Inkjet Wholesale News aims to provide updates on the latest significant occurrences in the field of printing. Whether it’s the launch of a new technology or volatility of market prices, we’ll be here to give you the lowdown on what happened, when it happened, and what it means!
Hewlett Packard to Split into Hewlett Packard Enterprise and HP Inc. by November
After having told the world that Hewlett Packard would split into two organisations, the printing industry giant has revealed more information about the impending separation. The information came via Meg Whitman who specified that HP’s headquarters in Palo Alto, California will be split into two between the two organisations as well. Furthermore, every other HP location in the world will also be split into two with each being given to the two organisations.
However, the iconic HP logo will not be shared by the two organisations. According to Whitman, the HP logo will be given to HP Inc. and will not be shared with Hewlett Packard Enterprise. HP revealed at the end of last year that it would be splitting its operations into two disparate and independent organisations. The announcement, which came in October 2014, stated that the Original Equipment Manufacturer (OEM) and industry leader will be splitting into HP Inc. and Hewlett Packard Enterprise. The announcement came in the form of a Press Release and listed the details of how the company was planning to split its operations.
Both the companies formed from the division of HP will be responsible for different sectors that are all currently handled by the company together. For instance, Hewlett Packard Enterprise will follow through HP’s current leadership of the software and services side for businesses the world over. Hewlett Packard Enterprise will be led by Meg Whitman who will take up the roles of President and Chief Executive Officer (CEO) of the soon to be formed company. In contrast, HP Inc. will be responsible for the PC and printing side of HP’s current business. HP Inc. is due to be led by Dion Weisler who will be its President and CEO.
Specifically speaking, Hewlett Packard Enterprise will be building upon HP’s work on areas like OpenStack Helion cloud platform, storage networking, servers, and all types of converged software, services, and systems. The objective of the Hewlett Packard Enterprise will be ‘innovations’ that will allow people to ‘create, interact, and inspire’. On the other hand, HP Inc. will be responsible for personal printing and systems. The long term objective of HP Inc. will be to be responsible for the definition of the next level of ‘technology, infrastructure, software, and services’. Specifically, HP Inc. will be working on new technologies with a special focus on 3D printing.
According to HP, the decision to split off its operations and create new entities in the form of HP Inc. and Hewlett Packard Enterprise is a strategic step. The strategic step is a part of the company’s ‘five year turnaround plan’ for improving shareholder value. HP says that the division will allow each new company to focus on its relevant field. Furthermore, the re-jig will allow both companies to have the financial resources and the flexibility to cope with the ever-changing landscape of the sectors that they will be operating in.
When HP first announced the decision to split itself into two companies, Whitman said the following about the decision.
Our work during the past three years has significantly strengthened our core businesses to the point where we can more aggressively go after the opportunities created by a rapidly changing market. The decision to separate into two market-leading companies underscores our commitment to the turnaround plan
Global Printing Inks Market to Grow by 40% by 2020
Printing cartridges are becoming more and more expensive every day. Most of us experience this increase every time we go to buy ink cartridges or toner cartridges in the market. While many may disregard this feeling as phantasmal, they would be wrong because it is real.
A research firm, Transparency Market Research, has recently revealed that the global printing market is going to grow nonstop for the next five years at a whopping rate of five percent.
Since ink cartridges and toner cartridges both depend on printing inks as raw material, what happens in the printing ink industry will affect the printing cartridge prices. According to Transparency Market Research, the global printing ink market will grow by almost 40 percent between 2013 and 2020. While Transparency Market Research didn’t specifically mention the 40 percent metric, it did mention that the global printing ink market will grow by a Compounded Annual Growth Rate (CAGR) of five percent year on year.
As per Transparency Market Research, the global printing ink market was valued at USD 14.41 billion in 2013. The research firm says that the global market for printing inks will grow to touch USD 20.17 billion by 2020. The research process also found that the packaging sector has the maximum draw on the global printing inks market which means that printing inks have the most application in the packaging segment.
The packaging segment has, actually, been growing for a while now based on the increasing demand for numerous types of packaging in end user industries including flexible packaging. Not only has the packaging industry been the fastest growing industry in terms of its demand for printing inks but it is expected to continue this trend for the foreseeable future. As per the research report, the packaging sector’s growth in the next few years is expected to drive the growth of the global ink industry.
However, while the packaging industry may drive the growth of the global ink industry, it won’t be the fastest growing segment. The fastest growing segment, as per Transparency Market Research, will be digital printing. In fact, the research agency categorically stated that the digital printing segment will demand more and more printing ink in the next coming years because of substantial increases in the usage of printing inks in ‘household printing applications’. In simpler words, because individual users will use printing more and more, the demand for printing ink in the digital printing sector will increase. This rising demand is the reason why the digital printing sector is expected to be the fastest growing in the next five years.
In terms of regions and their share of the global printing ink market, the research firm specifies the North American region as the most dominant. North America has a market share of more than 30 percent by volume, as of 2013. The fastest growing region in terms of printing inks is expected to be Asia Pacific on the back of rising demand from India and China. This growth rate will cause the Asia Pacific region to increase its market share of the global printing inks industry.
With regard to product segments, Transparency Market Research pinpoints the water based printing inks segment as the fastest growing. The firm specifies that demand for water based printing inks will only increase in the next five years because of their benefits for the environment over oil based and solvent based printing inks. Transparency Market Research put ultraviolet cured printing inks in the same category as water based printing inks.