Worldwide demand for Heidelberg subscription contracts

Happy about the signing of the first Heidelberg subscription contract in Canada: (front row): Ian Burke (right), CEO Burke Group and Ulrich Hermann, CDO Heidelberg; (back row from left): Clint Ferner, Heidelberg Canada, Barry Burke and Carmen Rouselle, both Burke Group as well as David Schmedding, Head of Customer Segment Management at Heidelberg

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.”

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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.”

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.”

Source: Heidelberg

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