Technical Service and Application Research for Organics

Technical Service and Application Research for Organics FARRIS S. S W A C K H A M E R

Downloaded by UNIV OF AUCKLAND on December 27, 2017 | http://pubs.acs.org Publication Date: June 17, 1959 | doi: 10.1021/ba-1959-0024.ch015

Shell Chemical Corp., Union, N. J.

Technical service and application research, in this paper, is thought of as concerning the company's existing products. Technical service is considered as the solution of a specific problem for a specific customer, applications research as the solution of a problem which affects a whole group of customers. The subject is discussed in terms of two types of products: performance or end-use chemicals and intermediates. For performance chemicals, the job of technical service and application research is to prove that the company's product works better than competing products or will do the same job at a lower cost. For intermediates, it involves such aspects as determination of safe handling techniques and the availability of engineering services. Companies must ask themselves several questions in handling customers' problems. How much work should be done on any problem? When should the job be cut off? Should new companies be set up in competition with established firms? What should be done about price competition from the supplier who does not offer technical services?

There is one word t h a t a l l of the great i n v e n t o r s h a v e used i n c o m m o n . B e n F r a n k l i n s u p p o s e d l y s a i d i t , w h e n he finally got a b o l t of l i g h t e n i n g t o r u n d o w n t h e m e t a l s t r i n g of his f a m o u s k i t e . A n d I ' m sure t h a t o u r p r i m i t i v e a n c e s t o r — t h e m a n w h o i n v e n t e d fire—spoke i t w h e n he s a w t h e t i n d e r c a t c h a n d t h e b l a z e begin t o spread t h r o u g h t h e forest. T h a t w o r d is " H e l p ! " H i s t o r y doesn't s a y w h e t h e r or not a n y help w a s f o r t h c o m i n g , a n d I ' m i n clined t o doubt that there was. F o r w h o could have given F r a n k l i n a n y c o m petent help a t the m o m e n t of h i s i n i t i a l shock, b u t t h e t e c h n i o a l service m a n f r o m some i n s u l a t i n g c o m p a n y ? A n d a t t h e t i m e of t h e first m a n - m a d e fire, n a t u r e w a s t h e o n l y fire d e p a r t m e n t . So each m u s t h a v e c r i e d " h e l p " i n v a i n . S i n c e t h e n t h i n g s h a v e changed a b i t . B u t m a n h a s n ' t . A t least he h a s n ' t y e t lost t h a t h u m a n c h a r a c t e r i s t i c t h a t m a k e s h i m w a r y of new t h i n g s . M o s t of us s t i l l a p p r o a c h change w i t h some degree of t r e p i d a t i o n . A n d because we

111 CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES Advances in Chemistry; American Chemical Society: Washington, DC, 1959.


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ADVANCES IN CHEMISTRY SERIES

