Industry Overview

[Above] Glassman Mexico with Patrick Battersby (right). In the middle is Jim Zelko of GIANT Total Lubricants joining in on the fun.

The GUYS and GIANTS of the Glass Industry

Peter J Firth* examines the technology enablers in the glass industry and suggests that, rather than being competitive, there can be a symbiotic relationship between suppliers that can benefit the glass manufacturing sector.

For quite some time now, I have had in mind to put my thoughts on this topic into an article.

Let me point out, before we go any further, that the use of the term ‘GUYS’ is not a sexist statement by me. In using ‘GUYS’, I am meaning that in the most liberal sense, embracing both sexes. Of course, I think we all know we need more talented women in the glass industry.

That said, let’s continue with the main topic.

After observing the glass container industry for many years, as a long-term employee of a major glass manufacturer, I have come to my particular opinion and I would like to share it with others in the industry.

As an employee, it is not so easy to share opinions widely due to potential conflict with an employer’s point of view. However, now that I am operating as an independent consultant to the glass container industry, I am free to openly share my thoughts with you.

Firstly, who are the suppliers I am thinking about?

For me, it is mostly about the equipment suppliers that provide us with the tools and equipment to carry out our business using the best available technology. However, my logic also extends and applies to other suppliers, such as those for raw materials, utilities and any other services to the glass industry.

Therefore, please realise that, as I write, I may hold equipment suppliers in mind, but it also applies to any suppliers to the glass industry. Equally, I write in the context of glass container manufacture, as I write this from my experience in the glass container industry, yet the same thinking can equally apply to other areas of glass manufacture.

Before I reveal exactly what I mean by the GUYS and the GIANTS, I would like to point out that these two different categories of suppliers occupy the same space in the market. To most people, the only apparent difference is the size of the company. However, further consideration will reveal the differences go much deeper than that.

By now, you might be painting a picture in your mind as a ‘David and Goliath’ situation; with the little ‘guy’ having the objective of slaying the ‘giant’. However, nothing could be further from the truth, as you will find out soon. In fact, there is a relationship between the two that can be very productive for all concerned.

Now let us explore some background behind the specific naming of these acronyms. This should paint a better picture of exactly what we are talking about here. I tried to have a bit of fun with the naming, so here goes:

GIANTS = Glass Industry Animal Never Tiring Suppliers

GUYS = Glass Up-and-coming Young Suppliers

I hope that clarifies what we are talking about. I also hope you see the distinction straight away in a fun and easy way to remember.

In case you need a little help to clarify, the GIANTS are easily recognisable and they literally are the ‘Giants’ of the glass industry suppliers; widely-known to many with a large installed base of equipment, typically over many years. In a glass equipment supply context, a few company examples would be Horn, Emhart, Heye International, Zippe and Tiama. If you go to the glass exhibitions then these companies would likely be the ones with the largest and most glamorous stands, including separate meeting and hospitality rooms, not to mention the quality of the welcome refreshments on offer (which I personally welcome during a busy day at a glass equipment exhibition).

On the other hand, the GUYS are much smaller businesses that might not be known to some people, even though they have been in the industry for some years. The GUYS may have their equipment installed quite widely in certain companies in particular parts of the world, but not widespread across the entire international glass industry. Furthermore, certain glass companies who have adopted their equipment might even have come to rely upon it. To those companies, it is necessary to support their current level of operations in terms of quality and efficiency.

In these cases, even though the equipment provided by the GUYS may be making a significant contribution where it is installed, they are simply not as widely recognised as the equipment supplied by the GIANTS. Also, the level of business is much smaller than that of the GIANTS.

Please note that the term ‘Young’ used in the acronym of ‘GUYS’ is used very loosely, since every company matures at a different rate, and not necessarily measured by years in business alone.

We can conclude this section with actual examples of such GUYS. The ones that come immediately to mind for me are Pro-Sight from the UK, Konatic from France, and Socabelec from Belgium, to name a few.

So much for the distinction, now for my main point: As glass container makers, we need a nice balance and mix of both of these distinctly different kinds of suppliers. If we can recognise that, as well as act up on it, we will help our industry survive and thrive in partnership with all our suppliers.

The GIANTS are needed to provide the large volumes of equipment that are required to serve the mainstay of our basic operations in the glass business. To do this, such companies are necessarily highly structured, with specialists assigned to each area of detail in their operation. However, with that comes a management and operational structure that is difficult to respond quickly to the demands of our changing industry.

