Max Holland - From Industry to Alchemy: Burgmaster, a Machine Tool Company

PREFACE

The idea that eventually became this book first occurred to me in 1983.

That April, after a year of deliberation, the Reagan administration finally turned aside a novel petition for trade relief from Houdaille Industries. The Florida-based conglomerate wanted the administration to erect barriers against imports of Japanese machine tools. The loss of its market shares, Houdaille charged, was the direct result of unfair collusion between Japan's government and industry.

The reason I was fascinated with the case was that Houdaille was not just another company to me. The year before, my father had retired after working twenty-nine years for Houdaille's second-largest machine tool manufacturer. It was a Houdaille division called Burgmaster.

I was struck by the yawning gap between the Washington debate and what I knew about Burgmaster through my father's eyes. In Washington, Houdaille was an efficient, state-of-the-art machine tool builder, beset by unfair foreign competition. I had an entirely different perspective, one suggesting that many of Houdaille's and Burgmaster's wounds were self-inflicted.

I began to seek out other former Burgmaster employees, and based on interviews with them, wrote a long magazine piece that attempted to reconcile the Washington debate with my father's account. The result was an awkward beast. The article was too long for most magazines. On the other hand, it was far too short to do justice to all the subjects and themes it attempted to cover.

Lawrence Wechsler was the first to recognize that perhaps I had unwittingly spawned a book rather than just an article. But turning that manuscript into this book was by no means a solo effort. The breadth of the history compelled me to explore several unfamiliar subjects. Joel Rogers provided the foundation for understanding, and I doubt I will ever be able to repay his contribution in kind. Jeff and Anabela Frieden gave me a concentrated seminar (and bibliography) in Japanese industrial policy. Mark Hulbert was a sure footed guide to the mysteries of the capital markets, and a willing sounding board for ruminations on trade, manufacturing, and industrial policy. Tom Ferguson, Harvey Feigenbaum, Russell Borthwick, William Burr, Abby Smith, Fred Branfman, and David Corn also offered encouragement and important suggestions along the way.

When the pages did not seem to be coming out fast enough, Sally Cammack bolstered my confidence, soothed my exasperation, or did whatever else was necessary to help me take the book one day at a time. Victor Navasky also provided sage counsel when I needed it most. Helen Chen, my research assistant, reliably collected information I needed to expand and revise the original manuscript. Tom Cammack also helped fill in some of the holes.

No one was more instrumental in seeing this book through to completion than Barbara Ankeny, my editor. Time and again she crystallized hazy thoughts. Though the book was delivered well beyond deadline, her patience seemed endless and her enthusiasm never flagged. Most important, she shared my vision for the book and was not willing to settle for less.

Lastly, although this book is dedicated to my father, Bernhard, even that tribute does not begin to portray the extent of his contribution. He introduced me to former Burgmaster employees, and spent countless hours explaining the intricacies of the trade to a novice. His explanation of technical terms and concepts will be found in the footnotes as well as the text. He also scoured newspapers and trade journals for articles on Burgmaster, Houdaille, and machine tools. More than once I taxed his patience by insisting that he try and remember events from a decade or more ago. Not many people had his vantage point. For twenty-nine years, he worked at and observed Burgmaster, as a tool-and-die maker, union steward, and machine shop foreman.