BPIF: label firms suffer from lowest margins

The label sector is generating the lowest profit margins in the printing industry, according to a new report from the BPIF.

Its Printing for Profit 2007 report said the label sector's operating profit as a percentage of sales ratio was 6.7%, compared with 9.63% in the carton and flexible packaging sectors. The national average was 9.9%.

However, the carton and flexible packaging sectors performed better than the national average on productivity ratios, including sales per head and value of output per head.

The report analysed 17 different productivity and profitability ratios.

Although overall profitability has improved in the printing industry, it remains below levels experienced in the late 1990s.

BPIF information services manager Kyle Jardine said: "It seems consolidation in the printing industry is likely to continue."

Click here to purchase the report.
Source: packagingnews