Yes, technology still matters. (Editorial).

When it comes to views on technology, there are two kinds of fools. There's the one who thinks plugging in the latest and greatest will solve all problems. Then, there's the one who doesn't put a nickel into a decades-old operation yet expects employees to work miracles to stay competitive.

We've all seen modern foundries go Chapter 7 right alongside antiquated ones. We've also seen foundries that, thanks to rare engineering and maintenance talent, are accomplishing amazing things with the most spartan of capital dollars. But let's face it, tomorrow's foundry will have to maintain a certain technological competence, and that threshold is rising. As much of the American casting industry waits for sunnier skies, others are investing to close the technology gap.

Success in this business is a three-legged stool of technology, people and markers. You can only let one area slip for so long before it chokes off the other two. The reality is that few foundries are deep enough in talent and marketing knowhow to counter a fight with second-rate tools. Standing still on the technology front is essentially the same as taking a step backward.

When a bold approach to technology exists, it breeds important behavioral by-products, such as a stick-your-neck-out attitude, disregard for the status quo and a total system understanding. Conversely, when firms fall out of the practice of seeking out and implementing technology, they quell some of the very traits necessary to compete. Aggressive, big-picture thinking isn't exactly fostered when the only message heard is "cut-cut-cut."

Technology-focused companies don't wait for improvements to become "cheap." Students of best practices and innovation, such firms figure out how to apply promising advancements for a near-term contribution. Sometimes, it's through incremental homegrown improvements. As an example, consider how far the six-plant Waupaca Foundry has come by making technology development a core of its business since its founding as a 13-man shop in 1955.

In talking to a foundry CEO about its Six Sigma program (see Novel Solutions, p. 24), I heard the profound words of one of his Black Belts: "A foundry is a wasteland of opportunity." In other words, there are ample ways to skin the profitability cat. Since margin has to be found "inside" these days, effective use of technology will be a big part of the solution.

There is plenty you can do with regard to automation, efficiency, reliability, yield and quality/rework (some requiring capital, others not). If you're heading to Germany for GIFA next month, you'll have a chance to see the latest innovations from around the globe. Or, as I've learned in How to Grow When Markets Don 't, there are ways to use technology to remove the pain on the customer end, "surrounding" your work and the buyer in the process.

The point is, you don't get any closer to the possibilities standing on the sideline. Unless you're actively seeking out opportunities (whether the incremental or "big idea"), you're not likely to find them.

Risk still remains, but forecasts continue to call for better casting demand. Also, as some firms continue to shed certain manufacturing functions, maybe there's room to seek creative "financing" through volume sourcing agreements. It can be done with the right kind of customer, assuming you've done your homework and are willing to share savings and control.

Technology poses a bit of a paradox for today's metalcaster. Some say the best technology still can't match the costs of foreign foundries, or that capital spending nowadays is a slippery slope to problems. But as time goes on, you won't be in the game without modern tools.

We need to get back in the technology habit. It's an important part of a metalcaster's DNA that needs to be nurtured once again.

Look for live postings at www.moderncasting.com during GIFA (June 16-21), with detailed reports of the newest unveilings in our August issue.

Michael J. Lessiter, Editor/Publisher