HP Says 2018 Looks Rosy for the Print Industry

ME Printer speaks to Ernest Azzam, the Large Format Printing Regional Business Manager for Middle East, Mediterranean and Africa, at HP, about the print industry in the region

How was 2017 for HP?
The year 2017 was very good. We faced some challenges in 2016 – however, we see that the growth came back in 2017 and it is here to stay for 2018. This year looks very promising and we have high expectations for 2018 going forward. We have already overachieved our metrics till now and new opportunities are showing up on the market.

What kind of feedback have you received from the market in terms of challenges faced by the regional print industry? How can HP help to solve those challenges?
As a large format print equipment and solutions provider, our range is very big. So we cater to around four segments on the market and each segment has its own dynamics. So when we speak about construction market, for instance, because we have large format printers for the construction and architecture markets, that industry has picked up significantly.

The upcoming Expo 2020 and new announcements in Saudi Arabia about the development of new communities and cities, has helped with the growth of the business. On that front, business is looking good. When we talk about outdoor, where we sell our latex products, we see that the signage industry is there. The volume is growing. However, the problem is that the margins are under stress.

There are lots of vendors on the market, lots of print providers, printers, and so on. This is driving the prices lower and the margins for our customers. So, we work with our customers to make better margins on the high-end sector. Within signage, we have two variants – the high-end market and the low-end market. We excel in the high-end market because we provide quality and versatility.

When you talk about “high-end”, what exactly is it?
All jobs can be high-end and low-end. It all depends on the customer and the budgets they want to work with. When you talk about the fashion and luxury brands, they have a certain standard they have to follow. They need certain colour accuracy to match the product they sell and this is where our playground is because our products offer that quality and consistency.

Do you see any other industry verticals picking up?
We see the market for decoration is growing a lot these days. The same products which are made for outdoor printing can be used indoors in a closed room. This is because our outdoor products use water-based inks. They do not use solvents. So, this allows you to print on wallpapers, flooring, furniture, leather, and so on. We are focusing a lot on decoration these days, so much so that we have a dedicated segment manager for the decoration market in the region.

Which markets in the Middle East are showing the potential for growth?
All the markets in the region are recovering versus what we saw in 2016. As HP, we have solutions for both, indoor and outdoor. We just launched a series of new products at FESPA. While some were the replacement of the existing models, some are totally new categories.

In the CAD and engineering side, we launched a product called T1700, which is the most secured printer on the market. We launched also a new graphics indoor product, which is aimed at those that print photos, canvas, posters and so on. The machines are called Z9 and Z6.

For the first time, these machines come with the X and Y cutters built-in. So when a poster is printed, for instance, it comes out of the machine with the edges trimmed, to be directly used wherever it is to be used. We also launched a hybrid latex machine called the R2000. This one is a flatbed and a roll to roll machine that comes with the capability of printing using white ink. The machine can print on a wide range of materials such as wood, cardboard, aluminium, and so on.

What milestones do you want to achieve in 2018?
In 2018, we want to open new opportunities for our customers. This is why we launch new products – to help our customers win more business. We are not done launching new products for this year. We will also be launching a couple more machines this year, to help our customers find new business in new markets.