What the data tells us Technological outlook

What do you want from your technology? Some wide-format print companies in the UK and Ireland are happy as long as their machines hardly ever break down. Others see technology as a driver of innovation, which can help them develop bespoke - and therefore valuable - applications and products for their customers. Many, perhaps even the majority, fall somewhere in between - they try to keep a track on the key trends but don’t necessarily want to push the envelope either by becoming early adopters or investing too heavily in it.

Every sizeable investment by a print service provider (PSP) is, to some extent, a declaration of faith in the future. In the past two years, such faith has been scarce. With pandemics and lockdowns making future business impossible to gauge, many printers have kept their capital investments to a minimum. The only external incentive for companies to spend was the availability of cheap finance but with the market becom-

Q18. What type of wide-format equipment do you own (mark all relevant)

Solvent printer (inc. eco solvent) Latex printer UV curable flatbed printer Aqueous printer Finishing – laminator Finishing – contour cutter UV curable roll-to-roll printer UV curable hybrid printer Finishing – straight line cutter Dye-sublimation Print and cut roll-fed printer Finishing – specialist textile (eyelet maker etc) Inkjet 3D object printer 31.34% 28.36% 25.87% 23.88% 22.89% 17.41% 14.93% 11.94% 8.96% 4.98% 4.48% 1.49% 53.23%

Q19. How much are you expecting to invest in new hardware/ software across your business in 2022 compared to 2021?

Less More About the same 9.45% 32.34% 58.21%

Q20. In total, how much do you expect to invest in wide-format technology over the next 2 years?

Less than £20,000 £20,000 - £74,999 £75,000 - £149,999 £250,000 - £1m £150 - £249,999 Over £1m 15.42% 5.97% 4.98% 2.99% 1% 69.65%

Q21. Do you expect to buy a new digital wide-format printer in the next 2 years?

No Yes Not sure

23.88% 17.91% 58.21%

Q22. If yes, which type of digital wide-format printer do you expect to buy?

UV curable flatbed printer Latex printer Solvent printer (inc. eco solvent) UV curable hybrid printer UV curable roll-to-roll printer Aqueous printer Dye-sublimation Print and cut roll-fed printer 30.61% 20.41% 18.37% 18.37% 16.33% 14.29% 4.08% 2.04%

ing so dysfunctional, that wasn’t enough to sway many wide-format printers.

In last year’s Widthwise survey, 50.26% of respondents said they did not intend to buy a printer in the next two years and 32.82% planned to make no capital investment over the same period. It should come as no surprise then that the results of the 2022 survey suggest that the machines that do the bulk of the work for the wide-format print industry haven’t changed that much - more than half of respondents (53.22%) own solvent printers (including eco-solvent), 31.34% run latex printers, 28.36% have UV curable flatbed printers and 25.87% use aqueous printers. 17.41% own a UV curable roll-to-roll printer and 14.93% have a UV curable hybrid printer. There is a similar continuity at the other end of the printing process with laminators (23.89%) and contour cutters (22.89%) the most widely used types of finishing equipment.

Looking ahead, almost six out of ten (58.21%) of PSPs expect to invest less over the next two years than they did in the past two. That said, a significant minority of 32.34% say they intend to spend more. Even the more bullish businesses are not exactly splashing the cash, with 69.65% saying they will invest less than £20,000. The proportion of companies that do not anticipate buying a printer in the next two years is 58.21%, even higher than this time last year, after one of the most challenging times in the industry’s history. Less than one in four (23.88%) are in the market for a new printer and 30.61% of these want to buy a UV curable flatbed - this is a significant shift from the 2021 survey when no printer planned to acquire this kind of machine. Lower down the industry’s shopping list this year are latex printers (20.45%), solvent printers and UV curable hybrid printers (both 18.37%).

As we saw in 2021, almost eight out of ten companies (79.10%) do not plan to invest in software or finishing equipment. The minority looking to spend in these areas are most likely to focus on contour cutters and software for design and workflow. The main motives driving capital investment

Q23. Do you expect to invest in any of the following for wide-format in the next 2 years?

