Michael_A._Hitt,_R._Duane_Ireland,_Robert_E._Hosk

(Kiana) #1

Case 5: Fisk Alloy Wire, Inc. and Percon C-65


Exhibit 6 Boeing Company Forecast Deliveries


NEW AIRPLANE DELIVERIES
2008–2027

Size Airplanes

29,400

New
airplanes
29,400

Total

747 and larger 980
6,750
19,160
2,510

Twin aisle
Single aisle
Regional jets

23%

3% 9%

65%

lights, not in accordance with the dictates of the industry
and without losing our raison d’être, which is quality and
maintained value. The metals business has lots of com-
modity producers who bought into the lure of volume and
compromised on the quality side, then resorted to price
competition and ultimately ground themselves to pieces.
Keeping the quality level up and the innovation up so that
you can walk the high road is really our objective.


Growth could come from acquisition, but with pur-
pose, not just for size.


I would like to see us able to acquire some little companies
for some strategic structural opportunities and do acquisi-
tions because growth is fun and challenging, but you have
to be careful not to do it just because it adds $10, 20, 30
million to the revenue side and everyone says: “Oh, boy,
we’re a $100 million company and we’ve got 500 people.”
You don’t want to get drawn into that. What you
want to steer yourself toward is sustaining a position of


excellence. As you get bigger that gets harder because the
oversight and the detail it takes to effect that excellence
gets harder and harder. That’s the challenge, to sustain the
excellence. That’s what turns me on, achieving that type of
reputation, not necessarily the kind of size, but that kind
of reputation, and that’s hard to do. Also, if you have sur-
vived from the 1980s on and stayed either #1 or #2 in your
business, which we are, and you are technically based, not
labor based, you’re in a good spot.
We have no intention of being a commodity producer.
We make our living only on alloy because that’s our spe-
cialty. As it turns out, being a specialty is a really good
business. The total size of the Percon market is still a
mystery. We don’t know yet what the ultimate size might
be, but we know it’s growing. Product characteristics com-
bined with an increasing awareness of processing, product,
and disposal waste stream responsibilities, means there
will be an increasing demand for environmentally benign
alloy conductors wherever they are used.

NOTES



  1. http://www.fiskalloy.com.

  2. Wire and Cable Technology International,
    November 2005.

  3. Fisk, Eric S. 2004. Alloy conductor
    developments in automotive and
    aerospace wire. EuroWire. September.

  4. Manning, William. 2002. Wired for
    Innovation. Wire and Cable Technology
    International. November.
    5. http://www.boeing.com/companyoffices/
    doingbiz/environmental/TechNotes.html.
    6. http://www.airbus.com/en/airbusfor/analysts.
    7. http://www.boeing.com Current Market Forecast
    8. Equals approximately 79 lbs/ft of wire.
    9. http://www.copper.org/education/c-facts/
    c-communications.html.

  5. http://www.airbus.com.

  6. http://www.gm-volt.com.

  7. http://www.conformity.com/artman/publish/
    printer_25.shtml.

  8. http://ec.europa.eu/environment/waste/
    weee/index_en.ht.



    1. High Tech Trash. National Geographic,
      September.



  9. http://www.chinarohs.com.

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