do, companies need t e c h n i c a l service a n d a p p l i c a t i o n research effort. F o r t h e g o a l of b o t h these fields of w o r k is s i m p l y t h i s : to get t h e h u m a n beings w e c a l l customers t o do s o m e t h i n g t h e y h a v e n ' t been d o i n g before. T h i s s o m e t h i n g i n v o l v e s t h e i r use of a c o m p a n y ' s p r o d u c t , a n d we t r y t o get t h e m to a d o p t t h i s use b y d e v e l o p i n g the i n f o r m a t i o n t h a t proves t h e use as a s o u n d business venture. S e v e r a l y e a r s ago, d u r i n g a s o j o u r n i n a h o s p i t a l , I got a n i n k l i n g of w h a t can h a p p e n w h e n t h i s help is not g i v e n . T h i s h o s p i t a l — a s I came t o find out d u r i n g m y t i m e - k i l l i n g v i s i t s w i t h the l a b o r a t o r y t e c h n i c i a n s — h a d r e c e n t l y p u r c h a s e d a b l o o d c o m p a r a t o r . I t w a s c l a i m e d to be the speediest a n d most accurate a p p a r a t u s for c o m p a r i n g b l o o d on the m a r k e t . B u t despite t h e c l a i m s of i t s m a n u f a c t u r e r , the m a c h i n e s a t i n t h e corner g a t h e r i n g d u s t a n d i l l w i l l . W h y ? B e c a u s e of some i r - r a t i o n a l e , t h e s u p p l i e r h a d n o t o n l y m a d e no a t t e m p t to t e a c h the t e c h n i c i a n s h o w t o operate the m a c h i n e , b u t h a d a c u t a l l y refused to do so. H e h a d t o l d a staff m e m b e r t h a t the c o m p a n y w a s i n business to sell m a c h i n e s , not t o t e a c h people h o w to use them. A n operations m a n u a l h a d a c c o m p a n i e d the m a c h i n e , b u t the staff c o u l d n ' t t r a n s l a t e the t e c h n i c a l j a r g o n . T h e i d i o c y of the s i t u a t i o n h a d a strange effect o n m y c u r i o s i t y or p r a c t i c a l i t y , I ' m not sure w h i c h . A n y w a y , I begati s t u d y i n g the m a n u a l . T h e h o s p i t a l t e c h n i c a n s were r i g h t . T h e j a r g o n r e a d a l m o s t l i k e a secret code. S o o n I discovered t h a t b l o o d c o m p a r a t o r s are e s s e n t i a l l y c o l o r i m e t e r s , a n d w i t h t h a t f a c t as the k e y i t w a s n ' t difficult t o t r a n s l a t e t h e technicalese i n t o a n u n d e r s t a n d a b l e m e t h o d of o p e r a t i o n . I showed the procedure t o the staff. T h e l a s t I k n e w t h e y were u s i n g the m a c h i n e , b u t n o t , I ' m sure, w i t h a n y fondness for the m a n u f a c t u r e r . J u d g e for y o u r s e l v e s the i n t e l l i g e n c e of the decision t o l e a v e t e c h n i c a l service i n the h a n d s of f a t e , w h e n fate is c a p a b l e of a s s i g n i n g t h e job to a wandering temperature taker. S o , i t seems t h a t t e c h n i c a l service is necessary t o a c o m p a n y t h a t m a k e s s o m e t h i n g w h i c h requires t e c h n o l o g i c a l s k i l l i n i t s h a n d l i n g or use. A n d t h i s applies to the field of organics. Technical Service and Application Research W h a t is the f u n c t i o n of t e c h n i c a l service a n d a p p l i c a t i o n research? T h e book, "Successful C o m m e r c i a l C h e m i c a l Development," edited b y C o r l e y , s a y s t h a t t e c h n i c a l service is " t h e a p p l i c a t i o n of t e c h n i c a l k n o w l e d g e t o assist customers i n u n d e r s t a n d i n g a c o m p a n y ' s s t a n d a r d p r o d u c t s a n d i n m a k i n g the best a n d m o s t efficient use of t h e m . " A p p l i c a t i o n research is d e fined as " a p p l i e d research i n the l a b o r a t o r y , field, o r p l a n t necessary for t h e successful development or i m p r o v e m e n t of uses for a p r o d u c t . " I n t h i s p a p e r b o t h t e c h n i c a l service a n d a p p l i c a t i o n research w i l l be t h o u g h t of as c o n c e r n i n g the c o m p a n y ' s e x i s t i n g p r o d u c t s . T h e t e r m s are doubtless a p p l i c a b l e to d e v e l o p m e n t p r o d u c t s , b u t t h i s aspect of c h e m i c a l m a r k e t i n g is left t o others i n t h i s s y m p o s i u m . F o r o u r purposes, i t m i g h t be easier to t h i n k of t e c h n i c a l service as w o r k t h a t deals w i t h a specific p r o b l e m of a specific customer, a n d a p p l i c a t i o n research as w o r k i n v o l v i n g a p r o b l e m w h i c h affects a group of customers or a segment of a n i n d u s t r y . E x a m p l e f r o m Surface C o a t i n g F i e l d . A n example d r a w n from the surface c o a t i n g field m a y serve t o i l l u s t r a t e the difference a n d also help show the benefits of the t w o f u n c t i o n s . CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES Advances in Chemistry; American Chemical Society: Washington, DC, 1959.

