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Photo Engineer

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Jim Chinn said:
With the poor management at Kodak over the last 20 years I suspect that building the new coating plant was as much about the inertia of a bungling buearacracy as anything else. My wife works for a major airline that spent almost $500 million dollars in the 80s building new hubs, terminals, licensing routes and gates, only to sell or shutter 80% of those facilites in the 90s all because management was to myopic to see what coming down the road.

With this statement, it implies that you knew what was coming down the road. If so, why aren't you rich?

Management at Kodak, Fuji, Agfa and Ilford are no more precognizant than any of us and didn't know what was coming down the road. The electronics industry is just as secretive as any other, and the photo taking public is just as fickle as any other segment of the buying public.

The downtrend took everyone in the conventional photo industry by surprise, Eastman Kodak included. The rate has also been faster than anyone predicted at any company, and has led to what we are discussing here. If any company could have predicted it to any degree of accuracy, Agfa, Ilford and the others would not be having these financical difficulties. They would have been able to cope with a gradual downturn if they had been able to accurately predict it. So, if you are going to cast blame, spread it around evenly.

In fact, I would bet that Fuji is in worse shape than we know, but that the Japanese government is aiding them as it does many companies in Japan.

I just wish them all good luck. They are going to need it.

PE
 

User Removed

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I noticed this happening awhile ago. The value and cost of Large Format camera, film, gear ect is all going up up UP! Everyone was thinking that with Digital taking over...the cost of film cameras would be dirt cheep.....BUT ITS THE OPPOSITE!

I am picking a film, developer, paper...and sticking with it for the rest of my life. Seriously! I think that is the only way to go. I have tried it before thought...and both companys stopped making the product or went out of business!
 

Jim Chinn

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Photo Engineer said:
With this statement, it implies that you knew what was coming down the road. If so, why aren't you rich?"

I don't get paid tens of millions of dollars to be the CEO of Kodak or an airline.
CEOs and management teams are paid to see things coming down the road. No I did not get rich from the shift of market share to digital, but at the same time I was smart enough not to invest a dime in Kodak stock.
 

c6h6o3

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Jim Chinn said:
Kodak may stay in the game if they can contract production for other products at their remaining coating plant(s?). My personal belief with Kodak is that they will continue in some capacity but eliminate many products or license production to another mfg like Ilford has done with its chemistry.

I surely hope you're right. I think Kodak is our last, best hope. I like Efke film as much as anyone, but film production is a capital intensive industry where the barriers to entry are high. The cutting edge of Croatian film manufacturing technology was cast off as obsolete by the big American manufacturers 30 years ago. In addition, the process takes a highly skilled and experienced workforce.

Whereas China may be able to bankroll film production, they lack the experienced workforce necessary to consistently deliver quality product. The East Europeans seem to be getting better about the quality, but lack the financial heft to bankroll it sufficiently.

Hopefully by paring down to one or two B&W films, Kodak can streamline enough to keep the manufacture of film profitable. It seems to me that if they can't do it, nobody can and film will then disappear altogether.
 
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edz

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c6h6o3 said:
but film production is a capital intensive industry
No its not. Its an industry with incredible returns to scale--- the marginal costs to produce film converges to a few pennies. Because of this the more one can sell, the more one can make, the better profit margins and returns one can see. Throw in the fixed overhead costs of a modern coating plant and it becomes clear that the economies of film production are such that one needs to exploit demand elasticities towards an optimum which should always err on the side of lower prices and higher demand. Unless a film and paper cartel can via price fixing agree to press prices upwards this means that the "big players" will have motivation to stimulate demand by whatever means and most typically this has meant reducing prices. This is just what we have seen: falling demand and falling prices. At my local drugstore they are now selling repackaged Agfa film (probably Vista 100) for 65 EUROcents per 36exp film. Development and printing too has become very cheap over the last few years. We should probably continue to see prices decline and competition should get harder as the remaining companies fight it out for the top 2 dominant slots.
Since the total demand is in decline this will demand some quick short term cost cuts to maintain their credit value and this means a reduction in workforce. This too we are seeing. While this can be viewed as effectively increasing the weight of capital to labour in film production, such a position would ignore the production dynamics.
And in a world where hardly anyone wants film and there is no way to exploit scale? Still no problem. The entry point is relatively low and a cottege industry of niche suppliers of B&W materials is quite possible.
 

