Released on = March 6, 2006, 5:50 pm

Press Release Author = Thomas Cutler

Industry = Education

Press Release Summary = Value of ETO Institute profiled in World Trade Magazine

Press Release Body = World Trade Magazine's article "Engineer-to-Order Manufacturers
Find Little Global Competition" features information from the ETO Institute
(www.etoinstitute.org). The ETO Institute is an independent organization
committed to helping North American engineer-to-order (ETO) manufacturers compete
more effectively in an increasingly competitive global environment. Our resources
section provides a list of articles and white papers focused on manufacturing and,
in particular, engineer-to-order. The bulletin board provides a forum for
organizations to share ideas and information and to discuss challenges and business
issues.


According to Thomas R. Cutler, author of the article is also spokesperson for the
ETO Institute, "ETO companies build unique products designed to customer
specifications. Each product requires a unique set of item numbers, bills of
material, and routings. Estimates and quotations are required to win business.
Products are complex with long lead times, typically months or even years. Unlike
standard products, the customer is heavily involved throughout the entire design and
manufacturing process. Engineering changes are a way of life. Material is purchased
not for inventory but for a specific project. All actual costs are allocated to a
project and tracked against the original estimate. Once complete, the product is
typically installed at the customer's site. In most cases, aftermarket services
continue throughout the life of the product."


The manufacturing recession from 1999-2003 within the North America economy,
resulting in the loss of over 2.5 million jobs in the United States alone. The
machine tool industry for example, is down 50% from its peak. ETO companies were
affected differently than repetitive manufacturers, as they rely on a small number
of high value contracts from a small number of customers. In the repetitive world,
the loss of one order may not have had a significant impact on the company; in the
ETO world, the loss of a large contract can be devastating. After all you cannot
reduce an order size of one!

Those ETO companies that survived are now thriving because the products
manufacturers simply cannot be outsourced and produced globally, when so much of the
installation must occur on the plant floor. While this distinction provides a
competitive advantage, The ETO Institute has become a resource to help ETO companies
find the right solutions to maintain a lean methodology and appropriate technology.



Web Site = http://www.etoinstitute.org

Contact Details = ETO Institute
www.etoinstitute.org
Thomas Cutler
888-902-0300