by Gary Mintchell | Oct 31, 2013 | Automation, News, Organizations, Wireless
Here is an interesting acquisition. It shows Rockwell’s continuing commitment to developing solutions in the process / production industry. It also partially answers a question that came to mind when I saw a press release that CEO Keith Nosbusch was speaking at a world Internet of Things conference. This fits.
Rockwell Automation Inc. announced that it has agreed to purchase vMonitor, a global technology provider of wireless solutions in the oil and gas industry.
(from the press release—superlatives theirs, I don’t know the company but I presume I’ll learn more in Houston week after next) VMonitor is a pioneer in digital oilfield implementation and remote operations worldwide. It delivers innovative monitoring and control solutions for wellhead and upstream applications that combine cutting-edge wireless instrumentation and communication with visualization software to help customers make more informed decisions and improve production.
VMonitor has the world’s largest installed base of wireless wellhead monitoring systems for natural and artificially lifted wells with more than 6,000 well sites for major oil and gas companies around the world.
“Strategically, vMonitor’s world-class digital oilfield technology and services, combined with our comprehensive portfolio of solutions, strengthen our ability to deliver end-to-end projects for the oil and gas sector,” said Terry Gebert, vice president and general manager, Rockwell Automation Global Solutions.
“Equally important, vMonitor’s capabilities will accelerate our development of similar process solutions and remote-monitoring services for water/wastewater, mining and other industries globally,” said Gebert.
“Our customers will benefit from the Rockwell Automation global solutions capabilities and complementary product lines to ensure we can collectively provide a seamless integrated solution,” said Rashed Saif Al Suwaidi, chairman of vMonitor. “Our employees will also join an innovative, fast-growing technology leader serving the worldwide oil and gas industry.” VMonitor has about 120 employees at offices located in Houston, Mumbai, India, Abu Dhabi, United Arab Emirates and other Middle East locations.
The company’s technologies include an all-wireless portfolio of wellhead sensors and transmitters, remote terminal units, gateways and modems, as well as turnkey monitoring, and control systems and services. These offerings cover a broad range of applications from oil and gas wells, pipelines, pumping and lift stations, to refineries and tank farms.
The acquisition is expected to close within two months. VMonitor will then become part of the Rockwell Automation Control Products and Solutions operating segment.
by Gary Mintchell | Oct 31, 2013 | Commentary, News
I’ve had a bunch of things to report and analyze, just very little time. Travel and meetings are thought killers. Also, I try out so many tools that I sometimes sit and wonder whether to use my outliner (currently fargo.io from Dave Winer), or a text editor (recently I like Quip—quip.com–which is also a great collaboration tool) Quip or Write Pad or Write Room (never Word, by the way, too busy). Where do I store thoughts—outliner, Nozbe my GTD app or Evernote. I’m starting to settle into Nozbe just for GTD and lists, Quip for text, Fargo for longer things that need to be outlined.
Recently I talked with Bobby Bono, US Industrial Manufacturing Leader for PwC, about its latest Manufacturing Outlook survey and report. Notable are the comments about a skills gap.
I heard Rodney Brooks, founder of iRobot, talk about how we are asking the wrong question about whether automation (robots) are replacing jobs. That is very short-term thinking. In the longer term, we need to think about the skills shortage and people shortage as the later generations which are smaller in number than the boomer generation which is about to retire (although I figure I have a few years left).
This report, among other things, highlights that skills gap. Below is an edited version of the press release that went out regarding the report.
Optimism among U.S. industrial manufacturers regarding the global economic outlook reached the highest level since the first quarter of 2012, according to the Q3 2013 Manufacturing Barometer, released today by PwC US. In the third quarter of 2013, 40 percent of respondents expressed optimism regarding the world economy for the next 12 months, up from 31 percent in the prior quarter and 29 percent from the third quarter of 2012.
The primary growth driver remains the U.S. economy, with 60 percent expressing optimism about the domestic outlook. In addition, 78 percent believe the U.S. economy grew in the third quarter, up six points from the prior quarter and representing the highest level since 2006. The outlook for the U.S. continues to contrast with the international picture, where optimism regarding actual revenue contributions in the next 12 months remained low at 30 percent, down two points from the second quarter and off eight points from last year’s third quarter.
“The divergence in viewpoints regarding the U.S. and world economic outlooks narrowed somewhat in the third quarter. Optimism regarding the global economy improved, but uncertainty remained prevalent, marked by persistently low expectations regarding the level of international revenue contributions going forward,” said Bono. “Despite the uptick in global economic sentiment, the U.S. remains the growth driver in the industrial manufacturing sector, with continued signs of healthy demand, pricing strength, new product investment and hiring. Overall top line growth expectations remain moderate and management teams are continuing to take a careful approach to capital allocation and cost management, while preserving liquidity.”
