The crisis in the world of communication is very real, but it is often forgotten, says André Hesse, president of MarkCom, a group of consulting agencies in marketing and communication.
In an interview with RTL Radio, Hesse described a "problematic" situation in which too many companies in the communications sector compete in calls for tender, for which the work accomplished is not appropriately remunerated.
He said that on average, 70,000 euros are lost each year by agencies, according to an internal survey. "We aren't even sure about getting contracts in the end, and in the best case scenario, they are frequently concluded in the short term," he explained.
Although the competitions are not new and not unusual in other sectors, such as architecture or construction, MarkCom and Design Luxembourg are campaigning for better regulation and increased awareness for the ministries and clients which put out the calls to tender. Participation should also be limited to 2-3 agencies, with payment for participation and better guarantees of receiving a contract once selected.
Hesse said they would appreciate more support from federations and institutions such as the Chamber of Commerce or Chamber of Trades, and suggested the Ministry of the Middle Classes develop a charter to be presented to potential clients.
Over 200 bankruptcies since 2019
MarkCom and Design Luxembourg have around a hundred members, employing a total of nearly 700 people. Statec data shows that a paradigm shift is necessary in the sector, as over 200 bankruptcies have been filed since 2019. Hesse lamented the poor prospects for 2024.
"We work hard for little gain," Hesse declared. Although he emphasised there was no shortage of work, the margins are extremely limited.
Another issue the sector is experiencing is the tendency for ministries to select foreign companies for the same work - something the Luxembourg group struggles to understand. "It might sound sexier to work with agencies in Paris or London," Hesse said. "But our employees are just as talented, and they're more familiar with the culture and the market in Luxembourg than foreign agencies."