News

Jon Fennell - 13 June 2008

Sorry to see it end this way, Polar has a great shop floor crew, I hope it all goes well for them.

Will GT be turning in his grave?

Colin Thompson - 14 June 2008

Why so many print companies `bit` the dust!

Times are generally tough for most Print Businesses.

Also, the reasons for the demise of print companies was probably weak management, lack of management accountancy information, lack of adequate response to change, over trading i.e. the BIG project and high gearing plus normal business hazards and investors pumping money in without understanding the changing market place. The Print Industry requires excellent business models developed by skilled and experienced people who understand how to operate a successful company.

If companies take on board excellent successful business people with knowledge, then the Print Industry would be in a better position.

The future is about offering `solutions` to customers by operating a Print and Workflow Solutions Programme and methodically looking at how you manage your business with the `right` people and business models. Also, keeping a close eye on the speed of change, that will effect your business. Training, business models, business guides, and experienced/skilled people of any age that are available to help your business challenge the global impact are the most important investment for your success.

Be positive, have passion to be successful and have a `strategy` for this rapid changing world.

Colin Thompson

Cavendish

www.cavendish-mr.org.uk

Bryn Oakley - 16 June 2008

Very good Colin! Yes!

How about increased competition due to overcapacity in that sector of the market and foreign under-priced (often subsidised) production forcing down prices? Added to your idea of bad management investment decisions on incorrectly reading the 'market' requirements.

If I read it right, a loss of £202k on a £4.5 m turnover with 51 staff is indeed bad news,. The previous 2005 accounts with a profit of only £105k (presumably on a similar or reduced turnover) is not enough to go out and buy new presses in the 'hope' of increasing business by £2m. surely something more solid than 'hope' was obtained by the management before such an investment? The general profit margin in print has fallen so dramatically over the years that it is one of the most difficult markets to be in (apart from retail).

The trouble is, these sort of decisions result in messing up peoples livelyhood, not only the poor 51 employees now under sufferance, but also the knock-on effect of all the employees of the suppliers whose companies will now be feeling the pressure.

The internet has caused a price-concious world, which now affects many buying decisions; the ideas of 'best value' and loyalty seem to have disappeared in many instances, and this has a severe detrimental affect on the sustainsblity of profit.

In conclusion, in my opinion, it is often outside influences that have a detremental impact, and our ability to reinforce our customer relationships that keep companies going well, not necessarily a general decline. (The internet has a lot to answer for.)

My feelings go out to the employees, who have no influence on their companies strategy, but suddenly find themselves out of work.

Nick Sadler - 16 June 2008

Colin, I agree with this and other comments you have made about the running of companies in this industry. A large number of the people who run this industry are in no way qualified to do so. It has a habit of promoting successful sales people to run businesses. Solid business and management training are what is required along with a strong financial manager.

Look at the business models of Xerox, Canon, IBM and SAP. It isnt a surprise that they are able to succeed and survive tough business climates as they are all run using proven methodology and business models by appropriately qualified managers. They also all have a very structured and well trained sales function.

This is a great industry but needs to realign its entire culture to survive. It will but there will be more unfortunate casualties. Not that i am casting any question as to the competence of anyone at Polar, this is just a general comment.

From what Jon Fennell tells me they were a good printer and they will be missed.

Jack Sheperd - 16 June 2008

I can agree with a lot of the above, but quoting Xerox as a leading light is madness.

Xerox were not very long ago about to go into chapter 13.

Jon Fennell - 16 June 2008

Nice to see Cavendish selling their wares at everyone elses misery, a lot of businesses need a bloody miracle rather than training.

A lot of us saw this mess coming, you had to be blind not to. Nicks use of the word 'survive', is about right for now.

Consolidation along with with further closures, will regenerate a stronger print community, the capacity has to drop, although the manufacturers have us believe we need faster presses and quicker makereadies, why? so we can stand longer and reduce the rates. Until the dust settles and the dead wood has gone, unecessary investment in new plant makes little sense for most.

Commercial common sense, tight accounts, low overhead, good sales across a well spread client base,good read of the market, solid reliable staff along with the ability to say 'No', make for a healthy business.

Polar appear to have made an error in judgement by making the green switch (and so hard, positively tree hugging), coupled with a recent move and a shift in plant to KBA(?).

With the amount of nearly new plant on the market for the price of a bag of peanuts, why get sucked into a new plant risk. Based on the available accounts, it was suicide perhaps that was the idea.

For the staff made redundant, good luck and all the best.