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Some y e a r s ago, w e were a s k e d b y a customer t o help h i m develop a p r i m e r f o r w a s h i n g m a c h i n e s a n d dishwashers w h i c h w o u l d w i t h s t a n d 1000 hours i n a h o t s o l u t i o n of detergent. A couple of w e e k s ' w o r k i n t h e l a b o r a t o r y and conversations w i t h some of o u r salesmen b r o u g h t t w o facts t o l i g h t . F i r s t , t h e p r o b l e m w o u l d be a l o n g a n d expensive one t o solve, costing s u b s t a n t i a l l y m o r e t h a n t h e r e t u r n w e c o u l d get i n sales t o t h i s single customer. S e c o n d l y , t h e results w o u l d benefit a m a j o r p o r t i o n of t h e coatings i n d u s t r y — not o n l y t h e customer w e h a d i n m i n d . U p u n t i l n o w , t h e p r o b l e m h a d been classified as t e c h n i c a l service. B e cause w e were n o t u s i n g c u s t o m e r f o r m u l a t i o n s — a c t u a l l y w e h a d s t a r t e d a l m o s t f r o m s c r a t c h t r y i n g t o design t h i s i d e a l p r i m e r i n o u r l a b o r a t o r y — w e broadened t h e scope of t h e w o r k as soon as w e r e a l i z e d i t w a s a n i n d u s t r y w i d e p r o b l e m . S o , i t s c l a s s i f i c a t i o n w a s changed t o a p p l i c a t i o n research. T h e i n v e s t i g a t i o n w a s g i v e n t h e l a r g e r budget t h a t t h e c o m p l e x i t y of t h e p r o b l e m necessitated, a n d a f u l l - s c a l e effort w a s u n d e r t a k e n . W e i n f o r m e d other coatings' m a n u f a c t u r e r s t h a t we were w o r k i n g o n the p r o b l e m , a n d a s k e d w h a t tests t h e y used t o j u d g e t h e p e r f o r m a n c e of such a c o a t i n g . A f t e r s e v e r a l m o n t h s ' w o r k , w e developed t h e p r i m e r . F r o m t h i s w o r k came a n e w a p p l i c a t i o n of one of o u r products a n d a r e a d y - m a d e m a r k e t t o sell i t i n . T h e r e , i n g e n e r a l , is t h e d i s t i n c t i o n w e d r a w between t e c h n i c a l service a n d a p p l i c a t i o n research. N o w i n t o t h e specific f u n c t i o n — a n d p r o b l e m s — o f each t y p e of w o r k . Types of Organics. F i r s t , t h o u g h , I m u s t d o s o m e t h i n g a b o u t m a k i n g t h i s cumbersome t e r m " o r g a n i c s " a l i t t l e m o r e m a n a g e a b l e . I n t h e bounds of t h i s s y m p o s i u m t h e t e r m covers e v e r y t h i n g except p l a s t i c s , i n o r g a n i c s , a n d h e a v y c h e m i c a l s . . . a n a r e a t o o w i d e for either y o u r t i m e