Re: Re[2]: Another on bites the dust!

From: B. J. Arnold-Feret (ppsltd@airmail.net)
Date: Wed Mar 10 1999 - 21:11:36 EET


I also agree wtih Larry. R and D and marketing usually are among the first
to go. Then engineering for some reason before they start hitting
accounting with layoffs...

What I am starting to see is a trend of pushing down of R and D and (gasp!)
design to vendors and first tier suppliers though.

B. J. Arnold-Feret
ppsltd@airmail.net

>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/
>
>

For more information about the rp-ml, see http://ltk.hut.fi/rp-ml/



This archive was generated by hypermail 2.1.2 : Tue Jun 05 2001 - 22:51:12 EEST