Printing Swiss newspaper printers are running at full capacity. Many are already reaching the limits of their capacity.
The climate currently seems to be particularly fertile for commuter and free newspapers. They are springing up like mushrooms in the media houses and are making a significant contribution to growth in the newspaper market. There are currently no complaints about a lack of capacity utilization in newspaper printing. On the contrary, there is already talk of capacity bottlenecks. Even smaller print shops are now spending money on upgrading their printing technology. Forecasts for the future are rather cautious. The price war is still an ongoing issue. And the Swiss newspaper market could also arouse covetousness in neighboring countries.
Hardly any impact on subscriptionsWith an investment volume of CHF 65 million, Ringier Print Adligenswil AG is massively expanding its market position. Newspaper production, including printing and finishing, is being modernized. Four existing Ringier printing presses and dispatch systems will be replaced by three new systems each, as well as two NLZ dispatch systems. One downside is the associated reduction of 40 full-time positions. "The new newspaper printing presses have a higher degree of automation and the so-called mail break (small fold) at night will be eliminated," says Dominik Hug, Marketing and Sales Manager, Ringier Print Adligenswil AG, explaining the job cuts. Moreover, this will not happen overnight, but will be implemented in stages until 2009. The employees affected were already informed at the end of June that they would receive their notice at the end of September, which would then take effect at the end of March 2008 at the earliest. Hug also confirms that the newspaper market is currently in a state of upheaval. A number of new titles have been launched recently, such as .ch and Cash daily.
However, the increase in free newspapers has hardly had any impact on the subscription sector, but mainly on retail sales, says Hug. Many people no longer buy their daily newspapers at newsstands, but instead pick up commuter newspapers that are made available to them free of charge at train stations and platforms. In general, Hug notes that the Swiss newspaper market has grown in recent times thanks to new free titles, but also due to circulation increases such as 20 Minuten. This can also be seen in the consumption of newsprint.
Bottlenecks in overnight capacityDespite the massive investments made by the major media companies, Hug does not believe that there will be any further streamlining in the newspaper printing sector. There are still many regional editions in Switzerland that also have to be printed in the region. In addition, the newspaper sector is very time-critical, which means that it requires overnight capacities that cannot be expanded indefinitely. In recent times, bottlenecks have repeatedly occurred, forcing media companies to outsource the printing of individual titles. For example, .ch, which has a partial print run in Vorarlberg, and Tamedia have been looking for overnight capacity. Hug does not see any competition in newspaper printing in the immediate neighboring countries either. There are two main reasons for this. The night titles have to be delivered in the early hours of the morning; logistics are therefore an important factor. Long distances are an obstacle to this. In addition, most newspapers in Germany are printed in the so-called Rhenish format, to which the printing presses are also geared. "In Switzerland, however, the broadsheet format and the half broadsheet (tabloid format) are common in the newspaper sector," explains Hug.
External orders for time slots "Our print utilization is still quite high," says Daniel Ehrat, Head of Publishing and Marketing, St. Galler Tagblatt AG. 150 million newspapers are printed each year. The printing center in St. Gallen with its modern production facilities was newly opened four and a half years ago, so there is currently no need for investment. "The new free newspapers launched in recent months have had no significant impact on our own print products, as their circulation has hardly declined as a result." In St. Gallen, the St. Galler Tagblatt is printed six days a week with a circulation of around 107,000 copies and the Anzeiger is printed every Tuesday with a circulation of 200,000 copies. These two publications already ensure regular machine utilization during the night. "We try to fill any remaining capacity with external orders in the available time window, provided the volume and price are right," explains Ehrat. "For example, we print the partial print runs of the Coop newspaper, Touring etc. for Eastern Switzerland." Ehrat is convinced that there will be even more cooperations and market shakeouts in newspaper printing in the near future.
He sees one reason for this in the increasing cost pressure. Capacity utilization is an important factor here. Relocating printing capacities to neighboring countries is less of an issue for him. The time factor and high logistics costs are more of an obstacle to this development.
Participating in the marketThe existing free newspapers will face further competition at the end of the year. The three daily newspapers Basler Zeitung, Berner Zeitung and Tages-Anzeiger are planning to jointly launch the new commuter newspaper News this year with a total circulation of around 330,000 copies. This will also provide more material for the printing presses. For Christopher Wehrli, media spokesman, Espace Media Group, this aspect does not play a role. The realization of News is a purely publishing decision in which the utilization of printing capacity was not a decisive factor. "Commuter newspapers meet a market need that we want to participate in, especially as we can still fill an existing open space with News. A partial run of News will certainly also be printed in our printing center," says Wehrli. "We are not currently planning to invest in new printing technology. With the construction of the new printing center, Espace Media has already made the leap into a new printing era and thus also realized the necessary technology boost and capacity expansion. At present, it is mainly various smaller media companies that are expanding their printing capacities."
Possibilities for expansion "Our printing presses are very well utilized, but capacity expansions are possible in principle," says Wehrli. The printing center has already been designed in such a way that further expansion is possible if required. "We print a large number of different titles such as Berner Zeitung, including Thuner Tagblatt, Berner Oberländer, Solothurner Tagblatt, Der Bund, Berner Bär, Automobilrevue, Schweizer Bauer, various gazettes, customer publications and regional newspapers as well as partial editions of Migros Magazin and Abendzeitung heute," he says, describing the spectrum. Espace Media sees less of a shakeout in the newspaper printing sector. The price war, which will continue to intensify, will be more of an issue. This could also lead to outsourcing to neighboring countries. The printing of the free newspaper .ch in Vorarlberg is an example of such an option.
Sabine Flaxman
Ringier Print
Adligenswil AG,http://adligenswil.ringierprint.ch
St. Galler Tagblatt AG,
Print center, Espace Media print center,