Today, in 2024, the sector comprises of around 100,000 companies that employ around 600,000 workers. Annually they produce a turnover of around €80 billion. The industry is dominated by family-owned, small and micro companies that operate mainly on domestic markets – 91% of European printers companies employ less than 10 people.
Trends and Challenges
Among the key trends and challenges manufacturing operations have been facing during the past few years are:
- Workforce – the challenge of finding skilled employees is intensified by the manufacturing workforce’s low mobility, partly due to its specialised and non-transferable skills. At the same time, opportunities arising from technological developments change the industry’s skill requirements, making the longer-term replacement of its ageing workforce and traditional skills necessary.
- Print demand - this continues to shift according to Smithers. Volumes in commercial print (advertising, promotional products, security, transactional mail, etc) are declining. The same trend is true for publications print (newspapers, magazines, directories and catalogues, etc), except for book printing which is experiencing growth. Enjoying significant growth is high-quality packaging and label work.
- Competition – low-cost manufacturing competitors, notably in Asia, are capable of fulfilling European consumer standards and are putting strong pressure on prices for printed products.
- Production costs - the increasing manufacturing costs of energy, raw materials, and labour in Europe have further decreased profit margins for those in the print industry.
- Environment - the EU printing sector operates under strict environmental requirements and undertakes ambitious voluntary initiatives to demonstrate its commitment to sustainability.
Here are five ways printing companies that have embraced digital printing manufacturing processes can respond to these challenges and smoothly navigate today's production landscape:
1. Focus on human-centricity
Embracing human centricity is key to advancement and thriving in the digital printing industry. By investing in employee development, fostering a supportive culture, and prioritizing work-life balance, printers can attract new employees and retain and empower staff for long-term loyalty. This can be especially helpful in an era of evolving workforce dynamics, where retaining top talent is paramount. Bridging the gap between an aging workforce and enticing younger generations as well as recruiting skilled professionals is arduous. Creating a collaborative and supportive atmosphere is vital.
This can be aided by:
- Harnessing industry 5.0 and its focus on leveraging technology to empower and support employees, streamline processes, ensure cost-effectiveness and foster creativity and innovation.
- Adopting new technologies such as artificial intelligence (AI), company workflows can be optimized, routine tasks automated, and valuable time freed up so employees can focus on high-value, creative endeavours.
- The strategic utilization of data analytics and automation to enable processes to be streamlined, and customer interactions personalized, to drive upselling and enhance customer satisfaction.
2. Evolve into a smart factory
Hyperflexible and self-adapting print environments, smart factories integrate modern manufacturing technologies in innovative ways, to deliver unprecedented levels of assistance, efficiency, flexibility, and connectivity across print production processes. Seamless integration of processes, information streams, and stakeholders, connects frontline workers, planners, and other stakeholders to unlock new opportunities for optimization and collaboration. This can be achieved through inline post-processing, latest press technology developments, intelligent quality control systems, digital printed embellishment technology, workflow automation solutions, real time manufacturing production analysis, business focused solutions and consultancy.
Also supporting intelligent and continuously evolving operation is:
- Big data, Artificial Intelligence and machine learning – These can unlock valuable insights and drive process automation. They can also enable visibility, predictability, and automation of operations and business processes, leading to enhanced efficiency and quality as well as improved workplace safety and reliability. This can include better resource and schedule planning, higher press utilization, and ultimately, more sustainable printing practices.
- Cloud computing - This offers a transformative platform that enables seamless connectivity and integration across the entire print production ecosystem. It facilitates the exchange of data, information, and insights in real-time, breaking down silos and fostering collaboration across diverse functions and departments. Whether it's optimizing print production processes, streamlining supply chain operations, or enhancing customer service, cloud computing solutions provide the backbone for interconnectedness and agility.
- IOT - The Internet of Things (IoT) or Industrial Internet of Things (IIoT) enables intelligent operation by interconnecting machines, computers, and people, creating a seamless network of communication and collaboration. IoT-enabled machines and systems can collect vast amounts of valuable data, which can be analyzed to optimize processes, reduce downtime, and improve overall operational performance. Printers can then embrace a proactive approach to maintenance and operations, identifying potential issues before they escalate and implement preventive measures to ensure uninterrupted production. This minimizes downtime and reduces costs. As a result, printers can achieve unprecedented levels of decision-making efficiency, productivity, and quality as well as precise colour management and consistency.
