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p2p Magaz i ne | Wi nter 2011 | 17
OPINION
www.binfo.co.uk
Original supplies versus
compatibles
For cash strapped businesses looking
to cut costs in these economically
challenging times, swapping out
original toner and printer cartridges for
compatible ones, is a no-brainer.
Or is it? The dynamics of this market are
changing – so who is winning the war –
the OEM (original equipment manufacturer)
or the third-party manufacturer?
on year in 2009, while OEM sales were
down by 20.6 per cent. Ink dropped 6.8
per cent with OEM sales down by 16.7
per cent in the same period.
Major players in this market include
Armor Offce Printing (www.armor-
print.com), a leading manufacturer of
compatible consumables for inkjet, laser,
fax and dot matrix printers. ISO 9001
certifed Jettec (www.jettec.com) is one
of Europe's best-known compatible inkjet
cartridge manufacturers. Each month the
frm recycles 500,000 ink cartridges and
in its manufacturing facility in Boston,
Lincolnshire, produces over two million
compatible inkjet cartridges, 700,000
remanufactured inkjet cartridges and
100,000 laser toner cartridges. Katun
Corporation (www.katun.com) is another
company that supplies OEM-compatible
imaging supplies and other select
products and services for the offce
equipment industry.
A study by InfoTrends however shows
a drop in consumption of supplies for
All printer manufacturers advise the
sole use of original inks and toners and
have well documented the benefts
in terms of quality of print, device
uptime etc. Many cite that warranties
are void if non-original supplies are
used and there have been numerous
patent infringement cases fled
with the US and international court
systems in the past few years. Yet
despite this, the UKCRA (UK Cartridge
Remanufacturers Association)
estimates that the number of recycled
cartridges sold each year now exceeds
1.5 billion.
According to industry analysts IDC,
as a result of the recession, most OEMs
reported signifcant drops in sales of
original consumables, with toner sales
suffering the most. Compatibles on the
other hand, thrived in the worsening
economic climate, with all EMEA markets
reporting signifcant increases in sales.
Figures quoted by IDC state that toner
unit sales dropped by 11.7 per cent year
Western Europe with a reduction
totalling €1.56 billion in 2014. This is
attributed to the growth of Managed
Print Services (MPS) in the offce
environment, (whereby all hardware,
consumables and service is included in
a cost-per-page contract).
MPS is the biggest strategy trend
for the offce equipment market. John
Shane, Project Manager and Director
at InfoTrends said, “Our most recent
forecasts show MPS will control 28% of
the US offce environment print volume
and 22% of theWestern European
offce environment by 2014. However,
there wasn’t a clear understanding of
how MPS would impact the market for
supplies – until now.”
MPS contracts which traditionally
include the printer and multifunctional
device feet will impact on the sales of
supplies in two areas. An all inclusive
pricing structure enables OEMs to
ensure original supplies are used, as
these will be provided under the terms
of the agreement, therefore reducing
volume in the compatible aftermarket.
However, managing the print
infrastructure inevitably includes
rationalising the feet (fewer machines
equals fewer consumables) and most
importantly, delivers tools for feet
managers to measure and monitor
usage. One of the major end user
benefts of an MPS contract is the
ability to reduce costs by putting in
place print management policies that
reduce print volume, paper use and
associated supplies consumption. So,
whilst the customer is guaranteed to
use original only supplies, overall print
volumes will decrease, having a knock
on effect to the OEM’s bottom line too.
Review of Waste Policy
The Government has published the fndings of its Review of Waste Policy, setting out its
policies and a series of actions designed to help move towards a zero waste economy in
England. UKCRA has put its weight behind the plans which consist of restricting landfll
waste of metals and biodegradable waste, as well as accelerating recycling and reducing
waste creation.
Driving innovation in the £11 billion waste and recycling sector, which employs up to
150,000 people, is expected to push growth by three to four per cent over the next few years.
UKCRA said that with this new initiative there is an excellent opportunity for cartridge
remanufacturers. The plans to encourage collection and recycling amongst the public and
businesses provide an opportunity for remanufacturers to implement or become part of
collection schemes involving cartridges, which would then be fed back into the industry and not
destroyed. www.ukcra.com
Government Review
of Waste Policy in
England 2011
Government Review
of Waste Policy in
England 2011