Columns

Editorial: Push The Envelope

At first glance, the A. Lorne Weil Outrageous Business Plan Competition might look like just another frivolous exercise by MBA students with nothing better to do. It isn't. An annual event led by the Columbia Entrepreneur's Organization at Columbia University (New York), this competition encourages students to explore creative entrepreneurial ideas that are sufficiently ambitious in scope and scale to be considered outrageous.

These ideas straddle the line between being fundable by venture capitalists and rejected as unfeasible for traditional investors. Students explore these ideas while learning firsthand what goes into the development and presentation of a solid business proposal.

Though it may sound frivolous, some of these students will be tomorrow's leaders in business and manufacturing, and the competition is a platform for testing outside-the-box business ideas before seasoned venture capitalists and entrepreneurs. When all was said and done, the judges awarded first prize, $5,000, to Cate Han '05 and Brendan Yam '05 for their business plan for Differential Dynamics, a venture to create a new infinitely variable automobile transmission. Clearly, this will represent an opportunity for assemblers when it comes to fruition.

Innovation in manufacturing and business is alive and well, and ASSEMBLY magazine's ninth annual capital equipment spending survey clearly suggests that assemblers intend to invest to turn innovation into profitable production. The results forecast that U.S. assembly plants will spend more than $2.6 billion on new equipment in 2005. You can read senior editor John Sprovieri's complete report beginning on page 36.

Cost reduction has always been the principal reason cited by assemblers for buying new equipment. During the downturn, most companies would only spend for technology, such as automation, that could cut costs quickly. Now, however, they are considering long-term benefits. For the first time since high-tech tumbled, businesses are starting to spend on technology that doesn't offer an immediate return. It is noteworthy that almost half of assemblers responding to our survey are allowed a capital recovery period of 2 years or longer on their assembly equipment investments, while less than 20 percent are restricted to one year or less.

Manufacturing continues to be the largest contributor to economic growth in the United States. Nonetheless, U.S. manufacturers face serious long-term challenges, such as out of control litigation and excessive regulation, that threaten the capability of U.S. manufacturers to compete globally.

Part of the answer, as Don Ewaldz points out on page 120, is that a business has to be flexible to be successful. Having the courage to change is not an option; it's a matter of survival. Look for ways to push the envelope, not just by investing in capital equipment but, more importantly, by using that capital equipment to make your assembly operations more productive and profitable.

Editorial Director Emeritus

Recent Articles by Don Hegland

You must register or login in order to post comments.

Multimedia

Videos

Image Galleries

Wire Harness

AssemTech Inc. is a busy and growing harness assembly shop in West Chicago, IL. The company has a 12,000-square-foot assembly area and employs 20 full-time harness assemblers - far cry from its early days back in 1986, when founder Chuck Hall and various family members assembled harnesses in his garage.

Podcasts

A Plan to Revive U.S. Manufacturing
In December, the nonpartisan Council on Competitiveness issued a landmark report, Make: An American Manufacturing Movement, that provides dozens of recommendations for addressing the many challenges facing U.S. manufacturers. In this podcast, Jack McDougle, the council’s senior vice president for manufacturing, discusses the council’s vision for reviving U.S. manufacturing. Check out this sneak preview of McDougle’s May 2 keynote address to start Tech ManufactureXPO.

More Podcasts

THE MAGAZINE

Assembly Magazine

may 2012 cover

2012 May

Check out Assembly's May issue!!

TABLE OF CONTENTS SUBSCRIBE

Lean Hang-Ups

By now, most assembly plants have at least tried lean manufacturing. But, some aspects of lean have been easier to implement than others. What tenet of lean has your assembly plant had the most trouble with?
See Poll Results Poll Archive

THE ASSEMBLY MAGAZINE STORE

welding.gif
Welding: Principles & Practices

This text introduces students to a solid background in the basic principles and practices of welding.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

Assembly Showrooms

ASSEMBLY Showrooms

STAY CONNECTED

Facebook Twitter  LinkedIn  YouTube