- System Integration - The seamless exchange of information and the interoperability of various manufacturing technologies is enabled by system integration. It brings together customized architectures, applications, hardware, software, and communication networks. It can improve operational efficiency through streamlined manufacturing processes and automated workflows, enhance data accessibility and accuracy, leading to better decision-making and insights, and increase agility and adaptability to meet evolving business needs and market demands. It can also empower seamless collaboration and communication across departments and functions, fostering innovation and creativity.
- Cybersecurity - One of the fastest growing critical priorities for printers, cybersecurity is essential for safeguarding digital assets, ensuring business continuity, and protecting sensitive information from unauthorized access, manipulation, or theft. Solutions like AccurioPro Secure, SSL (Secure Sockets Layer), and encryption safeguard data and prevent unauthorized access or tampering. They enable printers to implement proactive security measures, detect and respond to threats, and ensure compliance with industry regulations. They ensure security updates, such as those against computer-aided security vulnerabilities, are promptly available to minimize the risk of any backdoor threats.
3. Bridge virtual and real worlds
Augmented Reality (AR) seamlessly blends virtual elements with the real world by overlaying digital information, such as text, graphics, and audio, onto physical objects or environments in real-time. AR adds value to the user's interaction, whether it's for educational, entertainment, or practical purposes. One highly practical way is with remote visual support that has become an increasingly important aspect of modern business, especially in light of the COVID-19 pandemic. As more employees and customers work and interact remotely, the ability to provide effective visual support has become essential for companies of all sizes. Konica Minolta’s AireLink and VSS (Mobotix) enable immersive experiences and enhance user engagement. They deliver real-time information, graphics, and visualizations that augment the user's perception of the world around them to deliver first-level support that helps resolve issues quickly and efficiently.
4. Personalize experiences
Tailored printed experiences that truly connect with consumers on a personal level can be produced with cutting-edge technologies like Programmatic Printing or on-demand Variable Data Printing. Programmatic printing revolutionizes the way printed materials are produced and distributed by leveraging automation and data-driven decision-making to create personalized, targeted, and cost-effective print campaigns. By harnessing computer-generated data analytics, marketers can precisely target end-users, deliver rapid prototyping, customize printed content, support web-to-print capabilities, and optimize printing parameters, to maximize efficiency and effectiveness. This advancement not only reduces waste but also speeds up time to market, catching the eye of major brands as the market matures. Variable data, in particular, is becoming increasingly indispensable, especially in the label and packaging sector. Whether it's adding a customer's name to a product label, incorporating unique design elements, or generating AI-driven tailor-made content, personalized printing elevates the emotional factor and delivers a more impactful message to consumers. Central to this is processing and analyzing large volumes of data in real-time, to gain deeper insights into consumer behaviour, market trends, and operational performance. This enhanced visibility enables organizations to optimize processes, identify new opportunities, and mitigate risks more effectively.
5. Embrace environmental stewardship
Sustainability isn't just a goal; it's a journey - one that requires collaboration, innovation, and a shared commitment to creating positive advancement and reducing the environmental impact of end-use manufacturing. Commitment to environmental responsibility that moves beyond mitigation of climate damage to actively contributing to the betterment of the planet and society is a "Net Positive" approach. It aims to produce a positive impact through initiatives like the Clean Planet Program and toner de-inkability. Digital technologies also enable the printing of only what is necessary, where it is needed, reducing waste as well as the resources required for printing, storing, and disposing of unnecessary materials.
Challenging transformation
In recent years the European printing industry has undergone significant transformation due to various trends and challenges, including changing consumer trends, a move away from high volume mass production, increased commercial competition, and economic pressures. For European printing companies to thrive in this fast-moving landscape, they must evolve their customer-centric strategies, embrace innovation and enhance their sustainability. By moving away from traditional manufacturing and harnessing innovative printing technologies over the past few years, as well as diversifying their services and maintaining strong client relationships, today's digital printing specialists can position themselves to meet these challenges and target emerging opportunities in on-demand print.