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Our
experience tells us there is a trend toward the
commoditization of automation components and solutions
due to downward price pressures brought on by
increased competition and reduced
product and technology life cycles as domestic and
international companies navigate the uncertainties of
the evolving global economy.
As a result, many
small and mid-sized automation companies find
themselves in a difficult situation. On one hand,
there is increased competition in the market they have
been working in, and because of technology advances,
the life cycle of the products they market is
decreasing. On the other, unlike larger companies,
these small to mid-sized companies do not have
extensive R&D / product development resources to keep
ahead of technological advances, and they do not have
the experience or resources to expand efficiently and
effectively into new markets, especially in other
parts of the world.
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