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Near Term Printer Confidence Low, Capital Spending Remains Strong

Monday, September 24, 2001

Press release from the issuing company

- Survey taken after terrorist attack - Paper Spending Indicator, Tremendous weakness near term - Capital spending confidence actually rises Lexington, Kentucky, USA - September 24, 2001 - (The Printer Confidence Survey is conducted between the 14th and 18th of each month. Findings depend on various factors including the printer’s warehousing strategy for paper and the actual date a printer makes an investment in new equipment. For more information, please contact us.) Key components of the monthly survey includes data connected to spending on paper and expectations related to major capital investments in the near future. Printers are asked about their spending on paper in the next 30 days and plans for capital expenditures associated with major equipment purchases in the coming 180 days. *This survey was conducted after the terrorist attacks. Confidence in our paper spending indicator over the next 30 days dropped significantly. However, confidence in capital spending on equipment over the next 6 months was strong indicating long term confidence in the economy to at least remain stable. Results for September: Paper Spending: Overall, paper spending confidence fell 16 percent from last month. Just 22 percent of printers surveyed said they anticipated an increase in their spending on paper in the next 30 days. 58 percent said there would be no change in their ordering of paper and 20 percent of printers said they would spend less on paper in the next 30 days, up from 11 percent in August. Major Capital Investments: Overall, capital spending confidence rose 2 percent to 57 percent - A majority of print executives surveyed said they would make at least one major equipment purchase in the next 6 months. This month, 27 percent said they plan to purchase production/press equipment in the next 180 days - remaining the same from August. Printers saying they would make a near-term investment in finishing equipment went back 4 percent to 18 percent. In August, 24 percent of printers said they would invest in a new prepress system within six months. In September, 29 percent said they would purchase a prepress system.




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