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How to play in the big leagues…

October 19, 2005 by Walt Boyes

 

The playoffs and the fact that the Chicago White Sox (!!!!!!!) are in the World Series for the first time since 1959 leads me to this story.
Chairman Isao Uchida of Yokogawa announced in January that they intended to replace Emerson as the number one automation vendor by, if I recall correctly, the end of the decade. Saying that is all well and good, but as Uchida-san clearly understands, getting there takes more than hot air.
Yesterday, Yokogawa showed they are willing to be unconventional and innovative in trying to get there. Yokogawa Corporation of America President and COO, David Johnson, announced an alliance with EnGlobal Systems Inc. (www.englobal.com), a $150 million EPC and integrator.
Johnson commented, “Yokogawa is extremely pleased to have the opportunity to work closely with ENGlobal. We believe this alliance greatly enhances our MAC (Main Automation Contractor) capabilities and positions us well for targeted growth in the North American market. We anticipate that it will benefit all parties concerned – Yokogawa, ENGlobal, and most of all, our customers.”
Outside of Japan, and limitedly in Asia, Yokogawa simply has not had any MAC capability in the USA. Clearly, since the USA is now, and is likely to continue to be, the largest automation market (including China) if Yokogawa wants to beat Emerson (and coincidentally, the other big automation companies…I almost said the “Seven Dwarfs” but it grinds me too much to describe Honeywell, Siemens, ABB, et. al. as dwarfs)…they are going to have to have substantial MAC and asset management clout.
This is why Yokogawa has jumped ship and joined FDT…FDT has the potential to make Emerson’s AMS obsolete.
Very interesting.
What do YOU think?
Walt
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