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from the chairman's desk
W ITHI THE NEXT few months, we will complete
two major building projects overseas-a large addi-
tion to our manufacturing facility in West Germany
For the first six months of the current fiscal year, they were
up 12 percent over the corresponding period of 1963.
The answer to this seeming paradox is that our European
and a new plant for Yokogawa-Hewlett-Packard, Ltd., our manufacturing operations have enabled us to increase our
joint venture in Tokyo. These projects are of utmost signif- stature and strengthen our position in this highly competitive
icance to our international operations in that they will area, and have tended to broaden the market for the HP
strengthen our competitive position in two of the most im- family of products. So, although our plants in England and
portant electronics markets in the world. Germany are rapidly increasing their output, we have also
As you know, our international business is growing very had to step up our exports from the U.S. to fulfill a much
rapidly and it is quite obvious that the expansion of our larger demand for our products.
overseas manufacturing facilities tends to accelerate this Although we have just begun to manufacture instruments
growth. Not so obvious, perhaps, is the beneficial effect which in Japan, we expect a similar pattern to exist in this im-
our overseas manufacturing has on our .5. operations. On portant market. In other words, we fully anticipate that our
the surface, one would be inclined to think that an expansion exports to Japan will increase even though Y-HP will have a
of our manufacturing activity in foreign countries would major facility in Tokyo. As time goes on, we may even make
diminish our manufacturing activity at home. But the figures some Y-HP products at our plants in the U.S.
show that just the opposite is true. During the coming years we also anticipate that our
This year, our two plants in Europe will produce about $6 domestic operations will gain substantial benefit from the
million worth of instruments. These instruments will contain engineering and product development effort of our overseas
about $2 million worth of components and fabricated parts companies. Until now, this effort has been directed primarily
manufactured in our U.S. plants. It is interesting to note that to getting our manufacturing operations under way and to
in 1958 our entire volume of business in Europe was only $2 building products already in the HP line. In the future, how-
million. So, in parts alone, our domestic plants are producing ever, we can expect our overseas engineering staffs to develop
as much for the European market as they were producing in an increasing number of new products, which will represent
finished instruments only six years ago. an important addition to our sales volume both at home and
Looking at it another way, for every three people we add abroad.
to our European manufacturing operations we must add one The point to all this is that we are now a truly international
person in the U.S. to produce the necessary parts for the enterprise and should operate with a high degree of intercom-
European-manufactured instruments. pany cooperation and communication. We must constantly
Of even greater benefit to our domestic operations is the recognize that there are no borders to our technology or
continuing increase in our exports of finished products from manufacturing capability, and that the progress achieved by
the U.S. to overseas markets. Despite the fact that we have people in one division directly benefits people in divisions
steadily expanded our manufacturing operations in Europe many thousands of miles away-in some cases, on the other
since 1960, our exports to that area have continued to climb. side of the world.
www.HPARCHIVE.com
Perspective: HP Associates
OU MIGHT SAY that HP Associates is a company with
Y a split personality. No offense intended, but it's a fact
that this phenomenally successful organization can be
looked at from many perspectives and, like a child's kaleido-
scope, it always seems to present a different array of colors.
For instance, HP Associates is heavily committed to re- The promises of tomorrow
search and development in the field of solid state devices-
diodes, triodes, transistors, optoelectronic components, and
the like. The scientists there often speak an esoteric language guide their worl< today
-or so it seems to the layman-as they stalk the electron into
uncharted regions. They are a patient breed, perhaps more
intrigued with the promises of the future than with the mun-
dane details of the present. And yet they talk about pico-
seconds and nanoseconds, which are a thousand times faster
than the wink of an eye.
On the other hand, HP Associates is also heavily com-
mitted to the present as a manufacturer of very real and
significant solid state products. And, here again, this Hew-
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