Stephen Edwards, managing director of Culverlands Press, has recently invested £2m in a plant and machinery, but warned that fellow industry players may lack the confidence to make similar plans to grow their businesses in the economic downturn.

His comments come as the government seeks to help companies that are struggling to secure business insurance. The scheme is expected to be unveiled later this month.

According to reports in The Times, the scheme will be offered to medium-risk companies with the government underwriting half a potential payout, with a credit insurer covering the other half.

Edwards said: "Culverlands has invested in technology to make us as efficient as possible but others are finding it ever more difficult to finance spending plans.

"When you look at the costs of training, fitting out premises and buying kit at this time of uncertain credit, it is no surprise there are fewer and fewer new firms starting up in the print sector."

He added that investment in environmental accreditation and other standards needed to qualify for certain contracts would come under threat if credit was not secured.

Last month, PrintWeek reported that the government’s recapitalisation plan may even be damaging the return to normal trading conditions.

Culverlands Press has an annual turnover of £2m and employs 30 staff at its Winnall Valley Road plant. Its markets include publishers, local authorities and design agencies. It celebrates its 60th anniversary later this year.