Finishing – contour cutter Software – workflow Software – design Finishing – laminator Software – MIS Software – Web-to-print Finishing – specialist textile (eyelet maker etc) Software – versioning/VDP Finishing – straight line cutter None of the above

6.47% 5.97% 5.47% 3.98% 3.48% 2.99% 1% 0.5% 0.5%

79.10%

Q24. What is the rationale behind your technological investment?

To increase capacity To improve efficiency To move into new applications/markets To improve speed of output To enhance print quality 22.89% 15.42% 5.47% 4.48% 51.74%

Q26. What is the biggest technological issue you face in wide-format?

Q27. Do you intend to invest in the Internet of Things (eg. automation, AI, remote diagnostics) in the year ahead?

Consumables (ink and media) reliability Machine reliability Workflow/system integration issues Colour management Other 22.39% 15.42% 14.93% 11.44%

35.82%

No Don’t Know Yes 5.97% 19.40% 74.63%

are to increase capacity (51.74%), improve efficiency (22.89%) and explore new applications and markets (15.42%).

While the desire to increase capacity is understandable, should capital investment be almost exclusively defined by new printers? Some industry experts worry that this approach is fuelling a unit cost mentality among PSPs and customers in which print becomes a commodity to be bought for the cheapest price. This is hardly the kind of strategy which will help print companies achieve their long-held goal of moving up the food chain and being accepted as partners by their clients, rather than just suppliers.

Versioning software appears to hold little appeal for wide-format printers and even Web-to-print, now a relatively proven technology, is only of interest to 2.99% of respondents. As for management information systems - which have been available for decades and have become more suited to the wide-format sector - only 3.48% of those polled are likely to invest in this software.

The idea that data is to the 21st century economy what oil was to the 20th century economy has become a bit of a cliche but, like many cliches, it contains more than a few grains of truth. The results of the 2022 Widthwise survey suggest that many wide-format printers are overlooking a resource that could lubricate their company’s growth.

Wide-format printers could well be holding back on investment because they are broadly happy with the kit they already have. The key technical issues they face are the reliability of consumables, the reliability of their print kit and integrating workflows. Improving workflow is a priority for 22.89% of respondents yet you could argue that many companies, even as they grapple with this issue, are failing to see the bigger picture. Only 5.97% say they plan to invest in the Internet of Things over the next two years and a resounding 74.63% have no plans to do so. As automation, remote diagnostics and process control were such prominent themes at Fespa in Berlin earlier this year, this lack of interest is striking.

Such caution could be caused by the common misapprehension among PSPs that the Internet of Things, automation and remote diagnostics are expensive, all-singing, all-dancing systems that will require a thorough, and therefore time-consuming, overhaul of the business. To seek to automate everything at once would be expensive and risky, which is why so few vendors recommend this approach. Automation is not an ‘all or nothing’ proposition. Companies can automate individual processes, functions or departments now with reasonable confidence that they can be linked together in future. That way, if the technology fails to deliver, printers have minimised the risk - and the cost.

Research by Vodafone and others suggest that the pandemic spurred adoption of the IoT in the UK, helping to ease the move to smart offices and remote working. This acceleration has been particularly dramatic in some of the wide-format sector’s key markets - for example, nine out of ten British retailers say they now have more IoT projects on the go than they did this time last year. Globally, 29% of organisations say they have invested in this technology. And many of them are not dabbling either - eight out of ten adopters in the UK say that, by the end of this year, IoT will be used to manage the majority of their internal systems.

It would be a terrible irony if an industry such as wide-format, which was created by one technological revolution were to be blindsided and marginalised by another. The risk is, as we warned in last year’s Widthwise report, that if PSPs don’t get on board soon they could end up being forced to automate by customers, who will be able to dictate their terms.

The 4 wide format application trends you need to know

The world has changed, and you need to keep up. Here’s how wide-format printers can stay ahead with new practical applications.

PRINT IN THE MODERN WORLD

Print businesses have a chance to push the boundaries of what’s possible with wide-format printing. It’s time to deliver more innovative, useful, and digitally enhanced products that help your clients meet their customers’ demands

We’ve put together a selection of the latest print application trends to help inspire your product and service offering. From personalised interior décor to durable vehicle wraps, here are four ways wide-format print is set to make an impact on the world around us—and how you can get involved with practical applications.

