- Posted by admin
- On April 3, 2020
- 0 Comments
3 April 2020
Dear Valued Client
It’s been a whole week since our last update. The last week has been less hectic in terms of internal activities; there are only so many new procedures and protocols for cleaning and social distancing you can implement and the workforce has settled down in terms of understanding and also attendance and absence.
So what has changed in a week?
The most significant issue we face is now one of a rapid reducing workload. To date we’ve had to juggle staffing and cover absence to keep up with production and keep our clients serviced as normal but since my last update, the number of cancellations and postponements of publications has been quite fast.
The reasons are varied but mainly relate to large drops in revenue and issues with publications not reaching the intended audience.
This creates a completely different set of concerns for us as a business.
Instead of worrying about having sufficient staff to deal with demand, we now look like having insufficient demand to keep all staff gainfully employed and more importantly to cover their costs.
We have already made the decision to furlough the Cambrian facility in Aberystwyth with around 60 people due to finish work next week for the foreseeable future. This is following a drop off in demand of around 85% in just three weeks.
At Pensord the acceleration in drop off has been significant in the last week but not yet at that level, so we will continue to monitor the situation and it is likely we will have to cut our cloth accordingly in the coming days.
Like most other businesses in our sector and of our size, we will be looking for support from government to ensure we get through this with a business that continues to be sustainable well into the future.
We are hearing many horror stories of high interest rates and lack of support for businesses currently. If this continues, then I think it is for certain that the printing landscape will change massively in 2020. Capacity will go for sure.
We are in contact with both Welsh Government and banks regarding support. Sadly, the print industry has been in massive decline in recent years having suffered huge numbers of business failures, pre-packs and bad debt and so as a sector it was already not seen as the most attractive.
Our reputation, prudent approach to business and track record does mean however that lines of communication are open to us and talks so far have been progressive.
One of our strengths is the great loyalty we have amongst our client base and this will, I am certain, help us achieve what we want to achieve.
In a nutshell
We continue to have a safe and happy workforce currently and they have a huge determination to continue to work and to look after you our clients.
Demand is diminishing and understandably so. Whilst this will mean we have to look at reducing overheads, we will though do whatever we can to continue to service the clients that continue to print and distribute through this crisis.
The overwhelming message from clients who are now on pause is one of apology and support with a firm ‘we’ll pick up again when this is all over’.
Should you wish to talk further or raise specific questions or queries, then please do not hesitate to pick up the phone or drop me an email or speak to one of our Business Development Managers who are ready, willing and able to support.
Stay safe. Stay strong.