Tag: growth

By Smithers Pira for The Gapp News

The latest research from Smithers Pira investigates what the future holds for digital and analogue print equipment market over the next five years. In 2018, the global market for new print equipment sales had a value of $19.77 billion. This market grew (at constant prices) from $19.91 billion in 2013 to $20.10 billion in 2017 before falling back to its 2018 level; equivalent to a -0.3 per cent year-on-year decline for the 2013-2018 period. The annual print equipment market is forecast to show minimal growth in value at 0.1 per cent, a compound annual growth rate (CAGR) for 2018 to 2023, to reach $19.92 billion in its final year.

At the same time, the market will see a transformation, with real demand growth confined to inkjet sales and certain formats of sheetfed offset litho. This is happening in response to profound and ongoing change in demand for print, and equipment manufacturers are compelled innovate to secure sales in an increasingly competitive market. These trends and their impact on future demand for over 25 types of commercial printer are tracked and quantified in the recent Smithers report.

Market evolution
The printing industry is undergoing a series of major changes. Sales of newspapers and magazines, a traditional and important segment for print equipment, have fallen dramatically in many parts of the world in face of 24-hour digital access to news and information via computers, tablets and smartphones.

Rising demand for packaged goods means that packaging and label printing are two of the few growth sectors in print demand. Original equipment manufacturers (OEMs) are looking to capitalise this with new dedicated press formats – especially in inkjet – and extending capabilities on existing platforms to handle packaging substrates. Within packaging, and other end-use applications, print buyers are demanding shorter average print runs, and ever quicker delivery times.

OEMs of both analogue and digital print equipment are reacting to the changing market dynamics with improvements to their presses. For analogue processes, this has largely been to make them more agile and efficient to deal with a larger number of print jobs of shorter runs per day. For digital, developments have been focused on improving print quality to match analogue processes, and on increasing print line speeds.

Analogue
Faced with reductions in average print runs of up to 50 per cent in some cases, analogue printers are demanding intensive technological developments. High levels of automation at all stages of the print process have allowed print service providers (PSPs) to make major reductions in makeready times and give them greater control and monitoring of the print run to improve quality standards. Cumulatively these improvements have enhanced the flexibility of the print equipment to make PSPs to run a larger number of shorter print runs during a working shift cost-effectively.

The widespread use of computer-to-plate (CTP) processes has been a key factor in reducing prepress times. The process has been used for offset litho for more than 15 years, and it is rapidly gaining ground in flexo prepress. CTP also provides improved reproduction quality so that PSPs can offer better service to customers. The incorporation of digital workflow systems and the use of on-line spectrophotometers and pattern recognitions systems to constantly monitor quality during the print run have improved the efficiency of print lines and reduced running costs, as well as reducing reject rates and generation of waste.

Offset litho
The analogue process that has seen the biggest number of improvements in recent years is sheetfed offset litho. Innovations by the leading Western and Japanese manufacturers have transformed the technology, to a great extent.

Besides the improvements detailed above, print line run speeds have been increased and processes been optimised for short print runs. Computer-integrated manufacture systems are being used to preset the presses with files from prepress, and with simultaneous plate changing and washing cycles make-ready times can be reduced to under 10 minutes – less than three minutes for the same substrate and format. Sheedfed offset litho printers are increasingly carrying out simultaneous printing of groups of jobs by setting them up side-by-side across a large-format press.

Offset litho is also seeing a boost from orders received via the online web-to-print sector. The segment is also benefitting from a new demand for higher productivity very-large format (VLF) litho presses. As new installations of B1-B3 presses decline, Smithers’s analysis tracks how annual sales of VLF machines will more than double across 2017-2023.

Flexo
In flexography, an important additional development has been in the use of sleeves to simplify the process of mounting the printing plates onto the flexo press, reducing make-ready times. This has eliminated the need for printers to prepare and store the multiple, non-interchangeable cylinders required for several jobs, reducing the costs for cylinders and for their storage.

