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Top 500 report finds industry structural change is accelerating
PrintWeek's annual Top 500 report has revealed that the structural change of the UK print industry has not only begun, but is well advanced and being rapidly accelerated by the trying economic conditions.
The fact that the sector is going through its most dramatic period of structural change since the switch from letterpress to offset lithography is hardly a surprise. However, right now it’s not only advances in technology that are driving change, it’s the industry itself and the way that businesses operate that are also being forced to evolve rapidly.
"For the first time in its history, the ranking of the 500 largest print companies includes companies with sales of less than £500,000 - three to be precise. Putting that into the context of the 10-year industry performance indicators in the report, then speed of change is breathtaking," said PrintWeek editor Darryl Danielli.
Historically, the sector, in terms of company size, has been a typical pyramid: a handful of larger groups at the top spreading into a broad base of small companies making up the bulk of the industry at the bottom (around 85% of UK print companies employ fewer than 20 staff).
However, this structure is changing to an hourglass model. Prior to 2007, this change was largely expected to be driven by mergers and acquisitions (M&A) among the medium-sized firms, creating more larger-sized groups, which in theory would benefit from economies of scale and be able to compete more effectively in a commodity-style market. However, while M&A activity has played its part, largely through acquisitions out of administration (there are 72 M&A deals in this year’s Top 500 report, compared to 44 in 2008), what we’ve seen over the past 18 months is a recession-fuelled rapid acceleration of the rate of change.
"Not only is the Top 500 a peerless barometer of the UK print industry, it is also an invaluable tool that enables companies to benchmark themselves against their rivals in a whole raft of metrics - well beyond simple sales and profits - to key performance indicators such as sales per employee and return on capital employed," said Danielli.
"In a market that is changing as rapidly as ours, the Top 500 is essential reading for anyone in the print industry."
This year’s Top 500 supplement is only being mailed to subscribers of PrintWeek and the principals of the Top 500 companies. If you would like to buy a copy of the 68pp state-of-the-nation report, produced with the help of leading accountancy firm Grant Thornton, please email kathrine.bradley@haymarket.com or call 020 8267 4009. Each report costs £50. Alternatively, for a limited period, it can be obtained free-of-charge by subscribing to PrintWeek for a special-offer rate of £89. For more information on subscribing call 08451 557355 (quoting ref: Top 500).
Comments
The comments below do not necessarily reflect the views or opinions of printweek.com, Haymarket Media Group or its employees
Edna Bag - 27 November 2009
So Haymarket have finally come down to pay to veiw, whats next Rugby Union Internationals?;-)
'Not A Doctor' (NDCT) - 27 November 2009
Well not exactly, Edna - someone has to pay for the cost of researching and publishing the information.
Jon Fennell - 27 November 2009
Stupid Edna, what were you thinking did notice the use of ;-) though
'Not A Doctor' (NDCT) - 27 November 2009
[quote user="Jon Fennell"]did notice the use of ;-) though [/quote]
Oh - I thought she'd just let her capstan fall onto the keyboard
Gerald White - 27 November 2009
It would be good if the information was complete, how many companies are missing from the list, and how many have gone into admin in the list.
spud gun - 27 November 2009
The one statistic that shocks me is the fact 3 companies made it into the top 500 with only a £500.000 turnover. I am sure a few years ago you never got on the list unless you were hitting around £2 million. Also will be interesting to see how print management companies are fairing.
Chris Lavers - 28 November 2009
This all sounds very intriguing so far.
Let's do the math. 89 quid for 52 issues plus a free report worth 50 notes, delivered? I can get a free peep at the magazine when I go into the main office, but they don't let me go into the main office these days unless I'm strictly supervised \(and I don't blame them - I've got fast eyes \(a necessity in my line of work) that can also scan 'none-of-my-bloody-business' data like there's no tomorrow).
All right. This seems like a great deal to me. I'm in. Hopefully you can give me a couple more days until the new credit card arrives.
edna - you in?
Edna Bag - 28 November 2009
[quote user="spud gun"]
The one statistic that shocks me is the fact 3 companies made it into the top 500 with only a £500.000 turnover. I am sure a few years ago you never got on the list unless you were hitting around £2 million. Also will be interesting to see how print management companies are fairing.
