Policy Support Meets Digital Shift: China’s Printing Industry Pursues New Growth

With the shadow of the 2008 global financial crisis gradually lifting, China’s economy is recovering at a modest pace. In this rebound phase, what development path should the printing sector choose? Where is the industry headed? Does it still qualify as a sunrise industry?

With CPI climbing, whether monetary policy will change direction has become one of the key issues at the Central Economic Work Conference. The sharp drop in the A-share market on the 24th was widely linked to news about monetary policy adjustments. Fan, a researcher at Hongyuan Securities Co., Ltd., said the consumer price index (CPI) is expected to turn positive by the end of the year, and an interest rate hike cycle may begin in the fourth quarter. Against this backdrop, how small and medium-sized printing enterprises can secure financing and survive the downturn has become the top concern for printing company managers.

Recently, the State Council-approved Outline of the Plan for the Cooperation and Development of the Tumen River Region in China was officially released. To counter the financial crisis, the National Development and Reform Commission issued the Outline of the Plan for Reform and Development of the Pearl River Delta Region (2008-2020). After that, the State Council approved seven plans in succession, including the Several Opinions on Supporting Fujian Province in Accelerating the Development of the West Coast Economic Zone of the Taiwan Strait, the Development Plan for the Guanzhong-Tianshui Economic Zone, the Development Plan for the Coastal Areas of Jiangsu, the Overall Development Plan for Hengqin, the Development Plan for the Liaoning Coastal Economic Belt, the Outline of the Plan for the Cooperation and Development of the Tumen River Region in China, and the Plan for Promoting the Rise of the Central Region. As the industry contracts, printing companies must respond proactively, pursue consolidation, and leverage existing national policies to advance their development.

The printing industry is now facing worrying conditions: the impact of the financial crisis, higher raw material prices, rising labor costs, weaker market purchasing power, and setbacks in export business. Given the severe macroeconomic situation, China has continued to roll out supportive policies to help enterprises cope. Among the policies implemented from 2009, nine directly benefit the printing industry. In addition, China still applied relatively low tariffs to imported printing equipment in 2009. These state measures have played a positive role in the development of printing.

Under the 11th Five-Year Plan, by the end of the plan period, the gross output value of China’s printing industry was expected to reach about RMB 449 billion, roughly 2.5% of GNP; its printing production and processing capacity will rank among the world’s leading positions. In 2010, the overall global market growth rate for printed products was 3%-4%, and competition and pressure on the printing industry continue to grow. By 2010, digital printing will have expanded from a 4% share to 14%, with inkjet technology accounting for half; by 2015, digital printing output value will reach EUR 124.8 billion; and by 2020, the overall growth rate for printed products is expected to remain between 3% and 4%.

With China’s economic development and its integration into the global economy, capital is entering China’s printing industry at a faster pace. By 2020, about half of all printed products will be produced on digital printing presses. Variable data printing will become the industry’s main driving force.

Over the next decade, with state support and the evidence of the figures above, China’s printing industry is expected to have promising development prospects.

Source: China Packaging Network

Reposted from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-362155.html