To discuss the challenges facing our printing industry, followings are some
problems that we pointed out:
1. Over capacity and high competition
It can be said that printing business is one of the Thailand's most successful sectors. But, with very low net profit margins and high capital expenditure investment. In addition, in the future, trade sources report that the industry inevitably will be subject to the same pressure as previous of over-capacity and very high levels of worldwide competition. At present, the proportion of printing houses working below capacity is estimated around 90% of total. This is reflected by severe price competition, whereby additional costs are becoming increasingly difficult to pass on to the customer. This results in printers having to cut costs and strive for efficiency gains, which frequently involves making large, high risk capital investment into new equipment and machinery. The other view is to buy out the competitor that has an excellent customer base, skilled employees and manufacturing efficiencies, excellent maintained printing presses. This type of company will cost more than the norm.
2. Lacking expertise
Due to the printing industry situation as a supporter of other industries in the
world market, there is a need of other requirements from business adjustments and effective administration, comprising human resource management, clear business vision, competitiveness, cost advantage (per unit), Total Productive Maintenance (TPM) as well as cooperation among departments.
Besides, the entrepreneurs should develop their product quality to meet international standards such as ISO 9000, ISO 14000, ISO 12647 and SA 8000 as trade barrier tend to be more critical. Product differentiation and product-line expansion should also be created on Economy of Scope but not Economy of Scale, to serve a variety of customer needs in the near future. Since the Economy of Scale may not be practical enough in the future competition, especially when compared to those of China or Vietnam with significantly low operating costs.
3. Rapid change of Technology
Another crutial challenge is the rapid change of technology. This makes the entrepreneurs worry and less confidence to continue their business. Of course, they lack understanding of technology; while printers and operators fear to involve the new automatic machines. Digital technology, in corporate with In formation Technology will play an important role in production system. Thus, knowledge-based management is necessary, whereby the new modern printing business is established. Digitalization is one example. The fact is that the ones who own technology has power to win the others who has no technology. That is why in the past 2-3 years, some larger printing houses have already closed down or sold out and the smaller were 'going out of business'.
It is believed that the development of new printing technology will have the
most significant impact on the Thai printing industry. This is likely to improve efficiency, leading to greater productivity levels. Indeed, productivity has risen by approximately 15 % in real terms over the last ten years period to 2000. Packaging printing is the most effective; for example flexography and gravure. Example of the advancement of printing technology existing in the industry:
- Digital workflow system
- Information Integration system: CIP3/CIP4
- Digital asset management
- Standard data format: JDF / PDF
- Computer-To-Plate / Digital plates
- Computer-To-Press / Direct imaging technology / Digital press
- Hi-fi printing: 6-7 color printing / FM screen
- UV printing
- Automatic printing press
- Biodegradable plastics
Therefore, Thai printing industry's future solely depends on entrepreneurs whose current direction is considered vital. Should they succeed in adjusting themselves to different situations in time, the industry growth rate can eventually increase and become key industry in the 21st Century.