o r m y k n o w l e d g e . C o n v e n i e n t l y , a l l t h e organics c a n be b r o k e n i n t o t w o general t y p e s . E N D - U S E C H E M I C A L S . F i r s t , there are p e r f o r m a n c e or end-use c h e m i c a l s . T h e properties o f t h e i r b o i l i n g p o i n t s , m e l t i n g p o i n t s , a n d specific g r a v i t i e s are i n c i d e n t a l t o t h e m a n n e r i n w h i c h t h e m a t e r i a l s p e r f o r m w h e n used t o f o r m u l a t e a g i v e n consumer p r o d u c t . T h e group w o u l d i n c l u d e , f o r e x a m p l e , dyes, w h i c h a r e j u d g e d f o r t h e i r l i g h t - f a s t n e s s , s t a b i l i t y , t i n t i n g q u a l i t i e s , etc., a n d c e r t a i n a n t i o x i d a n t s used i n p a p e r b o a r d , w h i c h a r e j u d g e d o n w h e t h e r or n o t t h e y keep t h e cookies f r o m g e t t i n g r a n c i d . I N T E R M E D I A T E C H E M I C A L S . T h e second category is i n t e r m e d i a t e c h e m i cals. T h e c h e m i c a l i n d u s t r y , w h i c h is i t s o w n best customer, b u y s m a n y o f t h i s t y p e o f c h e m i c a l t o r e a c t w i t h o t h e r m a t e r i a l s t o produce a n e n d p r o d u c t . S u c h m a t e r i a l s i n c l u d e e p i c h l o r o h y d r i n , used as a n i n t e r m e d i a t e i n t h e m a n u f a c t u r e o f e p o x y resins, acetone, a n i n t e r m e d i a t e i n t h e f o r m u l a t i o n of m e t h a c r y l a t e p o l y m e r s , a n d e t h y l f o r m a t e , used t o synthesize v i t a m i n B i . T e c h n i c a l service a n d a p p l i c a t i o n research o n p e r f o r m a n c e chemicals a r e s i m i l a r t o t h a t f o r p l a s t i c s . U s u a l l y t h e p o t e n t i a l customer h a s o n l y t w o questions: " H o w w e l l w i l l t h e p r o d u c t w o r k i n m y a p p l i c a t i o n of i t ? " a n d " W h a t are t h e costs?" C o m p e t i t i o n i n t h i s area c a n come f r o m t w o sides: f r o m t h e same p r o d u c t p u t o u t b y a c o m p e t i t o r , o r a different m a t e r i a l t h a t w i l l d o t h e same j o b . I n e a c h case, t h e b u r d e n i s o n t h e b a c k of t h e t e c h n i c a l service or a p p l i c a t i o n research m a n t o p r o v e t h a t h i s c o m p a n y ' s p r o d u c t w o r k s better o r t h a t i t w i l l do t h e same j o b a t a lower cost. T e c h n i c a l service o n i n t e r m e d i a t e c h e m i c a l s , however, i s a b i t different. CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES Advances in Chemistry; American Chemical Society: Washington, DC, 1959.


