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Wrapping/Packaging/Graphics industries

The field of wrapping & packaging

(Source : "Les dossiers sectoriels - L'industrie française de l'emballage en chiffres - Edition 2008 / Ministère de l’Économie, de l’Industrie et de l’Emploi – SESSI")

 

The packaging industry gathers 850 companies of at least 20 employees and had 111,000 employees on the payroll in 2006.

 

Its turnover is about 20 billion euros. This is equivalent to 3 % of the manufacturing industry.

 

If big groups, worldwide leaders, hold a dominating place in segments which require sizeable investments, the capacity for development and the adaptability in small companies contribute widely to the competitiveness of this sector where the closeness of customers and manufacturers plays an important role.

 

Widely turned towards the food processing industry, the packaging industry also operates in the whole industry and particularly in the pharmaceutical and cosmetics sectors. This industry holds an essential place in the production line which links up the raw product to the consumer in the end.

 

Therefore safety and food hygiene, information to the consumer, design and respect for the environment constitute important stakes for this innovating, dynamic industry is ranked second in Europe in terms of turnover and is the fourth exporter in the world.

 

Dowload the sector study The French packaging industry in figures

The field of graphics industries

(Source : "Les dossiers sectoriels - L'industrie graphique en chiffres - Edition 2008 / Ministère de l’Économie, de l’Industrie et de l’Emploi – SESSI")
 

The upstream industry of graphic arts groups together manufacturers of equipments and raw materials including their distributors : components manufacturers, chemical industries, paper industry, optics, …
In the heart of the industry, the fields directly concerned by printing make up the graphic industry. Coming after revolve round a vast number of principals linked essentially to the industry of consumer goods : publishers, public services, companies, private individuals, …

 

The graphic industry groups together 3 big types of business : the “prepress” (preparation of printing forms), “printing works” and the “finishing”.

 

5,000 companies of the graphic industry create a network in the national territory. The small companies (less than 20 employees) represent 80 % of this industrial fabric, to 70 % for the whole of the manufacturing industry. Their turnover represents the quarter of the whole, to 15 % for the whole of the manufacturing industry.


The "prepress" : a very competitive field composed of small units
 

Placed upstream of the graphic industry, the prepress activity mainly concerns the composition and the photocomposition.
It involves data capture by digitization and optical recognition together with the electronic layout and DTP. Its turnover is stable relatively : 940 million € in 2005.

 

This activity is subjected to intensified competition. In 1993 more than 200 companies of the prepress had 20 or more employees. In 2006, there were only 87.

 

This decrease of number of companies is partly due to printing units automation, digitized lines and search for economies of scale carried out by big printing houses : these integrate more and more often the preparation of forms to be printed.

 

At the same time small companies of prepress grow : 720 in 2005, to 563 in 1993. Small printing houses cannot, or do not want to, choose the path of “all-integrated” considering capital cost. The consequence is unusual : small companies of prepress grow to the detriment of big ones, so that up to now 60 % of turnover in this domain is the concern of companies which has a payroll of less than 20 employees. This atypical situation in this industry is characteristic of a business where competition is particularly harsh.

"Printing works" : the heart of graphic arts industry


Printing works are the main component of graphic arts industry. They cover 80 % of employment and the bulk of the whole turnover (about 10 billion €). The domination of this field within graphic arts industry is due to the fact that these companies are capable of integrating the prepress upstream and the finishing downstream.

 

Companies of 20 employees or more represent three-quarter of this field. Since 1993 their number has strongly decreased. At the same time big companies restructured. These alterations, desired or endured, result from market competition, difficult to gain and even more to keep. The loss of a big contract, held for years, is a factor of imbalance for some big printing houses, particularly those of more than 100 employees, so much that they are forced to strong restructuring even cessation. Relocations explain permanent closures as well ; these are mainly conducted by some foreign groups located in Europe via France.

 

Their interest trends provoked their transfer towards other EC countries. Despite this decrease of companies in number, the turnover increases : up to 9.9 billion € in 2005 to 8.9 billion € in 1993 – this evolution expresses productivity gains. The number of employees which are registered in the printing industry has evolved from 103,000 in 1993 to 86,000 in 2005.
 
The "finishing" : a stable downstream field
 

The “finishing” field, located downstream in graphic arts industry, has not experienced strong restructuring. In 2005, 250 companies are specialized in finishing works, i.e. 10 more than in 1993. The weight of companies of 20 employees or more remains stable – they group together 85 % of turnover & employment. The weight of the 15 companies which have a payroll of 100 employees or more remains stable too – they generate 45 % of turnover between them.

 
How are the effects of competition abroad received on some printing segments ?

 

On a national scale, as on a worldwide one, the packaging production has been increasing for several years. This increase mainly reflects wooden & plastic packaging, whose volume grows from 10 % between 2000 and 2006. Paper & cardboard packaging doesn’t follow this trend : between 2003 and 2004, its turnover goes 2.6 % down.

 

The packaging printing, mainly centered paper & cardboard supports on, sees its volume going down : an average of 2,7 % per year between 2000 and 2006, because of a big increase of imports.

 

Printing is usually integrated within packaging plants. A part of the business escapes therefore to printing houses : printing works cover 70 % of printed packaging products. And last but not least the packaging industry is open abroad. Its national production doesn’t reflect the market. In 2005 national demand increased, although French production decreased.

The environment respect
 

From now on, in a position of harsh competition, companies in the graphic industries field have to take into account new environmental issues.

 

Beyond the demands of the market, the environmental regulations become very restrictive (Reach regulations upon the use of chemical substances, decrease of organ/volatile compounds emission, …). Number of principals impose environment respect in their specifications.

 
Investments to protect environment
 

In 2005, in the graphic industry, environmental investments totaled 7.2 billion €. They represent 1 % of the whole corporeal investments, against 3 % in the consumer goods industry and 5 % in the whole manufacturing industry. To those investments one billion € has to be added for preliminary studies.

 

Among the three activities which make up graphic arts, expenses are concentrated in printing works (96 % of all investments).

 

Because of used products such as solvents, inks, … investments turn mainly to the field of air (three-quarter of the invested sums), against 40 % in the manufacturing industry.

 

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