The segment is also innovating through cooperation with inkjet press and printhead developers. This is seeing a new generation of hybrid presses that combine flexo’s efficiency for big solid area colours with the variable data potential of inkjet, integrated with existing flexo finishing lines.

Gravure
Manufacturers of gravure presses have introduced automated trolley changeover processes for cylinders and inking systems on the latest generation of equipment, making them more flexible and enabling quicker turnaround times between jobs.

Digital
Technology developments of the two digital print techniques, electrophotography (toner) and inkjet, have been taking place for many years. Naturally suited to short-run commissions, these are enabling these processes to be used for a wider range of commercial and industrial printing applications. The main focus in digital printing in 2019 is on:

• Improving print quality to more closely match the best of the analogue processes
• Increasing print speeds to extend use to longer print runs.

Electrophotography
Electrophotography will continue to see improvements in colour printing quality to match, or exceed, that achievable by offset printing. The potential for increasing the speed of toner machines is limited however by the multi-stage print technique. This will see sales of new electrophotography equipment fall across the Smithers forecast period as genuine growth concentrates on inkjet. In response many toner OEMs are looking to diversify into this alternative digital process.

Inkjet
Across the print industry R&D spending is highest in inkjet. This investment is being witnesses in improvements in quality and reliability of the equipment, reducing printers’ total costs. New inkjet presses can print at faster speeds to give better productivity, and new workflow solutions and more automation of material handling is improving productivity of lower speed presses.

New sales of inkjet press are being driven by the introduction of high-performance inkjet machines, in packaging with machines directly targeted at corrugated, folding cartons, flexible and rigid plastics, and even metal print. As well as labels, there is a developing application in cost-effective production of short to medium runs of mono and full-colour books, often via e-commerce ordering.

A major trend is for digital print lines to integrate with postpress finishing systems, to take full advantage of the automated operation of the print process. This is more prevalent with inkjet lines as integrated finishing limits flexibility of a toner line. As the number of digital print lines grows at the expense of analogue printing, the use of in-line finishing for those end-use applications with good workflow streams will reduce the number of near/off-line postpress operations in print shops.

Is Telkom dying?

According to a recent MyBroadband article, Telkom is rapidly losing ADSL and fixed-line subscribers across South Africa.

The company once had aspirations to be the leading fixed-broadband provider in the country, but current figures show this is not the case:

  • Telkom’s fixed-line subscribers stand at 2 267 000, the lowest since 1994
  • Telkom’s ADSL, VDSL, and fibre subscribers declined from 981 176 to 847 650 in the last year
  • There has been a 13.6% decline in fixed-broadband subscribers
  • Independent fibre network operators (FNOs) are rolling out fibre networks faster than Telkom can
  • Companies like Vumatel offer a wide range of pricing – from free for a 4Mbps line to R1,299 for a 1Gbps connection 
  • Vumatel’s partnership model rapidly gained momentum in South Africa, putting Telkom on the back foot
  • The rush to get fibre rolled out across SA lead to a land-grab and pricing cuts, leaving Telkom on the sidelines
  • Telkom is too big and too slow to respond quickly
  • Today Telkom’s fibre-to-the-home market share is below 40%
  • Telkom has significantly cut its fibre-to-the-home investment over the last year, decreasing the capital expenditure in its fibre network from R2.112 billion in its 2017/2018 financial year, to R1.216 billion in its 2018/2019 financial year

SA’s GDP nosedives

The South African economy has suffered its worst quarterly GDP performance in 10 years, dropping by 3.2%.

The downturn has been caused by, among others:

– The failure of state-owned enterprises, such as Eskom and SAA
– A slump in manufacturing
– A major downturn in secondary industries, especially construction
– Year-on-year GDP growth of 0% – meaning the economy is stagnating
– Agriculture lost 13% of its output in the first three months of the year
– A decline in household spending: despite spending more on alcohol, food and restaurants, consumers have avoided buying new clothes (down 12.7%) and skimped on transport costs (down 3.1%)

By Stephanie Butzer for The Denver Channel

Amazon will expand its Denver Tech Hub, creating 400 new high-tech jobs in fields like software and hardware engineering, cloud computing and advertising, the company announced Tuesday morning.

