17-03-2009

“Grow With Us” is our slogan for this difficult year.

A provoking invitation? A bold statement? Where is the space for growth? How can we dare mention a term which implies the concept of expansion when the whole world shrinks under the wave of a common recession? There are ways to grow, if we agree on what “growth” means.

If we mean to simply expand volumes, we are probably dreaming. The only possible way to expand volumes – not only in the machinery business – is to eliminate a few competitors while the demand stays constant. The first condition might happen any day but the second won’t, in the short term.

If we mean to increase profits, it’s wishful thinking. We can play on some price reduction in raw materials, but we can forget about higher margins, at the current market prices. For a while, at least.

If – instead – we mean “growth” as a way to enrich our capacity of generating profitable business by producing more efficiently, by wasting less material and energy, by generating less scrap, by putting “clean” innovation in our processes, by making use of renewable resources – then probably we’re on the right path.

We’ve been applying the “sustainable development” concept for a while, at Cannon. Efficient production methods have been developed for all our Plastics processing technologies. See in the latest Cannon News (March 2009) the articles concerning new efficient manufacturing systems for the thermal insulation of piping and of building panels. Then the same innovative approach has been applied to Aluminium die-casting, and very soon the results have shown up, as you can read in the article dedicated to wind generation.

In the meantime the Energy Division was conceiving, developing and offering to the market thermal solutions based on renewable fuels, and today they are a hard fact. Read the success story about the power which is generated from the spent grapes. The next major area of concern for the world – the supply of fresh water – has been strongly approached by Cannon and it is now, after years of efforts, bringing great results. And we could continue.

On the International scenario, we all know what is going on.

The major troubles are coming from the old economies, where a sick banking system has hit the true economy and affected its main vital parameters: among the emerging countries there are signs of slow-down in growth but not yet of serious crisis in their expansion.

Several nations are still keen for development and growth, in quality if not in quantity: Cannon have paid great attention – and investments – in the well known BRIC (Brazil, Russia, India and China) area: most of the organisational efforts of the past five years have been spent in these four countries, where now the Group collects a significant portion of its business, especially in terms of new customers.

In the developed world the situation is tough, no doubt about it. Investments are on hold, industries keep using their old equipment, they have learned that a machine can be modernised and used for a longer period. Only the providers of reliable solutions, with a good structure of customer service and local sale forces can serve them properly with ideas, labour and spares – and have a chance to survive. Those who close their local offices lose their contact with the local market. 

The major Cannon branches worldwide help their customers, refurbishing their existing plants and supplying new equipment tailored to their available budgets. Call them if you need advice and a quote.

If we try together we can progress, in spite of the headwinds. Maybe we can even use them in our favour: sailors and windmills did it for centuries, after all!

Grow with Us!