Rep. Nethercutt backs high-tech consortium- Spokane Region’s manufacturers would work closer together

An embryonic effort to create a high-tech
manufacturing consortium in Spokane received a
strong endorsement Tuesday from U.S. Rep. George
Nethercutt.

Bert Caldwell
The Spokesman Review Staff writer

The Spokane Republican attended an informational
meeting organized by consortium supporters, then
toured the Liberty Lake factory of Altek, which makes
metal and plastic components used in everything
from Boeing Co. aircraft to exercise equipment.

Company President Mike Mazurek said Altek
frequently makes components for devices destined
for assembly outside Spokane.

Yet many do not call for technology and
manufacturing expertise that cannot be found in the
area, he said.

"Why don’t we make the whole product, versus just
the plastic components," Mazurek asked about 20
representatives from area manufacturing and
technology development companies.

He suggested each look at products brought to them
for production or development and see what parts
and assemblies, if not the entire product, could be
handled by someone in Spokane.

"How do we add more value to the customer?"
Mazurek asked.

Joseph Dandoy, owner of Global Solutions, said the
migration of more high-tech firms to the Northwest will
increase the opportunities for Spokane
manufacturers.

He said some of those companies have little more
than an idea, and need all kinds of support. Giants in
the custom manufacturing business like Solectron
and Flextronics are too big and too expensive, he
said.

"There’s a lot of good people in this area in
manufacturing," Dandoy said.

The proposed Inland Northwest Manufacturing &
Design Consortium could take products from
conception through low-volume production, then
hand them off to overseas companies that specialize
in high-volume manufacturing where U.S. firms are
largely uncompetitive, Mazurek said.

He said he hoped Tuesday’s meeting would start
discussion of the consortium’s possibilities, with the
initial goal of perhaps signing sales representation
agreements with someone like Global Solutions which
could offer manufacturers outside Spokane a
package of services using different local suppliers.

Leon Schmidt, co-founder of Infinetix, said the
consortium idea has promise, but any agreements
must not compromise the flexibility companies want to
work with their own preferred suppliers.

When Infinetix, which specializes in product
development, signs a contract, terms specifically say
the client can take the completed documentation to
any manufacturer it chooses, he said.

Nethercutt said formation of a local consortium would
dovetail with a new provision in the defense
procurement bill that will allow small companies to
compete for segments of new weapons systems that
major contractors try to keep in-house.

The United States can no longer wait 16 years for a
single supplier to bring critical weapons systems into
the field, he said.

By comparison, he said, Microsoft launched its Xbox
game console 14 months after a decision to proceed
with the concept.

"This is the way it ought to be done," said Nethercutt,
who serves on the House Appropriations Committee.
"You’re on the right track."

In a brief speech to Altek employees, Nethercutt said
the world has become a dangerous place where the
United States alone has the capacity to react to
challenges anywhere on the globe.

"It’s a frightening future in many respects that makes
you think the worst," he said, adding that Americans
should not abandon their historically optimistic
outlook despite the events of Sept. 11.

Nethercutt also told employees he supports the
punishment of corporate heads who have ravaged
their companies. But the federal government must
not overreact as it looks to tighten regulatory laws.

"I think some of it is criminal fraud," he said of recent
disclosures of executive misbehavior.

Nethercutt said new U.S. Securities and Exchange
Commission Chairman Harvey Pitt is up to the task of
correcting market abuses despite his former ties to
the accounting industry.

"He can’t afford not to do it right," he said, adding
that President Bush is serious about reining in
irresponsible corporations.

•Business writer Bert Caldwell can be reached at
(509) 459-5450 or by e-mail at
[email protected]

http://www.spokesmanreview.com/news-story.asp?date=070302&ID=s1176954&cat=section.business