Photo Engineer

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Actually, to manufacture a film with high quality is very capital intensive. The big expense is the learning curve due to the art in the industry and all of the trade secrets. Mastering the method of making a t-grain emulsion is hard enough, but doping it with the right addenda for the best result is just as difficult. Then, mastering the coating methodology is added on top of all of that.

You would spend a lot of money in startup and would probably not have a salable product for the first year or so. It may take even longer to have a competetive product.

This is just considering black and white. Factor in color and you may go broke before you get off the ground. Most companies that have tried this have backed out rather quickly.

PE
 

moose10101

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c6h6o3 said:
but film production is a capital intensive industry

edz said:
No its not. Its an industry with incredible returns to scale--- the marginal costs to produce film converges to a few pennies....The entry point is relatively low and a cottege industry of niche suppliers of B&W materials is quite possible.

I think your definition of "capital intensive" must be different from mine. Further, if the "entry point is relatively low", why the emphasis on returns to scale? Cottage industries, by definition, don't achieve large volumes, which are necessary only if the initial investment is large.
 
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edz

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moose10101 said:
I think your definition of "capital intensive" must be different from mine. Further, if the "entry point is relatively low", why the emphasis on returns to scale? Cottage industries, by definition, don't achieve large volumes, which are necessary only if the initial investment is large.

The emphasis on return to scales is about profit per unit sold. If you sell a lot of film then your film costs less to make. This increases your potential profit margin per unit sold. A small new entry will have problems since they don't have yet a market and so can't realize the returns to scale and so have significantly higher per unit production costs and thus also lower margins for profit. As long as a lot of film can be sold there is no easy access to small entries but as volume declines the advantages of scale too start to decline. To start a company making B&W photographic papers is not too difficult--- there is know-how around and machines have been floating around for some times or how do you explain Efke, Sterling etc--- but to be able to sell it at price points competitive to major players today is hardly possible. THis is compounded by the observation that the major players need to try to maintain their turnover and so will be motivated to lower their prices and try to flood the market: struggle to maintain scale and get some cash flow to try to keep production volume up. Its a vicious circle and hardly the stuff for survival of large players but less so the small. Its like the PC industry (personal computers too are very easy to build) on hormones.
 

Photo Engineer

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Edz, considering the comments I read here and elsewhere about manufacturers such as the Eastern European film companies and others regarding film defects, I wonder if they are really up to speed in the film making arena.

I hear of bubbles, softness, extreme curl and other problems that I never hear about regarding Kodak, Agfa, Fuji or Ilford. People don't get exactly the right grain or sharpness or tone scale from one or another product from the major players, but they never seem to have film defects.

I guess you are willing to take these problems if you can get your film from a mom and pop shop then? Or would you rather know you were going to get the picture every time with a good Ilford or Kodak film for example.

It is hard to make good consistant defect free film. It is also expensive. Quantity keeps down costs and drives up quality.

PE
 

noseoil

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"The emphasis on return to scales is about profit per unit sold. If you sell a lot of film then your film costs less to make. This increases your potential profit margin per unit sold."

If you sell a lot of film, you still have the same overhead and direct costs, but profit margins can increase as a function of higher volume, not reduced costs. This is incorrect logic.

If film was so easy to make, there would be more small players getting in, but there aren't. To set up a factory on a shrinking market, invest in the machinery, people needed to make the product and then do the marketing on a world wide basis is expensive (not to mention the brass balls needed to ride out the first few years).

About Efke films. Simply put, they are unique enough to fill an important niche in the market place. The 25 and 50 have a unique look (ortho-pan) and the 100 has expansion and contraction properties without equal. Hopefully they can ride out the shrinking market and stay viable. tim
 

c6h6o3

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edz said:
No its not. Its an industry with incredible returns to scale--- the marginal costs to produce film converges to a few pennies. Because of this the more one can sell, the more one can make, the better profit margins and returns one can see........The entry point is relatively low and a cottege industry of niche suppliers of B&W materials is quite possible.

So, when can we expect to see the Zimmermann Classic line of films hitting the market?
 

alien

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Eastern European manufacturers

I started to use Foma 100 film about 2 months ago, and I think it is great.

As far as experienced it curls a little bit more than, say, Pan F, but other than that it gives me superb results.

I think the Eastern European manufacturers will surely get the quality of their products under control!

Also - black and white has always been a niche market with ups and downs.

I firmly believe that it will never die - there are too many people enjoying it. The market might change, but it will not die.





