Rolf-Dieter Lafrenz, Managing Director of the Schickler consulting company in Hamburg, Germany, discusses the development of the propensity to invest in the newspaper industry in Central Europe.
,In general, we find a very limited propensity for expansion and replacement investments. Many publishing companies that are in a situation were they would need to invest in a larger scale in production equipment or IT look for possibilities to avoid these investments. At Schickler, we currently experience a wave of projects with the goal of building cooperations between publishers or a centralised service. Pure replacement investments are executed in cases where they amortise by a higher efficiency in a relative short timeframe. If this amortisation is not given, publishers join forces with their neighbours. Teil share capacities and are able to push the investment to a later point in time. Nobody wants to invest in a capacity today that he knows will be far too big in 10 years. The preferred option is to aid one another.' "
This comment was published on the WAN-IFRA website.