Adapt or die

A useful reaffirmation that print is still a large market with plenty of profit potential came my way during Ipex, while chatting to KBA chief Helge Hansen.

Hansen is a turnaround specialist who's really made his mark at KBA - by taking swift action to cut costs and reduce headcount the restructured business managed to breakeven last year, which is more than can be said for most of its contemporaries, and the company has no net debt despite the financial crisis.

So far, so impressive and the efficacy of his actions makes Hansen worth listening to. He puts the overall worldwide market value of the printing industry at £300bn and his view is that while it may end up being, say, 25% smaller eventually, "it is still big enough for customers and press manufacturers to make good profits."

The key to success being that everyone involved has to right-size their businesses accordingly. "Structural changes are nothing new, they just need to be reflected in our business models. Markets come and go, they change all the time. All you have to do is adapt to the market needs as quickly as you can. That applies to press manufacturers and printing companies just the same."

Simples! Easier said than done, of course, but Hansen has said it and done it and I think he's right. There's no point waiting for things to bounce back, as some people seem to think will happen, because I'm not convinced that will be the case. The business success stories of the future will have shaped themselves to the new normal, which is very different from what went before.