[/quote]Its an interesting one though, it could be read a number of ways, not necessarliy bad either. Small companies can do somethings bigger ones can't, the can react to market faster, take less time to make a decision on small kit investment enabling them to diversify (so much cheap kit about its a case of what do you want to do), lower overheads needing less cash in to feed and make profit, more inclined to network and work in tandem with complimentary services, probably other small companies in the same position eager to earn the wage.
Rather see lots of small than a few big, from acorns, oaks will grow.
'Not A Doctor' (NDCT) - 28 November 2009
Possible explanation two:
Small companies can file limited information at Companies House - 'Total exemption' is often recorded in the information list. Most companies do not need to file inormation on turnover either, so there is a certain amount of guesswork needed, usually based on debtors.
Mick Hart - 28 November 2009
Possible explanation three:
Bigger companies only make up the top 5 percent of the industry (ish), so if an equal retraction is played out over the whole industry, eventually there will be less than 500 of them, but there will be smaller companies to fill the gap at the bottom of the list, this doesn't necessarily mean smaller companies are surviving any better. Might be less depressing to look at the top 250 instead.
Edna Bag - 28 November 2009
[quote user="Mick Hart"]
Possible explanation three:
Bigger companies only make up the top 5 percent of the industry (ish), so if an equal retraction is played out over the whole industry, eventually there will be less than 500 of them, but there will be smaller companies to fill the gap at the bottom of the list, this doesn't necessarily mean smaller companies are surviving any better. Might be less depressing to look at the top 250 instead.
[/quote]The other way of seeing it is how many larger companies have failed (Matt lists will show that), and the work has been broken down to new businesses or moved. If you take the point that its harder to scale down than grow up, with changes in business taken in the whole thing is a continuing evolution. We saw a similar effect in the last recession where meduium sized business dispappeared to be replaced with new startuphe difference this time is its hit larger groups far harder, this is down to volume policy. Last time round most SME's worked double days or days, this changed and many upped to 3 shifts. The 3rd shift was pocket money, this changed as the fight for volume kicked in. Hence the comment easier to grow up than down, the cost of downsizing is more painful than growing up. We should see the list as a return to balance and growth into a new era, not a death.
It also shows the big groups despite saying how great they were, had also got it wrong, there demise can't be a bad thing it keeps the balance. Where does this leave ViP, look who took it up and sang its praises, suddenly it doesn't look so bright.
'Not A Doctor' (NDCT) - 28 November 2009
Maybe they should have concentrated on the bigger picture?
'Not A Doctor' (NDCT) - 28 November 2009
***************************************
Pillans & Waddies placed into receivership
Philip Chadwick, PrintWeek, 20 July 2006
One of Scotland's biggest commercial printers, Pillans & Waddies, is the latest big name to hit trouble, with its directors forced to call in the receivers.
Mr Positive - 28 November 2009
Mr Positive - 28 November 2009
Moaner Lisa - 28 November 2009
Funny dat, metinkin' of a company which me heard spend tirteen tousand pound, hallegedly, on de VIP treatment it did. Was runnin' at 50% utilisation at de best, an' de hadvice was to improve hefficiency by reducin' de set up timin's by up to half an hour each job innit. Wickid! Spent days of workin' on de data, plans of where ev'rybody shoud be durin' de set-ups, and saved up to half an hour as hoped, video'd it, timed it, an' all sort of shenannegans an' all dat shiite. Went out for lunch every week, brilliant it was, and all patted demsel's on de backs for such a himportant job well done. So de VIP's dey went 'ome, an everyting it back to normal in a few days. Dey all missed de fact dat runnin 2 binders both on two shifts whilst only 50% utilated it not quite right, summat seriously to kak!
Ennyways up, 6 mont' later, all de staff on reductified renumerations, and a good 'andfull/armfull dey now signin' on evry week instead of doin' de workin', and de utilisation it still only fifty percentges las' I heard. Still dey knows best, why shoul' dey listen to de tinkin's an' hadvice of de paid staff, aint dat what de VIP it for? Still, so long as deys in de top 500 still, evryting hunky dory dats wot I's sayin.
Capacity an' hefficiency dey don' mean diddley squit if you aint sellin' nowt, dat for sure. S'gettin' col' at night on de park bench, now de night dey chillin', know whatta mean?
Edna Bag - 28 November 2009
VIP seems to work IF you have the work, if you don't whats the point, the other thing is it encouraged reduction in cost rates based on the savings it supposedly made, talk about double sided kick in the margins.
I don't think a top 500 based on profit v t/o would go down to well, yet it would show who the real printers are.
