New year predictions: Ray Hillhouse, Plockmatic Group Offline Business Unit

Hillhouse: there is always potential for print to be more effective
Hillhouse: there is always potential for print to be more effective

Ray Hillhouse, VP of sales and marketing at Plockmatic Group Offline Business Unit, is expecting 2023 to be another challenging year for the industry, leading many printers to invest in more automated technology.

What do you feel were the main trends and key industry developments in 2022?
I guess the most important trend of 2022 was printing companies getting back to work and finding ways to produce as much as they could with the staff that they had left, post-Covid. We also saw a small recovery in exhibitions. Print shows were back, and meeting people face-to-face was on the agenda again. It was a delight to have a busy stand at The Print Show in the UK and then, not long after that, another busy show in the United States with Printing United. Meeting both printers and dealers showed, at least, that businesses were keen to review operations and to experiment with the benefits of automation, rather than hiring new staff, which, of course, many had laid off during the days of furlough.

How have the numerous economic, political, and supply chain challenges that have dominated 2022 affected you and your customers, and how have you had to react?
Recent problems with fuel pricing - including electricity, gas, petrol, and oil - made a significant dent into the resurgence of the printer post-Covid. Things have altered significantly, and we can also throw the increase in paper prices and the difficulty obtaining stock, as well as other consumables increasing in price, into that mix as well. This must have affected many print businesses significantly.

As an equipment manufacturer, one of our biggest challenges has been sourcing of components to keep production moving – and when you can get them, they are much more expensive. This, along with the rising cost of energy is pushing our cost of production up sharply which we have no option but to pass on in prices increases.

How have your relationships with customers and their expectations from you as a supplier changed in the past 12 months?
Customers are certainly keen to see the benefits of automation that Morgana and Plockmatic can offer on post-press equipment. Automation is seen as a far more affordable route to productivity, rather than hiring more people. People are expensive. The current rate of inflation suggests that staff will expect more money for doing the same job. Machines offering automation, when purchased at the right time, could easily provide the printer with a slick payback period – they don’t need inflation linked remuneration!

What do you expect to be the main trends, key industry developments, and biggest opportunities for printers in 2023?
Industry developments in 2023 are likely to be focused around automation and what machines can do for printers, rather than having to hire staff to do the work. It’s going to be an uphill battle, of course, in 2023. We don’t know what it’s going to offer, but it’s almost certainly going to be more expensive, whatever it is! Our equipment development is often driven by what the digital engine manufacturers create - for example, longer sheet production has meant that we, as manufacturers of post-press equipment, have needed to integrate features into our equipment to handle the increased size of prints that printers are able to produce. We will await with interest to see what the engine suppliers can develop.

How can suppliers better help printers navigate the challenges and seize the opportunities in 2023?
Suppliers will need to navigate carefully around currency fluctuations, employee costs, and power pricing, in order to assist the printer by way of purchase price. It will certainly be quite a challenge.

How can suppliers do more to promote the effectiveness of print to the broader business community?
Promoting the effectiveness of print is something that I’m sure all suppliers are keen to do to their customers. There is always potential for print to be more effective, and more integrated, into marketing campaigns and it’s important to recognise this and build on it, where we can.

Note: This prediction is taken from a special Briefing article in the new issue of Printweek featuring insights from industry suppliers, hence it does not follow the same question template as the other predictions.