Turbulent markets and weak pound could hit Drupa sales

Leading German press manufacturers and print finance houses have said the current stringent lending climate, compounded by the stronger euro, could put a strain on UK buyers at Drupa.

MAN Roland UK sales director Gary Doman told printweek.com that "companies with a strong balance sheet" will not be affected by "finance houses and banks tightening their belts", but "unfortunately, this does not apply to the majority of companies".

Heidelberg UK managing director George Clarke said he was "not full of doom and gloom" and welcomed the banks being more cautious rather than go back to the "sub-prime print market".

Close Print Finance area manager David Bunker said "the current climate makes the banks a bit more twitchy".

Bunker said the weaker pound meant "the net cost will be more" for printers buying European kit as an additional item. "However, if you're replacing kit, the idea is that you'll benefit from the parts exchange.

"With the pound weakening, the secondhand machinery [from the UK] becomes more desirable in Europe."

Bunker added: "However, I don't think the secondhand dealers will pass the benefit on."

Simon France, head of sales at HSBC Equipment Finance's print division, said that due to the strong euro, "German manufacturers may find pricing their machines difficult".

France said: "Say you got a quote a year ago, the price could now be up to 10% more," though added "it could all change between now and Drupa".

KBA marketing director Klaus Schmidt said: "We must accept that the total volume of orders placed at Drupa 2008 may well be lower than in 2000 or 2004 as a result of the current turbulence in financial markets.

"We are confronted daily by the challenge of competing with US and Japanese competitors on an uneven playing field" due to the strength of the euro over the yen and the dollar, said Schmidt.

Heidelberg's Clarke said it was "unfortunate we have to pass on the effects of the weaker pound" but "printing presses will cost a little more".

Got a view on this article? Comment in the space below or head to the printweek.com forums to have your say.