Amazon plans to open a new office in downtown Denver to accommodate the new positions. This comes in the wake of the company opening a new office in Boulder in the fall of 2018.

Colorado Gov. Jared Polis said he’s excited the company chose to add 400 new jobs here.

“We have a terrific workforce that continues to attract the ideas and businesses that thrive in a knowledge-based economy and we are a great place to do business,” he said. “Amazon’s current Colorado presence spans from distribution centers to robotics, corporate and operations. It’s wonderful to see their continued investment in our community.”

The new office, which will span 98,000 square feet, will be located in Invesco’s 1515 Wynkoop LEED Platinum building in Denver’s LoDo neighborhood.

Currently, Amazon has more than 350 employees in the Denver area and more than 3,500 full-time jobs in the state. It has invested more than $1.5 billion in the state since 2016.

Death by Amazon

By Rebecca Ungarino for Market Insider

A new “Death by Amazon” index released by the investment-research firm CFRA tracks the stocks its analysts believe could be short-seller targets given their vulnerabilities to competition from Amazon.

The index is full of home goods and electronics retailers like Party City and Bed Bath & Beyond, some of which have seen their entire market value wiped out in recent years.

Investors are familiar with the Amazon effect by now.

The e-commerce juggernaut announces that it is preparing to enter into an industry – be it medication, brick-and-mortar grocery, entertainment, or others – and the stocks of companies in the new target market fall as jittery investors are struck with the fear that irreversible disruption is coming.

So the investment-research firm CFRA created a new index, “Death By Amazon,” that tracks the stocks its analysts think are particularly vulnerable to Amazon’s expansion and offerings.

“The equally weighted index serves as a retail performance benchmark and short-selling idea generation tool for our clients,” CFRA analysts Camilla Yanushevsky and Todd Rosenbluth wrote in a report to clients earlier this month.

To pinpoint the 20 constituents the analysts believe are poorly positioned to compete against Amazon’s efforts in various industries, they evaluated the companies’ “Share of Voice” data that comes from web-traffic analytics company Alexa Internet (which is owned by Amazon as its other Alexa-named product).

That measure shows the percentage of searches for a keyword across major search engines in the past six months “that sent organic traffic to the respective site.”

For example, the analysts compared how much traffic was going to a national jewelry retailer’s website when consumers search for the term “jewelry” versus how much traffic was going to Amazon for the same search term.
With this kind of analysis, you get an index full of brick-and-mortar retailers whose products are available on Amazon – and apparently less popular through online searches – from floor tiles to party supplies.

To be fair, it’s not the first Death by Amazon index. Bespoke Investment Group had already created its Death by Amazon index, tracking the same theme.

Here are all the stocks listed, in alphabetical order, with how their “Share of Voice” scores for various products stack up against Amazon:

