RE: rumors

From: Brock Hinzmann (bhinzmann@sric.sri.com)
Date: Mon Nov 23 1998 - 19:51:11 EET


I spoke to someone at Plynetics Express on Friday, because I had heard
the same rumors. Plynetics Express is restructuring its business, but the
details I heard in the rumors were quite different from those I heard
directly, so be sure to check your sources carefully.

My understanding is that a couple of machines will apparently be sold off
and the remaining machines will be consolidated into the San Leandro and
Schaumburg locations. The Beaverton and Auburn Hills offices will remain
open as sales and customer service operations.

The restructuring was brought about by a new chief executive, but I have
few details about why or what. Some changes are also expected in executive
responsibilities. I imagine the changes will mean some employees will be
transfered or even let go, but having been involved in these kinds of
changes myself, I think you should wait for it to happen, before you jump to
any conclusions.

Also, what this change at Plynetics Express means for the service bureau
or RP industries as a whole will require some further analysis. I
maintained several years ago that, as OEMs bought their own equipment, the SBs
would decline, but I have toned that down the past couple of years, believing
instead that the SBs will always find a business on the leading edge of
new technology, new applications, and as development partners. Have they
lost their touch? Is the entire industry suffering from the insecurity of
the current global economic situation, with a decline in new product design
and development? For instance, the industrial design business in some
countries seems to be flat at the moment as well. Is virtual prototyping
cutting into the physical prototyping business after all? Have competitive
pressures pushed down the profit margins for RP SBs? Are service costs too
high? Have improvements in performance failed to meet high expectations? Is
the panic setting in too soon?

Brock Hinzmann
Technology Navigator
Business Intelligence Center
SRI Consulting
a subsidiary of SRI International
Menlo Park, California
bhinzmann@sric.sri.com
voice: +1 (650) 859-4350

Drew Brown wrote:
>Whats the latest rumors about Plyenetics Express? I had heard they were
>either going out of business or closing down some of their operations.
>
>Is anyone willing to share in the real story? Any equipment going up for
>auction or sale?
>
>Drew Brown
>Conceptual Reality L.L.C.
>Phone:(248)926-8820
>Fax:(248)926-8830
>http://www.conceptual-reality
>
>
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