The UK printing industry ended the year on a high, just one that was not quite as high as forecasts three months earlier pointed to.
If the UK economy managed a 0.1% growth for the final quarter, disappointing many, the printing industry played its part according to the BPIF’s Printing Outlook report. While the final quarter delivered the strongest output and order performance for four years, not quite matching expectations, 2025 as a whole ended with healthy activity levels for those businesses participating in the survey.
There are a few clouds to threaten any blue skies ahead. Looming price increases are a concern as is the general state of the economy. Sappi has announced price increases for its papers and Eco3 has announced increases for its plates as two examples of the former.
However, many of this participating are expecting to invest this year. The survey asked businesses to nominate three areas for spending. Workflow automation, perhaps involving AI, came top rolled by digital printing, MIS/BIS applications and then finishing. In commentary, companies explained that they are exploring the use of robots on the shop floor and the use of AI in workflow, administration and prepress areas.
A net +35 figure for output in the final quarter (50% increasing output, 35% holding put steady and 12% experiencing a decline) will not carry over into the traditional slow first quarter, but expectations are that it will remain above the line.
There are barriers of course, one of which, wage pressure has become the top business concern for 60% of respondents who were invited to list their top five issues. Sales levels was nominated by 46%, pushing the perennial issue of competitor pricing into third place. These were well ahead of a collection that includes cyber security and an ageing workforce.
BPIF chief executive Charles Jarrold notes that companies have seen the cost of finance drop, which along with the unwinding of bounce back loans this year, may help with investment plans. This though is countered by “a slight extension to credit lines and a deceleration of levels of late payment and bad debt. However it also highlights that companies are being shifted on to longer payment terms – over 120 days for 8% of respondents. We have highlighted this issue to Government.”
BPIF economist Kyle Jardine says: “When it comes to the general state of the trade, the negative confidence outlook for Q1 is a concern. Printing and printed packaging companies have considerable pressures on them in the form of wage pressures, demand, competition, and other cost and administrative burdens – but many companies are still upbeat about their own performance potential and have made strong investment plans for the year ahead.”
