Chapter 5734 Latent Dangers

5734 Latent Dangers

What was Ves supposed to do in this situation?

It was usually him that sought to recruit mech designers into the clan.

He was not accustomed to situations where other people personally walked up to him and requested to join his clan instead.

Sure, there were billions of people across the new frontier who would do anything to join his rapidly rising clan, but the recruiting offices usually kept these folk at bay.

Only by separating all of the wheat would the Larkinson Clan be assured that they obtained the most suitable recruits from the masses.

It should never be the case where random people could just walk up to him and offer their resumes in the hopes of getting accepted on the spot.

Ves probably would have said no just because he did not like being interrupted while he was in the process of conducting other activities.

The complication here was that this was not one of those situations. Tens of thousands of people participated in the Fey Shaper Contest, but ultimately only a handful of them managed to squeeze in the top 50.

Of these 50 skilled and fortunate individuals, just 1 of them managed to take first place.

Regardless of his background and his allegiance, Kelsey Ampatoch had honestly managed to defeat his fellow 12:15

competitors by designing a fey that provided more value than anything else.

More importantly, his contribution to the Fey Fianna's developing ecosystem was massive. Ves and the Larkinson Clan ultimately benefited from the Rubarthan's work as the shield infiltrator fey was bound to become a popular tool to many customers who recognized its value.

Given all that Mr. Ampatoch had done for the Larkinsons, the least Ves could do was give him a fair opportunity.

As Ves continued to mull over this situation, he realized that the real reason why he felt so unsettled over this unexpected application was mainly because he did not feel in control.

If he set this particular problem aside, he recognized that this may be a pretty good opportunity to recruit another highly capable mech designer who had proven his ability with actual deeds.

The winner of a fair contest deserved to receive special attention. Ves had been in a similar position in the past. He had worked hard to attract the attention of the likes of Master Carmin Olson and successfully managed to promote to a higher stage as a response.

Now that his position was a lot more similar to that of Master Olson nowadays, it was his turn to identify rising talents and give them the stage they needed to realize their potential.

The only weird thing about this situation was that Kelsey Ampatoch was around the same age as Ves. Both of them were in their early 40's, so there was no generational gap to speak of. Ampatoch still did not dare to carry on any airs in front Ves despite being a vaunted Rubarthan and first-rater. The hierarchy between them was very clear.

"Tell me about yourself." Ves said as he leaned back on his comfortable seat. "Who are you? Where do you come from? How did you come to be employed at Isthmus Manufacturing?"

"I was born in a fairly average middle-class family back in a quiet star system located in the periphery of the New Rubarth Empire. I grew up far away from the power centers of the Empire, which meant that I did not grow up owing my loyalty to any of the princes. I managed to excel in my studies and earn increasingly more generous scholarships through earning merit. Isthmus recruited me in advance. The company not only covered my substantial tuition, but also paid for a better augmentation package than what I could earn through my own efforts. After I graduated, I worked at one of my employer's many design laboratories in another region of the Empire."

That sounded like a fairly normal civilian trajectory. There was nothing about the story that stood out to Ves.

"So how did you end up in the Red Ocean? Did you volunteer, or did your owner push you through the greater beyonder gate?"

"I volunteered. Isthmus is an excellent employer, but there are so many other low-ranking mech designers over there that I found it difficult to compete against those who had better connections and augmentations."

"I thought you Rubarthans placed a lot of emphasis on merit over nepotism."

A complex expression appeared on Ampatoch's face. "That is true, and to be fair, Isthmus has always tried to maintain this principle. It is just… people are not strangers. They make friends. They have families. They are more comfortable with working alongside the names they already know. It is impossible to root out this kind of behavior. As a civilian who came from a fairly rural part of the Empire, I had no backers or powerful friends to put my name ahead of others. This is why I submitted an application to transfer to the Red Ocean. I wanted to get away from the tangled web of connections and interests."

"Since you are here, your application clearly got accepted. So what happened next? Did you discover that the Red Ocean branch of Isthmus Manufacturing was not as idyllic as you thought?"

"Partially." Kelsey's expression softened for a bit. "The work environment in the new frontier is better than in the old galaxy. A younger generation of leaders have taken charge here, and they were not afraid to implement changes that would have never gotten passed back in the New Rubarth Empire. While many of the same people that played favorites with each other had decided to transfer to the Red Ocean, there was so much more work for us to do that there were far more promotion opportunities than before. I was making better progress than before, until…"

"The Great Severing."

