The quarterly published study of the health of the industry found that output and orders both suffered declines in Q1 as high costs, higher prices, and subdued demand all combined to restrain production.
However, the outlook for Q2 is much more positive, after an easing of cost pressures was seen in the current quarter.
The survey found that one-third (33%) of printers managed to increase their output levels in the first quarter of 2023, and a further 29% were able to hold output steady. The remaining 38% experienced a decline in their output levels.
Output growth is forecast to increase for 43% of companies, 48% predict that they will be able to hold their output levels steady in Q2, while the remaining 9% are expecting output levels to fall.
Energy costs have remained the top ranked business concern for printing companies, having been the number one concern since April last year. This was selected by 68% of respondents, down from 75% in January, and 83% in October.
Competitor pricing levels, or rather the perception that some competitors are pricing below cost, was the second highest ranking concern, selected by 54% of respondents in April, the same proportion as in January.
The third ranking concern is now wage pressures, selected by 50% of companies. This is down slightly from 51% in January but has entered the top three ranked concerns primarily due to a significant drop-off in the proportion of companies selecting substrate costs (including paper, board, and plastics) as one of their top business concerns.
Substrate costs has now fallen outside the top five ranking concerns for the first time since January 2021.
Concern over wage pressures has been heightened by recent minimum wage increases, and the knock-on effect that has on wage structures and pay differentials throughout businesses.
Continued high levels of inflation, and the effect that has on pay review demands, has also added to wage pressure concerns.
BPIF chief executive Charles Jarrold said: “Lingering and extreme cost pressures, combined with economic uncertainty and political instability, had eroded earlier recoveries in confidence.
“But now, despite the current challenges, companies are forming a more positive mindset on the short-term outlook for the industry.
“Prospects for later in the year still depend upon the UK navigating a smooth path through a period of continued high energy costs, stubborn inflation, and economic instability.
“Whilst there is no shortage of pressures for companies to deal with, inflation is still expected to fall sharply as we progress further through 2023, and energy costs are expected to settle further.”
The report also found that industry capacity utilisation has continued to fall – in April capacity was noticeably lower than in January, although there was a slightly higher proportion of respondents operating at more than 70% capacity.
Meanwhile, for the first time the Printing Outlook survey has included a section of questions related to sustainability, the intention is to attempt to understand more about what actions companies are taking towards making sustainability improvements. It found that almost two-fifths (38%) of respondents said they are measuring their carbon emissions.
The survey was carried out during 3-20 April 2023 and received responses from 112 companies employing 8,063 people with a combined turnover of just over £1.3bn.