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O f t e n t i m e s , a customer w i l l not t e l l y o u w h a t he is d o i n g , s i m p l y because b y s a f e g u a r d i n g his processes a n d k n o w - h o w he protects a n exclusive p o s i t i o n . T h e r e i s , however, a great d e a l t h a t c a n be done i n the field of t e c h n i c a l service a n d a p p l i c a t i o n research o n i n t e r m e d i a t e s . O n e of the m o s t i m p o r t a n t aspects i n the i n t e r m e d i a t e field is t o d e t e r m i n e a n d m a k e k n o w n safe h a n d l i n g t e c h n i q u e s for y o u r p r o d u c t s . M a n y i n t e r mediates h a v e a n element of h a z a r d i n t h e i r use. T h e s u p p l i e r g e n e r a l l y t a k e s u p o n h i m s e l f the d e t e r m i n a t i o n of such d a t a as flash p o i n t , explosive p r o p e r t i e s , a n d t o x i c o l o g y a n d publishes t h e m i n a m a n u a l . H e r e , u n l i k e the field of p e r f o r m a n c e c h e m i c a l s , suppliers f r e q u e n t l y p o o l t h e i r i n f o r m a t i o n t o give t h e i r user the benefit of b r o a d e r experience a n d m o r e d e t a i l e d d a t a . O f t e n t i m e s , m a n u a l s of t h i s t y p e are p u b l i s h e d b y such o r g a n i z a t i o n s as t h e M a n u f a c t u r i n g C h e m i s t s ' A s s o c i a t i o n for the entire i n d u s t r y . T e c h n i c a l service groups i n t h i s field also use engineers. T h e s e m e n are f r e q u e n t l y sent i n t o the c u s t o m e r s ' p l a n t s b y a r a w m a t e r i a l s u p p l i e r t o assist i n t h e design a n d / o r i n s t a l l a t i o n of t a n k a g e , p i p e l i n e s , v a l v e s , p u m p s , a n d the l i k e , t h u s i m p l e m e n t i n g the suggestions i n the s a f e t y m a n u a l . Classes are f r e q u e n t l y h e l d for t h e customer's personnel, so t h a t t h e y m a y l e a r n firsthand h o w t o h a n d l e these c h e m i c a l s . S e m i n a r s . T e c h n i c a l service a n d a p p l i c a t i o n research f r e q u e n t l y t a k e the f o r m of s e m i n a r s for the customer's t e c h n i c a l staff or the t e c h n i c a l staffs of a group of companies. W e h a v e g i v e n such s e m i n a r s on h y d r o g e n peroxide reactions a n d o n t h e c h e m i s t r y of a c r o l e i n . T h i s t y p e of a c t i v i t y m i g h t be considered as u p d a t i n g the o r g a n i c t e x t books. S u c h sessions i n c l u d e i n f o r m a t i o n on how t o i m p r o v e y i e l d s i n v a r i o u s t y p e s of reactions u s i n g the i n t e r m e d i a t e , w h a t c a t a l y s t s t o use for c e r t a i n t y p e s of r e a c t i o n s , a n d the effect of possible i m p u r i t i e s on t h e y i e l d a n d o n the c a t a l y s t l i f e . B e f o r e the s e m i n a r begins we c o n d u c t a n e x h a u s t i v e s u r v e y of the l i t e r a ture o n the subject c o m p o u n d . T o t h i s are a d d e d the results of t h e a p p l i c a t i o n research done i n the course of our search for uses for the p r o d u c t . The d a t a presented are also g e n e r a l l y m a d e a v a i l a b l e i n b o o k f o r m . W e h a v e p u b l i s h e d a n u m b e r of b o o k s s u m m a r i z i n g , for e x a m p l e , a l l the a v a i l a b l e d a t a o n acetone or, m o r e r e c e n t l y , a c r o l e i n . B r e a k - O f f P o i n t . T h e q u e s t i o n comes u p i n e v e r y c o m p a n y c o n c e r n i n g the a m o u n t of w o r k t h a t s h o u l d be done on a n y t e c h n i c a l service or a p p l i c a t i o n research p r o b l e m . T h e b r e a k - o f f p o i n t is sometimes difficult t o determine i n the field of i n t e r m e d i a t e c h e m i c a l s . F o r here y o u r p r o d u c t p l a y s o n l y a p a r t i n the p r o d u c t i o n of s o m e t h i n g else. T h o u g h y o u are p r i m a r i l y c o n cerned w i t h s e l l i n g y o u r p r o d u c t , y o u are o b v i o u s l y n o t going t o sell verym u c h unless y o u r customer c a n successfully sell t h e e n d p r o d u c t w h i c h y o u r p r o d u c t helps t o m a k e . C o n c e i v a b l y t h e n , s i t u a t i o n s c a n develop where a customer m a y begin t o l o o k t o y o u r t e c h n i c a l service or a p p l i c a t i o n research staffs for answers t h a t are m o r e d i r e c t l y r e l a t e d to his p r o d u c t t h a n t o y o u r s . T h e precise m o m e n t a t w h i c h t o c u t off a p r o b l e m c a l l s f o r a S o l o m o n to decide. T h e d i r e c t o r of the l a b o r a t o r y m u s t be h a r d - h e a r t e d a n d a l m o s t ruthless w i t h the red p e n c i l a t t i m e s . U n l e s s a s u b s t a n t i a l a n d r e a s o n a b l y i m m e d i a t e r e t u r n is i n d i c a t e d , t h e w o r k s h o u l d n o t be p u r s u e d . T e c h n i c a l service a n d a p p l i c a t i o n research are l i k e a s h o r t - t e r m i n v e s t m e n t . I f the p o t e n t i a l r e t u r n is not q u i c k l y foreseeable, another m o r e p r o f i t a b l e a d d i t i o n s h o u l d be m a d e t o the p o r t f o l i o . I t is here t h a t t e c h n i c a l service or a p p l i c a t i o n CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES Advances in Chemistry; American Chemical Society: Washington, DC, 1959.


