Expecting More Value From Industrial Equipment Manufacturers

EXPECTING MORE VALUE FROM INDUSTRIAL EQUIPMENT MANUFACTURERS

Expecting More Value from Industrial Equipment Manufacturers

Industrial equipment manufacturers today are asked for a vast array of product enhancements and services, and customers increasingly want more of such value-added features. But how can industrial equipment manufacturers provide more in these tough economic times, and still sustain profitability?

The answers can be found in data compiled by the Next Generation Manufacturing (NGM) Study, a 2009 research initiative that assessed how manufacturers (including 410 industrial equipment manufacturers) are progressing with key corporate strategies to succeed into the next generation. Expecting More Value from Industrial Equipment Manufacturers examines four strategies — customer-focused innovation, human-capital management, superior processes/process improvements, and supply-chain management and collaboration — that help industrial equipment manufacturers succeed today and tomorrow in satisfying customer demands for more value at lower costs. In addition, this report captures the voice of those customers, identifying what equipment buyers consider most valuable — and what they think of the ability of their equipment providers to succeed at key strategies.

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Expecting More Value from Industrial Equipment Manufacturers

Introduction Industrial equipment manufacturers today face an expanding list of customer demands for value, forcing them to innovate — in both products and services — in order to meet these needs.

Industrial equipment providers, in addition to being adept machine designers and builders, now must be line integrators and asset-management specialists as well, offering customer services ranging from training to leasing. And, of course, all this occurs while the traditional pressures of doing business are intensified amid a sluggish economy and increased regulations.

Industrial equipment buyers now consider quality and performance just the ante to get into the game. What they’re also looking for are valueadded features (both in goods and services), and they’re willing to pay for it. Scott Buechel, executive vice president of Buechel Stone Corp. in Fond du Lac, Wisc., says that while he’s always looking for better pricing, he also understands that value-added goods and services come at a cost.

“Sometimes we’re willing to pay for something a little bit more if we know there’s a value-add[ed feature] throughout the term of the product.” At Buechel Stone, the value-added service he’s looking for is responsiveness: “When equipment goes down, how do they service it during that time? How quickly do they respond? Do they work with you to get the problem resolved? Do they give you answers? Do they come out and look at it?”

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Brad Burnett, general manager of manufacturing at Inman Mills Ramey Complex in Enoree, S.C., says, “I’m looking for the expertise to understand the equipment from not only the supply side, but also the service side, the technical and electronic specification side, and they need to have people within the United States that are accessible.”

At Donsco Inc., value-added service is about maintenance: “The big thing we’re looking at right now when we’re evaluating equipment is the focus on the maintenance of the equipment. Everything from quality of the blueprints and the manuals that are provided with it,” says Chris Buck, plant manager for Donsco Inc. in Wrightsville, Pa. “Have they gone as far as defining preventivemaintenance tasks, spare parts, recommended spare parts?”

The types of value-added goods and services are as varied and complex as the industrial equipment market, but success for any individual equipment provider is as simple as focusing the entire organization on what its customers want — and providing it as fast and cost-effectively as possible by continuously improving internal operations and the supply chain. Yet corporate strategies to achieve these goals — customer-focused innovation, human-capital management, process improvements, and supply-chain management and collaboration — are not pervasive among many industrial equipment providers.

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Expecting More Value from Industrial Equipment Manufacturers

Customer-Focused Innovation Customer-focused innovation — the ability to “develop, make, and market new products and services that meet customers’ needs at a pace faster than the competition,” according to the Next Generation Manufacturing (NGM) Study — requires listening to the voice of customers. And those voices vary: Herb Benzel, mill foreman at Kountry Kraft Kitchens in Newmanstown, Pa., looks for machinery that he can modify for alternate uses, and doesn’t have much use for single-function tools. “[A piece of equipment] might not be for that plan now, but later down the road we’ll use it for that.” So he’s buying versatility and the ability for equipment to complete various tasks.

