News

Printing costs increased across the board in the first quarter of 2008, according to the latest Directions survey by the British Printing Industries Federation (BPIF).

The research found that rates, rent, power and transport costs were all rising at the same time, putting pressure on printers' margins.

It found that 39% of printers' costs went on direct materials, 23% on production employees, 17% on other employees, 14% on other expenses and 6% on depreciation.

However, despite failing to recover the increase in materials costs in the final quarter of 2007, respondents reported an improvement in margins on sales.

Respondents who believed they could improve or maintain margins said they could do so through a combination of higher volumes – some gained from companies that had failed – working to reduce non-material costs and investment.

BPIF corporate affairs director Andrew Brown said: "It appears that notwithstanding the parlous state of the economy in general, printers expect both volumes and margins to be better this spring than they were in the same period last year."

The study also found that debtor days in the industry had risen to their highest level since the calculation was first made six years ago, averaging 60 days. Several respondents said that customers were insisting on longer terms or better prices.