New technology hits printing sector

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New technology hits printing sector
Oluşturulma Tarihi: Haziran 16, 2009 00:00

ISTANBUL - The printing sector is experiencing high losses due to competition from new technology and the effects of the economic crisis. Over the past year, more than 3,000 printing houses have closed and 70 firms have applied to delay bankruptcy

The decline in the market for paper that has accompanied the expansion of computers, mobile phones, notebooks and other electronic devices has thrown the printing and press sector in Turkey into a deep crisis.

The printing sector, which has become less attractive as it fails to keep pace with technological development, is also facing tough times due to the stagnation in demand stemming from the global economic turmoil. Within one year, some 3,000 printing houses have closed down and 70 firms have applied to delay bankruptcy in Turkey.

Losing market share
Large companies that want to reduce printing costs are establishing small printing houses in their offices, creating a rapid market loss for the printing sector, according to Zekeriya Acar, the founder of a printing-industry educational foundation and the chairman of Acar Group.

Noting that there were 9,500 printing houses operating in Turkey last year, Acar said the number had dropped to around 6,000 as a result of the crisis. "In one year, over 3,000 printing houses were closed," he said. "And we know that 70 firms have applied to delay bankruptcy."

Digital invoicing hits printers
This negative phase for the sector started before the crisis struck its major blow, said Acar. "Within the last 15 years, everyone and his uncle imported printing machines and established printing houses, creating an excess supply in the sector," he said, adding that the electronic medium has shrank the market for printers further by providing digital billing, invoicing and ticketing services.

Digital printing houses, which are replacing offset printing, are likely to hold a 25 percent share in the printing industry by 2012, Acar said.

Companies unable to develop themselves and adapt to new technological conditions will be forced to shut down, said Acar, who urged firms to reorient toward exports and differentiate themselves from competitors.

"Singapore, South Korea, China, Italy and Spain are the prominent countries in the world’s printing industry, and the crisis has also hit them," he said. "The rise in prices and the fact that other countries feel the impacts of the crisis more give Turkey an advantage."

Addressing the sector’s problems with profitability, Sermet Tolan, a board member of Ofset Yapımevi, said: "Companies in the sector had already started to display an uneven picture with the decline in paper-based product use. Adding the crisis, many firms have closed down. The situation has also affected suppliers negatively. Today, we are unable to calculate profit margin. There is no way but contraction and merger in order to survive."
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