The CAD/CAM sub sector

In order to have a more accurate picture of the software sector in Israel we will examine some of the, a priori, most relevant characteristics of the companies that compose the sub sectors established above. A first attempt has been done with the CAD/CAM sub sector.

The main results of this research are summarized in the following bullet points. The card for every company can be consulted throug an access database.

• The sub sector is formed by nine major players: Tovna Digital Engineering, Tecnomatix Technologies, I-Logix, e-SIM, Camtek AOI Systems, Cadtech CAD/CAM systems, Valor Computerized Systems, Intergraph Israel and Cimatron. Some other companies appear in some databases as belonging to this subgroup, but the ones mentioned above are the only ones listed on a consistent basis.

• It is important to mention that the biggest of these companies –Intergraph, 5000 employees- is an American company. What they have in Israel is a sales, training and support office. Camtek designs and manufactures CAD/CAM equipment. Although specific software has to be developed, it is not the only product of their activity

• 6 of the 9 companies are public. 5 are traded on NASDAQ and one on the Frankfurt Stock Exchange (Valor). The other three are privately owned.

• Except for Intergraph, the other five public companies have between 65 and 270 employees. The private firms have between 20 and 30 employees.

• The bulk of these companies were formed in the late eighties and early nineties.

• Except for 1, all CAD/CAM companies are global business. Their main markets are US, Europe and Asia. No information has been found about the weight these markets have for each firm.

• Except for Tovna, whose business consists of adapting Autocat applications to their customers needs and provide CAD/CAM consulting, all firms in this group develop and commercialize their own products. The services they provide seem to be limited to training, systems support and some consulting.

• An amazing percentage of the board of directors holds engineering degrees from Technion. Some were involved in the –failed- attempt to develop a completely Israeli fighter jet. A few have been military and some have studied management abroad.

• As can be seen in the graph below, the CAD/CAM sub sector in Israel has had a negative evolution during the last year. It is curious that the “purely Israeli” CAD/CAM companies have had a worse evolution than Intergraph.