Mr Positive - 28 November 2009
THEHAND OFGOD - 28 November 2009
Jan van Klompers - 29 November 2009
Forgive naiivity, but isn't it about time Top 500 was EUROPEAN Top 500? Would look much nicer. Would be more relevant. We all trade with each other in EU family and cross-country ownerships are common.
Please don't mention the W*r.
Jon Fennell - 29 November 2009
Nice idea Jan but UK still uses stirling, exchange rates don't make for a true top 500, the playing field changes as we have seen over the last 18 months.
Stanley Dingtype - 29 November 2009
Agree with that Jon, cross continent comparisons would be meaningless, without taking into account some very complicated geographical demand demographics, localised market forces, labour and transport costs, and indeed local 'aspirations' re standard of living. We are comparing UK companies within the confines of, and in comparison with the UK economy here, cross continental comparisons need to be on a region by region basis to have any meaning - or a far more specific comparison by company size/type - way too complicated for a duck anyway.
The Mighty Wind - 29 November 2009
Not sure why ViP is getting a mention, it is not about business improvement but process improvement. It takes lean concepts and reengineers your processes to find improvements in order to work it needs a proper mindset throughout the company structures and a willingness to reopen minds and wounds. It is a tool, thus the user must deploy the tool appropriately and apply it to the right problems. Interestingly it was a project started by the Gov to bring better production techniques to the print industry, something sorely needed in the larger companies
Mark Snee - 29 November 2009
[quote user="The Mighty wind"]Not sure why ViP is getting a mention, it is not about business improvement but process improvement.[/quote]
You can build the finest hotel in the world but if you put it in the path of a tsunami you have wasted your money.
Edna Bag - 29 November 2009
VIP was mentioned as some of the big users are having a torrid time. The original thinking was that business who had become more efficient through VIP had somehow adopted a mindset which allowed a reduction in cost rate and perceived it as sustainable.
It maybe the two are not connected but it looks that way. It does seem strange that the main offenders, use VIP and claimed savings and efficiencies and then got into trouble. Polestar used efficiency claims as an excuse for low cost rates, it hardly looks like a successful outcome.
The Mighty Wind - 30 November 2009
[quote user="edna bag"]
VIP was mentioned as some of the big users are having a torrid time. The original thinking was that business who had become more efficient through VIP had somehow adopted a mindset which allowed a reduction in cost rate and perceived it as sustainable.
It maybe the two are not connected but it looks that way. It does seem strange that the main offenders, use VIP and claimed savings and efficiencies and then got into trouble. Polestar used efficiency claims as an excuse for low cost rates, it hardly looks like a successful outcome.
[/quote]
It is more likely that the companys having a torrid time have turned to lean manufacturing as a last straw or because it is in vogue. However its principles go back a long way and have been proven over time. Deming was also very aware of the dangers of taking too mathematical an approach to manufacturing. If you look at the companys you mentioned it may not be too difficult to work out way they failed or are failing and to question whether they were involved in lean manufacturing or just simply attempting to cut costs.....they are not the same thing, they have totally different mindsets for one thing.
The Mighty Wind - 30 November 2009
[quote user="Mark Snee"]
[quote user="The Mighty wind"]Not sure why ViP is getting a mention, it is not about business improvement but process improvement.[/quote]
You can build the finest hotel in the world but if you put it in the path of a tsunami you have wasted your money.
[/quote]
all that you can do is build with the strongest foundations and keep ensuring the fabric is sound over time.......this does not totally protect the building but gives it the best chance possible
Moaner Lisa - 30 November 2009
I's agree'n wiv dat Mister Wind, jus' sayin' dat if you improve production efficiency to a large degree, you have at the same time to either capitalise on the increased efficiency by filling the extra capacity gained with new work, or you cut back on capacity, to improve utilisation, to achieve the same result, albeit with lower throughput overall. To tackle operating efficiency without increasing throughput (due to lack of demand) is pointless surely? If you are going to take these measures in order to lower selling price, you have to be damn sure you can win the extra work and achieve an increase in overall turnover as a result, otherwise you have the cost of the improvement, but no revenue gain to pay for it, which I's tinkin' is what it is being suggested mighta probly happenned in some cases. I'd be tinkin' de ViP best suited to de busy an' growin' hindustry more than one what's reticulatin' like de water on de black stuff innit. Dat's what I's sayin'.
