John Odenthal
President
Motion By Odenthal Inc.
Chicago, Ill.
Edited by Lawrence Kren
Our work contributes to
American productivity, so you'd
think — to paraphrase former
GM President Charles Wilson —
that what's good for system integrators is good for America.
Not always. In my view, what's
good for system integrators may
signal what's not good for
America. It depends on the job.
Let me first outline the kind of
system-integration job that I
believe truly benefits America.
Currently, we are developing a
system that will use advanced
inkjet technology to print photographic-quality labels directly
onto containers and bottles at a
rate of 100/min. The machine will
eliminate printed labels and let
manufacturers match language
and graphics to global markets
on a container-by-container
basis. Development of such a
system is highly specialized and
beyond what many engineering
departments would undertake.
In contrast, jobs that cause us
concern often involve contracts
that, a decade ago, a client's in-house engineering staff would
have handled. An uptick in system
outsourcing suggests that clients
have chosen to shed manufacturing-development infrastructure
and instead focus on finances. Too
often, hostile takeovers aimed at
"unlocking the wealth" drive these
corporate transitions. Usually, the
company founder's heirs have
elected to cash in on their inheritance, instead of continuing to grow the enterprise.
Unlocking company wealth invariably translates into selling
off infrastructure to cut fixed
costs. Early buyouts for engineering teams provide a fast
path to cost cutting. These are
the very engineers whose proprietary equipment designs have
defined the firm's long-term
market leadership.
If this sounds like consuming
one's seed corn, it is. Companies
run by lawyers and accountants
tend to believe that boosting
productivity is a matter of
buying the right equipment on
the open market. Why build
when you can buy?
The reality is that off-the-shelf
automation generally offers
plain-vanilla performance. And
plain-vanilla performance does
not win market share because
competitors can purchase
identical equipment.
Shedding a seasoned engineering team may well unlock cash for
stockholders and corporate
raiders. Unfortunately, the
resulting shell of a company will
be hard pressed to stay competitive, never mind dominate its
market. That is where we system
integrators come in. The irony is
that the engineers who accepted
early buyouts often work as
system integrators on assignments for their previous competitors. Competing globally
demands innovative solutions.
Tired, failed, "get-rich-quick"
fiscal shenanigans deny resources
for such initiatives.
Motion by Odenthal is a developer
of industrial automation systems.