Who has the clout anyway?

Hale, Gregory
June 2004
InTech;Jun2004, Vol. 51 Issue 6, p11
This article provides an insight into the trends in the industrial automation sector as of June 1, 2004. The pendulum always swings back. A few years ago, when there were waiting lists for a certain type of car, consumers were willing to pay more than the asking price just to get one. 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 sector. Not long ago, engineers and other end users had to 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 to the market, they are the ones in the driver's seat. And they could drive a harder bargain for the services and extras they need. End users can demand and get quality customer service. If they do not get it, they can quickly find someone who will bend over backwards for the opportunity. The future for automation in the discrete industries looks clear through 2007, according to the 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.


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