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research differs f r o m l o n g - t e r m o r basic research. T h e f o r m e r does n o t a l l o w the s e a r c h i n g of t h e m y r i a d a l l e y s t h a t a l w a y s b e c k o n t h e c h e m i s t or engineer. F r e q u e n t l y , customers do n o t w a n t a complete j o b . T h e y prefer t o a d a p t o u r w o r k t o t h e i r o w n p e c u l i a r c o n d i t i o n s . T h e s m a l l e r companies, of course, representing t h e s m a l l e r sales p o t e n t i a l , more f r e q u e n t l y w a n t a c o m plete research j o b , f o r m o s t of t h e m h a v e n o research f a c i l i t i e s of t h e i r o w n . T h e t y p e of w o r k done i n t h e t e c h n i c a l service o r a p p l i c a t i o n research l a b o r a t o r y also c a l l s f o r a p a r t i c u l a r t y p e of w o r k e r . H e c a n ' t t a k e a l e i s u r e l y or l e n g t h y a p p r o a c h t o a p r o b l e m . H e m u s t get t o i t s h e a r t a n d e v o l v e a s o l u t i o n i n the shortest possible t i m e . C u s t o m e r s lose interest i f t h e i r queries take too long to answer. T h e t e c h n i c a l service representative or a p p l i c a t i o n research m a n m u s t be a c o m b i n a t i o n s c i e n t i s t - s a l e s m a n . H e m u s t be able t o present t h e s o l u t i o n of the p r o b l e m c l e a r l y a n d s u c c i n c t l y i n good E n g l i s h . H e m u s t h a v e t h e p e r s o n a l i t y , t e c h n i c a l b a c k g r o u n d , a n d self-confidence t o go i n t o t h e customer's p l a n t i f need be a n d be w e l c o m e d b y t h a t p l a n t ' s personnel. H e m u s t c o m m a n d t h e respect of t h e customer. H e m u s t be f a c t u a l a n d i n t e l l e c t u a l l y honest i n h i s dealings. T h e r a w m a t e r i a l s u p p l i e r m u s t m a i n t a i n r i g i d s e c u r i t y measures o n a n y i n f o r m a t i o n g i v e n h i m b y a customer. G r e a t care is t a k e n i n o u r l a b o r a t o r i e s t o see t h a t n o such i n f o r m a t i o n is ever g i v e n o u t t o a n y o n e b u t t h e customer f r o m w h o m i t w a s o r i g i n a l l y received. I t s h o u l d be recognized b y customers, however, t h a t t h e k n o w l e d g e g a i n e d w o r k i n g w i t h t h e i r f o r m u l a t i o n s w i l l b e come p a r t of the r a w m a t e r i a l s u p p l i e r ' s b r o a d b a c k g r o u n d of i n f o r m a t i o n a n d t h a t i t often enables h i m t o solve other customers' p r o b l e m s more r a p i d l y . S h o u l d n e w companies be set u p i n c o m p e t i t i o n w i t h o l d e s t a b l i s h e d members of t h e i n d u s t r y ? T o m e t h e A m e r i c a n free enterprise s y s t e m m a k e s i t m a n d a t o r y t o help a n y l e g i t i m a t e prospect to a n extent dependent o n h i s ultimate potential. T h e customer w h o accepts t h e results o f a r a w m a t e r i a l s u p p l i e r ' s t e c h n i c a l service a n d a p p l i c a t i o n research also has c e r t a i n r e s p o n s i b i l i t i e s w h i c h he c a n n o t s h i r k i f he is t o continue t o receive t h e benefits of t h i s t y p e o f w o r k . W e have a l l h a d t h e experience of s o l v i n g a r a t h e r l o n g a n d expensive p r o b l e m f o r a customer, g i v i n g h i m t h e results of o u r w o r k , a n d t h e n h a v i n g a c o m p e t i t o r , w h o has p r o v i d e d l i t t l e o r n o t e c h n i c a l service o r a p p l i c a t i o n research, step i n a n d t a k e the business a w a y f r o m us for a n e i g h t h of a cent per p o u n d less o n a l o n g - t e r m c o n t r a c t . S o m e t i m e s t h i s is done i n n o c e n t l y , because we h a v e p e r f o r m e d the t e c h n i c a l w o r k a n d g i v e n t h e results o n l y t o someone i n t h e customer's l a b o r a t o r y . W e h a v e forgotten t h a t t h e customer's m a n a g e m e n t a n d p a r t i c u l a r l y h i s p u r c h a s i n g agent s h o u l d be m a d e a w a r e of t h e f a c t t h a t we h a v e solved t h e p r o b l e m f o r h i m a n d of t h e m a g n i t u d e of the effort t h a t w a s i n v o l v e d i n t h e s o l u t i o n . H o w e v e r , some p o t e n t i a l customers d e l i b e r a t e l y m i l k a r a w m a t e r i a l s u p p l i e r f o r a n y i n f o r m a t i o n t h e y c a n get a n d t h e n b u y f r o m t h e c o m p e t i t o r w h o offers a n a l m o s t negligible cost s a v i n g . S u c h people s h o u l d r e a l i z e t h a t their actions o n l y d r y u p t h e source of good t e c h n i c a l i n f o r m a t i o n a n d t h a t i n t h e l o n g r u n t h e y w i l l be the losers. A n o t h e r t y p e of s u p p l i e r , w h o occupies a r a t h e r d u b i o u s p o s i t i o n i n t h e c h e m i c a l i n d u s t r y t o d a y , is the " c u t - r a t e " operator. H e b u i l d s a n e w p l a n t to m a k e a p a r t i c u l a r m a t e r i a l w h i c h he c a n offer a t a cheaper price because, l i k e t h e m a n u f a c t u r e r of the b l o o d c o m p a r a t o r , he is i n business t o sell a CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES Advances in Chemistry; American Chemical Society: Washington, DC, 1959.


