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British label converters finish last in profitability

October 15, 2007

British label converters finish last in profitability
As in other countries, British label converters face strong competition, with overcapacity prevalent throughout the industry. However, it is still surprising to learn that they have the lowest profit margins among printers in the United Kingdom. That, at any rate, is one of the findings in a new report called Printing for Profit 2007. Published by the British Printing Industries Federation and sponsored by Canon, it analyzed 17 different productivity and profitability ratios before concluding that operating profit as a percentage of sales ratio for label converters was 6.7 percent. The carton and flexible packaging sectors achieved a ratio of 9.63 percent, close to the national average.
Proving that size is not everything, small general printers reported the highest operating profit with a ratio of 14.47 percent. According to Ben Millford, head of professional marketing, Canon UK, this sector has the highest uptake of digital printing: “…It clearly demonstrates the opportunity for printers to earn profitable revenue streams through the use of this technology.

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