Richard Hansen, production manager at Skyline Manufactured Homes in San Jacinto, Calif., says, “In house, we are always looking at ergonomics and safety, not necessarily in that order. … Methods to make them perform ergonomically would always be appreciated from a vendor.”

And Donsco’s Buck says customization is one of his top machine priorities. For example, Donsco wants controllers in equipment to be what the company is used to working with, to minimize the number of software applications his staff Table 1

must troubleshoot. “Those are some of the things we’ll recommend upfront,” he says. “It’s about 5050, the people who will work with you and the people who just won’t.”

It’s not surprising that some equipment makers won’t listen to Buck’s (or others’) requests and work with them. Relatively few industrial equipment manufacturers have achieved world-class customerfocused innovation: Only 11% of industrial equipment manufacturers report themselves to be at a world-class level for customer-focused innovation (ranked 5 on a 1-5 scale), and another 30% believe themselves to be near world-class status for this particular strategy (ranked 4 on a 1-5 scale) (Table 1).i Yet customer-focused innovation is considered important among industrial equipment manufacturers, as 60% of industrial equipment manufacturers rate customer-focused innovation as “highly important” to their organizations’ success over the next five years (Table 2). The gap between those industrial equipment manufacturers that believe customer-focused innovation is highly important and those achieving actual world-class performance means that many firms are striving for improved performance but remain unaware of best practices, unable to execute them, or unwilling to try.

Table 2

Rate your organization’s progress toward world-class customer-focused innovation

Industrial equipment manufacturers

Rate the importance of customer-focused innovation to your organization’s success over the next five years:

Industrial equipment manufacturers

1=No progress

3.9%

1=Not important

0.5%

2

16.9%

2

4.7%

3

38.1%

3

11.3%

4

30.1%

4

24.0%

5=World-class

11.0%

5=Highly important

59.6%

Source: Next Generation Manufacturing Study

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Expecting More Value from Industrial Equipment Manufacturers

What is abundantly clear, though, from the NGM Study data is that the first step in successfully innovating to meet customer needs is recognizing the importance of a customer-focused strategy: Among industrial equipment manufacturers at or near world-class customer-focused innovation, 75% rate the strategy as highly important, compared to only 49% of industrial equipment manufacturers furthest from world-class customerfocused innovation that believe the strategy is highly important.

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The industrial equipment manufacturers at or near world-class customer-focused innovation also are more likely to execute best practices necessary to get them to world-class (Table 3):  Workforce involvement: 48% of industrial equipment manufacturers at or near world-class customer-focused innovation

have more than 5% of their workforce dedicated to new product development/R&D vs. 37% of industrial equipment manufacturers furthest from world-class.

Investments: 39% of industrial equipment manufacturers at or near world-class customer-focused innovation have more than 5% of sales invested in new product development/R&D vs. 22% of industrial equipment manufacturers furthest from world-class.

Measurement systems: 47% of industrial equipment manufacturers at or near world-class customer-focused innovation have advanced measurement systems for assessing return from customer-focused innovation vs. 17% of industrial equipment manufacturers furthest from world-class.

Table 3 Industrial equipment manufacturers furthest from world-class customerfocused innovation

Industrial equipment manufacturers at or near worldclass customerfocused innovation

More than 5% of the workforce dedicated to new product development/R&D

36.7%

47.6%

More than 5% of sales invested in new product development/R&D

21.6%

39.2%

Measurement systems or reviews for monitoring return: “Regular monitoring and review of company-specific metrics

by CEO and senior staff” or “Regular monitoring and review of company-specific metrics by CEO and senior staff and transparency and clarity throughout the organization”

17.3%

46.8%

Best practices

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Expecting More Value from Industrial Equipment Manufacturers

And, importantly, industrial equipment manufacturers at or near world-class customerfocused innovation are more likely to achieve business results indicative of world-class customer-focused innovation (Table 4).  More new SKUs: 23% of industrial equipment manufacturers at or near world-class customer-focused innovation have more than 10% of their annual SKUs accounted for by new products vs. 8% of

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industrial equipment manufacturers furthest from world-class.

