I have to agree with Larry.
I have seen this happen first hand. When the cash flow gets tight, the
first thing to go is research and development. If you downsize sales or
manufacturing, your cash flow only gets worse.
>From: lblasch@opw-fc.com
>Date: Tue, 09 Mar 99 18:03:40
>To: Steve Stewart <steve>, rp-ml
>Subject: Re[2]: Another on bites the dust!
>Sender: owner-rp-ml@bart.lpt.fi
>
>
> Steve,
>
> you wrote:
>
> >Isn't it also possible that R & D would be the LAST thing to
> >suffer? Manufacturers, even though strapped for cash in a
> >deflationary period, still have to compete for market share in
> >order to survive, and I think that entails R & D.
>
> You seem to be confusing logic with business acumen.
>
> From my own point of view, here is very little pure research and
> development going on in industry in the USA. In many cases, any
> project that does not show signs of a payback this year will be killed
> or at least shelved with a downturn in business.
>
> Wall street does not reward the company that reinvests its profits in
> R&D, if it did, than we would have a predictable market.
>
> To serve the short sighted stock investors of today, it is necessary
> to show that you are returning the greatest portion of your earnings
> to the market as either immediate improvements in sales/market-share
> or in hype about the products or services you offer.
>
> There seems to be no logic to the current market. The correct spin is
> all it takes to boost stock values.
>
> I would love to here from the business majors out there on this.
>
> Sincerely,
>
> Larry Blasch
> Systems Administrator for Engineering Services
>
> OPW Fueling Components E-Mail:lblasch@opw-fc.com
> P.O. Box 405003 Voice: (513) 870-3356
> Cincinnati, OH 45240-5003 USA Fax: (513) 870-3338
>
> **********************************************************************
> * "Always remember you're unique, just like everyone else." *
> **********************************************************************
>
>For more information about the rp-ml, see http://ltk.hut.fi/rp-ml/
>
>
Joe Allison
Solid Concepts Inc.
28231 Avenue Crocker #10
Valencia, CA 91355
Tel: (805) 257-9300
Fax: (805) 257-9311
Email: Joe@SolidConcepts.com
For more information about the rp-ml, see http://ltk.hut.fi/rp-ml/
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