A senior Emerson staff member (name witheld by me) writes:
"I'm enjoying your notes from the Yokogawa Users Group.
"I noted they are promoting a 7.5% investment in R&D spend. You should note that the last time they claimed this level of R&D investment was in 2003.
"The number they showed for themselves in 2003 was total R&D spend across all of Yokogawa and was significantly over-weighted by the high R&D spend in their Measurement Group.
· Measurement for Yokogawa consists primarily of lab testing equipment - not related to Process Control Measurement.
· Do not let them claim their Measurement R&D as Industrial Automation related.
"Proof of this is still posted on their website, slides 12 & 16. For some reason, they have chosen to not release a similar breakout of numbers for this year.
"You may want to challenge Yokogawa to provide the same details on their most recent R&D investment in order to accurately validate their claims.
· If they are proud of their number, then they should release the Control Division only number."
Interesting that while Emerson dismisses Yokogawa in public, and is competing hard with them on price in Asia, the reality is that Yokogawa is being watched very closely.
Emerson might not be as fat, dumb and happy as some people think.
They may have noticed that Yokogawa has a mean and hungry look, and that to the wolf, Emerson may very well look like dinner.
Walt