The GUYS, on the other hand, are necessarily much less structured and their employees may have to take on several distinctly different roles. Additionally, their Managing Director (CEO, or the like) will probably be very much customer facing on a daily basis and may have a certain level of a hands-on role in the business. This means these companies can easily adapt to the voice of the customer and with that bring innovations to the glass suppliers much faster than the GIANTS are able to do.

The GUYS also have to use innovation as a competitive advantage, because simply following in the GIANTS footsteps will not provide them with the business they need to survive. The GUYS will also have the time to focus on innovation and meeting the detailed requirements of their customers. This is helped by the fact that they don’t have the challenges associated with the large volumes of equipment supply to lose any sleep about.

On a plant installation visit with Gregory Duez of Konatic.

The GUYS, therefore, tend to be at the forefront of many new developments, although their work development work might not be broadcast as loudly and as widely as the GIANTS’ offerings are.

You would now be forgiven if you are thinking that there is a strong competitive nature between the GUYS and the GIANTS. As stated at the outset, this is not actually the case. Rather, they have a somewhat symbiotic relationship and the main beneficiaries of that relationship are the glass plants as customers of their equipment. If we, in our glass operations, can recognise that, we can decide to act in a way that supports and fosters the development of the relationship already described, to our ultimate benefit.

Let us look at how that relationship works between the two, in case it is not already obvious.

In the case of the GUYS, they are creating developments that may technically challenge the GIANTS. The GIANTS may then respond by addressing the same issues as the GUYS, albeit with some further delay in getting those developments to market. Without the GUYS, however, such developments by the GIANTS may never have come at all, or at least not so quickly. In this case, the glass industry, as their customer, will suffer in the sense of not performing to the level they could otherwise have done.

In recent times, it has been seen that some of the GIANTS adopt the development work of the GUYS directly. Ideally, this is done via a licensing agreement with the GUYS or occasionally a buy-out of the GUYS’ business to integrate their technology into the GIANTS’ offerings. (In more aggressive cases, it might seem more like copying which is unfortunate and is just not cricket, to coin an old English phrase.)

The GUYS are the ones that need our support the most in order to foster the beneficial relationship described above. When we invest in the GUYS we invest in the development of the wider industry. The GIANTS on the other hand are there to meet our demands on a larger supply scale, as already mentioned. That is not to say they don’t do any development work of course, as many GIANTS invest heavily in the area of R&D. However, it is good to have ‘our’ GUYS there to keep the GIANTS on their toes.

Due to my personal reach on LinkedIn (request to connect with me if you are not already in my network by using the QR Code at the end of this article), a number of the GUYS have asked me if I can support them in some way. Well, let me say I am not a salesman by any stretch of the imagination, and those who personally know me will vouch for that, I am sure. I won’t say I am too honest to be a salesman, but by saying that you might know what I mean. No offence intended to any salesperson of course, I respect your craft but, personally speaking, I could not do it.

I was recently told by someone that the moment I come down in support of one particular supplier, I will lose a lot of my following on LinkedIn. Whether that is true or not is up for debate. However, I have seriously considered this point and think I should show some support to ‘our’ GUYS. That is especially because it creates the benefits to the glass industry I have already described above. That would then meet my principles of trying to support the glass container manufacturers, which is where my roots are.

On a factory visit to Pro-Sight with Lincoln Brown.

Having said that, I can of course only point to the real benefits that any of the GUYS bring to the glass manufacturing operation, as anyone coming to market without such a benefit has no contribution to make. There is absolutely no chance of any salesman ‘gloss’ from me!

Many of you will probably already know about my LinkedIn Groups of ‘Glass Container Defects and Production Matters’ and ‘Glass Jobs 4 Glass People’. These two groups are aimed at supporting the glass industry too, no gloss, just fact (or honest opinion, maybe I should say).

In conclusion, when you are looking at the range of suppliers in the glass industry, make a distinction between the GUYS and the GIANTS. In some cases, the GUYS can give you process benefits faster than the GIANTS. Because of that, don’t pass them over if you are interested in optimising your manufacturing process. Also remember that on a longer-term basis, by supporting the GUYS you are supporting the future development of the industry, as surely the GIANTS will later adopt or integrate the development direction that the GUYS are currently paving the way for.

Let’s hear it for the GUYS!

*Peter J Firth, Glass Container Manufacturing Consultant, Glass Container Manufacturing Consulting Ltd, www.linkedin.com/in/ peterjfirth-glasscontainermanufacturingconsultant

P.S. To access the early development of a LinkedIn Page Post dedicated to the GUYS, type bit.ly/MEETOURGUYS into your browser (exactly as shown, like you would for a password). Alternatively, use your phone camera on the QR Code given for it here.

QR Code for Peter J Firth MSc

QR Code to Link to ‘Meet The Guys’