Shutdown of local pressroom chemistry business shows 'terrible state' of print

The demise of local pressroom chemistry business Fluid Technologies is a sign of an industry in crisis, according to its founder.

"The printing industry is in a terrible state at the moment," managing director Kel Drewett told ProPrint.

The green chemistry and consumables supplier is preparing to cease trading on Thursday.

"The business didn't fail, but it's unsustainable," he said. "It's death by a thousand cuts at the moment."

Drewett, who estimated he had lost a six-figure sum, said 30% of Fluid's customers had disappeared in the past 18 months.

He said the marketplace was shrinking to such an extent that despite the Sydney-based business being offered at a reasonable price to 35 other companies, all had refused to buy it, many citing financial reasons.

He drew on his 35 years of industry experience to predict that 2012 would be a decisive year for many companies. Many would be faced with a stark choice: re-equip or fold.

Drewett described Fluid as a successful business that had grown from nothing to capture 12-15% of the industry, before surrendering to financial reality.

"We're a small Australian company competing against massive multinationals and it's very, very hard," he said.

Drewett credited Fluid with producing "groundbreaking" environmental products, including the Eco Series KV250 vegetable-based wash, which he said reduced consumption by 60-70%.

He said Fluid's premises had been leased and that all its equipment and most of its stock had been sold.

He also said he would be moving into a technical role at a large company, whose details he had been asked to keep private for now. Two of his four staff would be resuming their studies, he added, although he was unsure what would happen to the other two.

Drewett said he was sad about Fluid's demise given how much he had invested in the business.

"I've lived this business 16 hours per day, eight days per week," he said.