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ME Discussion 3 - Essay Example

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China’s printing industry is going through a transition period as the government’s policies are getting relaxed to boost the development of this industry. In all kinds of printing products, ink is among most important elements of printers especially for digital printing…
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ME Discussion 3
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Macro and Micro Economics AFFILIATION: Macro and Micro Economics China’s printing industry is going through a transition period as the government’s policies are getting relaxed to boost the development of this industry. In all kinds of printing products, ink is among most important elements of printers especially for digital printing. According to the report by Electronics Industry (2012), printing inks is considered to be an industry that strengthens economies both at global and regional level. This industry is cyclical in nature and economic ups and downs affect the demand patterns. The inks are developed in accordance with customer needs and products application requirements (Flynn, McConnell & Bruce, 2011).
Due to increase in price of crude oil which is the key element for inks manufacturing and technological advancements, the revenue of organizations has been severely impacted (Jailing, 2011). Considering the developments taking place at an accelerating rate worldwide in ink industry, the prices of these products will increase which will affect the demand of this product. For the company being reviewed, firm’s elasticity of demand for this product is elastic as increase in price will affect the demand of ink in digital printing industry. There is high demand of inks that are suitable for high value digital industry along with energy cured inks. The market for this ink comprises of packaging and commercial printing and publishing companies.
In future i.e. next five years, it is expected that demand of sleek magazines and catalog will increase which will mean that there will be increase demand of ink systems that are energy curable along with usage of equipments for printing presses that are fast and automated. Two types of inks are gaining popularity i.e. water-based inks and vegetable oil based inks to support production of environmental friendly products so that ecological pollution can be minimized. It is expected that demand of digital inks will increase by 3.7% in next five years i.e. 2017 (Electronics Industry, 2012). The increase in demand is expected because of increasing requirement of technology that has in screen-printing feature, establishment of departments responsible for internal graphics that facilitate professional level of quality, computer usage will get tripled in future and in-house printing needs are being required both small and large scale companies. The digital inks segment will see accelerating growth in future because of exponential expansion of inkjet printing (Electronics Industry, 2012).
References
Electronics Industry (2012, January 10). Global Printing Inks Market to Reach US$18.2 Billion by 2017. Electronics. Retrieved September 16, 2012 from http://www.electronics.ca/presscenter/articles/1622/1/Global-Printing-Inks-Market-to-Reach-US182-Billion-by-2017/Page1.html
Flynn, S.M., McConnell, C.R., & Brue, S.L. (2011). Macroeconomics: Principles, problems and policies. 19th ed. New York: McGraw Hills.
Jialing, P. (2011). China’s Printing Industry: Present State and Opportunities. Retrieved September 16, 2012 from http://www.printnet.com.au/verve/_resources/FAGAT_2011_Country_Report_-_China.pdf Read More
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