TREND 1) DIGITALLY-PRINTED INTERIOR DECORATION

Many businesses have seen the recent changes as an opportunity to pivot their offerings. And with that comes the need for a new look.

Many hospitality and retail venues are opting for a more modern aesthetic as they return to in-person service, and that means taking inspiration from 2021’s interior design trends, which include natural textures such as straw and wicker. Digital printing makes it easy to produce high-margin, individual interior decoration. Thanks to digital printing Print businesses can provide the level of flexibility and customisation to their customers in this high sector

HP Large Format printing solutions are a great fit for the interior decoration market, providing unique benefits whether you’re a print service provider looking to expand into new high-margin applications like customised projects or canvas; a wallcovering or window blinds manufacturer looking to differentiate with high-end, luxury collections; a designer looking to create an advantage with shorter design-to-manufacturing time; or an interior decorator with a vision for creating experiences through spaces. Thanks to the versatility of HP Latex all of this is possible.

In situations where functionality matters, print providers can offer detailed, faux-textured prints on different wallpaper—delivering similar aesthetics in a more practical material. In addition, printers can infuse their digitally-printed wallpapers with specific properties by using antibacterial and antiviral substrates, and even include performance coatings to enable more frequent washing. This is not only ideal for sensitive applications like hospitals and care facilities, but also helps busy sectors like services and events stay compliant in the more hygiene-conscious post-COVID world. Thanks to these unrivalled customization options and end user benefits, market research consultancy Technavio expects the digitally printed wallpaper market to grow by $4.81 billion between 2021 and 2025.

TREND 2) CAR AND VEHICLE WRAPS

Research from the Royal Institution of Chartered Surveyors shows that the largest cities have lost up to 15% of their urban population. The majority of these movers have decided to relocate to suburban or semi-rural areas, in part due to increased remote working opportunities and lower costs of living.

At the same time, the pandemic has resulted in an explosion of deliveries–both for online shopping and takeout food. The total number of e-commerce deliveries rose by 25% in 2020, according to a study from the World Economic Forum. The report suggests that the pandemic has reshaped last-minute logistics to adapt to this increased demand, and forecasts that our reliance on deliveries is here to stay. To adapt to this new population distribution, businesses are already taking advantage of high-quality vehicle wraps. The global automotive wrap market was valued at $4 billion in 2020 and is set to grow by an average of 22.4% each year until 2028. Your potential customers are taking advantage of these moving billboards to grab attention in suburban areas, helping to make up for the lost footfall in busy urban centres.

A great example for demand in vehicle wrapping shows the Print Service Provider MediaCo who offer a unique range of specialist print services, from wallpapers to racing car livery wraps, working with a wide range of market sectors to produce contemporary exhibition and interior display graphics, sports and live event branding and out-ofhome advertising displays. In the last two years, MediaCo has purchased two HP Latex

3600 printers from Papergraphics and one HP Stitch S1000 printer from RA Smart, with a second HP Stitch S1000 device now being considered.

Stephen Arthur, MD of MediaCo states: “The HP Latex machines have been put to work on some astounding projects. We took a strategic decision to add HP water-based printers to our production capabilities which now totals three machines – a trend we see continuing as the print quality and reliability of the machines is excellent and they align perfectly with our sustainability strategy.

HOW WHITE INKS HELP YOU DELIVER BETTER VEHICLE WRAPS

The practical applications of vehicle wrapping can vary significantly. While some clients may want the entire exterior covered in graphics, others may prefer a more minimalist approach on their cars and vans. For these, applications, you’ll need more flexibility-especially as over 20% of vehicles in the UK are painted black, which will require printing onto darker substrates. White inks deliver a solid foundation that allows you to print colour-accurate graphics and text onto any colour or tone. Applying a base layer of white ink before your main printing run acts as a blank canvas and means that print providers can now deliver products across a wide range of material colours–helping you deliver better, more versatile vehicle wraps for your customers.

