What are your expectations regarding the development of the market compared to 2013? Do you expect orders in the same range as last year?
Eric Bell: While we are hopeful that 2014 will be a little better than last year, our planning assumes world press orders to be in the same range as 2013. Newspaper press order volume has shrunk by two thirds since 2008 and is unlikely to recover but, while I suspect that other suppliers might still have some downsizing to do, Goss has now put itself in a powerful position to gain market share. This is also helped by us having strong command of the single-width industry - by far the healthiest sector today - as well as a very solid footing in the growing markets.
We are particularly excited by the response to our new Magnum Compact press, which meets the increasingly important global requirements for versatility and quick, easy and economical job changeovers. The first orders are expected very soon.
What measures should newspapers initiate now in order to develop an upward trend?
Eric Bell: For many newspaper printers and publishers the last five years or so have been fraught with declining circulations and widespread speculation about the eventual demise of the newspaper. They have been on the defensive, while trying to take positive steps towards adapting and strengthening their businesses and brands.
It’s now time for newspaper to drive ahead with confidence again. Undoubtedly, there has been a radical change in reader behaviour, but most industry authorities believe the decline has slowed or plateaued. Newspapers have done an amazing job so far at innovating and reinventing their brands, and that is seeing share prices rising again now.
We are also seeing an abundance of market research data suggesting that print is increasingly regarded by consumers as a prestige item, that print advertising is still trusted more than online and that print offers welcome respite from the onslaught of electronic information. The newspaper landscape has changed entirely but now it’s time to look forward with optimism towards the greater integration of newspapers into all aspects of lifestyle, with print still integral to their offering.
What is on your company's agenda for 2014, business and technology-wise?
Eric Bell: Recognising that our environment for doing business has fundamentally changed, we are redesigning our business model to better compete and serve our customers. This involves restructuring the business around regional parts, service and support centres to be more responsive to customers locally. We are also diversifying our product portfolio to drive revenues in neighbouring markets where our expertise gives us an edge. The packaging market is an example for which we have already developed and installed groundbreaking products and are opening our first dedicated packaging technology centre in the USA for demonstrations, testing and educational programs. Alongside this expansion, Goss will continue to innovate and serve our traditional newspaper and commercial printing customers. The new Magnum Compact press is an excellent example of the fruits of this ongoing R&D investment aimed at meeting the needs of newspaper customers worldwide. In the commercial web sector we retain worldwide technology and market leadership with our Sunday and M-600 press platforms serving all market requirements from 16 to 96 pages.