Esautomation: the stars and stripes CNC

Esautomation Inc is a US company owned by Esautomotion, based in Houston, Texas.

Founded in 2019, it exclusively distributes Esautomotion CNCs in the USA, Canada and Mexico and also provides technical assistance to both direct customers and those who use import machines equipped with Esautomotion CNCs.

We asked Ian Hilpert, CEO of Esautomation, to talk to us about the specificity of the North American markets and the expected growth strategies.

The USA: a rapidly expanding but very competitive and price-driven market.

“The CNC sector in the United States is characterized by its large size and the trend of continuous growth. According to some studies, it is worth approx. 9 bio USD and an average growth rate of approx. 4% per year “- comments Ian Hilpert -” The prospects for the future are rosy: the constant search for efficiency by manufacturing companies pushes towards automation, to reduce costs and improve quality, reducing human errors . However, this is a very crowded segment with low barriers to entry. Competition between local CNC manufacturers is fierce and this causes significant pressure on prices ”.

U.S. CNC machine market revenue, by type, 2014 – 2025 (USD Billion) – Source Hexa Research

 

Esautomation’s strategy in the USA: focus on the “value” offered to customers

“As Esautomation we refuse to participate in this senseless price war” – continues Ian – “We are aware that we have a lot to offer OEMs: a qualitatively excellent CNC, a complete range of products including motors, drives, boards, the important advantage of “turn key” software and fast and qualified assistance. I would summarize all this in the word “value”. Customers, especially large ones, are very sensitive to these arguments: they are looking for partners and not just suppliers. This commercial approach has allowed us to acquire Multicam, the largest American OEM in plasma cutting: for them we have developed the CNC of their new top-of-the-range machine. Another important addition to our portfolio was the acquisition of Romeo Engineering, a leader in the US for waterjet cutting. We are very proud of these results, which we are obviously exploiting in commercial terms because they guarantee us an exceptional reputation and credibility. This top-down approach is somewhat at the heart of our commercial strategy: targeting companies of reference in the various technological segments and, therefore, exploiting the return of image towards those of a smaller size “.

Technical assistance as a strategic business lever

“Besides the quality of our CNCs, technical assistance is our other source of business in the USA” – Ian continues – “In addition to the normal technical support to our American customers, we also guarantee that for all imported machines with an installed Esautomotion CNC. This is an advantage that no one offers and that reassures not only OEMs in the countries of origin of the plants but also the American end user. In operational terms, at the moment the maintenance and repairs of the CNCs and other components are carried out at the Esautomotion HQ. This is a choice that guarantees efficiency and speed, also considering the level of specialized technical skills required for these interventions. However, we are in the recruitment phase of some engineers who will work in our Houston office, in order to make us progressively self-sufficient “.

Canada and Mexico: two opposite realities.

“The Canadian market has very similar dynamics to the US one, which represents the main outlet for local OEMs” – highlights Ian – “This means high competition among CNC manufacturers which generates a downward trend in prices”.

“At the moment Mexico is, on the other hand, secondary to us” – declares Ian – “There are few builders, about ten, and 90% of domestic demand is satisfied by imports of medium-low technology plants from China. Our contacts are mainly with importers, to whom we provide assistance in case of CNC Esautomotion ”.

Esautomation at FABTECH 2021 in Chicago

“We will certainly be in Chicago from 13 to 16 September. FabtecH is the third most important fair in the world in the sheet metal working sector after EuroBlech in Hannover and CIIF in Shanghai. It is a truly unmissable event because there will be all the largest OEMs from the American continent, Europe and Asia, including China. By conscious choice, we will not have our own stand: we will go around the fair to discover the latest news but, first of all, to visit our customers. After months and months of phone calls and call-conferences due to the pandemic emergency, it will be nice and important to have the opportunity to shake hands and talk to each other in person again: personal relationships, which remain the basis of our work, are born and strengthened. still looking into each other’s eyes ”.