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p r o d u c t a n d c a n e l i m i n a t e t h e cost of t e c h n i c a l service f r o m h i s p r i c e . W h a t he f a i l s t o foresee is t h a t a l l t h e other suppliers w i l l u n d o u b t e d l y m e e t h i s p r i c e a n d e v e n t u a l l y he w i l l be forced t o p r o v i d e t e c h n i c a l service i n order to sell his p r o d u c t .


The Picture in the Sixties A n i m p o r t a n t aspect of o u r discussions d u r i n g t h i s s y m p o s i u m concerns the f u t u r e . W h a t w i l l t h e p i c t u r e be i n t h e sixties? I n m y o p i n i o n several of t h e t r e n d s t h a t were b r i e f l y t o u c h e d o n a b o v e w i l l become m o r e p r o n o u n c e d i n the next t e n y e a r s . A l o n g w i t h m a n y o t h e r costs, t h e cost o f t e c h n i c a l service a n d a p p l i c a t i o n research w i l l come i n for increased s c r u t i n y a n d r e q u i r e sounder j u s t i f i c a t i o n . D u r i n g W o r l d W a r I I a n d t h e K o r e a n police a c t i o n , t h e s a v i n g of t h e l i v e s o f o u r service m e n f a r o u t w e i g h e d t h e cost of a n y p r o g r a m . T e c h n i c a l service a n d a p p l i c a t i o n research a r e f r e q u e n t l y a l l - o u t efforts t o find t h e s o l u t i o n t o a k n o t t y p r o b l e m i n t h e shortest possible t i m e . M o s t p r o b l e m s t o d a y a r e c o m m e r c i a l i n n a t u r e a n d a great d e a l of m o n e y c a n a n d w i l l be s a v e d b y more c a r e f u l assessment of t h e r e t u r n o n t h e i n v e s t m e n t i n such w o r k . T e c h n i c a l service a n d a p p l i c a t i o n research i n t h e field o f organics a r e c e r t a i n l y here t o s t a y f o r t h e foreseeable f u t u r e . T h e y h a v e m a n y aspects i n c o m m o n w i t h s i m i l a r a c t i v i t i e s i n other segments of t h e c h e m i c a l i n d u s t r y a n d others p e c u l i a r t o themselves. T h e y need most of a l l a s t r o n g h a n d o n the t i l l e r , since t h e y represent i n v e s t m e n t s o n w h i c h good r e t u r n s m u s t be realized.

CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES Advances in Chemistry; American Chemical Society: Washington, DC, 1959.

Technical Service and Application Research for Organics

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