More new-product sales: 32% of industrial equipment manufacturers at or near world-class customer-focused innovation derive more than 25% of sales from products introduced in the past three years vs. 18% of industrial equipment manufacturers furthest from world-class.

Table 4 Industrial equipment manufacturers furthest from world-class customerfocused innovation

Industrial equipment manufacturers at or near worldclass customerfocused innovation

More than 10% of total SKUs are annually new products

7.6%

22.9%

More than 25% of sales derived from product introduced in past three years

17.6%

32.1%

Performances

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Expecting More Value from Industrial Equipment Manufacturers

Human-Capital Management It’s easy to forget that value-added features to a machinery customer can be the direct result of interacting with a single person: an insightful salesperson who recognizes an equipment need even before the customer, a helpful support agent who pinpoints the right manual, or an empowered line worker who spots a machine defect and knows how to correct it before the problem impacts a customer. All these actions, though, require a workforce that has been meticulously staffed, developed, and rewarded.

A world-class workforce is directly linked to the capability to offer value-added features because an equipment manufacturer can wield talented employees to delight customers — without having to even develop or sell a product. That ability can be a bonus in today’s economic recovery, but it’s also more difficult as many equipment makers have kept their workforces to a minimum, and in the process inadvertently removed the human touch. For example, Benzel of Kountry Kraft Kitchens wants his equipment providers to offer speedier service — because overly automated phone systems and days-long waits for service visits create frustration and slow production. “I know there’s a lot of machinery out there, but sometimes I think it could be just, ‘Hey, pick the phone up quick.’”

Buechel of Buechel Stone would like to see providers offer more training, such as instruction on new machinery and annual refresher courses on old equipment. “Just a short, hour training class: Here’s key critical parts. Here are the main things that need to be greased. These need to be maintained. Here’s why.”

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“We’ve run into occasions where there’s been communication problems back to their headquarters,” says Donsco’s Buck. “You’ll have a mechanical guy in here, and he needed to talk to an engineer to find out about the PLC program.

He hasn’t been able to get a hold of the guy because they weren’t in the office or were tied up with another project. So I would say that would be an area for improvement: When an equipment manufacturer sends techs out to sites, make sure there’s full technical support back at the home base.”

All of the aforementioned HR-related requests are not extraordinary, but they do demand skilled human capital and well-managed workforces. But despite human capital being at the center of value-added features a manufacturer can offer, just 5% of industrial equipment manufacturers report themselves to be at world-class status for human-capital management — organizations that “secure a competitive performance advantage by having superior systems in place to recruit, hire, develop, and retain talent” — and only 23% are near world-class status (Table 5).

Surprisingly, not even half (45%) of industrial equipment manufacturers believe that humancapital management is “highly important” to their organization’s success over the next five years (Table 6). Here, too, industrial equipment manufacturers attentive to human-capital management are more likely to be at or near world-class with this strategy: 66% rate the strategy as highly important, compared to only 36% of industrial equipment manufacturers furthest from world-class human-capital management.

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Expecting More Value from Industrial Equipment Manufacturers

Table 5

Table 6

Rate your organization’s progress toward world-class human-capital management

Industrial equipment manufacturers

Rate the importance of humancapital management to your organization’s success over the next five years:

Industrial equipment manufacturers

1=No progress

8.8%

1=Not important

2.5%

2

33.6%

2

5.1%

3

29.1%

3

16.8%

4

23.3%

4

30.7%

5=World-class

5.2%

5=Highly important

44.9%

Source: Next Generation Manufacturing Study 

Industrial equipment manufacturers at or near world-class human-capital management also are more likely to implement workforce best practices, allowing employees to take ownership of their functions, giving them the resources to identify and solve problems that can directly impact customers, and having the management systems in place to see if these efforts are working (Table 7).  Empowered employees: 51% of industrial equipment manufacturers at or near world-class human-capital management have a majority of employees empowered vs.

