Prime Minister David Cameron has said that paralysis within the eurozone was having "a chilling effect on economies". At the time of writing, Angela Merkel and Nicolas Sarkozy were in rescue talks over a financial rescue package worth up to €2 trillion (£1.3 trillion).
But next year, the Olympics of the print trade cycle arrives once again when Drupa opens at the Düsseldorf Messe for two weeks from 3 May.
In 2008, it attracted 1,971 exhibitors from 52 countries and 390,000 visitors from 140 countries. While many manufacturers claimed significant orders at the show, the conversion rate for these fell off sharply as the credit crunch took hold.
So, what impact may the eurozone crisis have on Drupa 2012?
"The issue around the eurozone won’t actually affect a company’s ability to invest at Drupa," says Gerry Hoare, director at Deal Bureau, "but it might make them withdraw to keep the cash in the bank or not increase their borrowings. It depends on what the visitors from the show want out of it. Most companies who have decided to go, who can afford it, have probably already committed."
Buxton Press chief executive Bernard Galloway is less optimistic.
"The euro will fail – it’s only a matter of when, but it will be at substantial costs to all its stakeholders," he says, arguing that this will have serious repercussions on Drupa. "The European and USA visitors will be thin on the ground and even fewer will be on a purchase-mission," he says. "The best hopes come from visitors from China, India and South America. If the euro goes pop before the show, it could be another 9/11 event on attendance figures."
Huge investment
Drupa represents a huge investment in time and money for any exhibitor at the show, regardless of size. Thus, preparation for the event cannot hinge on a ‘what-if’. Plans are already in full-swing.
Andy Cook, managing director at pre-press and digital manufacturer FFEI, says Drupa is a "special show" for the Hemel Hempstead-based business: "The key purpose is to give customers a view of what’s coming and give them confidence in us."
Cook says investment at the show will be defined by customers looking for new business models centred on how they buy products and services.
"I expect we’ll see more ‘subscription based’ payment models, especially for software products where the technology now lends itself to cloud-based deployment," he adds.
Graham Moore, director of business development of the production printing business group at Ricoh Europe, also expects software as a service (SaaS) to play a visible part of software sales going forward.
"If a customer has bought a digital press but needs guidance on something like web-to-print, we can offer that on a subscription, cloud-based model to help spread cost," he says.
Press giant Heidelberg had two dedicated halls to showcase its product portfolio at Drupa 2008. UK sales director Jim Todd has high hopes for next year’s event, but insists that manufacturers must stick to what they do best, producing "high-quality, equipment to improve business".
He says: "I feel we should we stick to manufacturing and banks should stick with banking.
"If press manufacturers dip their toes into the banking side, that could be problematic. Offering assistance for one company and not another could lead to an unfair advantage, and that’s where problems lie."
Professional print director at Canon Europe David Preskett says Canon will focus on helping customers open new business opportunities and improve margins with software.
"People are still investing in digital capital equipment and Q3 shipment figures show an increase, but I believe this Drupa won’t all be about equipment investment," he says.
Preskett adds that Canon recognised that finance is – and will remain – a serious issue for customers, and has developed plans to aid their chances of investing.
"We’ll do all we can to help improve our customer’s chances of securing finance, but we’re unable to offer them other bespoke methods. We can help them develop a business plan; demonstrate the market opportunities available and how they can grow as a result to improve their chances of securing funds," he adds.
Ricoh’s Moore says the firm will also try to help potential clients make desired investments at the show.
"We recognise that while customers may have identified a new investment, the finances may not be available. That’s why we have designated funds through our Ricoh Capital for such cases."
By the end of today (9 December) Merkel and Sarkozy’s plans for tighter eurozone controls will have been discussed at the Brussels EU summit. Much will change by May 2012, but manufacturers will be grasping Drupa with both hands.
Mark Hogan
Marketing director, Heidelberg UK
"All we can do is present equipment and service options in the most compelling and professional way, so customers understand what our products and supporting services can do for their business. Ultimately, the customer will decide through rational analysis whether or not to invest. Gone are the days when you could wine and dine your way to a deposit cheque. Our focus will be on providing customers with solutions to make them more productive and profitable, arming them to better weather the turbulent business climate."
Graham Harris
Managng director, Tech-ni-fold
"Weaker countries like Greece and Ireland are in more danger of taking the ‘immediate’ brunt of impact if the Euro crisis isn’t sorted out soon. Germany and stronger countries would suffer, but I don’t feel this would be immediate enough to decimate Drupa. Any sale a manufacturer wins is commendable in this depressed economy; it won’t be different at Drupa. But the whole of the printing world will come to our stands next May – if that doesn’t get exhibitors pumped up, I just don’t know what will."
Mark Nelson
Director, Compass Business Finance
"If the eurozone debt crisis does not get sorted out in relatively short order, then markets and banks are going back on the rollercoaster. This will have a continued impact on companies’ confidence to invest, rather than their ability to invest. What we have found over the last four years is that people want to go out and buy equipment, but are predominantly put off by the uncertain nature of the markets. As such, the longer we continue without coherent and structured solutions, the more problems it is likely to create."
