Hanover Park, IL—Fujifilm North America Corporation, Graphic Systems Division, announced results from qualitative interviews with more than 1,100 customers. The results indicated an encouraging print service outlook for PSPs, despite the Covid-19 impact on commercial businesses.
Encouragingly, the highest number of responses (32%) projected a return to normal business conditions in the July/August 2020 time frame; moreover, 24% projected a return to normal business conditions in September/October 2020. Overall, a combined total of 72% of the customers expressed optimism about a return to normal business conditions by October, Fujifilm reported.
“The customer data points have provided us with quite a bit of insight into the market and the individual situations at each customer,” said Todd Zimmerman, division president, Fujifilm North America Corporation, Graphic Systems Division. “This has helped us with our production planning to be sure we have inventory available as markets recover. We are as anxious as our customers for a return to more normal business conditions.”
Encouraging Print Service Outlook
In regard to staffing, the highest number of respondents said staffing levels remained unchanged for 36% of respondents; however, some accounts reported decreases of between 1% and 26%.
In addition, some respondents reported retention of staff and utilization of material cutting and sewing capabilities to shift business priorities and produce personal protective equipment (PPE). What’s more, a significant number of customers (54%) reported applying for a Paycheck Protection Program (PPP)or operating loans. Expanding the variety of production capabilities was also key to business continuity plans for PSPs. The reported production volume impact from Covid-19 was significant; 83% of the respondents reporting declines in production volume up to 40% or more since the start of the pandemic. This statistic excludes businesses deemed essential during the shutdown, including news/print media, whose performance remained flat during this time.
However, across segments, despite lower order intake in April, there was a significant increase in demand for consumable products in May. This correlated closely with states reopening as well as an increased level of business activity nationwide.
Fujifilm North America Corporation, Graphic Systems Division, interviewed its print service provider customers from the commercial, sign and display, as well as packaging segments.
Since many operations serve more than one market, and do more than one type of printing, the interviews uncovered insights regarding each of the three market segments.
Furthermore, the interviews were conducted between April 15 and May 15, 2020 with Fujifilm Graphic Systems customers across the U.S. The company conducted the majority of the interviews with companies defined as commercial printers. They were followed by sign and display printers and packaging printers.