20% of industrial equipment manufacturers furthest from world-class.

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Training: 36% of industrial equipment manufacturers at or near world-class human-capital management train each employee annually more than 20 hours vs.

21% of industrial equipment manufacturers furthest from world-class.

Measurement systems: 43% of industrial equipment manufacturers at or near world-class human-capital management have advanced measurement systems for assessing return from human-capital management vs. 15% of industrial equipment manufacturers furthest from world-class.

Table 7 Industrial equipment manufacturers furthest from world-class human-capital management

Industrial equipment manufacturers at or near worldclass humancapital management

Majority of employees participate in empowered work teams

20.3%

50.8%

More than 20 hours of training annually per employee

20.6%

36.2%

Measurement systems or reviews for monitoring return: “Regular monitoring and review of company-specific metrics

by CEO and senior staff” or “Regular monitoring and review of company-specific metrics by CEO and senior staff and transparency and clarity throughout the organization”

15.1%

43.3%

Best practices

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Expecting More Value from Industrial Equipment Manufacturers

And, importantly, industrial equipment manufacturers at or near world-class humancapital management are more likely to achieve business results that reflect a stable and growing workforce, one able to add value and improve customer satisfaction as well as operational productivity.  Value-add per employee: 43% of industrial equipment manufacturers at or near world-class human-capital management report value-add per



employee (measured as sales minus cost of materials divided by number of employees) vs. 31% of industrial equipment manufacturers furthest from world-class.

Labor turnover: 76% of industrial equipment manufacturers at or near world-class human-capital management report labor turnover of 5% or lower vs.

65% of industrial equipment manufacturers furthest from world-class.

Table 8 Industrial equipment manufacturers furthest from world-class human-capital management

Industrial equipment manufacturers at or near worldclass humancapital management

Value-add per employee of greater than $125,000

31.0%

42.5%

Labor turnover rates of 5% of less

64.5%

76.1%

Performances

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Expecting More Value from Industrial Equipment Manufacturers

Superior Processes/Process Improvement Value-added features are, indeed, a bonus to customers, but only if the core competency of the industrial equipment manufacturer — the ability to design, make, and deliver product in a timely manner — is solid and continuously improving.

Very few customers will be delighted by receiving custom features or services associated with a piece of faulty machinery that arrives late and causes a line to shut down.

To be profitable and provide value-added features in addition to the basics requires ongoing improvement of an organization. The days of passing costs to customers are long gone, as is the notion that machine-maker profit is built into the price (price = costs + profit). The equation has switched (profit = price – costs), forcing industrial equipment manufacturers to repeatedly improve processes in order to offer best pricing and return a profit.

Burnett of Inman Mills Ramey Complex believes many of his equipment suppliers are using lean manufacturing principles to improve. He says industrial equipment providers have to keep getting better because many criteria of what they provide, such as high quality, are now a given.

“You expect quality to be engineered into the process, into the services. If it is not there, you expect that supplier to have the liability to back up and replace that equipment as well as replace whatever your downtime is. It’s an expectation, that’s not an add-on, it’s an expectation.”

Seeing improvements from his equipment suppliers is critical because the issue is “can we make a better product at less expensive cost because we’re competing with the rest of the world,” adds Burnett. “We know we’ve got a higher labor rate to start with; we’ve got to figure out how to utilize our ingenuity and utilize new equipment faster and less expensively to offset those other things. We have higher labor rates because we’re

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in the United States. We expect equipment providers to help offset that through their technology improvements.”

Hansen of Skyline Manufactured Homes says that while his company is making the transition to lean manufacturing, he doesn’t know if his equipment providers are. “If they have, they should be telling us that. … It would be important for them to tell us.”

