Small format - big impact
Print Heidelberger Druckmaschinen AG (Heidelberg) is reaffirming its commitment to SMEs with new offerings.
Print Heidelberger Druckmaschinen AG (Heidelberg) is reaffirming its commitment to SMEs with new offerings. In April, press manufacturer and solutions provider Heidelberg presented its range of solutions to customers in the small and medium-sized print shop segment, a segment that is very important to the company. Werner Albrecht, CEO of Heidelberger Druckmaschinen Vertrieb Deutschland GmbH, also informed the German-speaking trade press about the background to the event, which was organized as a series of events over several days under the title "Small format - big impact". He also provided information on the company's strategies in the smaller format segment in general and on the situation in the German market, which is particularly important for Heidelberg. Bleak outlookAccording to Werner Albrecht, the environment in the printing industry is unfortunately not characterized by growth at the moment - and is not running in sync with the economy. According to him, the printing industry is a "late cycler". It is only benefiting from an economic upturn long after other sectors have recovered. "Our customers also feel insecure. They don't know where the journey is going," says Albrecht, explaining the state of the industry.
Where should a company invest today? In prepress, printing or postpress? These are questions that concern not only German, but also Swiss print shops to the same extent.
Increasing productivityWerner Albrecht noted that the German printing industry has shrunk by around a fifth since 1994, from 240000 to 190000 employees. However, the situation has not yet calmed down, he added.
One reason for this is the increase in productivity. In the case of sheetfed offset presses, for example, it has increased by over 100 percent in ten years. The productivity of saddle stitchers and other finishing machines has improved by 60 to 70 percent. Despite increased demand for printed matter, volumes have lagged behind these productivity gains. This has created free capacity. "These free capacities," says Albrecht, "are not good for the market. They are problematic because a larger supply has (negative) consequences for prices." Another force is cost optimization on the part of the "customers' customers". Print buyers have long since mastered the basics of business management, have learned what "just-in-time production" is, print smaller runs, etc., said Albrecht.
Albrecht sees a differentiation of print shops as a way out of this dilemma. The smaller formats in particular still offer sufficient potential. The combination of additional equipment in printing presses (coating units, punching or perforating equipment) with small and/or compact finishing machines gives companies the necessary advantages in the market. Print shops that pursue these strategies are therefore less interchangeable and can therefore escape price pressure to a certain extent.
Bernd Blumberg, Product Manager for the 35 x 50 cm and 50 x 70 cm formats, presented the solutions and products Heidelberg has to offer its customers in this area. These range from corresponding PDF workflows (prepress) to inline finishing options for the cost-effective production of matt/gloss effects (printing) and compact folding and collating machines (postpress). Many of these possibilities were demonstrated live at the event using practical examples (see box).
Improved service offeringTo make the offering clearer for smaller print shops, Heidelberg has divided customers/print shops into three business models (commercial printer/cost leader/specialist). With corresponding workflows, products and solutions, Heidelberg is demonstrating that it takes the needs of this important customer group seriously.
In addition to supporting customers with material consumption and reducing waste, Heidelberg will also increasingly focus on services in the future. "It is no longer enough to offer high-quality products and standard services. The range must be expanded," said Werner Albrecht on this subject. "We also have to stand out from the competition. A good price is important, but differentiation is also more important."
Profit after years of lossesSince 2001, total investments in prepress, printing and postpress in Germany, Heidelberg's most important market, have almost halved from 1.2 billion to 700 million this year. This has hit the company hard. The consequence was the sale of the web and digital printing business, following losses of 120 million and then 600 million euros in the 2002/2003 and 2003/2004 financial years.
Following the sale of the two divisions, Heidelberg has achieved a turnaround. Thanks in part to a new cost structure, the company was able to generate a profit of 61 million euros again in 2004. Today, Heidelberg has focused on prepress, printing, postpress and services. (jf)
Opportunities for differentiationThere is great potential in inline refinement and finishing:
- Processing scented varnish
Application of a microencapsulated fragrance, over the entire surface or partially
- Coating dispersion, UV or blister coating - Drip-off coating
Cost-effective solutions for full-surface and partial matt and gloss effects - MetalFX colors Combination of silver base color with CMYK enables the reproduction of metallic colors
- Die-cuttingSimultaneous cutting or punching of, for example, self-adhesive materials for stickers (jf)
Jürgen Franck
Where should a company invest today? In prepress, printing or postpress? These are questions that concern not only German, but also Swiss print shops to the same extent.
Increasing productivityWerner Albrecht noted that the German printing industry has shrunk by around a fifth since 1994, from 240000 to 190000 employees. However, the situation has not yet calmed down, he added.
One reason for this is the increase in productivity. In the case of sheetfed offset presses, for example, it has increased by over 100 percent in ten years. The productivity of saddle stitchers and other finishing machines has improved by 60 to 70 percent. Despite increased demand for printed matter, volumes have lagged behind these productivity gains. This has created free capacity. "These free capacities," says Albrecht, "are not good for the market. They are problematic because a larger supply has (negative) consequences for prices." Another force is cost optimization on the part of the "customers' customers". Print buyers have long since mastered the basics of business management, have learned what "just-in-time production" is, print smaller runs, etc., said Albrecht.
Albrecht sees a differentiation of print shops as a way out of this dilemma. The smaller formats in particular still offer sufficient potential. The combination of additional equipment in printing presses (coating units, punching or perforating equipment) with small and/or compact finishing machines gives companies the necessary advantages in the market. Print shops that pursue these strategies are therefore less interchangeable and can therefore escape price pressure to a certain extent.
Bernd Blumberg, Product Manager for the 35 x 50 cm and 50 x 70 cm formats, presented the solutions and products Heidelberg has to offer its customers in this area. These range from corresponding PDF workflows (prepress) to inline finishing options for the cost-effective production of matt/gloss effects (printing) and compact folding and collating machines (postpress). Many of these possibilities were demonstrated live at the event using practical examples (see box).
Improved service offeringTo make the offering clearer for smaller print shops, Heidelberg has divided customers/print shops into three business models (commercial printer/cost leader/specialist). With corresponding workflows, products and solutions, Heidelberg is demonstrating that it takes the needs of this important customer group seriously.
In addition to supporting customers with material consumption and reducing waste, Heidelberg will also increasingly focus on services in the future. "It is no longer enough to offer high-quality products and standard services. The range must be expanded," said Werner Albrecht on this subject. "We also have to stand out from the competition. A good price is important, but differentiation is also more important."
Profit after years of lossesSince 2001, total investments in prepress, printing and postpress in Germany, Heidelberg's most important market, have almost halved from 1.2 billion to 700 million this year. This has hit the company hard. The consequence was the sale of the web and digital printing business, following losses of 120 million and then 600 million euros in the 2002/2003 and 2003/2004 financial years.
Following the sale of the two divisions, Heidelberg has achieved a turnaround. Thanks in part to a new cost structure, the company was able to generate a profit of 61 million euros again in 2004. Today, Heidelberg has focused on prepress, printing, postpress and services. (jf)
Opportunities for differentiationThere is great potential in inline refinement and finishing:
- Processing scented varnish
Application of a microencapsulated fragrance, over the entire surface or partially
- Coating dispersion, UV or blister coating - Drip-off coating
Cost-effective solutions for full-surface and partial matt and gloss effects - MetalFX colors Combination of silver base color with CMYK enables the reproduction of metallic colors
- Die-cuttingSimultaneous cutting or punching of, for example, self-adhesive materials for stickers (jf)
Jürgen Franck
