Unfortunately, this cycle is driven by manufacturers that have simply become trading companies, putting their brand names on products that are designed and manufactured elsewhere, usually in the Far East. The problem is that products made over there typically have high initial failure rates—in some cases as high as 5 percent—with annual failure rates approaching 20 to 25 percent. Most manufactures find it cost effective to replace defective products or to scrap products that fail within the warranty period. This means that over four to five years, some component in a product made in the Far East probably will fail. Usually, consumers just toss these products away.
I’ve worked in this industry for more than 35 years and have seen firsthand the migration of products to manufacturing operations that produce the lowest-cost products without concern for reliability. Certainly, market economics are important. But because most of the products Micro Industries makes are unique and low-volume when compared with consumer products, we choose to make our major systems components here in the U.S.
A company like ours can’t compete on a direct-manufacturing-cost basis with the Far East. We focus instead on total cost of ownership. We buy all critical components from the highest-quality manufacturers around the world. I’m referring to industrial-grade rather than consumer-grade components, such items as displays, power supplies, blowers, etc. Our motherboards are designed for specific applications and incorporate key functions that let us manage and repair most operational failures remotely, without traveling to the site. Our process technologies are well-proven and run by experienced professionals who understand that quality and a reputation for reliability are what maintain customer loyalty.
I doubt that Micro Industries will ever make the lowest-priced products around, because that would involve too many compromises. Our goal is to provide customers with the best value over the life of a product—even if that is many years.








This week we have a guest blogger: John Curran, CEO of