Material Handling Equipments

Conveyor Systems

Question: Can a service based business that designs conveyor systems survive long in this type of economy? A friend of mine works at a facility called Intelligrated Inc. based out of Mason, Ohio. They design conveyor systems by determining what form of conveyor system a companies need at their distribution/production/manufacturing centers. Intelligrated designs and forms all of the sheet metal parts and subcontracts the installation. All of their business over the past 2 years has been primarily with one pharmaceutical company. This is understandable since all drugs must be made and distributed within the US due to FDA regulations. The problem is as with other companies that do this type of work, once the contracted work is done a new project must be found. It is a service based company that has no patent protection. I'm afraid because they've only been working with a given pharmaceutical company it is increasingly harder to find contracts within the manufacturing, production and distribution sectors. That being said, it seems that it may be impossible over the long haul to sustain enough business for the company to survive considering logistics, competition, lack of diversity in contracts etc. My question is whether this type of company will likely become unstable over the next few years due to all of the sourcing out and hollowing out that is taking place in this economy?

Answer: This is a global economy: Certainly, the US has FDA regulations on pharmaceuticals and the company cannot violate that, but: what I suggest is that the create a satelitte company that designs conveyor systems globally. I would look to emerging markets in South America and Central America and elsewhere. The answer to your query is that they can make it in this economy, they will have to diversify their product legally..

 


Conveyor Systems News

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FANUC FA America Collaborates with Wynright on Design of Automated Inventory ...

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United Conveyor Corporation Launches VIPER(TM) Mill for Dry Sorbent Injection ...

MarketWatch (press release)
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Powder and Bulk Dot Com (press release)

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