Kleist

					TECHNOLOGY, MANUFACTURING &
MARKETS IN A GLOBAL ECONOMY


   AIM-IAC Meeting – April 7th, 2004




             Robert A. Kleist
             President/CEO
             Printronix, Inc.
      Trade is Compelling in Human
                 History
   China Was The Largest Economy Until 1850
   The Industrial Revolution Changed Economic
    Development
   The Revolution Was Driven By Technology and
    Manufacturing
   People Prospered and the Economy Grew
    Through Increased Productivity
 THE VIRTUAL CYCLE FOR
ECONOMIC DEVELOPMENT

                     ECONOMY



MARKETS
(USERS)                               UNIVERSITIES




     MANUFACTURING             TECHNOLOGY
      MARKETS AND THE GLOBAL
            ECONOMY

   Regional Markets Can Be Classified Into
    DEVELOPED MARKETS or EMERGING
    MARKETS
   Without Trade Restraint, Economic Division of
    Manufacturing Moves Toward Optimum Global
    Productivity
   Capital Flow is the Essential Complement to
    Global Trading
    TECHNOLOGY AND IT’S ROLE IN
            MARKETS
   Technology Moves in Successive Waves
   Disruptive Technology Creates New
    Infrastructures
   Surviving Technologies Became Commodities
   Manufacturing Couples Technology to
    Economic Growth
      USERS AND MARKETS MOVE
        TOWARD PRODUCTIVITY

   Competitively Serving Users is a Necessary
    Condition for an Ongoing Business
   Providing Next Technology is a Sufficient
    Condition for an Ongoing Business
   A Global Business Serves a Group of Markets
    to Achieve Economies of Scale
MARKET FORCES/TECHNOLOGY MOVE
 TOWARD AN INTEGRATED GLOBAL
           ECONOMY

   High Technology Often Flourishes Faster in
    Emerging Markets
   Emerging Markets with Access Grow Fastest
   Barriers to Market Access Mitigated by WTO
   Market Forces, Technology and Capital Flow
    Drive Toward Most Productive Global Economy
    MANUFACTURING IN A GLOBAL
           ECONOMY
   Manufacturing Fulfills User Needs with Products
    at Lowest Cost (Continuous Improvement)
   Manufacturing is the Tool in the “Invisible Hand”
    of Market Forces
   Manufacturing Is An Intrinsic Part of Economic
    Development
   Gross Domestic Product (GDP) Measures
    Economic Development
        COMPETING IN A GLOBAL
             ECONOMY

   What Can We Do Differently That Users Will
    Value?
   What Is Our Position in the Value Chain That
    Serves User Needs?
   How Do We Work With Partners To Provide
    The Whole Product Solution?
    MANUFACTURING IN A GLOBAL
           ECONOMY
   Manufacturing Processes Adapt to Serve Each
    Market at Lowest End – End Cost
   Manufacturing Requires Constant Assessment
    of Both In-Sourcing and Out-Sourcing
   Workforce Adaptation and Education Are
    Intrinsic to Economic Development
   Geographic Expansion Opens Both New
    Markets and New Productivity
     WHAT ABOUT JOB GROWTH?

Job Growth = GDP Growth – Productivity Growth



   “manufacturing production has risen about 40% over the past decade ---
   the share of American workforce in manufacturing has fallen steadily over
   the postwar period due to vast increases in productivity, but this is a
   worldwide phenomenon. Between 1995 and 2002, China, Japan, Brazil,
   and other countries lost more manufacturing jobs than did the US,
   according to an Alliance Capital Management study.”


                                                        Douglas A.Irwin
                                                        Professor of Economics, Dartmouth
ECONOMIC SELECTION OF GLOBAL
          MARKETS
   Emerging Markets Provide New Buying Decisions,
    Developed Markets Provide Large Base of Business
   90% Global GDP is in 40 Countries
   GDP Per Capita Categorizes Developed Markets and
    Emerging Markets
   GDP Growth Rate Shows Industrialization of Emerging
    Markets
   Population Indicates Potential Market Size
                                                        GDP Growth Rate v GDP per Capita
                                                       Top 40 Countries; 90% of World's GDP

                  9%
                                                                                                        MEAN = $15,385

                  8%                                China                   Turkey

                                                                          Iran
                  7%              Vietnam


                  6%                                                                                                 S. Korea
GDP Growth Rate




                  5%                                                        Thailand
                           Bangladesh                       Ukraine
                               Pakistan                     Philipines                   Russia
                  4%                   India                                        Malaysia                    Greece
                                               Indonesia                                                        Taiwan          Australia
                                                                Algeria
                                                      Egypt                             S. Africa                                                           MEAN = 3.04%
                  3%                                                                                                               Canada