  1. At Home Group
    1-year performance: -40%
    % below all-time high: -46%
    Share of Voice score for “seasonal decor”: 4.2%
    Amazon’s Share of Voice score for “seasonal decor: 19.6%
  2. Barnes & Noble Education
    1-year performance: -38%
    % below all-time high: -74%
    Share of Voice score for “textbook”: 1.3%
    Amazon’s Share of Voice score for “textbook”: 6.9%
  3. Barnes & Noble
    1-year performance: -0.1%
    % below all-time high: -84%
    Share of Voice score for “books”: 23.2%
    Amazon’s Share of Voice score for “books”: 12.2%
  4. Bed Bath & Beyond
    1-year performance: -16%
    % below all-time high: -80%
    Share of Voice score for “cookware”: 2.4%
    Amazon’s Share of Voice score for “cookware”: 23.3%
  5. Best Buy
    1-year performance: -14%
    % below all-time high: -19%
    Share of Voice score for “electronics”: 1%
    Amazon’s Share of Voice score for “electronics”: 8.1%
  6. Big 5 Sporting Goods
    1-year performance: -71%
    % below all-time high: -88%
    Share of Voice score for “fitness equipment”: 0%
    Amazon’s Share of Voice score for “fitness equipment”: 11%
  7. Big Lots
    1-year performance: -6.5%
    % below all-time high: -41%
    Share of Voice score for “cookware”: 0%
    Amazon’s Share of Voice score for “cookware”: 23.3%
  8. Dick’s Sporting Goods
    1-year performance: +15%
    % below all-time high: -43%
    Share of Voice score for “sports deals”: 18.7%
    Amazon’s Share of Voice score for “sports deals”: 24.5%
  9. GameStop
    1-year performance: -31%
    % below all-time high: -87%
    Share of Voice score for “video games”: 7%
    Amazon’s Share of Voice score for “video games”: 17.1%
  10. Kirkland’s
    1-year performance: -49%
    % below all-time high: -81%
    Share of Voice score for “home decor”: 5.4%
    Amazon’s Share of Voice score for “home decor”: 10.8%
  11. Office Depot
    1-year performance: -19%
    % below all-time high: -95%
    Share of Voice score for “office supplies”: 33.1%
    Amazon’s Share of Voice score for “office supplies”: 9.8%
  12. Overstock.com
    1-year performance: -67%
    % below all-time high: -86%
    Share of Voice score for “dresser”: 1.3%
    Amazon’s Share of Voice score for “dresser”: 9.9%
  13. Party City
    1-year performance: -49%
    % below all-time high: -65%
    Share of Voice score for “party supplies”: 22.5%
    Amazon’s Share of Voice score for “party supplies”: 13.2%
  14. PetMed Express
    1-year performance: -40%
    % below all-time high: -60%
    Share of Voice score for “pet supplies”: 5.1%
    Amazon’s Share of Voice score for “pet supplies”: 13.7%
  15. Pier 1 Imports
    1-year performance: -65%
    % below all-time high: -97%
    Share of Voice score for “home decor”: 8.3%
    Amazon’s Share of Voice score for “home decor”: 10.8%
  16. Signet Jewelers
    1-year performance: -49%
    % below all-time high: -87%
    Share of Voice score for “jewelry”: 3.8% for kay.com, 2.9% for jared.com, and 0.12% for zales.com
    Amazon’s Share of Voice score for “jewelry”: 10.7%
  17. The Michael’s Companies
    1-year performance: -43%
    % below all-time high: -67%
    Share of Voice score for “drawing supplies”: 13.1%
    Amazon’s Share of Voice score for “drawing supplies”: 24.5%
  18. Tiffany & Co.
    1-year performance: -5%
    % below all-time high: -31%
    Share of Voice score for “jewelry”: 6%
    Amazon’s Share of Voice score for “jewelry”: 10.7%
  19. Tile Shop Holdings
    1-year performance: -36%
    % below all-time high: -85%
    Share of Voice score for “tile”: 2.1%
    Amazon’s Share of Voice score for “tile”: 22%
  20. Williams Sonoma
    1-year performance: +7%
    % below all-time high: -42%
    Share of Voice score for “cookware”: 16.7%
    Amazon’s Share of Voice score for “cookware”: 23.3%

Capitec announces fee cuts

By Angelique Arde for Business Day

Capitec is cutting its fees. The bank, which normally announces its fee increases in March, made the announcement a week before new digital bank TymeBank is due to host an investor day, upping the ante in what could be a banking fee price war.

From 1 March, the monthly admin fee on the bank’s one and only account, the Global One account, will decrease from R5.75 to R5. The price of electronic payments on mobile and internet banking will decrease from R1.60/transaction to R1. Debit order fees will decrease from R3.70 to R3.50. The cost of drawing cash at all Pick n Pay, Shoprite, Checkers and Boxer till-points will drop from R1.60 to R1. And the cost of immediate payments has also decreased from R10 to R8.