Photo Engineer said:
Edz, considering the comments I read here and elsewhere about manufacturers such as the Eastern European film companies and others regarding film defects, I wonder if they are really up to speed in the film making arena.

I hear of bubbles, softness, extreme curl and other problems that I never hear about regarding Kodak, Agfa, Fuji or Ilford. People don't get exactly the right grain or sharpness or tone scale from one or another product from the major players, but they never seem to have film defects.

I guess you are willing to take these problems if you can get your film from a mom and pop shop then? Or would you rather know you were going to get the picture every time with a good Ilford or Kodak film for example.

It is hard to make good consistant defect free film. It is also expensive. Quantity keeps down costs and drives up quality.

PE
 

ElrodCod

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alien said:
I started to use Foma 100 film about 2 months ago, and I think it is great.

As far as experienced it curls a little bit more than, say, Pan F, but other than that it gives me superb results.

I think the Eastern European manufacturers will surely get the quality of their products under control!

Also - black and white has always been a niche market with ups and downs.

I firmly believe that it will never die - there are too many people enjoying it. The market might change, but it will not die.

I agree that there will always be a market for black and white film and products but there may not be any suppliers. The trick is preventing all of the manufacturers from going out of business at the same time. It seems that they're unable to downsize fast enough to keep up with the downward spiral of the market. there's Kodak, Fuji, Ilford, Agfa, the other smaller European manufacturers and China. Agfa and Ilford could be gone in soon and Forte's in trouble too. Kodak would drop b & w in a heartbeat if the stockholders could save a buck out of it. Same with Fuji. We may be stuck with second and third rate film from Europe and China alot sooner than we'd like.
 
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edz

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From:
http://www.ksta.de/servlet/Original...tikel&aid=1117221525735&template=Druckfassung


"Wesentlich nahe liegender ist nach Angaben aus der Firma, dass der Film- und Papierproduktion systematisch das Kapital entzogen und stattdessen die übergeordnete Holding genährt wurde. Sollte dies so sein, ist für den Opladener Arbeitsrechtler und Agfa-Kenner Harald Kaiser aus der Kanzlei Orlowski, Kaiser, Mende ziemlich klar, „dass wir es wohl mit einer strategischen Insolvenz zu tun haben“.


--
The above article seems to suggest that so-called vampires were at work and that the capital was sucked off the film and paper production into the holding and the company intentionally driven into default. Apparently Agfa-Gavaert have blocked all accounts and notified the D.A. and the story is getting stranger. Hartmut Emans, NannO Boss and "on paper" 55% of AgfaPhoto is now being blocked from entering the building and locks have been changed.

Looks like the making of a scandal......
 

gnashings

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edz said:
I think the "average person" can be made to care. Its called information. Its called issue perception. Its called marketing. Instead the consumers have been sold digital as a replacement for film pared with the lie that its cheaper lacking film. Following an initial optimism for demand of digital prints the market has noticed a weaking of growth and a decline in revenues.


Probably since their 3 year old camera probably does not work.


If so what a camera (like the HPs I mentioned) at the supermarket for 70 EUROs?


Do I think the average person will need to "discover" what it means? YES.


It does. Its part of the silicon economy.


Most of the cellphones sold today in Europe include digital cameras. They have caught on big time and its really only the mega-pixel lead-up of the low-end consumer cameras (like 5 Megapixel for under 100 EURO verses the 1 or 2 Megapixel in the phones) that continues to allow for product differentiation. Current market analysis seems to suggest that as processor and memory technology develops to allow for mass 3 mp camera cell phones--- maybe a year away--- that this might change. What has not caught on is 3G services but there is a long case history that should have made this clear--- back to the failed AT&T picture phone of the 1960s. Its really quite consistent that even WAP did not catch on yet SMS did.



Almost all new phones include cameras don't they?




And that's the model application of the camera in the cell-phone. No need to even hook anything up. If that's the main application of digital cameras then we'd see a lot of images being send by these phones yet we don't. The main use seems to be the same as with the mass cunsumer digital cameras: a little gadget to take a picture, store it and look at it later (maybe with friends) and then throw away.


Don't confuse apples with oranges. A 1990 computer and a 2000 computer and a 2005 computer are completely different objects. Its like talking about the hot dog you ate in 1965. Its long ago passed through the food chain into many generations of hot dogs.

