Diversification touted at annual APICS conference

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Manufacturing News, Source : The Manufacturer US
Published : 05 Dec 2002 13:09

The annual APICS conference attracted over 3,000 resource management professionals to Nashville at the end of October. General sessions were headed up by Glen Barton, CEO of Caterpillar; Jim McCann, CEO of 1-800-Flowers.com; William Taylor, co-founder of Fast Company; and Steve Lundin, co-author of Fish, a remarkable way to boost morale and improve results.

Caterpillar’s McCann advised his audience on succeeding in a down economy. “Diversification helps Caterpillar remain profitable when market conditions are less than favorable. We’ve made hard choices over the years to diversify our business so we’re no longer the ‘tractor company’ most people think of us as being,” he said.

In addition to the general session, more than 100 educational sessions addressed topics such as CRM, collaboration, demand management, and supplier relationship management. The exposition floor featured 115 exhibitors and sponsors, answering attendee questions about ERP, CRM, systems integration, and supply chain management.

Three companies were recognized as top solution providers. Ramco Systems was named the winner in the Solutions Provider category for its ERP software. Frontstep, Inc. won the Industry Advancement award for SyteLine 7, and BigMachines, Inc. was named best of show for its e-business software, which helps streamline sales for manufacturers of engineered products.

Other products of note included a software suite from IQMS that manages quality control from the same database as a manufacturer’s existing ERP system and software from SoftBars that lets users create bar codes from any Windows-based application (Word, Excel) and print without the need to purchase extra fonts or a special printer.

Northrop Grumman works to offset skills shortage

Northrop Grumman Electronic Systems will award $240,000 in college scholarships next year to Maryland students interested in studying engineering. Individual awards of $10,000 will be given to qualified graduating seniors who plan to attend an accredited college or university as a full-time student in an approved engineering program. The funds can be used for tuition, books, lodging, and meals.

“High-technology companies across the state, including Northrop Grumman, continue to face a critical shortage of specialized engineering personnel we need for our businesses,” said Robert Iorizzo, president of Northrop Grumman Electronic Systems. “Through this scholarship effort, we hope to motivate some of the state’s brightest and best students—with a background and interest in math and science—to consider the engineering professions.”

We consider Northrop Grumman a partner in our education reform efforts, said Nancy Grasmick, state superintendent of schools. “The National Commission on Mathematics and Science Teaching for the 21st Century outlined three goals essential to improving the quality of math and science education. However, a critical fourth component to improving all education is the involvement of the business community.”

Tektronix offers customer financing

Tektronix has announced a new leasing option through its eQuip Finance program. The program, offered jointly with GE Vendor Financial Services, will give Tektronix customers a variety of options for leasing or finance acquisitions of the company’s test and measurement products.

“Smaller capital equipment budgets have made financing options a key consideration for many of our customers considering an investment,” said Rich McBee, vice president of worldwide sales and marketing. The program will provide custom designed options such as lease lines of credit and flexible payment schedules.

Still no relief

Despite a rise in the GDP in the third quarter, economic signs remain gloomy. In September, the Index of Leading Economic Indicators fell 2%, and new orders for manufactured durable goods fell 5.9% to a 10-month low, according to Commerce Department figures.

October indicators were also disappointing. The National Association of Purchasing Manager’s index dropped to 45.9, its lowest level since January, and the Institute of Supply Management’s (ISM) PMI index declined for the second consecutive month. The Conference Board’s consumer confidence index also fell in October, dropping from 93.7 to 79.4. A year ago, the index stood at 85.3. The University of Michigan’s Consumer Sentiment Index fell to 80.6 from 86.1 in September.

These indicators likely influenced the Federal Reserve’s decision to cut interest rates by half a point in October. “We applaud the Fed’s action to lower interest rates to historically low levels because economic growth is slowing down instead of picking up in the fourth quarter,” said Jerry Jasinowski, president of the National Association of Manufacturers. “The jobless recovery continues, and the impact is falling hardest on manufacturing.”

Jasinowski also pointed out that the third quarter gain announced by the Commerce Department may be misleading. “News of accelerating economic growth in the third quarter is a real treat, but we shouldn’t let it trick us,” he said, referring to the fact that roughly half the growth came from auto sales boosted by special financing offers.

Trade group accomplishes mission despite protests

Last month, a group of 70 chief executives met with government representatives from the US and the European Union to discuss ways to make the transatlantic marketplace more efficient. The meeting, arranged by Transatlantic Business Dialogue (TABD), took place in Chicago and was led by co-chairs Phil Condit of Boeing and Charles Masefield of UK-based BAE Systems.

Despite protests outside the hotel where the meeting took place, the group accomplished its goals, according to Condit, who said the government leaders agreed to listen to the group’s recommendations. The group advocates harmonizing transatlantic regulations on products such as chemicals, cosmetics, and dietary supplements to facilitate trade.

The TABD was formed to provide consensus recommendations to the governments from European and American business. Launched by the EU and US governments in 1995, the industry-led group seeks to increase transatlantic trade and investment opportunities through the removal of inefficiencies from excessive regulation, duplication, and differences in the EU and US regulatory systems.

Earlier this year, the group presented messages to President Bush, European Commission President Romano Prodi, and Spanish Prime Minister Jose Maria Aznar during the annual Presidential Summit, urging the governments to make progress on developing an ambitious “positive agenda” for further transatlantic trade liberalization.

“We urge the EU and US administrations to work hard to resolve the existing trade disputes by negotiation, rather than retaliation. The increasing interdependence of the two regions requires cooperation to realize the benefits of free trade,” said Leonard Lauder, chairman of the Estee Lauder Companies.

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