If you don’t believe in the value of rolling
with the punches in the newspaper business, ask USA Today vice president of
production Ken Kirkhart about the varied cast of vendors that participated in
his $22 million computer-to-plate project.
USA Today’s CTP project, completed in 2000,
installed 56 Barco NewsCrescent and 10 Agfa Polaris CTP platesetters in the
United States and internationally.
“Almost every element of what we did changed
ownership through the course of the project,” Kirkhart said. “We started
with Intergraph as our computer supplier, and Dupont was our network software.
One plate setter was manufactured by Gerber, and another was manufactured by
Strobe for Agfa.”
All of them have changed ownership, or stopped
making the items they had supplied USA Today, Kirkhart said.
“Now, let’s see. Intergraph is out of the
computer business. Gerber sold to Barco, and Barco sold to Purup-Eskofot. Barco
and Purup-Eskofot became Esko-Graphics and the company plans to quit making the
CrescentNews CTP units that we are using. Also, the company that we started with
on our software, Dupont, was bought by Agfa,” Kirkhart recalled.
Good news
Now the good news: “In each case, these
(acquiring companies) all have been very good about meeting their obligations,”
Kirkhart said. USA Today and Esko met in mid-March and the company said it would
“stand firmly behind our contractual agreement,” he said. “I’m not
terribly concerned.”
Not all newspaper production professionals have
experienced this degree of vendor turmoil.
“We haven’t seen any sudden impact here at
the Chicago Tribune,” said Production Director Rebecca Brubaker.
But most production directors have faced product
turnover, and worse.
“It’s painfully obvious in lot of areas —
plates, film, platesetters — consolidation has meant a challenge for both the
publishing business and those supporting the publishing business, such as
suppliers,” Kirkhart said.
Take The Sun of Lowell, Mass. The Sun was ready
to buy a low-profile paper roll handling system from Arizona-based Motion
Systems when its bank shuttered the company overnight.
“The whole plan went away at the last second,”
said Director of Operations William Newbegin. “We were so close.”
Newbegin had one comfort: He hadn’t put down a
deposit.
The Sun had even better luck when Oshkosh,
Wis.-based AHS Inc., bought Motion Systems’ intellectual property, its
products and designs. It was 30 days before AHS learned of Motion Systems’
plight, and it took another three weeks to acquire the assets. (To muddy
matters, however, AHS did not acquire Motion Systems’ warranties and spare
parts, which were assumed by Skarlupka Manufacturing of White Lake, Wis.) The
new owner got in touch with Newbegin in short order.
“It worked out well because it was still well
within our 10-month window, when we needed it,” he said.
Not that it was fun for the newspaper.
“It was emotional,” Newbegin said, “the
disruption of our plans.”
The Sun’s roller coaster ride mirrors that of
AHS.
“We closed the (Motion Systems) deal five
months ago, and ever since then we’ve been traveling from end-user to end-user
trying to let them know what has happened, primarily people who had outstanding
quotes,” said Ron Fransen, AHS president and co-owner.
To further complicate matters, AHS recently
changed its name to Machine Design Service.
Machine Design Service is not advertising, so how
are people finding the former Motion Systems products?
“I don’t know, but they’re finding us,”
Fransen said.
Most production directors do what they can to arm
themselves against the chaos. Brubaker, whose experience has been relatively
serene, takes strict precautions against the eventuality that a vendor will go
out of business. In purchasing decisions, she said, “vendor availability and
commitment to the newspaper industry are always under consideration.” Her
staff uses other kinds of due diligence, too, by checking vendors’ Dun &
Bradstreet ratings and consulting with user groups and engineers.
Self-reliance is a virtue, too, production
directors agreed.
“We haven’t run into any problems” with
vanishing vendors, said Tom Stamper, production director of operations for The
Dallas Morning News. Then again, “We don’t need a lot of support. Where a
warranty expires, we have our in-house maintenance support group that we rely on
to keep the equipment running.”
Staying in close contact with peers makes a
difference, The Lowell Sun’s Newbegin said.
“We tend to throw ideas back and forth.”
The important thing is to keep a firm grip on
your priorities, according to Kirkhart.
“When you do business with various companies,
viability is a long-term plus. And technology. If the technology you buy is
good, it has a better chance of surviving than one that isn’t. You never know.”