Competition With E-Cat is Rossi’s Biggest Worry — Automation is His Solution

Listening to Andrea Rossi talking about his E-Cat invention it doesn’t take long to get the firm impression that he is absolutely convinced of the reality of his E-Cat technology he is working on.

As people first learn about E-Cat technology it is not uncommon for them to be incredulous that it could work at all; but to hear Rossi discuss his technology the E-Cat is as commonplace to him as any conventional working technology would be to any engineer. Rossi discusses his technology in a very matter-of-fact manner, and the impression given is that unless the E-Cat only exists in a complete fantasy world that he has created, he indeed has in his hands a working technology that will emerge as an energy source far superior than anything we have yet seen on Earth.

To Rossi, the technology itself is not especially problematic. Yes, there are technical problems that need to be addressed and solved, but he seems confident that these can be solved with work, time and good engineering. The area where Rossi seems to have the most concern is in the area of competition, especially from China and other countries where products are made so cheaply these days. Rossi is realistic in expecting that reverse engineering of the E-Cat will take place, and has a strategy to combat it. Here are some comments Rossi made on the topic from the recent interview on the Smart Scarecrow.

“So we have to fight against them with best, better engineering in the production lines. Now our efforts are passed from the technology of the E-Cat which is mature and stable right now, to the engineering system. Because if not, we have won the battle of the technology, we risk to lose the war of the competition.”

“Yes, we have patents pending, but to be sure that the reverse engineering will not put in jeopardy our production, the best way to fight against the competition is to have a very low price. This is the effort that now we are making, because I foresee that we will have to compete against production made in China, and we have China or other countries where … we cannot compete against that kind of social system that makes the work have costs that are unsustainable for us.”

“We have to be prepared so that it will be impossible to beat us under the economic point of view. If not, we will make the end of the companies like Solyndra or the other one, that you know started making solar panels, but then arrived the Chinese and they have been put out of business. And you know, we have to study very well those cases in history, because we must foresee what they will do. And we must anticipate this war, because this is a war, and we want to win it.”

The weapon that Rossi’s Leonardo corporation has come up with to fight this war by keeping costs as low as possible is automation. When asked how he planned to keep E-Cat low enough to be competitive, Rossi responded, “Automation . . . we are engineering a factory where we can automatize everything at the maximum level. To cut the times, to cut the costs of assembling, and that’s it.”

So rather than using low wages, and harsh working conditions to keep costs down, as is done in some countries, Rossi is counting on a fully automated “robotic” production facility to make this possible. Ironically this will have the effect of limiting the number of jobs that can be created — and job creation has been one of Rossi’s stated goals regarding the new E-Cat industry. But it is hardly surprising that he is going the automation route — this is constant trend in all industries, and automated mass production techniques have been a main reason for the falling prices in all kinds of consumer products from microwaves to computers to smart phones.

Leonardo Corporation will also need to be constantly improving its products to stay ahead of the competition. It’s not so hard to copy what someone else has already accomplished, but it is not possible to duplicate a dedicated and inventive mind — which is what has led to Andrea Rossi’s current situation. It is hard to conceive that he will stop working on developing his invention.

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