The Rubarthan's expression became grave. "Precisely. The period of instability that followed after the start of the Age of Dawn generated a large amount of unrest in our company. We lost so much support from the old galaxy that we were scrambling to make everything right again. Many of us were forced to change and adapt in order to preserve our jobs, and while we managed to make it through with the help of the supporters that we have left in this isolated galaxy, many of my superiors and colleagues have fallen back on old habits. Now that it has become clear that our Red Ocean branch has to stand on its own, everyone around me… changed. Their shareholders may have changed, but they no longer have to follow the directives of a distant headquarters. They can make their own rules so long as they do not run afoul of the board of directors."

Ves made an understanding expression. "I think I can figure out what happened. This is yet another instance that proves the old adage that power corrupts, am I correct?"

"You are close to the truth, professor." Ampatoch looked mildly impressed. "You have to realize that the executives and managers who transferred to the Red Ocean branch were considered middle management back then. Now that an entire layer of bureaucracy that previously pressed down on them from above has disappeared, they all gained a lot more power than before. You have to realize that it usually takes decades if not centuries for these careerists to climb their way up the ladder. For them to complete this ascent in a matter of days and months has given them no time to adapt and settle into their growing responsibilities. Too much has changed, and not all of it is for the better."

That caused Ves to frown. This sounded like an incredibly concerning pattern. This kind of problem never took place in the Larkinson Clan because most of it was already in the Red Ocean by the time the greater beyonder gates got cut off from each other. It also helped that Ves was around to keep all of his subordinates under control.

The situation was obviously much different for companies like Isthmus that were still mainly rooted in the old galaxy.

Normally, Ves would not care about these matters, but he could not afford to do so this time.

The Larkinson Clan recently acquired a 20 percent stake in Isthmus Manufacturing.

Any problems with the latter had a large chance of affecting his clan's bottom line!

"Are you suggesting that Isthmus Manufacturing is being mismanaged at this time?"

This was a serious problem if it was true. Ves wanted to be absolutely sure whether the large Rubarthan mech manufacturer had become rotten from within.

Ampatoch shook his head. "I would not go as far as to make this accusation. Isthmus is still a company that is governed by centuries-old rules that have withstood the test of time. It is just that the leaders who are responsible for interpreting them and implementing them cannot help but apply their own ideas as well. I do not think the company will go on a decline, but I think it is not able to grow as fast as it should. The main reason why everything is going well as of late is due to its partnership with you. It needed to cooperate with you much more than you realized."

That was an odd interpretation of the situation, but Ves did not discount it. Perhaps he should have been able to drive a harder bargain if he obtained more insider information.

"I do not have the impression that Isthmus Manufacturing is on a downward trajectory." Ves shared his own thoughts. "The business model adapted by your company is quite mercenary in nature. I see no reason why it should fail in the current market environment."

"Hahaha!" Ampatoch couldn't help but laugh this time! "I apologize, professor. I couldn't control myself when I realized that the people over at Isthmus did not inform you of its latent dangers. You see, Isthmus Manufacturing is primarily engaged in the production and distribution of mechs, but that hardly encompasses the complete value chain of this sector. The company does not perform any significant upstream activities at all. It relies on an extensive collection of long-

term contracts and partnerships to secure the vast amount of input it needs to churn out first-class and second-class mechs from its factories. However, Isthmus does not actually own these mining companies, resource processing companies and bulk transportation services. There is always a risk that those upstream companies might decide to break their agreements one day."

If that actually happened on a large scale, then Isthmus would immediately enter into a crisis!

The company not only had to fulfill a lot of commitments related to supplying a huge number of mechs, but also relied heavily on economies of scale in order to earn a handsome profit!

If the production volume dropped by a huge degree, then there was no way to keep up the business model of Isthmus Manufacturing. It would immediately enter into a crisis that could threaten its very survival!

Ves narrowed his eyes. "I'm sure the executives over at Isthmus recognizes this danger as well, right? They should be doing everything in their power to reinforce its existing contracts with suppliers while also forging new ones… correct?"

Ampatoch let out a sigh. "They have made attempts, but their work is being hindered by the ongoing division in the Rubarthan Pact. The war for the throne has continued to heat up. Many principalities have become less open with each other. This is a problem for Isthmus as many of its suppliers are based outside of the Impresario Principality. If relations between the Impresario Prince and the other power blocs ever deteriorate any further, do not be surprised that many suppliers will find a way to break the contracts, even at the cost of paying huge penalties for doing so without good cause."

Damn!

That was a petty move, but that did not mean Ves could rule out this possibility. The Rubarthans cared so much about who they should put on the throne that their infighting was growing worse with each passing month.

"There is also another risk." Ampatoch continued. "Ever since you became a large shareholder of our company, your enemies have started to poke around. I am afraid that they may force Isthmus into a crisis just so that they can hinder you. For better or worse, your enemies have become our enemies as well."

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