Who has the clout anyway?

InTech, Jun 2004 by Hale, Gregory

The pendulum always swings back. Remember a few years ago when there were waiting lists for a certain type of car? It was the latest version and it seemed everyone had to have it. Consumers were willing to pay more than the asking price just to get one. Maybe you would get the color you wanted, maybe not. Forget about dealer incentives such as rebates and 0% financing.

Those days are long gone, and the pendulum is swinging back in favor of the drivers.

The same kind of swing is occurring in the industrial automation world. Not long ago engineers and other end users had to pretty much take what they could get. They were often at the mercy of suppliers' proprietary systems. Now, as manufacturers are starting to push more and more product out the door, they're the ones in the driver's seat. And they can drive a harder bargain for the services and extras they need.

End users can demand and get quality customer service. If they don't get it, they can quickly find someone who will bend over backwards for the opportunity. They can demand on-time shipping. They can expect someone to answer their calls and give them quick answers when they have questions. Just ask some of the suppliers.

"Our goal is to shorten the time out of what I am doing to get it to the customer faster," said Kevin Gingerich, director of marketing services at Bosch Rexroth in Buchanan, Mich. "People are saying they need the technology and they are willing to spend," said Greg Anderson, senior director of product marketing at Colorado Springs, Colo.-based Front-Range Solutions. "The customer base wants options."

It appears more end users will start to exercise their options. One study said worldwide process automation will grow from $61.3 billion in 2000 to $94.2 billion in 2010. That means end users will be able to demand and get quality services.

The World Report by Basel, Switzerland-based Intechno Consulting, said the average annual growth will be 4.7%, and the industries include the chemical and pharmaceutical industries, petroindustries such as refineries and petrochemicals, and the food and beverage industry.

The road ahead for automation in the discrete industries looks clear through 2007, according to the Dedham, Mass.-based industry research firm ARC Advisory Group.

The global automation business should grow at a compounded annual growth rate of 6.1% over the next five years with growth to more than $30 billion in 2007.

That all means the industry is coming back and getting the green light on manufacturing more products. As more demands fall upon depleted engineering staffs, engineers have to understand they should not take a backseat to anyone. They should be able to demand and get whatever color of services or products they want.

GREGORY HALE, EDITOR

Talk to me: ghale@isa.org or (919) 990-9275.