International and online card purchases, transfers between own accounts and e-mailing statements on mobile and internet banking will remain free.

The bank has increased a few fees: the fee for in-branch transfers and payments will increase from R5.30/transaction to R6. Cash withdrawals from Capitec-branded ATMs will cost R6 per R1,000, while all other bank ATM withdrawal fees will be lowered to R8 per R1,000. Capitec used to charge a flat fee irrespective of the amount withdrawn.

Capitec said in a statement on Tuesday that the bank had experienced its highest single-month uptake to date, with more than 266,000 new clients joining the bank in January 2019.

In addition to low fees, Capitec clients get access to four savings plans, offering from 5.1%-9.25% interest per year,” said Francois Viviers, the bank’s marketing and communications executive.

 

How SA climbed its way out of a recession

By Lameez Omarjee for Fin24

The SA economy has officially emerged from recession, Stats SA announced on Tuesday morning, following a 2.2% rise in GDP growth for the third quarter of the year.

The economic growth figures were broadly in line with the expectations of economists surveyed by Fin24 prior to publication, who had projected growth rates of between 0.8 and 2.6%.

The rand firmed by as much as 1% shortly after the release of the results.

However, despite the rebound, economists still expect overall GDP growth for the year to be weak, below 1%.

Here’s what boosted growth in the third quarter:

1. Manufacturing industry expands

Growth was mainly driven by the secondary sector, which grew by 4.5%. This was aided by a 7.5% increase in manufacturing. Large contributions came from steel and metals, and motor vehicle production, among other things.

2. Agriculture rebounds

Even though the primary sector contracted by 5.4% in the quarter – mainly due to a large drop in mining – the agriculture industry rebounded following two quarters of substantial contractions.

During the third quarter, increased production in field crops, horticultural and animal products, helped improve growth to 6.5%.

Earlier on Tuesday, Bloomberg reported that confidence in the industry had declined to its lowest in nine years. The agribusiness confidence index dropped from 48 to 42, mainly due to concerns over weather conditions and a lack of clarity on land reform policy.

3. Transport industry rebounds

The tertiary sector grew by 2.6% during the quarter. The transport, storage and communication industry in particular expanded by 5.7%, rebounding from a -4.9% contraction in the second quarter and improving from 0.9% growth reported in the first quarter.

4. Finance, real estate and business services continue growth trend

Also within the tertiary sector, the finance, real estate and business services industry continued its growth trend, increasing by 2.3% during the quarter.

Additionally, the trade industry – particularly wholesale, retail and food and beverages – and catering and accommodation increased by 3.2%.

5. Expenditure-led growth

Expenditure GDP grew to 2.3%, following a decline of -2.6% and -0.7% reported in the first and second quarters respectively. Government expenditure grew by 2.2%, while household expenditure grew by 1.6%.

However, gross-fixed capital formation declined -5.1% during the quarter, largely due to a decline in investment in construction works, transport equipment and residential buildings, according to the StatsSA report.

By Tia Frapolli for The NPD Group

The holiday season presents consumers with a perfect opportunity to get in touch with their creative side – a behaviour that bodes well for the US office supplies market.

Several arts, crafts, and traditional supplies categories that require creativity and offer an experience will be among the top industry performers this holiday. And, we know from NPD’s Holiday Purchase Intentions Survey that experiential gifting is not only trending with consumers, but set to grow over last year. In fact, the survey found that four out of 10 consumers plan on giving these types of gifts this year.

When it comes to the craft-related categories, consumer shopping behavior indicates a preference for discovering and purchasing these products in-person as opposed to online. Specifically, NPD data shows that acrylic paints, paint brushes, specialty note cards, and canvases all have a very low penetration in the e-commerce channel. In fact, over 95 percent of purchases in each of these categories are made in-store.