TREND 3 WAYFINDING SIGNAGE

With the rise of hybrid working, the expectations of what a physical space should do have completely changed. Online solutions have established themselves as more convenient alternatives for users and consumers. Spaces such as offices, retail, and events need to offer a better user experience to encourage people to return. And that’s where printers can help.

Studies from the Sign Research Foundation show that 60% of businesses improved their sales by an average of 10% after updating their navigation signage. When we hear the term ‘wayfinding’, many of us think of maps and directional arrows. But with wide-format printing, you can be more creative. Murals and artwork can provide memorable reference points that draw the end user’s attention towards specific locations.

Another fantastic example for focus on Signage is the Print service provider Signbox. Surrey-based architectural signage solutions provider Signbox has praised the role its duo of HP Latex 300 Series printers played in an innovative project that helped the company scoop a host of major honours at the 2021 UK Graphics Awards.

Signbox was tasked with delivering a brand experience to various meeting rooms and areas throughout the new Pernod Ricard UK headquarters at Chiswick Park in West London. Pernod Ricard moved to the 85,000sq ft facility in September 2020 and most of the work was conducted during the Covid-19 lockdown.

The project included a range of 3D lettering and signage alongside of stunning wallpaper backdrops – all of which were printed on Signbox’s HP Latex Series printers. Signbox printed the designs on Digimura wallcovering media, a product selected for its environmental credentials and fire-retardant qualities.

“The HP Latex printers produce firstclass quality print on any job we run, and this was no exception,” Signbox Managing Director Mark Bartlett said. “The HP Latex inks conform so much better to Digimura than other inks; we don’t get the issue of ink sitting on the surface and it doesn’t crack.

TREND 4) QR CODES AND AUGMENTED REALITY

As of 2021, 87% of UK adults own a smartphone, according to Statista. We’re more connected to the digital world than ever before. Wide-format printers have an opportunity to bridge the gap and offer their customers smart prints that can seamlessly interact with the technology they carry around with them every day.

QR CODES

Integrating QR codes into your printed products can offer an intuitive way for users to unlock new digital experiences. As practical applications of QR codes increase across the world, users are becoming more familiar with how they work. Eightysix percent of smartphone users have scanned a QR Code at least once in their lifetime, and 36.4 % scan at least one code a week. This provides an opportunity for wide-format businesses to integrate digital connectivity into their printed displays. Large, scannable QR codes are already being used on billboards and advertising displays across the world, and print businesses now have the chance to bring this same level of digital connectivity to their clients’ signage.

AUGMENTED REALITY (AR)

The term ‘augmented reality’ refers to technology that combines virtual displays with the users’ view of the real world. For printing businesses, AR can be used to superimpose digital information onto physical printed products, helping your customers link their printed media to their digital assets. The global AR and VR market is predicted to grow by 42.9% by 2030, providing an opportunity for wide-format print businesses to expand their services and deliver AR-enabled products.

AR billboards and other large format prints give users the ability to interact with advertisements using their phone. In New York City and Los Angeles, social media app Snapchat has partnered with digital marketing agencies to create interactive printed displays that play videos on your smartphone when scanned with the camera app.

Discover how HP Latex inks and printers can help you bring these ideas to life.

PSPs have been evolving for some time, and the turbulence experienced in 2020 and 2021 only accelerated that change. Many are displaying resilience and creativity, and businesses that will survive and thrive will be the ones that are versatile, connected, sustainable, and safe.

HP can help you take the next step to ensure your print business has the best chance of success in the form of its HP Latex R Series, HP Latex 3600 Printer, HP Latex 700W and 800W printers. The combination of HP Latex printers and HP White Ink ensures you can deliver high-quality, attention-grabbing and sustainable graphics to your end-user customers.

Meet us at the upcoming IPIA conference on September 1st on our HP booth and talk to us about your printing requirements or get in touch via phone with your HP sales representatives who can advise you on the best printer to suit your needs.

Call +44(0)8004084348 or send an email to: andy.white@hp.com

Visit the HP Print Hub and explore our online experience with exclusive content, webinars, video and more: https:// digitalprinting.hp.com/uk/en/largeformat-printers.html