The Mighty Wind - 30 November 2009
[quote user="Moaner Elizabeth"]
I's agree'n wiv dat Mister Wind, jus' sayin' dat if you improve production efficiency to a large degree, you have at the same time to either capitalise on the increased efficiency by filling the extra capacity gained with new work, or you cut back on capacity, to improve utilisation, to achieve the same result, albeit with lower throughput overall. To tackle operating efficiency without increasing throughput (due to lack of demand) is pointless surely? If you are going to take these measures in order to lower selling price, you have to be damn sure you can win the extra work and achieve an increase in overall turnover as a result, otherwise you have the cost of the improvement, but no revenue gain to pay for it, which I's tinkin' is what it is being suggested mighta probly happenned in some cases. I'd be tinkin' de ViP best suited to de busy an' growin' hindustry more than one what's reticulatin' like de water on de black stuff innit. Dat's what I's sayin'.
[/quote]
It does not always result in extra capacity sometimes it just improves communication or puts in a stronger process method and eliminates mistakes or improves quality. Is it pointless to tackle operating efficiency without increasing throughput? no it is not because it frees up space for selling that capacity and lowers the cost of production, thus increasing your margin. A lot of printers are actually busy but with low margin work so there is an attraction to lean if it is sold on the basis of cutting costs, however if this is your only attraction to it you will end up bogged down in paper work, will not have changed anything in the long term and only made spreadsheet savings and in reality may well have added to your costs. I am not suggesting lean techniques will "save" a company and I hope no one is suggesting that any company has gone bust by attempting to introduce lean techniques. Many companys are using lean methods [eclipse are a heavy user of ViP] either through consultants or through home grown methods, but it is important to remember that it should be used for process improvement and not for generating a lot of stats for meetings
Print Group - 30 November 2009
Wouldn't it be better to have a Top 500 ranking based on a series of scores to rank printers (or print management companies) on a range of performance items (payment terms/profitability/environmental certs/etc) so that it does take the focus away from just the big print management companies and could actually encourage printers to pay on time (!) plus genuinely promote eco-friendliness whilst helping identify the serial slow-payers so that they can be avoided. They could even have a penalty system so that CCJ's/etc deduct scores and that could even then highlight the phoenix's which may otherwise pop up in prime spots on the listing to be used when marketing the company and giving it the look of an endorsement to the uninformed.
I'm sure that the combined might of the PW community minds could come up with a comprehensive list of indicators (undoubtedly including a number of unpublishable ones!).
Mark Snee - 30 November 2009
[quote user="The Mighty wind"]all that you can do is build with the strongest foundations and keep ensuring the fabric is sound over time.......this does not totally protect the building but gives it the best chance possible
[/quote]
The alternative is that you assess whether you want the hotel at that location at all. My guess is that the more astute hotel owners moved their hotels to a better location before the tsunami arrived.
The Mighty Wind - 30 November 2009
[quote user="Mark Snee"]
[quote user="The Mighty wind"]all that you can do is build with the strongest foundations and keep ensuring the fabric is sound over time.......this does not totally protect the building but gives it the best chance possible
[/quote]
The alternative is that you assess whether you want the hotel at that location at all. My guess is that the more astute hotel owners moved their hotels to a better location before the tsunami arrived.
[/quote]
gee this is getting complicated........but as this premise [no pun intended] is based on the ViP visiting and unveiling record breaking equations on unsuspecting individuals.......the hotel and location have already been chosen and they have the postcode for the sat nav......if a tsunami then arrives you prepack into a lido
Moaner Lisa - 30 November 2009
gee this is getting complicated........
most certainly is, ways over my 'ead. De only bit I hunderstandin' is de pre-packin of de d1ldo, sometin' wot I allus makes sure I does, whatever de weather it like!
Edna Bag - 30 November 2009
Not bin paying much attention for a while but the mention of inflatable dongles caught me trusty eye, now when I left this we wuz on about Vision in Pubs, not pubes so where 'as this lido, d1ldo bit come from. How does this hav' owt to the top 500 and Vista is Pants? TMW and Dalek how did hotels and tsumami creep into it and who mentioned sat navs. I sicily 'ope our Aussie compats don't start reading on all this otherwise they might think they got the best deal.
Moaner don't worry too much on the weather but hope 'ope that bench you call 'ome is well isolated, its gonna get cold.
