Worldwide Demand for Heidelberg Subscription Contracts—Commercial Printer in Canada Sees Great Growth Potential
The Burke Group of Companies Ltd. in Edmonton in Canada has enjoyed
soaring growth. Established in 1902 as the commercial print shop
“Douglas Printing”, Ian and Shawna Burke took over the company in 2005
and changed the name to Burke Group. In the last ten years, sales have
grown from CAD 7.5 million (around EUR 5 million) to CAD 28 million
today (EUR 18.4 million). The company currently has 142 employees.
“We’ve evolved from a commercial print shop to a solution provider, and
offer our customers a one-stop shop – from design to shipping,” explains
Ian Burke. “This concept, which includes the online portal and mailing
services, is extremely well received. Within the next five years, we’re
planning to generate additional growth of CAD 22 million (EUR 14.4
million) through acquisitions.”
Pay-per-use agreement with doubling of overall equipment effectiveness
The
company is planning to increase the current print volume from 18
million to 35-40 million per year. In order to create the increased
capacities necessary for this, extensive consultation was provided by
Heidelberger Druckmaschinen AG (Heidelberg). The investment is intended
to optimize resources by reducing labor input and waste. In addition,
the existing production area is to be used efficiently and the
technology improved. All of these requirements are now fulfilled by the
signed subscription contract. It is a complete package comprising
machine, software, consumables, and service. The customer only pays for a
productive industrial service, in other words the number of printed
sheets. “The subscription model fits into our strategy for the future,
with which we want to increase our overall equipment effectiveness (OEE)
from 13% to at least 26% and in this way achieve our ambitious growth
targets,” confirms Ian Burke. “The contract includes consulting services
that increase the effectiveness so that we are competitive in a
fiercely contested market.”
Subscription contract dovetails with growth targets
The
subscription contract includes a new eight-color XL 106 with perfecting,
a Stahlfolder TH 82 folding machine, and a Polar N 137 cutting machine.
This contract is the first time that the innovative LE UV drying
technology has been used on the printing press. The benefits range from
the increased productivity to the energy efficiency compared with
conventional UV printing, the economy, the variety of applications, and
the impressive color effect. “This is precisely what we need to provide
our demanding customers from industry, trade, gas and water utilities,
banks, public institutions, and universities with the best products
within the shortest time,” explains Ian Burke. Using LE UV means that
the sheets are dry when they reach the delivery, and can go straight
into postpress. The Speedmaster XL 106 is replacing a press from a
competitor, and joins a Speedmaster SM 52 and SX 52 in the press room.
Both the subscription machine and the two existing machines will be
supplied by Heidelberg with Saphira consumables. These are optimally
matched to the machines and help to increase productivity.
“We are seeing strong demand for subscription contracts worldwide,
because more and more customers are seeing the many benefits for
themselves. We have 20 contracts in place at the moment, and want to
exceed the 100 mark by the end of 2020,” explains Professor Dr. Ulrich
Hermann, Member of the Management Board responsible for Lifecycle
Solutions and Chief Digital Officer at Heidelberg. “We’re happy that the
Burke Group with its corporate philosophy and proven track record has
chosen the pay-per-use model.”