First off, the product cycle you mention, you seem to be arguing just for the sake of arguing: you say "part of the silicone economy" - exactly, its not a matter of need, its a matter of being able to get away with it in a market that has trained its consumers to accept this "reality"

And yes, it IS exactly the same as the computer issue - its a market driven by what the manufacturers tell us we need, not what we tell them we need. But, yes, it works... The fastest airplane in the world was desgined in the late 60's with a slide rule and some paper - today an elementary school child NEEDS the internet and a P4 computer to pass his classes... Really? No, but we believe it. When the Canon FD lense got phazed out by the incompatible EF's, Canon users raised a storm. Today, when someone is told that his or her camera no longer works for no other reason than the need to sell them a newer one( discised as technological advancements), they accept it without asking a question, because they are as conditioned to this reality of built in obsolescence as Pavlov's dogs to getting fed when the bell rings...
Why, we all know that a 50 year old Leica will still take a better picture today than any digital, so much so that most people just consider it a bench mark and stop trying (and please, this is not a Leica good or bad thread, so just let it go - substitute your favorite camera here if it bothers anyone...).
As you can see, actual quality and capability are of no consequence here...

As far as teaching the masses - I think you are right, I don't disagree with you on the very principles of what you are saying, merely on the logical extrapolation of what is likely to happen. Sure, YOU, or I, can teach someone a great deal. But the large imaging companies will not because they DO NOT WANT TO. And they have access to millions of homes, while you and I can maybe tell a dozen people, half of whom will still believe the smiling lady drooling over her new digi-cam in a TV ad.
You say:
"Its called issue perception. Its called marketing. Instead the consumers have been sold digital as a replacement for film pared with the lie that its cheaper lacking film"
Sure, and which company will kill the goose that lays the golden eggs by teaching the public that those eggs are in fact painted dog poop? Why are you so completely oblivious to the fact that this has nothing to do with reality, merely the perception of it, one which you and I have no ability to change, and in which so many powerful players have so much invested?

And most of the cell phones have cameras because the cell companies bet on it - here in North America they have to pretty much pay consumers to take camphones, since even the lowest common denominator realized they simply don't have a need for a crappy digitalpinhole. The phone companies want to recover the costs of development and hope to make big $$$ on the fees for sending those crappy little pixelated images across their airways. Most phones have cameras, because the suppliers want us to have those things - like I said earlier, we will learn to use them, and need them if we are told we do. Right now, most people are not biting on it, but they will.

And as to the assessment that digital photos are:
"The main use seems to be the same as with the mass cunsumer digital cameras: a little gadget to take a picture, store it and look at it later (maybe with friends) and then throw away"

YES! What do you think the masses want from a roll of film??? THE SAME THING! Its just a huge hassle and expenditure to them to load film, develop it, pay for it... wonder if it was done right by the pimple faced kid at the gorcery store mini lab...The pictures they want to keep tey get taken at a low cost studio like wal mart or glamour shots, framed and there you go! Those are now digital, too, by the way... because a professional photographer, on average,has to go digital in order to stay competitive price wise... And he or she, the "expert" will of course tell the consumer that "oh sure, digital is better! Definitely!"... because to do otherwise, while honest, would be bad for business.

And hence the problems the manufacturers are having. I do not know, but am willing to wager, that the B&W Agfa proiducts were probably doing OK, as someone else pointed out, they are losing the fight against other manufacturers in other areas. Unfortunately, B&W is the part they percieve as expendable - they won't fight for it. They will sacrifice it first and frankly, I can't blame them - unlike me, they have no vested personal interest in it, and surely no emotional attachment to the subject.
 

noseoil

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edz, it sounds a lot like a corporate raid. Take a good, sound company with decent cash reserves, buy a controlling interest and get 51% of the stock, then plunder the pension fund, cash reserve or saved monies. This happens frequently, to prop up one company by ruining another is just the big fish eating the little fish. tim

P.S. I'm not saying this is a good thing, just that it happens all too frequently in the world of money and big corporations. It happened here in Tucson a few years ago. Tucson Electric Power was bought and the pension fund was removed. The people who had worked all of their lives to retire were left with nothing.
 

gbroadbridge

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Jim Chinn said:
It does not surprise me that Agfa is going under. I understand from a reliable source ...

Sigh. If you have a source, name it. Otherwise this is just unsubstantiated bullshit not worth considering.


Graham.
 

mono

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Production goes on for the next 3 months, so the news is here in Germany!
 

