Printing firms write new path to profit

Equipment is on display at an international printing industry exhibition held last month in Guangzhou. The profit margin in Guangdong's printing industry has been squeezed as an economic slowdown cuts domestic and overseas demand and labor, paper and ink prices rise. China News Service

Printing businesses in Guangdong province have been investing in digital printing, one-stop service, industrial parks, electronic applications and environmental certification, to counter shrinking margins.

The profit margin in Guangdong's printing industry, the nation's largest, has been squeezed as an economic slowdown has cut domestic and overseas demand and labor, paper and ink prices rise, said Kong Huanji, executive vice chairman of the Guangdong Printing and Replicating Industrial Association.

National policies are also affecting the industry - for example, a ban imposed last October on the use of public funds for printed gifts, such as calendars and cards. And earlier this month, the government of Guangzhou, capital of Guangdong province, joined other cities in banning excessive packaging of products commonly given as gifts such as moon cakes, tea, liquor and cosmetics.

"There haven't been any bankruptcies in our calendar sub-association, but some of those companies have cut production and some are considering printing other products," Kong said. "We are also against excessive packaging. Reducing the amount of packaging makes design more important, if one is to have both attractive and environmentally friendly packaging." 

Softer demand and growing costs have driven some small printing companies out of business in the past two years, but large ones, defined as those with annual output of more than 20 million yuan ($3.2 million), are stable, although less profitable.

"I heard some only achieved a profit margin of 5 percent last year. Some, a very few, had double-digit margins. Eight years ago, you went into the business, you made a fortune."

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