How Not to Pick an Extrusion Equipment Provider

It’s almost impossible to overstate the importance of buying the correct equipment for your new or existing extrusion line, and of buying it from the right supplier. The wrong equipment virtually ensures that your system’s productivity and profitability will fall short of your potential capabilities.

The wrong supplier can be equally costly, offering you little (or inaccurate) guidance in your decisions, and little support after the fact, leaving you struggling to get even acceptable, let alone, maximum performance.

But sadly, it happens. And that’s because as human beings and business people, we are all subject to distractions and overtaxed schedules that leave us short on “think time.” So we let other things affect our judgment.

“Bells and whistles” syndrome.

Technological advancement is critical, and we at Granco Clark have pioneered more than our share of the extrusion technologies that have become industry standards. But many times, a customer will be impressed with a supplier’s “cutting edge” developments that are untested, or in many cases have very little to do with the system that customer will purchase.

Think of buying a car. Does a company’s newly-hyped sports car make its pickup truck a good choice? And—other than in comical commercials—does a “hemi” outweigh more cargo space in the family minivan?

If you pick a system because of a company’s “bells and whistles,” make sure it’s not just a lot of noise.

Choosing the company over the Company.

In today’s business world, relationships are critical. And for purchases that can be well into the six and seven figures, there is no substitute for the trust that is built on long-term success and fair, solid dealings.

But those important relationships are established through doing business over time, and cannot be forced or “purchased” with instant fellowship.

It’s easy to see the appeal of a nice little vacation attached to a logical business trip. And there’s no reason a factory tour or a plant visit to “check out equipment” can’t be combined with a little socializing.

But make no mistake—the vacation memories will fade, and those engaging dinner companions may be nowhere to be found a year or two later when your extrusion productivity is falling short of your expectations.

Thinking that low price = low cost.

That’s what bidding is all about, you say? Well, yes and no. For a low-priced commodity, the numbers speak for themselves. But in something as complex as an aluminum extrusion system, that’s not quite true. While the basic specs are the same, of course, you generally wind up comparing apples and oranges, not to mention the odd avocado in the process.

For starters, a claimed performance spec is only as good as the company behind it. Enough said. (And guarantees mean little once an inferior quality item is installed on the floor of your plant.)

Maintenance is also a huge issue. Frequent breakdowns—especially when coupled with a supplier who is not as responsive to the situation as you might like—will quickly cost you more money than you “saved” at system purchase. (And also cost you a few grey hairs, if not customers, along the way.)

Other questionable criteria can factor into the decision, too. These include “we’ve always bought from them” (all habits aren’t good ones) and “they can get it here quicker” (a couple extra weeks of the wrong equipment don’t make it the right equipment.)

The truth is, choosing the proper system equipment and supplier is hard work when it’s done the right way. But as your productivity for years to come will tell you, it’s money well spent.

A better way to buy.

A few years back, this newsletter carried a series of articles by Roger Fielding in which he outlined a very disciplined approach in choosing the correct extrusion equipment for your current needs and future plans.

In Fielding’s treatise, he identifies the writing of specifications as perhaps the key determinant of ultimate success. To that end, he suggests a careful series of steps to achieve the true result desired, which is normally a measure of enhanced productivity rather than the addition of a particular piece of equipment. To make sure that happens, Fielding suggests that you:           

1. List key productivity measures and your current performance against them.
2. Establish a benchmark, as best you can, from relevant industry data.
3. Use those numbers to describe your objective.
4. Articulate clearly the numbers that must be achieved if the project is to be successful; use specific delivery rates for particular alloys with predetermined recovery rates and manpower needs.
5. Deliver these objectives to leading industry suppliers, and allow them to determine the best way to achieve them.

Obviously, the proper evaluation of the proposals received is extremely critical, as well, and requires diligence in making additions and deletions in order to to put all proposals on the same footing. And the ultimate decision must also take into account less tangible factors, such as parts availability, maintenance, and after-sale support.

Though perhaps more difficult to quantify, comparing the relative merits of each potential supplier along these dimensions should encompass industry reputation, testimonials from recent customers, etc., and not provide an opportunity for “personal preference” to outweigh the Cost-Benefit Analysis to this point.

You can read Fielding’s series in its entirety at www.grancoclark.com. Just click on “Newsletter by Topic” under the “News” header, and look for “The Acquisition of Modern Aluminum Extrusion Systems.”