Others have prodded their suppliers to get on board with process improvements. “We’ve actually been working with some of the equipment companies, and we’ve offered suggestions that they should start using lean not only in their manufacturing process but in their design process,” says Buck. That includes applying visual organization concepts of lean to their products.

“So that when a piece of equipment comes into our plant, it’s very visual. All the controls are labeled, operating ranges on gauges are marked in red, yellow and green.”

Approximately 7% of industrial equipment manufacturers report themselves to be at a worldclass level for process improvement — organizations that “record annual productivity and quality gains that exceed the competition through a companywide commitment to continuous improvement” — and 34% are near world-class status (Table 9). More than half of industrial equipment manufacturers (58%) believe that process improvement is “highly important” to their organization’s success over the next five years (Table 10). Industrial equipment manufacturers focused on process improvement are more likely to be at or near world-class with this strategy: 71% rate the strategy as highly important, compared to just 49% of industrial equipment manufacturers furthest from world-class processes and process improvement.

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Expecting More Value from Industrial Equipment Manufacturers

Table 9

Table 10

Rate your organization’s progress toward world-class processes and process improvement:

Industrial equipment manufacturers

Rate the importance of process improvement to your organization’s success over the next five years:

Industrial equipment manufacturers

1=No progress

3.4%

1=Not important

0.5%

2

16.8%

2

3.2%

3

38.8%

3

12.5%

4

33.9%

4

25.9%

5=World-class

7.1%

5=Highly important

57.9%

Source: Next Generation Manufacturing Study 

Industrial equipment manufacturers at or near world-class processes and process improvement are more likely to implement best practices that enable employees to drive improvements, to give them the tools and equipment to support their problem-solving ideas, and to have the management systems and reviews in place to see if these efforts are really improving the company (Table 11).  Employees involved with improvements: 68% of industrial equipment manufacturers at or near world-class processes and process improvement have a majority of their workforces engaged in their organization’s specific improvement method vs. 28% of industrial equipment manufacturers furthest from world-class.



Investment: 43% of industrial equipment manufacturers at or near world-class processes and process improvement invest more than 5% of sales in capital equipment vs.

37% of industrial equipment manufacturers furthest from world-class.

Measurement systems: 43% of industrial equipment manufacturers at or near world-class processes and process improvement have advanced measurement systems for assessing return from process improvements vs.

21% of industrial equipment manufacturers furthest from world-class.

Table 11 Industrial equipment manufacturers furthest from worldclass processes and process improvement

Industrial equipment manufacturers at or near world-class processes and process improvement

Majority of workforce fully engaged in organization’s specific improvement method/approach

28.3%

68.0%

More than 5% investment in capital equipment as a percentage of sales

36.5%

43.3%

Measurement systems or reviews for monitoring return: “Regular monitoring and review of company-specific metrics

by CEO and senior staff” or “Regular monitoring and review of company-specific metrics by CEO and senior staff and transparency and clarity throughout the organization”

20.9%

43.1%

Best practices

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Expecting More Value from Industrial Equipment Manufacturers

And, not surprisingly, industrial equipment manufacturers at or near world-class status are more likely to achieve business results that indicate ongoing internal improvements and superior performance to customers are occurring (Table 12).  Perfect deliveries: 51% of industrial equipment manufacturers at or near world-class processes and process improvement report that 96% or more of their deliveries are perfect (on time, high



quality, to all customer specifications) vs.

44% of industrial equipment manufacturers furthest from world-class.

Productivity improvements: 28% of industrial equipment manufacturers at or near world-class processes and process improvement report three-year productivity improvements of more than 50% vs. 14% of industrial equipment manufacturers furthest from world-class.

