and the perennial behaviour of competitors in pricing below their costs.
Apart from paper, most have been able to keep a lid on costs in the quarter, including labour costs. This is not expected to continue as three fifths of printers will be reviewing pay rates in this quarter, the traditional time for printers to revise pay rates. Current increases are running at 3.3%.
The switch in sentiment has ended a run of three-quarters where confidence had risen as the UK economy had shown signs of growth. The survey says that the global uncertainty had “derailed an admittedly subdued but improving economic performance”.
However, there are brighter spots in the otherwise universal gloom. BPIF economist Kyle Jardine says: “It should be noted that not all the industry is suffering to the same degree, the industry is varied and many companies are still very well placed to grow their businesses in 2026. And, if a path out of the conflict in the Middle East can be found, then undoubtedly confidence will markedly improve once more.
“Beyond some level of inevitable price increases, companies are still seeking to keep a very tight rein on costs, and on improving productivity through targeted capital investment. In addition, companies have expressed excitement over niche sector opportunities and developing new products; harnessing AI and other technologies to improve workflow and enhance efficiency improvements – particularly cutting edge automation and robotics; and leading further environmental improvements.”
