This month I’d like to discuss something that’s causing quite a stir in the component industry: how software suppliers are handling the explosion of remote work, and the sometimes blurry line between different types of designers – including their own design centers.
The Traditional Gatekeepers
The big players in truss plates and software – you know who they are – have always kept their software under tight control. Their traditional model is simple: you buy their connector plates, you get access to their software. But here’s where things get interesting in today’s world.
Supplier-Owned Design Centers: The New Power Move
Here’s something that’s really shaking up the industry: plate suppliers running their own design centers. It’s a clever strategy when you think about it. These suppliers aren’t just selling plates and software anymore – they’re actually offering design services directly to component manufacturers. Why are they doing this? A few reasons are
- They can help out CMs who are struggling to find designers,
- They get to keep more of the pie by offering end-to-end solutions,
- It helps them understand real-world design challenges firsthand,
- It gives them another revenue stream beyond just selling plates.
The Competitive Dynamic
But this move has created some interesting tensions in the industry. Think about it: suppliers are now kind of competing with their own customers’ design teams. Some CMs worry that supplier-owned design centers might get preferential treatment – better software updates, faster support, that sort of thing. There are also the communication challenges presented by significant time zone differences and language differences.
Remote Work Changes Everything... Or Does It?
With remote work becoming the norm, you might think the distinction between an in-house designer working from home and a contract designer would be getting fuzzy. But from the suppliers’ perspective, there’s still a world of difference.
Here’s the key: it’s not about where someone sits – it’s about who they work for. A remote employee working exclusively for one CM fits neatly into the traditional model. They’re using the software to design trusses that will definitely use that supplier’s plates. The supplier’s happy, the CM’s happy, and everyone knows where they stand.
The Contract Designer Dilemma
Contract designers are a different story, even if they work remotely too. The issue isn’t their location – it’s their potential to use the software for projects that might end up using a competitor’s plates. Suppliers worry that opening their software to contractors is like giving away their competitive advantage without the guaranteed plate sales. Of course, this presumes that a contract designer is inherently less scrupulous than a remote employee.
The Gray Areas
But let’s be real – the lines aren’t always clear. Some scenarios that make things complicated are
- “Exclusive” contractors who work primarily for one CM but occasionally take other work,
- Design centers that serve multiple CMs under one corporate umbrella,
- Offshore teams working through intermediary companies,
- CMs using multiple suppliers but wanting to use one design team,
- CMs that don’t need another full-time employee, just a part-time resource that often provides experience that might be lacking in their full-time staff.
Looking Forward
The industry is evolving in interesting ways. Suppliers are becoming more than just plate and software providers – they’re turning into full-service partners for component manufacturers. This shift might eventually make them more open to flexible design arrangements in the future, as they better understand the challenges from all angles.
The solution might ultimately come down to finding the right balance. Maybe supplier design centers will focus on specialized or overflow work, while CMs maintain their core design teams. Contract designers might serve to provide local solutions to CMs, allowing a small CM to access the services of an experienced and skilled designer that they could never afford to hire full time. Or perhaps we’ll see new hybrid models emerge that better serve everyone’s needs.
One thing’s for sure: the traditional boundaries between suppliers, manufacturers, and designers are becoming more fluid. Success in this new landscape will likely depend on being able to adapt to these changing relationships while maintaining the quality and reliability the industry demands.
What are your thoughts about the current and future state of design services? Do plate supplier-provided design centers work for you? Are you ok with plate suppliers limiting how you deploy the software you are paying for in your plate agreement? Do you believe there is a real risk to plate suppliers from the use of contract designers? I’m curious to know what you think, so please share your thoughts with me at secord@thejobline.com.