Table 12 Industrial equipment manufacturers furthest from world-class processes and process improvement

Industrial equipment manufacturers at or near worldclass processes and process improvement

96% or higher perfect deliveries (on time, high quality, to all customer specifications)

44.1%

51.2%

Three-year productivity improvements of more than 50%

14.2%

28.1%

Performances

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Expecting More Value from Industrial Equipment Manufacturers

Supply-Chain Management and Collaboration Industrial equipment manufacturers have always relied upon the performance of their supply chains. With hundreds or thousands of sourced components, requirements for quality, timeliness and engineering detail from suppliers are mandatory. Today equipment makers increasingly must work together with their suppliers and other manufacturers in developing and installing complete lines, even taking on the role of line integrator.

Supply-chain collaboration and management has never been more important.

One seemingly simple but often overlooked example of supplier collaboration is ensuring that all equipment components that go into a machine will be viable for years to come. Donsco’s Buck wants equipment providers to be in regular communication with their subcomponent suppliers to guarantee that every part of a machine is up-todate. “We have some brand-new pieces of equipment that have some obsolescence issues with some of the subcomponents. … Somewhere along the way two people should have been talking so the equipment manufacturer could have either provided a cross reference and just went ahead and put in the new part.”

Table 13

Possibly because of the volume of suppliers and the complexity of implementing a supply-chain strategy, few industrial equipment manufacturers (3%) report themselves to be at a world-class supply-chain management and collaboration — organizations that “develop and manage supply chains and partnerships that provide flexibility, response time, and delivery performance that exceeds the competition” — and only 22% are at or near world-class status (Table 13). But part of the issue is that not enough industrial equipment manufacturers are attentive to the strategy: only 34% believe that supply-chain management and collaboration is “highly important” to their organization’s success over the next five years (Table 14). That’s a key to supply-chain improvement, as 52% of industrial equipment manufacturers at or near world-class status rate the strategy as highly important (another 43% rate it near to highly important), compared to only 27% of industrial equipment manufacturers furthest from world-class status that rate it highly important (and only 30% that rate it near to highly important).

Table 14

Rate your organization’s progress toward world-class supply-chain management and collaboration:

Industrial equipment manufacturers

Rate the importance of supplychain management and collaboration to your organization’s success over the next five years:

Industrial equipment manufacturers

1=No progress

10.4%

1=Not important

4.6%

2

25.9%

2

8.8%

3

39.8%

3

20.3%

4

21.5%

4

32.8%

5=World-class

2.5%

5=Highly important

33.5%

Source: Next Generation Manufacturing Study

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Expecting More Value from Industrial Equipment Manufacturers

Industrial equipment manufacturers at or near world-class supply-chain management and collaboration also are more likely to implement supply-chain best practices, dedicating staff to growing customer and supplier “partnerships,” investing in the information technology tools that enable supply-chain partners to better communicate and gain visibility into product and business plans and schedules, and having the management systems in place to see if these efforts are working (Table 15).  Workforce involvement: 46% of industrial equipment manufacturers at or near world-class supply-chain management and collaboration have more than 5% of their workforces dedicated to supply chain and partner development, management, and collaboration vs. 17% of industrial





equipment manufacturers furthest from world-class.

Investment: 33% of industrial equipment manufacturers at or near world-class supply-chain management and collaboration invest more than 5% of sales in capital equipment vs. 12% of industrial equipment manufacturers furthest from world-class.

Measurement systems: 33% of industrial equipment manufacturers at or near world-class supply-chain management and collaboration have advanced measurement systems for assessing return from supply-chain management vs.

14% of industrial equipment manufacturers furthest from world-class.

Table 15 Industrial equipment manufacturers furthest from world-class supply-chain management and collaboration

Industrial equipment manufacturers at or near worldclass supplychain management and collaboration

More than 5% of the workforce dedicated to supply-chain and partner development, management and collaboration

16.6%

45.8%

More than 5% investment in information technologies as a percentage of sales

11.8%

33.0%

Measurement systems or reviews for monitoring return: “Regular monitoring and review of company-specific metrics

by CEO and senior staff” or “Regular monitoring and review of company-specific metrics by CEO and senior staff and transparency and clarity throughout the organization”

14.0%

33.0%

Best practices

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Expecting More Value from Industrial Equipment Manufacturers

And, again, industrial equipment manufacturers at or near world-class supply-chain management and collaboration are more likely to achieve business results that show improvements impacting the entire supply chain and turning them into competitive advantages (Table 16).  Supply-chain inventories: 15% of industrial equipment manufacturers at or near world-class supply-chain management and collaboration have reduced supply-chain inventories over the



past three years by more than 25% vs.

