The first Directory of Currency Suppliers™ was published in 2004. This year has seen the publication of the seventh edition. While an exact like for like comparison is not possible because of differences in groupings and uncertainty whether omission or addition is due to change or inconsistent approaches, it is possible to make some general observations about how the currency industry is changing.
In considering this we took a detailed look at changes between the sixth edition from 2018 and today, and a slightly higher level look at 2004 and today.
In no particular order, some observations are below (which represent just a sample of the changes over the years, and indeed just a sample of the broader industry).
The number of state printing works and state paper mills has hardly changed.
Belgium, Denmark, Finland, Sweden, Ireland and Norway and the UK have closed, sold off or leased their print works, reflecting primarily the impact of needing fewer banknotes. All the rest remain. Recently, of course, we have seen very significant investment by countries in new printworks, for example, Egypt, France, Spain, the Philippines and the US, among others.
The coin sector, which is very largely dominated by state-owned mints, has seen the Mint of Finland cease operations and the Royal Mint withdraw from exporting coins. Norway, Sweden, Belgium and Denmark have also exited coin production.
The commercial paper makers have seen major suppliers – Arjo Wiggins, Fabriano and Portals – close or be absorbed by other companies since 2018 and Radece before them (although it has now re-entered the market). Blend Paper, which used to belong to Arjo Wiggins, continues to operate. Indonesia’s Pura Group is now also exporting.
Whether the state sector is filling the gap or is causing the demise of commercial players, every state paper maker from 2004 is still operating today. In addition, Banknote Paper Mill India, China Banknote Printing and Minting (CBPM), Egypt’s NASPS, Europafi in France and Italy’s Valoridicarta have entered the paper export market.
While in 2004 Securency, now owned by CCL Industries, was the only manufacturer of polymer substrate, De La Rue, Q&T Hi-Tech Polymer and Spectra have entered the market. The success of polymer appears to be driving these new entrants.
This is another sector that has changed hugely since 2004. Five of the original 14 suppliers have left the industry, but today there are 27 suppliers. Four are state owned, compared with none in 2004.
There have been a number of acquisitions in this sector of course, for example Rolling Optics by Oberthur, Meta (who had bought Nanotech) by Authentix. But it appears new, smaller companies continue to join – IQ Structures, NASPS, Diametrxy and Wavefront to name some.
While Cash Processing Solutions (CPS) continues to operate, it has stopped making high speed sorters.
Cummins Allison has been bought by Crane Currency (which has, itself, been bought by Crane Co which then split into two businesses, one of which is Crane Currency).
While the number of publishers, such as Currency Publications, has hardly changed since 2004, the number of associations listed has grown from five to 16 and the number of consultants from 12 to 29. Perhaps the decline in the commercial cash sector is creating more consultants whilst also driving suppliers to form groups to champion what they do.
Capitalism is famous for creative destruction. One could argue that the change in the commercial sector reflects challenging market conditions.
Some organisations are struggling while others see the opportunity for profit. Cushioned from the profit and loss account, the state sector is able to take a longer view and adapt accordingly. A few have ceased operations while others are also seeking export led growth to sustain their operations.
Change is happening across the entire cash cycle, and we can expect new winners and losers to emerge. The industry remains dynamic and vibrant, if challenged.