Moaner Lisa - 01 December 2009
Tank' for de torts Edna, it a bit cold, but I be hokay for de time bein', me still got bout a turd of de 20 litre IPA left wot I borrowed from me las' job, an' a coupla sips evr'y night it actin' like de hantifeeeze. Me also got a plentiful supply of de U2 batteries and dat doin' plenty to keep de 'old girl' warm at night few know whatta talkin' bout, whilst I's 'idden in me cardboard box an' bubblywrap. Mus' worry some of de night time passers-by though, mus' be like walkin' by me old printin' press wot's doin scratch an' sniff work what wiv all de noises an' de smells of de press room an' all. Likin' de soun' of hinfalatable donglies by de way, it soundin like dat coul' be de answer when me batteries runnin' out. Mo.
Lofty Lofthouse - 01 December 2009
zzzzzzzzzzzzzzzzzzzzzzzz.....just do a top 100 then the "shape" will be back to a pyramid not an hour glass!
Moaner Lisa - 01 December 2009
zzzzzzzzzzzzzzzzzzzzzz.... metinkin' someone already tort of summat similaristical to dat already. Dis particular pyramid it rapidly turnin' back into de flat an' hempty desert is what I's also tinkin' as well.
'Not A Doctor' (NDCT) - 01 December 2009
Moaner - is that a camel I can see in the distance or just someone with the hump?
Moaner Lisa - 01 December 2009
Dromedary, camel it got 2 humps, me jus' de one ('less I's sunbathin' an' I 'int)
Edna Bag - 01 December 2009
All this negativity gives me the HUMP, anyone would think the country has been to the dogs come back and about to be executed for being viscous.
All we have to do is be positive, reinstate import tax and refuse to deal with the chinese, unless we get free noodles and unlimited sesame prawn toast and prawn crackers and laundry. We should bring back a Buy Blitish slogan and sell Bruce Forsythe to the asian market as a national treasure.
Next we ban anyone who likes Starbucks and Costa, they obviously have had a degree in being brainwashed and pretentious as they pay for the bad service and inordinate amount of life waiting for an expensive drink. I have decided the people using the places have singularly destroyed this country and obviously want to live elsewhere, so let 'em.
We put the price of booze up on supermarkets and drop the price in the pubs, community life needs a kick start, supermarkets can also pay for free booze buses FOC from the extra dosh they capture in booze sales, these should include runs to village pubs. Lets get community moving again and offload the I'm all rights.
.............................Sorry, need me Capstans, nickyteen must be falling gone all unstable, don't wanna set the Dalek off on dark thoughts............
Print Group - 01 December 2009
[quote user="edna bag"]
about to be executed for being viscous.
[/quote]
Wow - can you really get people executed for being thick & sticky? Bring forth some extra gallows - I know where to find plenty like that!
Edna Bag - 01 December 2009
Your damn right you can PG, slimy as well as slick, maybe we need another way.
Print Group - 01 December 2009
Just as long as the new way is not:
a) painless
b) quick
Then there's a few that it'd seem quite appropriate for!
Edna Bag - 01 December 2009
OK how about internment and forced watching and listening to Colin Thompson, Graham Norton and Janet Street Porter, until death.
Moaner Lisa - 01 December 2009
Edna, metinkin' you onto summat well appnin' here girl. Bit unfair on poor old Mister Forsyth, sellin' im off, I'd jus' give 'im away personal like, but whaddeva. Reinstate import tax, dat good, ban de chinese himports, good, but to balance it out a bit subsidise chinese food outlets an' corner shops, jus' to be a bit fair, an' de same it go for de hindians, wiv' subsidised tandoori, and of course beer, 'cos de food it better after de regulation ten pints (so I is 'earin), an' it 'mesh' well wiv your idea of boostin' de localised heconomicals. We really ought to capitalisate on our high quality worl' class political skills an' all, an' hexport de fliffin' lot of 'em, along wiv de merchant bankers an' financial hexperts. Would reduce the overcrowdin', national debt, an' de bullshite in one easy go, an wivout hupsettin de PC hequality protestationalists much neiver. Not so sure about Starbucks an' Costa meself, cos de halternative is de Nescafe Hinstant, an' dat's Swiss, jus' as bad really. Praps better to do de promotin of de Hot Chocolate, cos dat Cadbury, an' dey's still (just) British so dat alreet. Hennywaysup dat enuff of de hecomomicals lesson for today. Dis structural change needin' to get it brakes fixed dats wot I's sayin.
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