By Jeffrey L. Cruikshank
The heritage of Cummins Engine corporation, the world's greatest diesel engine producer. This booklet analyzes the most important attribute of the corporate and its leaders, underscoring what has accounted for Cummins' toughness and good fortune in its aggressive setting.
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Additional info for The engine that could: seventy-five years of values-driven change at Cummins Engine Company
Example text
Most single-product industrial companies that were organized in the United States at the end of the nineteenth century or the beginning of the twentieth century have long since gone out of business or been subsumed in larger conglomerates. Electric Boatthe Connecticut-based progenitor of the submarinewas swallowed up by General Dynamics. The faceless United Technologies is a collection of formerly independent and focused companies: Otis Elevator, Sikorsky Helicopters, and others. St. Louis-based Emerson Electric, an industrial powerhouse, consists of literally dozens of small, single-product (or limited product-line) companies that have been stitched together into a more or less coherent whole.
The company's Columbus-based manufacturing force was reduced (both through layoffs and attrition) by almost 50 percent during the turbulent 1980s, as the company struggled very visibly in its small-town setting to restructure and regroup for the future. More than forty Cummins plants, warehouses, and office facilities were closed between 1983 and 1992. Between 1979 and 1989, the company's Southern Indiana shop-floor work force declined from 6,800 to 3,700. Thousands of peopleline workers and executives alikelost good jobs.
Corporate citizenship at Cummins has had many faces. In marked contrast to its industry cousins in Detroit, Cummins acknowledged relatively early (during the mid-1960s) that its products were contributing to America's air-pollution problems. In the 1970s, the Engine Company designed and played a unique role vis-à-vis the regulatory community. Rather than seeking delays or reversals of ever-tightening pollution controls, Cummins tried to ensure that the Environmental Protection Agency, the California Air Page 5 Resources Board, and other key agencies would promulgate sensible and effective rules.