Publishing in the Knowledge Economy - DTI Home Page

Publishing in the knowledge economy
The industry today
4.2 Costs and resources
There is little data available on costs for
publishing as a whole, but the Annual
Business Inquiry gives a figure for total
employment costs (Tables 4.3 and Figure 4.4).
Since employment data is unavailable before
1998, it is only possible to show gross valueadded
per employee for three years (Figure
4.5). It appears to have grown rapidly – GVA per
employee in printing grew by 13.9% in the same
period, for example.
More detailed data on purchases of goods
and services is only available up to 1999, with
the break in the series in 1997, so two numbers
are given for that year in Table 4.4. This
appears to show a fairly steep rise in the total
purchases of goods and materials from 1993 to
1997, and a slowing thereafter. This is very
much in line with the subsequent chart on paper
prices, showing the sharp rise in that period.
The rise in the figure for telecommunications
services and computer and related services is
more likely to reflect a more extensive use of
these services, rather than a rise in prices.
4.2.1 Paper prices
Figure 4.6 illustrates the trend in paper prices
since 1987, showing the volatility, the sharp rise
in newsprint prices in 2001 and the estimated
fall in 2002.
There is still concern, particularly in the
newspaper industry, about the increasing
concentration of paper supply and a fear that
inappropriate action to support European
producers would make the publishing industry
more vulnerable to price rises. The suppliers
have already declared their intention to try to
limit price volatility in future by controlling supply
more effectively.
Table 4.3 Employment, employment costs
and gross value-added
Turnover, Gross value- Employment Employment
basic £m added, basic 000s cosfs
prices, £m
1995 14059 6425 n.a. 2742
1996 15108 6316 n.a. 2929
1997 15053 6421 n.a. 3338
1998 16106 7147 173 3623
1999 16849 7790 163 3798
2000 18371 8409 164 4254
Source Office of National Statistics, Annual Business Inquiry
Table 4.4 Purchases of goods, materials
and services
Total purchases Purchases of Purchases of Purchases of
of goods, telecoms computer advertising
materials and services and related and marketing
services services services
£m £m £m £m
1993 5940.9 – – –
1994 6225.3 – – –
1995 7302.0 – – –
1996 8226.1 97.6 65.4 576.9
1997 8799.7 111.5 79.0 657.1
1997 8564 105 75 675
1998 9021 110 91 707
1999 9104 117 98 695
24