Conquering the Crisis
Heidelberg News spoke with Werner Albrecht (58), who has been
Chairman of the Executive Board at Heidelberg Druckmaschinen
Vertrieb Deutschland GmbH and Director of the Market Center
Germany/Switzerland since 2004, about the greatest challenges and
opportunities facing the German printing industry.
Mr. Albrecht, what are the most important benchmark data for the printing industry in Germany?
Werner Albrecht: The German printing industry is one of the most efficient and largest printing markets in the world. At Heidelberg, Germany was our worldwide number one market in terms of revenue in 2005 and in 2006 as well.
... even with the turbulent economy of the past four years?
Werner Albrecht: Yes, because even after the slump of the past four years, there are still about 11,500 printing companies in Germany. True, this is about 4,000 companies and almost 40,000 employees less than in 2001, but we should not overlook the fact that the drop in these numbers is also due to some businesses closing and others being bought out. If you look at the remaining 11,500 companies, about 1,300 are positioned in the industrial sector, employing some 100,000 people. This makes up more than half of the approximately 180,000 people working in Germany's printing industry. At the same time, these companies do about two thirds of Germany's entire printing volume. This year Germany's entire printing production is valued at just under 23 billion US-Dollars (18 billion Euro), which corresponds to more than 13 percent of European or about five percent of worldwide print production.
Can we see the light at the end of the tunnel yet?
Werner Albrecht: Well, actually, it's even better than that. I believe that quite possibly for the first time the number of start-ups will balance the number of companies shutting down. I am of course especially happy about these start-ups because they show that people are seeing opportunities in this craft - despite all the prophecies of doom.
What lessons can be learned from the past four years?
Werner Albrecht: Even in this crisis, the structure of the printing industry has proven to be amazingly stable. This indicates that the percentage of small print shops has remained steady - and, interestingly - not only in Germany. In this country the percentage of small print shops is about 80 percent and is thus in about the same range as ten or 30 years ago - before and after the boom periods and slumps we had during that period. Admittedly, there has been a concentration of large printing companies or, put differently, the big companies have gotten bigger. At the same time, it would appear that the smaller print shops are profiting from their greater flexibility because at any given time they are developing alternative business models which help them compete with the industrial printing companies.
Can't a large printing company maneuver through an economic slump better than a small company?
Werner Albrecht: No, actually it is the large printing companies that "suffer" because of their specialization and focus on high volume. In an economic slump, they cannot sufficiently utilize their printing presses which quickly becomes a serious problem because that equipment is so expensive. Typical commercial print jobs of rather short runs are often done more efficiently by small and regional print shops, especially since these are also closer to the customer - a key point. Proximity to the client and a wide customer base ensure survival for these smaller companies, even in tough times.
Is there such as thing as a typical German print shop?
Werner Albrecht: The typical "German" print shop or printing industry is a thing of the past, just as there are no more typically "French" or "English" print shops. Print shops in France are pretty much like the ones in the United Kingdom, Germany or Poland. The printing industry has now become European. The surprising thing, however, is not "Europeanization" or internationalization; it's not the takeovers or mergers, but the fact that the structure of the business is identical throughout Europe. About 80 percent of these companies have less than 20 employees. Therefore I would rather use the term "the typical European print shop". These outfits are generally mid-market size, have a staff of 15 to 20, run two shifts, operate a midsize-format four-color printing press and perhaps one other small-format press, have their own prepress with CTP and a postpress that comprises a cutting system and folding machine. In a nutshell, these companies offer their customers the whole range of services and do not specialize in certain products.
You can download the complete interview on the top right-hand side.
Mr. Albrecht, what are the most important benchmark data for the printing industry in Germany?
Werner Albrecht: The German printing industry is one of the most efficient and largest printing markets in the world. At Heidelberg, Germany was our worldwide number one market in terms of revenue in 2005 and in 2006 as well.
... even with the turbulent economy of the past four years?
Werner Albrecht: Yes, because even after the slump of the past four years, there are still about 11,500 printing companies in Germany. True, this is about 4,000 companies and almost 40,000 employees less than in 2001, but we should not overlook the fact that the drop in these numbers is also due to some businesses closing and others being bought out. If you look at the remaining 11,500 companies, about 1,300 are positioned in the industrial sector, employing some 100,000 people. This makes up more than half of the approximately 180,000 people working in Germany's printing industry. At the same time, these companies do about two thirds of Germany's entire printing volume. This year Germany's entire printing production is valued at just under 23 billion US-Dollars (18 billion Euro), which corresponds to more than 13 percent of European or about five percent of worldwide print production.
Can we see the light at the end of the tunnel yet?
Werner Albrecht: Well, actually, it's even better than that. I believe that quite possibly for the first time the number of start-ups will balance the number of companies shutting down. I am of course especially happy about these start-ups because they show that people are seeing opportunities in this craft - despite all the prophecies of doom.
What lessons can be learned from the past four years?
Werner Albrecht: Even in this crisis, the structure of the printing industry has proven to be amazingly stable. This indicates that the percentage of small print shops has remained steady - and, interestingly - not only in Germany. In this country the percentage of small print shops is about 80 percent and is thus in about the same range as ten or 30 years ago - before and after the boom periods and slumps we had during that period. Admittedly, there has been a concentration of large printing companies or, put differently, the big companies have gotten bigger. At the same time, it would appear that the smaller print shops are profiting from their greater flexibility because at any given time they are developing alternative business models which help them compete with the industrial printing companies.
Can't a large printing company maneuver through an economic slump better than a small company?
Werner Albrecht: No, actually it is the large printing companies that "suffer" because of their specialization and focus on high volume. In an economic slump, they cannot sufficiently utilize their printing presses which quickly becomes a serious problem because that equipment is so expensive. Typical commercial print jobs of rather short runs are often done more efficiently by small and regional print shops, especially since these are also closer to the customer - a key point. Proximity to the client and a wide customer base ensure survival for these smaller companies, even in tough times.
Is there such as thing as a typical German print shop?
Werner Albrecht: The typical "German" print shop or printing industry is a thing of the past, just as there are no more typically "French" or "English" print shops. Print shops in France are pretty much like the ones in the United Kingdom, Germany or Poland. The printing industry has now become European. The surprising thing, however, is not "Europeanization" or internationalization; it's not the takeovers or mergers, but the fact that the structure of the business is identical throughout Europe. About 80 percent of these companies have less than 20 employees. Therefore I would rather use the term "the typical European print shop". These outfits are generally mid-market size, have a staff of 15 to 20, run two shifts, operate a midsize-format four-color printing press and perhaps one other small-format press, have their own prepress with CTP and a postpress that comprises a cutting system and folding machine. In a nutshell, these companies offer their customers the whole range of services and do not specialize in certain products.
You can download the complete interview on the top right-hand side.
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