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Alex concludes the competition is killing him, specifically the Japanese competition, which is still beating them on price and delivery although Alex's plant has closed the gap in quality and product design. Alex has already cut costs by as much as he can but his prices are still above the competition. Also, Alex's plant has piles of inventory lying around and despite materials being released on schedule, nothing is completed and shipped out on time.
Rumors surface that the entire division will be sold unless performance increases leaving no one with jobs. Alex reflects on a conversation his friend and physicist, Jonah, and realizes his plant is not operating as efficiently as he believed because robots are not decreasing inventory and payroll expense or increasing the number of products shipped...
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