Fotohuis

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Ehrgeiziger Sanierungsplan für Agfa

"Oberstes Gebot": Erhalt von Arbeitsplätzen

Die in vorläufige Insolvenz geratene Agfa Photo GmbH soll innerhalb von zwei Monaten saniert werden. Bis Anfang August müsse das Unternehmen wieder solide aufgestellt sein, so der vorläufige Insolvenzverwalter.


Agfa arbeitet weiter
[WDR2 Mittagsmagazin (01.06.05); 2'38]
Die Produktion geht weiter

Insolvenzverwalter Andreas Ringstmeier sprach am Mittwoch (01.06.05) in Düsseldorf von einem "ehrgeizigen Plan". Oberstes Gebot sei jetzt die Fortführung des Betriebs und der Erhalt von möglichst vielen Arbeitsplätzen. An einem Personalabbau komme die Gruppe aber voraussichtlich nicht vorbei. Es gebe auch bereits Interessenten für eine zumindest teilweise Übernahme des Traditionsunternehmens. Zum weiteren Geschäftsführer von Agfa Photo bestellte der Aufsichtsrat den Kölner Rechtsanwalt Hans-Gerd Jauch.

Latest news from WDR.
It seems to be there will be a complete reorganisation within two months. Further some parts of the company have already some interest for maybe being sold.

We will see what is the future of Agfa Photo.

best regards,

Robert
 

mario Ag+

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What!! That is not what I needed to hear today. I just developed a roll of Delta 100 in Rodinal and was convinced that I had found one of my all time favourite combos. I guess ill have to make a Rodinal cellar and stock it up.The stuff lasts for ages anyway. On the subject of alternative developers I think Tetenal makes a developer called Paranol that uses the same developing agent(P-amidophenol).Is this still available? Has anybody got any comments on it.? I think i will have to try it. Life goes on I guess but what a shame!!!!
 

rusty71

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Mario, no need to dispair. Calbe makes RO9, which is Rodinal. Efke 100 is very close to Agfapan 100. There are lots of 400 ISO black & white films as well.
Let's just wait and see what happens. Film is not dead yet.
 

gareth harper

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mono said:
Production goes on for the next 3 months, so the news is here in Germany!


That sounds good, is it correct, does it apply to all production.

Anyway as I've said the real pain is for the employees, not for us, it's a real shame.
I do like APX100, and I use Rodinal, so it would be nice if these were continued. But if not, life goes on, I'll try other things, and as been said there's plenty of options on Rodinal type developers.

Rusty, when you say Efke 100 is very close to APX100, how close. Not looking for a replacement, but either way it might be worth me giving some Efke a whirl. Is it fine grained and workable in 35mm?
 

srs5694

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rusty71 said:
Mario, no need to dispair. Calbe makes RO9, which is Rodinal.

I believe the dilutions are slightly different, but I don't know the details. Also, the Rodinal formula is well known. It's found in Anchell's The Darkroom Cookbook and on the Web; for instance:

http://www.jackspcs.com/frodinal.htm

Oh, and the main developing agent in Rodinal is para aminophenol hydrochloride (aka p-aminophenol hydrochloride, paraminophenol hydrochloride, and I'm sure various others), not "P-amidophenol." That could be important if you want to buy it to make Rodinal (or a similar developer) yourself. FWIW, Photographer's Formulary lists it under "Chemicals (A)", not "Chemicals (P)" as I'd expect.

rusty71 said:
Efke 100 is very close to Agfapan 100.

I've not seen this claim before, but I have seen the claim that Fomapan 100 is very similar to Agfapan 100. I've only shot one roll of Efke 100, but I found it to be very grainy -- far grainier than Agfapan 100, and grainier than most ISO 400 films. This was in 35mm.
 

mono

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gareth harper said:
That sounds good, is it correct, does it apply to all production.

Anyway as I've said the real pain is for the employees, not for us, it's a real shame.
I do like APX100, and I use Rodinal, so it would be nice if these were continued. But if not, life goes on, I'll try other things, and as been said there's plenty of options on Rodinal type developers.

Rusty, when you say Efke 100 is very close to APX100, how close. Not looking for a replacement, but either way it might be worth me giving some Efke a whirl. Is it fine grained and workable in 35mm?

Yes, those things will go on!!
No need to worry! How long nobody knows!?

Greetings to Scotland! We will visit this lovely place again coming August ;-))
 
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