SA's printing industry, which was hit hard by the plunge in newspaper and magazine sales as readers switched to screens, is now benefiting from the digital revolution — online shopping has boosted demand for labels and packaging.
Some printing equipment has also found new applications in making electrical components such as circuit boards.
The printing industry is traditionally associated with newspapers, books and magazines, and the companies involved also make products such as voting material, advertising brochures and packaging labels.
In recent years, some newspapers and magazines have closed as consumers switched to reading online and advertisers abandoned print media. The pandemic hastened the decline for many titles.
But according to Printing SA, the industry association representing printing, packaging, signage and visual communications, the sector is finding growth opportunities elsewhere as demand for packaging associated with e-commerce soars. Again, it was the pandemic that helped to boost online retail.
“The tightened economy has also influenced consumers' purchasing habits; so, whilst there may be a decline in luxury spend, consumers are focused on spending on their basic needs such as food, which has seen an increase in consumption of food packaging,” the association said.
The future of the printed electronics market looks promising with opportunities in the health care, automotive and transportation, aerospace and defence, construction, retail and packaging industries and more
— Printing SA
JSE-listed paper group Sappi said in its three months to December financial results released on Wednesday that markets for packaging and speciality papers continue to be robust across all regions, with sales volumes up 26% year on year driven by strong demand for containerboard, self-adhesives and consumer packaging.
Besides labels for packages, Printing SA said digital print, outdoor signage, billboard advertising and vehicle wraps — vinyl decals that allow motorists to change the appearance of their cars — are also doing well.
Packaging incorporating security features is in demand, because this makes it harder for counterfeiters to sell cheap knock-offs, and textile and 3D printing are growth areas locally and globally.
Printed electronics — in which existing printing technology is matched with new materials to produce various kinds of items ranging from semiconductors to skin patches — is an emerging technology that appears to have strong growth potential.
“The future of the printed electronics market looks promising with opportunities in the health care, automotive and transportation, aerospace and defence, construction, retail and packaging industries and more,” Printing SA said.
“The growth is attributed to the Internet of Things and the cost advantage provided by printed electronics using advanced technologies.”
The collapse in the print media market forced printing companies to quickly adapt to changing circumstances. Printing SA said most of its members offer a combination of printing processes so they can be a one-stop shop for their customers.
In the past, offset printing was widely used to churn out newspapers, magazines, postcards, flyers, brochures and catalogues. Now digital printing processes that can print on paper, glass, canvas, metal, fabric, marble and plastic dominate the industry. The technology is cost-effective for short runs and enables quick turnaround times.
Companies such as Novus had to tweak their printing presses to accommodate the decline in volumes for printed materials. CEO Neil Birch said recently that print-run volumes for novels and similar books had been redefined by the switch to devices such as Kindles.
“The mix of digital means that you can play out a very short print run. Now we can print five [books] with modern tech, but before it was unthinkable.”
Printing SA has seen its membership decline as companies were forced to the wall by Covid lockdowns, lack of orders and supply chain disruptions; some were unable to adapt to the challenges of the digital revolution.
It’s been horrible of late, overall commodity shortages and the increasing cost of shipping have really been devastating
— Novus CEO Neil Birch
The violence that erupted in KwaZulu-Natal and parts of Gauteng in July last year also took a toll: a major manufacturer of flexible packaging in KwaZulu-Natal closed its doors after its plant was burnt down.
In addition, companies with label contracts for alcoholic beverages suffered due to the lockdown bans on liquor sales.
Adding to the industry's woes are global shortages of pulp and paper and increased costs both for these raw materials and for shipping, said Printing SA. Demand for paper is outstripping supply, leading to soaring prices.
Novus, which imports most of its paper, warned that global shortages of pulp and paper, along with international logistics challenges, could affect trading in the second half of its current financial year.
Birch said: “It’s been horrible of late, overall commodity shortages and the increasing cost of shipping have really been devastating.” He said the company is facing price increases but is having “transparent discussions” with clients over what this means for them.
Printing SA said the resumption of air travel could mean the revival of in-flight magazines and larger print runs. With the resumption of business, automotive and lifestyle supplements have reappeared, and the number of printed pages are steadily increasing.
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