                                                                                                                Hong Kong
                                                                                                                                            United States
                  2%                                                                                                           Sweden
                                                                                                             Spain
                                                       Colombia              Brazil                                           UK
                                                                                       Poland
                  1%                                                                                             France          Austria
                                                                                              Saudi Arabia
                                                                                                                                    Belgium
                                                                                    Mexico                            Italy
                                                                                                                              Germany Switzerland
                  0%                                                                                         Netherlands         Japan
                  $1,000                                                            $10,000                                                                         $100,000
                                                                                 GDP per Capita
                                                                                                                                       Source: CIA World Factbook 2003
        LARGE POPULATIONS WITH HIGH GDP
                 GROWTH RATE

  Country       Population          GDP            GDP per Capita   GDP Growth
China         1,286,975,468   $5,989,000,000,000          $4,654        8.00%
India         1,049,700,118   $2,664,000,000,000          $2,538        4.30%
Indonesia       234,893,453     $714,200,000,000          $3,041        3.70%
Pakistan        150,694,740     $295,300,000,000          $1,960        4.40%
Russia          144,526,278   $1,409,000,000,000          $9,749        4.30%
Bangladesh      138,448,210     $238,200,000,000          $1,720        4.80%
Philippines      84,619,974     $379,700,000,000          $4,487        4.40%
Vietnam          81,624,716     $183,800,000,000          $2,252        7.00%
Egypt            74,718,797     $289,800,000,000          $3,879        3.20%
Iran             68,278,826     $458,300,000,000          $6,712        7.60%
Turkey           68,109,469     $489,700,000,000          $7,190        7.80%
Thailand         64,265,276     $445,800,000,000          $6,937        5.30%
Ukraine          48,055,439     $218,000,000,000          $4,536        4.80%
Algeria          32,818,500     $173,800,000,000          $5,296        3.30%
Malaysia         23,092,940     $198,400,000,000          $8,591        4.10%
             PRINTRONIX HISTORY
   Introduced Ideal Minicomputer Printer in 1975
   Expanded Globally as Revenue Grew Till Mid
    1980’s
   Business Restructured as Minicomputers
    Replaced by Networked PC’s in Late
    1980’s/Early 1990’s
       Embarked on World Class Manufacturing
       Doubled R&D for Next Generation Line Matrix for
        Enterprise Networks
       Captured Computer System Outsourcing for
        Renewed Growth
            PRINTRONIX TODAY
   Global Manufacturer of Industrial Printing
    Solutions
   $130M Annual Revenue
   73% Revenue in Line Matrix Technology,
    Growth in Emerging Markets
   14% Revenue in New Thermal Label Printers,
    Growth in Developed Markets
   Solutions Differentiated by Network
    Management, Open Systems Architecture and
    Guaranteed Bar Codes
         PRINTRONIX GLOBAL REACH
Solutions, Support and Printed Languages Worldwide
                                                         Market Support for
                                                        Europe, Middle East &
                                                                Africa

                                                  HOLLAND

                                                                       CHINA
    IRVINE                              MEMPHIS
                                           Spares &
                                          Consumables
                               MEXICO       Support
Corporate Headquarters
  Manufacturing Site
  Market Support for                        Ribbon                                       SINGAPORE
      Americas                              Manufacturing
                                                                        Manufacturing Site
                                                                   Market Support for Asia Pacific

       PTNX Plants ISO 9001 Certified
       PTNX Sales Offices
    STRATEGIC GROWTH INITIATIVES

   Enter China Market as a Geographic Growth
    Initiative
   Develop Thermal Label Printers as a Product
    Growth Initiative

     - Focus on User Value and Support as the
              Competitive Advantage -
PRINTRONIX CORPORATE STRATEGY
       (And Top Priorities)
       TODAY’S BUSINESS                        TOMORROW’S BUSINESS

      INSTALLEDBASE                          RFID
      CONSUMABLES                            LINEMATRIX INKING
      NAMED ACCOUNTS                          TECHNOLOGY
      IBM                                    GEOGRAPHIC SALES
                                               EXPANSION



  Know the Users                         Have the Next Thing for User’s IT
  Earn User Satisfaction Through Best     Expansion/Conversion
   Service/Support                        Seamless Change to Next Technology
  Work Seamlessly with Partners          Enhance Global Enterprise Support and Sales
                                           Through GEO Expansion

         FOCUS ON TODAY & TOMORROW = GOOD ONGOING BUSINESS
Navigating the Boulders of Business

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:6
posted:1/1/2012
language:
pages:20