Service activities include not only machine maintenance but also training, consulting, technical services, sales of re-marketed equipment (Heidelberg vernacular for used machines) and the Saphira consumables business. Almost 70 per cent of the cost of running the local operations in Australia are derived from non-equipment sales.

Meanwhile 70 per cent of HAN Service income is derived from service contracts. This is the highest contribution from service contracts to a Heidelberg operation anywhere. Without Service income during the GFC when capital equipment sales diminished, the picture for Heidelberg in Australasia would not have been a pretty one, says vels Jensen.

Heidelberg remains committed to offset printing and though it has forged a resale arrangement with Konica Minolta in Australia in order to supply its customers with digital printing solutions alongside their offset ones, Kiessling says that of the estimated €430bn global market for print (including commercial, publication, packaging and enterprise or office), only eight per cent is produced digitally.

He concedes that by 2015, digital’s share of the total print market is estimated to more than double to 18 per cent – but that the total value of print will also have grown to €455bn. In the new printing paradigm, Heidelberg expects to maintain and build its market share beyond heavy metal with its Service offering, including business development and web-to-print offerings for customers.

See the February 2011 issue of Australian Printer magazine for Brian Moore’s full report.

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