SEATTLE — Reflecting the need to upgrade their
production systems, newspapers this year are projected to increase their capital
spending by nearly 10 percent, according to the Newspaper Association of America’s
annual Capital Equipment Expenditures Survey (see chart, bottom of page).
The NAA, issuing the report at its annual meeting
here, said newspapers will spend $513 million, up 9.7 percent over actual 2002
spending of $467 million. But the open wallet won’t extend to all parts of the
production floor. Newspapers say they’ll slash spending on certain postpress
systems such as stackers and used inserters, in some cases by more than 90
percent. More than 250 newspapers responded to the survey.
“Newspapers have weathered the same economic
challenges as other businesses and have taken a measured, long-term approach
toward holding the line on investments for the future,” said John F. Sturm,
NAA president and chief executive officer. “Now that the industry and the
economy have taken the first steps toward recovery, newspapers are able to
devote more resources to those technical investments.”
Projected spending is up dramatically in some
areas. The largest projected increases for 2003 are in warehouse/roll handling
equipment, up 256.3 percent; image output devices, up 76.6 percent and external
communications systems, up 68.7 percent.
Of the survey categories, newspapers plan to
spend the most on plant construction, which accounts for more than $140 million
of the respondents’ 2003 spending. That’s a drop of 7.7 percent, however,
from 2002 spending, mirroring the decline in new plants.
That said, new presses are expected to account
for more than $84 million, up 18.2 percent from 2002; spending for computer
software is projected at $71 million, up 45.4 percent; and computer hardware is
projected at nearly $56 million, up 49.7 percent.
Meantime, the NAA elected its 2003-2004 officers.
The new chairman is Tony Ridder, chairman of Knight Ridder Inc. He succeeds
William Dean Singleton, vice chairman and chief executive officer of MediaNews
Group. Vice chairman is Gregg K. Jones, co-publisher of The Greeneville (Tenn.)
Sun, while the new secretary is Jay. R. Smith, president of Cox Newspapers. The
NAA treasurer is Boisfeuillet Jones Jr., publisher of The Washington Post.
Source: NAA