Ensuring survival
Guest commentary Consolidation in the printing industry is a must. The merger of NZZ and Ringier should therefore be seen as groundbreaking, says Peter Edelmann.
Guest commentary Consolidation in the printing industry is a must. The merger of NZZ and Ringier should therefore be seen as groundbreaking,
says Peter Edelmann.
The recent merger of Ringier's and NZZ's printing operations under the umbrella of the newly founded Swiss Printers AG is in line with the trend and is an economically justified reaction to the overcapacity prevailing in the printing industry. The fact that this merger is taking place outside of economic hardship is particularly pleasing in this undertaking, as it prevents human hardship in the area of personnel. The overcapacity in the graphic arts industry, currently estimated at around 20 percent, which is fueling ruinous competition, could not be eliminated even by an economic upturn with restrained sales growth. This is due to the fact that every replacement of an old printing system with a new one automatically results in higher output. Prepress, which is now digital, i.e. "computer-to-plate", also increases productivity.
If you switch from a technical to a business perspective, you realize that today's printed matter price has an unprecedented price-performance ratio due to innovative production. This is because every investment calculation and the price calculation based on it assumes a fully utilized plant. Although this usually proves to be utopian, it has the effect that prices continue to fall. Thanks to these customer-friendly circumstances, printed matter remains competitive with electronic information media.
According to the "Future Study of the Visual Communication Industry" published by the industry association Viscom, the overall demand for information media will continue to increase over the next ten years. The greatest growth potential is forecast for "new media"; however, the print sector can also maintain or even increase its market share through standardization, automation and individualization. However, the latter requires the company to stand out from the crowd and not become a victim of structural change by acquiring new business areas.
The merger of Ringier and NZZ is therefore groundbreaking for the industry. Coordinated investment planning can avoid duplication and limit capacities. Cooperation also reduces organizational and procurement costs. This strengthens competitiveness, which not only helps to secure revenues and profits in the long term, but ultimately also jobs.
> Peter Edelmann is President of the Swiss Association for Visual Communication (Viscom) and Director of Zürcher Oberland Medien in Wetzikon.
says Peter Edelmann.
The recent merger of Ringier's and NZZ's printing operations under the umbrella of the newly founded Swiss Printers AG is in line with the trend and is an economically justified reaction to the overcapacity prevailing in the printing industry. The fact that this merger is taking place outside of economic hardship is particularly pleasing in this undertaking, as it prevents human hardship in the area of personnel. The overcapacity in the graphic arts industry, currently estimated at around 20 percent, which is fueling ruinous competition, could not be eliminated even by an economic upturn with restrained sales growth. This is due to the fact that every replacement of an old printing system with a new one automatically results in higher output. Prepress, which is now digital, i.e. "computer-to-plate", also increases productivity.
If you switch from a technical to a business perspective, you realize that today's printed matter price has an unprecedented price-performance ratio due to innovative production. This is because every investment calculation and the price calculation based on it assumes a fully utilized plant. Although this usually proves to be utopian, it has the effect that prices continue to fall. Thanks to these customer-friendly circumstances, printed matter remains competitive with electronic information media.
According to the "Future Study of the Visual Communication Industry" published by the industry association Viscom, the overall demand for information media will continue to increase over the next ten years. The greatest growth potential is forecast for "new media"; however, the print sector can also maintain or even increase its market share through standardization, automation and individualization. However, the latter requires the company to stand out from the crowd and not become a victim of structural change by acquiring new business areas.
The merger of Ringier and NZZ is therefore groundbreaking for the industry. Coordinated investment planning can avoid duplication and limit capacities. Cooperation also reduces organizational and procurement costs. This strengthens competitiveness, which not only helps to secure revenues and profits in the long term, but ultimately also jobs.
> Peter Edelmann is President of the Swiss Association for Visual Communication (Viscom) and Director of Zürcher Oberland Medien in Wetzikon.