8% of industrial equipment manufacturers furthest from world-class.

Strategic partners: 27% of industrial equipment manufacturers at or near world-class supply-chain management and collaboration describe their suppliers and customers as “strategic participants” vs.

14% of industrial equipment manufacturers furthest from world-class.

Table 16 Industrial equipment manufacturers furthest from world-class supply-chain management and collaboration

Industrial equipment manufacturers at or near worldclass supplychain management and collaboration

Reduction of inventory throughout the supply chain by more than 25% over last three years

8.0%

15.1%

“Strategic suppliers and customers are active participants in operations

13.8%

27.2%

Performances

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Expecting More Value from Industrial Equipment Manufacturers

Conclusion The message is clear.

Industrial equipment providers must not only improve, but recognize the critical importance of improving the following areas: Customer-focused innovation: Designing products based on customer feedback and desired features.

Human-capital management: Developing workforces to solve customer problems and provide value-added services.

Superior processes/process improvement: Constantly improving and adding value to internal operations without adding to the price.

Supply-chain management and collaboration: Improving supply-chain processes and relationships so that customers achieve competitive advantage in servicing their customers.

These four key practices are outlined in the NGM Study as necessary components of success.

Some providers, like Italian equipment makers, have been employing these practices for generations.

To implement these practices within an organization, it must first listen to its customers and prepare its operations, employees, and supply chain to respond to these desires. Italian machinery providers have long sustained a tradition of demand-based innovation, human capital and supply chain management, and continued process improvement through intelligent investment.

Reap the benefits of value-added equipment by investigating Italian machinery and technology solutions. Contact Machines Italia c/o the Italian Trade Commission at 1-888-ITALTRADE, or visit us at www.machinesitalia.org for more information on Italian suppliers and how their manufacturing acumen can translate into improved productivity and profitability at your organization.

1

All research and strategy definitions in this report are based

on data from the Next Generation Manufacturing (NGM) Study, which was developed to better define the strategies and business activities necessary for world-class performance and success into the next generation, and was coordinated by the American Small Manufacturers Coalition (an association of Manufacturing Extension Partnership centers and partners); conducted by the Manufacturing Performance Institute (MPI); and supported by Manufacturing Extension Partnership centers and partnering organizations. A total of 2,529 manufacturers participated; for this report, 410 “industrial equipment manufacturers� were identified using the three-digit NAICS codes 333 for machinery manufacturers. For more information, go to www.mpi-group.net.

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Expecting More Value from Industrial Equipment Manufacturers

THE ITALIAN TRADE COMMISSION The Italian Trade Commission (ITC) (also known as Istituto nazionale per il Commercio Estero or I.C.E.) is an Italian government agency entrusted with the promotion of trade, business development and industrial cooperation between Italian and foreign companies.

It supports the internationalization of Italian firms and their consolidation in foreign markets.

Getting to know the Italian market through the Italian Trade Commission Learning about Italy’s market and industries is the first step to identifying business opportunities for your company. The Italian Trade Commission, with its network of 117 offices in 87 countries around the world, provides information and assistance to foreign entities interested in establishing relationships with Italian companies.

In particular, ITC provides: 







A primer on the Italian market, including information on Italian foreign trade, national trade policies, current Italian laws and regulations designed to attract foreign investments and assist foreign investors, and Italy’s economic outlook.

Access to information on Italian companies through specialized websites dedicated to Italy’s major production sectors.

