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Emerson Global Users Exchange, Day 1
September 10, 2007

The rain has abated somewhat here in Grapevine. Like last year's ISA show, many of those arriving have stories of travel problems. Even some of this morning's keynote speakers had to get creative with their plans.

We began the day with the keynote addresses.

Marty Edwards, chairman of the board of directors of the Exchange, began with a welcome and a short history. The Exchange has grown dramatically from its humble beginnings and will draw 2400 attendees this year. 53 countries are represented. He called particular attention to the real veterans, showing a slide with the names of 15 individuals who have attended at least ten times.

Edwards passed the baton to David Farr, CEO of Emerson, who was kind enough to walk out on stage carrying a copy of the Exchange Today. (He might have been confused about Marty's beard...) Farr launched into his remarks that were nothing if not enthusiastic. Some points were even punctuated with rumbles of thunder. He has reason to be enthusiastic. The larger company is doing very well. For the first time it will pass $22 billion in sales worldwide, with 52% coming from outside the U.S. (Emerson Process Management is leading the various divisions with $5.6 billion.) Farr has a particular heart for this division, as he cut his teeth on the process side. He was emphatic about the future and his passion for winning. Anyone who had any thoughts that Emerson Process Management will be put out to pasture as a cash cow should now know otherwise. Farr made the point repeatedly that they are investing for the future, developing new technologies every day, and passionate about winning. Emerson is going to pursue technology leadership with passion. He wants to change the world, and there is little reason to doubt he will.

Farr finished his address with a challenge to the audience and a promise. "This conference is very important. You are creating the future now. Help us create a better vision for a better process industry." If customers will help show the way, he promises, "you have my committment as CEO that we will invest."

After a break, Alan Boeckmann began his address with a more subdued style. (Most speakers would seem subdued after David Farr.) Boeckmann is chairman and CEO of Fluor Corporation and spend many years within the Fluor Daniel division, so he has a true process industry background. "We are in the best capital investment cycle in the last 30 years," he assured the attendees, and globalization is part of every industry, particulalry design and engineering. Technological developments of the last 20 years now support Fluor's Global Execution Centers, where resources from any part of the world can be brought to bear on any given project. Such global design results in greater innovation, major cost savings, and faster schedules for plant projects. "We've created an engineering assembly line that runs 24/7."

Of course plants designed on a computer still have to be built. "The lines between supplier and contractor are blurring," Boeckmann says. "But procurement, supply chain, and logistics issues are still critical." To help solve those issues, Fluor has donated $2 million to create a chair at Clemson University for a masters level program in supply chain management.

John Berra rounded out the field of keynote presenters. He began by borrowing a term used by David Farr, and celebrated a "Berra moment of joy." You can't blame him enjoying the situation to the fullest. It must be hugely rewarding to stand in front of a group of people like that, knowing all the effort that went into its creation. He encouraged all in attendance to have fun and make the most of opportunities for friendship with colleagues from around the world.

Soon he got down to business and discussed the state of Emerson Process Management. In many respects it's hard to imagine how things could be much better. 15% growth per year, sales increases of $2 billion since 2003, total worldwide sales in fiscal 2007 of $5.6 billion, 1300 new employees since the last Exchange, he should be gratified. David Farr is behind him and willing to make strategic acquisitions. "Our customers are the rudder for Emerson Process Management," Berra proclaimed. Customer demands guide all the efforts of new products and provide market direction.

His excitement increased as he brought up the subject of wireless. "We are at the brink of another era in automation," he says. "It's as big as the introduction of DCS. It can create value." He cited the stories of a group of customers that have deployed SmartWireless since its introduction a year ago. None of the individual stories are huge, but they all make the point that wireless, when applied well, can solve problems and save money. Real life experiences reinforce the point with each new project.

More wireless is on the way. Emerson is announcing its next phase today as they make the move from wireless instrumentation to fully integrated wireless plant solutions, partnering with Cicso. There will be more on that tomorrow.

Posted by Peter Welander on September 10, 2007 | Comments (0)