The franking industry is seeing a resurgence in growth say two of the main manufacturers FP and Pitney Bowes. You could be forgiven for thinking this old-fashioned industry would fade out in a world of digital communication and email, yet quite the opposite is true. Sales are growing year on year. Two factors are fueling increased franking procurement, changes in technology and e-commerce.
As shopping continues to move from the high street to the internet so the need to quickly process parcel shipping is seeing substantial growth. Companies require franking machines to streamline their parcel output. The UK parcel market is expected to see an annual growth of 5-7% as more people turn to online purchases.
“With the growth we’ve witnessed over the last several years in e-commerce, it is no surprise the global parcel shipping market continues to expand at a strong pace,” said Lila Snyder, President, Global E-commerce for Pitney Bowes in 2016.
Franking dates back to 1884 but early franking systems were manual and cumbersome, it wasn’t until 1985 that they became fully electronic. Now franking has become digital and this new technology is not only faster but also presents a saving to analogue franking consumers by negating the cost of a dedicated phone line. Suppliers have already begun the process of converting analogue franking users to digital creating extra demand for franking manufacture.
FP who saw an increase in sales 3.0% in the first 9 months of 2017 recently commented on digital franking systems.
“We are attacking in our core business, developing new products and services for our customers and accelerating our digital transformation” said Rüdiger Andreas Günther, CEO & CFO of the FP Group said on 16 November 2017.
With the continual migration of shopping to online stores and the digital franking revolution, the future looks bright for franking suppliers. The franking industry has been revitalised by digitalisation and the internet.