Managing Automation - October 2007 - (Page 17)

news managingautomation.com maonline Go online for daily news updates in perspective Quote of the Alliances, Executive Appointments, Mergers & Acquisitions, Products Schneider Electric’s Square D unit and GE. He’s not a novice when it comes to the industrial automation scene, and, therefore, has a keen sense of the next steps for a company that, while a successful global conglomerate, has stalled on some key business initiatives in the industrial space. First and foremost, the products — which, Holst claims “are superior”— need to expand in scope. Omron has been known for its safety, sensor, and PLC products, but lacks products in areas such as power and motor control. To fill those gaps, Holst wants to establish brand label agreements with larger competitors. For example, about 20% of Rockwell Automation’s product portfolio relies on Omron technology, Holst says. With that in mind, he is looking for areas where Rockwell or other competitors could provide Omron a reciprocal OEM offering. Second, Omron’s engineering and technology prowess needs to be articulated to end users, Holst says. This will be accomplished in the form of new marketing initiatives and technical resources for customers. Third, there’s been some confusion in how to buy Omron products, he says. In recent years, the company relaxed its dependence on distributors and tried to grow its business using a direct sales model. Going forward, “our primary way to market will be through distributors,” Holst says. That effort will be balanced out with an e-channel Web site that distributors can access or where customers can shop online. Fourth, Holst will consolidate service activities. Today, Omron services are scattered across three separate units managed by three different people. Those teams will be united under one big service umbrella. To that end, Omron’s service offerings will go beyond the break-fix model of engineers in the field. “We’ll expand the offering into preventative maintenance, asset management, and other things our customers are vying for today,” Holst says. Collectively, this effort is designed to tip Omron’s North and South American industrial automation businesses — for which Holst is responsible — over the $1 billion mark. Omron does not break out financials by business region. Nevertheless, Holst has clearly stated his goal to the executive team in Japan. “I’ve extended my wishes to make sure this organization is well over $1 billion within the next four to five years,” he says. — Stephanie Neil NEW MFG. ‘CZAR’ WILL HAVE A FULL PLATE OF ISSUES MONTH T he Senate recently confirmed William G. Sutton, a retired U.S. Navy Rear Admiral, to serve as the assistant secretary of commerce for manufacturing and services. Sutton’s government role as lead advocate for the manufacturing community will require perseverance in addressing the issues that constrain U.S. manufacturers’ ability to compete globally. According to industry observers, Sutton will need to follow in the footsteps of his predecessor, Al Frink, to raise the country’s awareness of such issues as the industry’s skills shortage; the impact of regulations, litigation, and taxes; and the importance of free trade. “A lot of the problems we have are self-inflicted wounds resulting from the cost of doing business in this country,” said Hank Cox, spokesman for the National Association of Manufacturers (NAM), in an interview. “There is a lack of understanding at the highest levels of government that manufacturing is still the heart and soul of our economy. Other countries bend over backwards to strengthen their manufacturing sectors because they recognize how important it is. We don’t have that awareness in this country.” The job of assistant secretary for manufacturing — sometimes referred to by NAM as the “manufacturing czar” — gained momentum under Frink, who was the first to hold this position and who resigned in December 2006. According to Eric Mittelstadt, CEO of the National Council for Advanced Manufacturing (NACFAM), Frink did more than just serve as a mouthpiece for manufacturers. He also engaged manufacturing leaders to advise the Commerce Department, organized an Interagency Working Group for manufacturers, and assembled a team whose mission was to help make manufacturing an important part of the national agenda. Mittelstadt, who was also a candidate for the assistant secretary position, declined to offer specific ideas about what Sutton must accomplish, but he said he plans to work closely with Sutton to help strengthen American manufacturing. Sutton, who was unavailable for comment, “Manufacturing is still the heart and soul of our economy.” — says Hank Cox, spokesman for the National Association of Manufacturers For the Continued from page 12 Record FINANCIALS Descartes Systems Group. reported second-quarter net income of $1.7 million on revenue of $14.3 million, up 55% and 8%, respectively, from a year ago. TradeBeam Holdings, Inc. has closed Series C funding of more than $29 million, led by Camden Partners Strategic Fund III and Torch Hill Investment Partners. M&As mPhase Technologies, Inc., which specializes in software and nanotechnology, has taken a 10% equity stake in Sovereign Tracking Systems LLC, a privately held provider of real-time asset management tracking technologies supported by inexpensive RFID/RTLS tags. SIXNET Holdings, LLC has acquired all of the outstanding shares of BlueTree Wireless Data, a supplier of machine-tomachine cellular data products. PA R T N E R S H I P S Dassault Systemes and Seemage, Inc. have entered a strategic partnership covering 3D documentation and PLM product-related data. Profitkey International will incorporate MTI Systems’ Costimator JS cost-estimating software into its Rapid Response Manufacturing software. RedPrairie has expanded into Argentina, Columbia, and Brazil through its NetLogistiK partnership. SAP AG has endorsed Conformia’s Development Operations Management Solution for regulated process industries. ToolsGroup and Insight, Inc. announced that they will combine supply chain network and inventory optimization for large, global companies. 17 October 2007 http://www.managingautomation.com

Table of Contents Feed for the Digital Edition of Managing Automation - October 2007

Contents Take 1 Mailbox New Selling and Fulfillment Product Leads Plan to Transform Sterling Commerce Comtrol Closes Bizarre Chapter Involving Founder New Omron COO Outlines Four-Part Growth Agenda New Mfg. ‘Czar’ Will Have a Full Plate of Issues Lawson Embraces The Trend of Fewer Upgrades Notes Wanted: A Unified Infrastructure Needed: Greater Reliability Special Report: Innovation: Why Are So Many Coming Up Short? Transforamation: Beating the Odds in Global Supply Industries: Metals: Tracking Carbon Footprints Product Scan Advertiser Index Next

Managing Automation - October 2007

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