It's more than product

Future profitability for machine tool distributors and builders will not come from "selling iron." With substantial excess manufacturing capacity in most shops, and overcapacity for machine tool products

What's most important for us to recognize though, is what machine tool buyers are asking for-not just for quality in the new equipment you purchase, that is the entry point today-but for services, programs, and support to further maximize the equipment you have at the least possible expense. During this year's International Manufacturing Technology Show (IMTS) in September, AMTDA surveyed machine tool buyers to determine what you feel is necessary from suppliers to ensure future satisfaction.

The survey reveals the importance of various purchase factors, services, and programs beyond price. In fact, price of product didn't even weigh-in until after the top seven factors (see inset box). The overall product quality and value, competency of the supplier's personnel, and services beyond the sale continue to be key to ensuring satisfaction in relationships.

Topping the chart, not surprisingly, were "product quality," and "value for the price." All machines are increasingly similar in range of features and capabilities-the "iron" I mentioned earlier.

So what's next in importance to ensure your satisfaction as a machine tool customer? Or, for that matter, important to us to remain your partners and still be competitive? Personnel of course-service, applications, sales-all areas that can make or break business relationships, and create longterm loyalty. Even in the current economic malaise, the demand for a capable and qualified staff is as critical to profitability and success today as it ever was.

Both AMTDA and SME support the skill standards initiatives and accomplishments of the National Institute of Metalworking Skills (NIMS) that to date has developed 24 sets of skill standards. Over 4000 NIMS certifications have been earned by individuals in 36 states, and 120 training programs have likewise been accredited. AMTDA has also been instrumental in the development and recent release of Machine Maintenance, Repair and Service skill standards (the first NIMS standards to be ANSI-approved), which will make great strides in assuring the competency of service engineers.

In addition, we sponsor the Certified Machine Tool Sales Engineer (CMTSE) program that we herald as our flagship educational program to increase and acknowledge the professionalism of the sales engineers who call on you. To date, over 1400 individuals have participated in the program representing more than 165 distributor and 105 builder companies.

We know there are other downstream services we can provide to help you reduce your overhead in areas that don't represent your core competencies. While this is a fundamental culture change for many of our members traditionally focused on moving iron and measuring success by units, it's a direction we must explore to continue to add value.