RISING COSTS
Rising to the challenge Rising costs are impacting businesses at all levels of the print sector – but how are businesses reacting and what are they doing to mitigate the effects of it? By Dan Parton
naturally seeing increases in logistic and device charges across all areas making it an even more competitive market,” he says. “However, we are now seeing decisions made on the managed service or service wrap being offered to support the MFDs. These decisions are further underpinned by customers looking for devices with a longer shelf life rather than smaller machines needing regular maintenance. We are not seeing a reduction in requests from customers but a greater focus on maintenance, service and in house controls of the MFDs.” Rising costs means that businesses such as Espria have an even more important role to help customers save on things like their print costs, Clinton adds. “This is the case especially with our wider technical capabilities where we can support a business strategy or tactical project or solution. We can provide specific packages to support businesses with their digital transformation allowing for growth. We provide a consultative approach in supporting a customer to ensure our offering is at the best price but ultimately providing the right solution fit for the business.” While prices have been high for some months now, if these levels are sustained for a significant amount of time, it could lead to changes in how businesses run, which those in the print sector need to be alive to, Clinton adds. “Rising prices will ultimately see customers trying to automate business process to reduce overheads
At the beginning of 2022, it seemed that, as the COVID lockdowns were over, the print sector could get back to something approaching business as usual – or at least a new usual, given the changes in working patterns caused by the pandemic. But if businesses in the print channel were thinking they could get back to growth and bringing revenues back to 2019 levels – or beyond – thanks to some stable economic conditions, their hopes were dashed in March, when Russian troops invaded Ukraine. While the tanks were rolling in thousands of miles away, it set in motion events that would lead to energy prices spiking to previously unseen levels – for fuel, electricity and gas – and help to push inflation past 10%, a rate not seen for a generation, which has impacted on product and raw material costs, which were already increasing before the invasion. Add into the mix further uncertainty caused recently by a disastrous mini-budget by the short- lived Liz Truss administration, which have pushed up interest rates, and times have got tough for some businesses in the sector as domestic and business print customers look to tighten their belts. Market-wide effects Clinton Groome, COO at Espria, which provides a range of managed services and document solutions, says that the effects of rising costs are being seen throughout the market. “We are
Clinton Groome, CEO, Espria
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Rising prices will ultimately see customers trying to automate business process to reduce overheads and/or improve process to allow a business
to scale at a reduced cost
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