He adds that his clients also report shrinking customer bases. ‘In the printing industry, reasons for this include mergers, closures and sales of businesses, as well as changes in business strategies and the use of alternative advertising media. Having an impact in the packaging sector is the growing incidence of importation of ready-packed consumer goods; the export of goods in bulk without packaging; and the strong drive to make packaging “greener” and reduce carbon footprint,’ says Dudley.
Other issues affecting both general and packaging printing are the cost of labour, power and financing of equipment.
In response to these changes, many of Dudley’s clients are upgrading their equipment to allow the production of lower volumes with faster turnaround times and prompt delivery without sacrificing quality or service. ‘Investing in updated machinery to stay ahead of competitors is essential for long-term sustainability, and we’re here and ready to assist with financing such equipment.’
He goes on to outline Nedbank’s many services, including financing of property and its dedicated Capital Equipment Imports section. Such services give Nedbank clients the time and flexibility to concentrate on what they do best while the bank provides end-to-end financial solutions for imported equipment, such as practical assistance with exchange control, forward exchange contracts, transfers, letters of credit and documentation.
‘And if keeping costs down is imperative,’ Dudley continues, ‘an option is to buy used machinery as opposed to brand new, as long as the replacement machinery is a significant improvement on existing machinery and is aligned to the objectives of the business.’
Nedbank Business Banking’s philosophy of partnering for growth for a greater South Africa centres around having a dedicated team with 31 years’ experience in servicing the printing, packaging and plastics industries.
‘Understanding industry trends, having local knowledge, and knowing our clients’ key business imperatives, allow us to make informed decisions, which is what makes our partnership so valuable. Because of this, we recognise the issues around gearing up in the present economic climate,’ Dudley maintains. ‘Talking to a financial team that understands the industry eliminates frustration and time wasting, as decisions can be made quickly and finance granted in a reasonable time.’
Nedbank is a member of Printing SA (formerly PIFSA), the Printing Craftsmen’s Association, the Institute of Packaging and the Plastics Institute.
For more information about Nedbank’s specialised services, call Dudley Flügel on 021 4123040 or email email@example.com.
Dudley Flügel, Nedbank Business Banking’s Western Cape business manager.