Archived posting to the Leica Users Group, 2005/02/26
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]Bob Haight wrote: >I think the mood of the entire industry is somber. No >one knows where it is going or how they will fit in. >Margins continue to shrink as do former glories for >everyone. > Productivity is key today more than ever. There's a lot of pressure lower costs by increasing productivity. Costs for raw materials, labor (wage and fringe benefits) and overhead (such as energy) are way up. Meanwhile there's pressure to keep selling prices down. (Don't blame Walmart. Blame consumers :-) ). Companies in the photo industry aren't the only ones feeling the pressure. Serveral large established grocers in the US are in the process of declaring bankruptcy, causing a huge ripple effect among all of their suppliers. I'm sure it's tremendously difficult for companies like Lieca, to adjust. In the past they could affort long development cycles because they had long production cycles.Today things are being compressed, exponentially. R&D is expensive and if a company misreads the market it can be fatal. Digital workflow makes a commercial photographer more productive, and therefore more competitive. It doesn't give them a better eye. Or in that respect make them better asthetically. Documentary photography isn't any more powerful today than it was 30 years ago. I haven't heard the term "Master Photographer" used as much. People lament Nikon for not coming out with new products as quickly as say Canon. Yet in the time the D100 has been out Canon has gone from the D60, to D10 to D20. Whether any of those is functionally better than the D100 is debatable. Any time I hear someone complain about Nikon's lack of a new body, I'm thankful I don't have another big upgrade whispering, "buy me!" The amateur market is just as important as the commercial market. The D70 was a home run and Nikon currently has over 50 percent of the DSLR market and is doing quite well financially. IMHO Nikon is adjusting well. Canon, too, but they enjoy certain R&D advantages. The jury is still out on a lot of companies. It's gotta be difficult. DaveR