A portal to Italian companies. Foreign companies can submit offers and requests of a business development nature to a database, broken down by sector and market, enabling Italian companies to easily access and identify new proposals.

Information on trade fairs and exhibitions held in Italy throughout the year.

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MACHINES ITALIA AN ITALIAN TRADE COMMISSION PROJECT Machines Italia was designed by the Italian Trade Commission to promote Italian-made machinery and technology to manufacturers in North America. In partnership with 14 leading Italian machinery manufacturers’ associations, Machines Italia supports numerous activities in North America, ranging from programs with academic institutions to business development for multiple machinery sectors.

Machines Italia’s 14 member associations represent more than 10,000 companies.

Participating industry sectors include companies involved in the production of equipment for agriculture/farm machinery; ceramics; earthmoving machinery; food technology; footwear leathergoods and tanning; foundry and metallurgical machinery; glass; marble and stone; metalworking; packaging; plastics and rubber; printing, graphic and converting; textiles; and wood. “Flexibility, creativity and innovation” are the three reasons most cited by North American companies for using Italian machinery and technology.

Flexibility: Italy is home to hundreds of small and medium manufacturing companies where company owners typically manage the day-to-day operations. This feature yields ultimate working flexibility, quick response times, and unparalleled attention to developing tailor-made solutions for customers.

Creativity: Italians are known for their creativity – and not just in food and fashion. They hold a reputation for out-of-the-box thinking in design and engineering. Since the days of Leonardo da Vinci, Italians have followed the guiding principle that development can only be achieved by understanding one’s needs and goals. In the manufacturing arena, this approach translates into application-specific solutions to meet customer needs.

Innovation: The Italian heritage of innovation dates back centuries. Ingenuity and innovation continue to thrive within today’s Italian manufacturing industry, known for its leadership in machine development, integration, and technological advancement.

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Expecting More Value from Industrial Equipment Manufacturers

FOR ADDITIONAL INFORMATION, PLEASE CONTACT ANY OF OUR ITALIAN TRADE COMMISSION OFFICES

CHICAGO C/o Italian Trade Commission 401 North Michigan Avenue, Suite 3030 Chicago, Illinois 60611 Toll free: 888-ITALTRADE (482.5872) Tel. : 312.670.4360 Fax: 312.264.6209 Email: info@italtradeusa.com

ATLANTA C/o Italian Trade Commission 233 Peachtree Street N.E., Suite 2301 P.O. Box 56689 Atlanta, Georgia 30303 Toll free: 888-ITALTRADE (482.5872) Tel. : 404.525.0660 Fax: 404.525.5112 Email: atlanta@ice.it

Reap the benefits of value-added equipment by investigating Italian machinery and technology solutions.

Contact Machines Italia c/o the Italian Trade Commission at 1-888-ITALTRADE, or visit us at www.machinesitalia.org for more information on Italian suppliers and how their manufacturing acumen can translate into improved productivity and profitability at your organization.

LOS ANGELES C/o Italian Trade Commission 1801 Avenue of the Stars, Suite 700 Los Angeles, California 90067 Toll free: 888-ITALTRADE (482.5872) Tel. : 323.879.0950 Fax: 310.203.8335 Email: losangeles@ice.it

MEXICO CITY C/o INSTITUTO Italiano Para El Comercio Exterior Edificio Omega – Campos Eliseos N. 345 Colonia Polanco – 11560 Mexico D.F. Toll free.:(in Mexico City) 5281.50.10 or (outside Mexico City) 1.800.696.6032 Tel.: (+52 555) 2808425 2813950 - 2813957 Fax: (+52 555) 2802324 Email: info@italtrademexico.com

TORONTO C/o Italian Trade Commission 180 Dundas Street West, Suite 2002 Toronto, Ontario Canada M5G 1Z8 Toll free: 888-ITALTRADE (482.5872) Tel.: 416.598.1566 Fax: 416.598.1610 Email: info@italtradecanada.com

©2009 Manufacturing Performance Institute.

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