Coface UK underwriter Ben Hussell said the print industry continued to be hampered by high levels of debt, overcapacity and suicidal price competition.

The continued pressure to buy machinery without the necessary volume to support investment was the industrys Achilles heel, he added.

However, he said Coface was not changing its insurance terms with the trade. It advises customers to improve their in-house collection procedures.

Coface also said the paper industry had been helped by a moderate fall in sterling, easing competition from overseas.

The number of company failures has fallen to its lowest level in two years, according to Experian. The business intelligence company said the number of printing, paper and packaging companies that failed in the third quarter fell by 47% compared to the same period last year to eight. It also said that total business failures fell by 12% to 4,238 in the period.

However, PrintWeeks Legal News in the same period listed 93 print-related companies in liquidation.