Four Reasons Economic Downturn is Good Timing For R&D

Global economies run in cycles. What goes up must come down. Likewise, we hope that what goes down must come back up. When we understand economic cycles we see, however, why a downturn is a good time to invest in R&D. Obviously cuts are in order during a downturn, this article explains four reasons why R&D shouldn't be one of them.

1) R&D is a better bargain. Economic downturn is a buyers market. Corporate lay-offs and budget cut-backs can yield a multitude of redundant professionals for cherry picking. The well known Bersin & Associates encourages "Rather than 'freezing all hiring', you should use this as an opportunity to upgrade your own organization. " Supply vendors, also under increased financial pressure, may lower prices for you to maintain sales. For those with cash, downturn is time to buy up, not sell out.

2) R&D keeps businesses internationally competitive. Most companies would agree with this. Some examples are Taiwan, North Ireland, and the USA. R&D also finds smarter and cheaper ways of doing things internally, thus directly saving companies' capital. Some governments award subsidies to product innovation, especially to innovation that will be exported.

3) R&D investment is easier to focus. Poor R&D investment quickly becomes manifest. Durable brands and quality products distinguish themselves from gadgets that consumers start doing without when belts tighten. In times of financial crisis, well focused R&D spending can really make products stand out from the crowd. Develop products and services still appealing to the buyers who do have money, not those who don't.

4) R&D discovers new markets. A recent Business Week article entitled "Innovate Out of the Economic Downturn" called R&D related activity "the single most important condition for transforming the crisis into an opportunity". An example of this is seen in the American Biomedical industry. "The CHI and PricewaterhouseCoopers 2002 report, "Biomedicine: The Next Wave for California's Economy," showcases the importance of medical and biomedical research, development, and manufacturing to California's regional economies and ultimately, to the nation's health." - Business Wire

The afore-quoted Bersin & Associates went on to state, "Downturns should be expected, so plan for them. Do not be surprised or panic." Financial downturn can be a reckoning to see who really has planned properly - and who hasn't. Those who have planned for rainy days should reap these rewards of innovation at lower costs than during periods of economic growth, resulting in more competitive products and services to offer for the economic cycle's next financial upturn.

Busting Four Myths of 2D and 3D CAD Software Marketing

"Should my business be using 3D CAD software?"
Maybe the better question is "how exactly would using 3D CAD get my job done better?" Let's explore four myths about using CAD today.


Myth: everyone uses CAD already
42% of builders surveyed in 2006 still don't use any CAD program at all according to one survey. Should they be using CAD? Probably, and many are changing over. But statistics like this sometimes help us see through the "don't get left behind" marketing hype and be more realistic about our requirements.


Myth: CAD software is too hard for me to learn
That's only true if you choose the wrong CAD software for your needs. 3D CAD software might be exactly what you need, or exactly what you don't need. A successful CAD migration involves three steps: 1) identify your business requirements 2) identify CAD systems meeting those requirements 3) identify which vendors offer the support you need for the system you choose. When possible, try to buy a CAD system from a vendor that offers direct support for the system you choose. They should also be able to help you identify your requirements before you buy. Your vendor choice alone can make a big difference in the success of your CAD system. To help new CAD users, CADDIT has published a free CAD e-book.


Myth: 3D is always better
If you are working for a customer who wants a 2D drawing, give them a 2D drawing. According to a recent marketing report by the Aberdeen Group, there are several reasons people use 2D CAD in the first place, including demand for increased quality/reliability, shortened product development schedules, accelerating product commoditization and marketspace competition. The main reason that seems to prevent 2D CAD users from migrating to 3D CAD is "The current process using 2D works, no need to make a change (40% of surveyed)".

progeCAD is an example of robust 2D/limited 3D CAD that is helping thousands of businesses meet their mainly-2D design needs successfully. Many surveyors, builders, electricians and engineers have no real need for 3D CAD at this time.


Myth: Everyone is going to use 3D CAD soon
"Most CAD users still work in 2D, while 3D design is rapidly moving to the forefront.." - Business Wire, Nov 14, 1995 article "AccelGraphics announces first entry-level workstation-class 3D graphics accelerator; new board delivers high-performance 3D graphics for price-sensitive MCAD users". More that 10 years later, CAD software marketing is still warning the world about an impending obsolescence of 2D CAD. The reality is that designers have far more freedom of choice than ever before in finding a design package that fits their needs and budget.


The key is knowing the right CAD for the right job at the right price. A certain flexibility to adapt one's self to learning several systems is therefore practical, but we don't need to learn them all. Technology is just a tool that we create to help us get a job done. It should never become a religion that ironically blinds us from seeing a better way of getting that job done. CADDIT has already helped hundreds of companies find the right CAD software. What has surprised many of our customers is that the best system for them is often not the most expensive or complex system we support.

CADDIT is a professional CAD and CAM software consulting company based in Sydney Australia. The full version of this article can be found here.

3D Industrial CAD Software Upgrades Free For Two Years

CADDIT CAD CAM Australia is pleased to announce a special promotion for engineers looking for affordable 3D industrial engineering software. Buy VariCAD for Windows or Linux right now until September 30, and receive two years of free upgrades. What makes this offer especially exciting are some major product enhancements planned for the product during the free two year upgrade period which include advances in 3D parametric design and simulation. To further encourage Australia and New Zealand engineers to buy before October, CADDIT is offering special online pricing. The total savings of this special offer total to over 50% the normal price.

VariCAD is affordable 3D industrial design CAD software for practical engineers. It offers robust 3D mechanical design tools and associative 2D ANSI, ISO or DIN drafting layouts. VariCAD includes several applications for sheet metal, fit-out and profile construction, interference checking in assemblies and extensive libraries of standard parts which can be included in any design. Sharing designs with external systems is made easy through extensive ISO STEP, IGES, Autodesk DWG and DXF support. For those new to VariCAD, it can be downloaded and used free for 30 days, but this free upgrade offer will still end on September 30 2008. There are also videos, tutorials and other resources on the CADDIT website.

VariCAD has been meeting the needs of mechanical and design engineers for over a decade. This latest special offer includes two years of completely free product upgrades and technical support. There will probably never be a more affordable offer to buy this product. More information about VariCAD is available from CADDIT CAD CAM Australia.