Magazine article American Banker

NCR to Outsource Its ATM Production in Americas

Magazine article American Banker

NCR to Outsource Its ATM Production in Americas

Article excerpt

NCR Corp., which said this week that it would spin off its Teradata warehousing division, announced a plan Thursday to restructure its manufacturing.

The Dayton, Ohio, automated teller machine company said it will outsource manufacturing in the Americas to "a premier manufacturer over a multimonth period" and will shift production for other regions to its sites in China, India, and Hungary. About 1,200 employees in the Americas and in Europe are expected to be laid off.

"This isn't about shutting down facilities as much as resizing the organization, and scaling production up and down in different locations," Bob Tramontano, NCR's vice president of product management and engineering, said in an interview. He would not name the company that is taking over NCR's Americas manufacturing.

The reorganization is expected to reduce shipping costs and make the company's manufacturing more efficient, Mr. Tramontano said, particularly by shortening the average customer purchasing cycle. On average, it takes about 35 days from the time a machine is ordered until its installation, and high-end machines can take longer.

NCR has been making its production sites more efficient in the past 18 months, he said, especially where it now plans to consolidate manufacturing -- in Beijing, Budapest, and Pondicherry, India.

The factories in Dallas, Sao Paolo, and Waterloo, Canada, were not "ideal from a space standpoint, or a labor pool standpoint," Mr. Tramontano said. "We didn't have the opportunities that we had in the rest of the world to create capacity and efficiency in-house. …

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