Tied to such products, we expect that popular holiday craft activities will include ornament decorating and homemade holiday décor. In addition, as spending time with friends and family is top of mind during the holidays, we expect the ever-popular canvas painting parties to continue to grow this season, and there are the sales numbers to show for it—canvas sales have grown by 20 percent over the past year.

Coinciding with the maker’s movement and popularity of hand lettering, this season we also expect to see a rise in holiday card making with custom lettering. A variety of writing instruments used for this activity are already seeing growth; collectively, sales of gel, porous, and fountain pens as well as dual, ultra, and extra fine color markers have grown by 8 percent leading up to the holiday season.

Without a doubt, consumers let their creativity shine during the holiday season, and this presents a favorable opportunity for the office supplies industry to get in on the action.

Source: The Citizen

WhatsApp vice president Chris Daniels confirmed at an event in New Delhi, India earlier this week that the popular messaging app will start showing users ads in the app’s status feature come 2019.

The WhatsApp status feature was launched early last year to mimic Snapchat’s stories feature which was later co-opted by Instagram and Facebook and it allows users to share text, photos, videos and animated GIFs that disappear after 24 hours.

According to India’s Economic Times, Daniels told journalists “we are going to be putting ads in ‘Status’. That is going to be primary monetisation mode for the company as well as an opportunity for businesses to reach people on WhatsApp.”

The new feature will take effect in 2019 but Daniels could not lock down an exact date.

Facebook CEO Mark Zuckerberg’s goal to monetise WhatsApp has forced the social media messaging service’s co-founders to leave the company reports Economic Times.

On of the app’s co-founders Brian Acton told Forbes that the move would undermine elements of WHatsapp’s encryption technology and that Zuckerberg was in a rush to make money from the app after purchasing it for $19 billion four years ago.

By Bekezela Phakathi with Andries Mahlangu for Business Day

The government will reprioritise about R50bn within its existing budget to reignite economic growth and create jobs, President Cyril Ramaphosa said last Friday.

Presenting the government’s much-anticipated grand plan to kick-start SA’s stalling economy, Ramaphosa also announced the establishment of an infrastructure fund that is a core part of the package. He said R400bn will be leveraged from various development finance institutions, pension funds and ordinary investors, among others over the medium term to drive the infrastructure fund.

“We are establishing a dedicated infrastructure team in the presidency that has project management and engineering skills which will identify shovel-ready public sector projects such as roads and dams,” Ramaphosa said during a briefing at the Union Buildings.

“We have limited fiscal space to increase spending or increase borrowing … we do not have have fiscal space to pour money in the economy … we have to resort to re-prioritising our spending and budget within the current fiscal frame work,” the president said.

The package also includes the new Mining Charter, major changes to visa requirements to boost the tourism sector, the development of industrial parks and township businesses, and reforms in the telecommunications industry, particularly the release of spectrum to create competition and drive down the cost of data.

“The stimulus package consists of a range of measures, financial and non-financial, to ignite economic activity and restore investor confidence, and prevent further job losses, and create new jobs,” Ramaphosa said.

The measures give priority to those sectors that can revive the economy, including agriculture.
Ramaphosa said more details on how the budget will be reprioritised will be provided when finance minister Nhlanhla Nene presents the medium-term budget policy statement. Nene said most of the funds for the stimulus package would be moved from under-performing departments.

Ramaphosa first proposed the stimulus package in July, in a bid to boost SA’s sluggish economy and tackle the unemployment crisis, which at just more than 27% remains a major headache for the government more than two decades since the official fall of apartheid. However, Ramaphosa’s plan to reignite growth was dealt a heavy blow with shock second-quarter GDP data indicating that SA had entered a technical recession.

The rand extended gains and government borrowing costs fell following the speech. The rand was at R14.22 against the dollar, its best level in about four weeks, while the yield on the benchmark R186 bond was at 9.03% from 9.08%.

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My Office News Ⓒ 2017 - Designed by A Collective


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