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Now downloading free:HP HP-Measure-1964-07

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Various electronics service manuals

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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

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