Reflecting the healthy level of optimism pertaining to the domestic economy, 82 percent of U.S. industrial manufacturers surveyed expect positive revenue growth for their own companies in the next 12 months, with only two percent forecasting negative growth. The projected average revenue growth rate over the next 12 months remained moderate at 4.2 percent, down from 4.6 percent in the second quarter and last year’s third quarter. Only seven percent forecast double-digit growth, while 75 percent expect single digit growth.
With regard to capital spending, 48 percent of industrial products manufacturers surveyed plan major new investments of capital during the next 12 months, up eight points from the prior quarter’s 40 percent, and on par with a year ago (49 percent). The mean investment as a percentage of total sales was 6.5 percent, higher than the prior quarter’s four percent, and representing the highest level in the past nine quarters.
Plans for operational spending also rose. Looking at the next 12 months, 78 percent of respondents plan to increase operational spending, up five points from the second quarter. Leading increased expenditures were new product or service introductions at 55 percent, up 10 points from the second quarter and representing the highest level in the past seven quarters. This was followed by research and development (R&D) (38 percent) and information technology (35 percent). Plans for new joint ventures and strategic alliances also rose, while spending forecasts for M&A and overseas expansion remained low. In fact, the number of respondents indicating the potential to acquire another business was 17 percent, less than half the level of last year’s third quarter.
“Management teams are continuing to focus on boosting organic growth, with an emphasis on new product launches and investment in R&D and technology,” Bono continued. “This is indicative of the mixed global outlook and overall moderate revenue growth expectations. In an uncertain environment, industrial manufacturers are managing risk and concentrating on strengthening their products and services. They are doubling down on what they do best in a quest to expand market share.”
The latest Barometer also showed that hiring plans are on the rise, with expectations reaching the highest level in five years and the second highest quarterly percentage in the past 10 years. The majority, 58 percent of U.S. industrial manufacturers surveyed, plan to add employees to their workforce over the next 12 months, up 16 points from second quarter 2013 estimates. Only three percent plan to reduce the number of full-time equivalent employees, and 39 percent will stay about the same. The most sought-after employees will be skilled labor (35 percent), professionals/technicians (35 percent), and production workers (30 percent).
Despite healthy hiring expectations, the survey identified headwinds in securing qualified workers. Three-fourths (77 percent) of respondents cited a need to fill certain skill gaps over the next 12-24 months, with only 23 percent claiming to have all the right skills needed at present. The biggest skill gaps were in middle management (70 percent) and skilled labor (67 percent). At the same time, half of U.S. industrial product organizations admitted to having open positions that they were unable to fill with skilled employees.
“In a limited job market, it is troublesome that three-fourths of panelists have reported a skill gap, with half of those companies acknowledging difficulty in filling these key positions,” Bono commented.
Regarding potential growth barriers over the next 12 months, legislative/regulatory pressures were the most cited at 58 percent. Lack of demand was the second most cited barrier at 45 percent, but it was down from 67 percent a year ago when it was the chief barrier to growth. Competition from foreign markets was also high at 32 percent. Other potential barriers on the rise in the third quarter included lack of qualified workers (22 percent), capital constraints (20 percent) and oil/energy prices (28 percent).
by Gary Mintchell | Oct 25, 2013 | Data Management, Education, Leadership, Operations Management
LNS Research just published a couple of blog posts of some interest. One concerns Operating Equipment Effectiveness (OEE) and the other one on 14 Ways to Raise Executive Awareness on Manufacturing Business Impact. The first deals with manufacturing metrics and the latter with operations management.
The OEE post was essentially fishing twitter followers for comments. I’ve long had problems with OEE as a metric. Of course, I remember when OEE stood for Overall Equipment Efficiency. That was maybe more to the point. People have told me that they evaluate one machine builder over another based on OEE. Others evaluate one plant over another.
The main trouble is that there is no standard for collecting the data that goes into OEE. Often it depends upon operator input. And all of us who have actually worked with operators know that they are more concerned with production than with data collection. They will just click the button that is easiest and creates the least work in the future–as in discussions with engineers or managers. OEE can be useful, but only if you’re disciplined.
Mark Davidson wrote the other one. Many of the 14 ways are interesting. A couple are a bit self-serving. But I could boil it down to something I noticed 30 years ago in manufacturing. Leaders are readers. And leaders are inquisitive. The engineers and managers who get things done are the ones who read books and trade journals. They go to conferences to learn and network. They search out people with new ideas.
Speaking of new ideas, I send a special email to subscribers with a little more depth from things I’ve read or experienced. You can sign up by clicking on the envelop icon. I will not spam you–just send something interesting just about every week.
by Gary Mintchell | Oct 24, 2013 | Automation, Operations Management, Software, Technology
While I was at the Invensys software user conference, I had an opportunity to discuss mobility devices, SmartGlance, and the Cloud with industry applications manager Saadi Kermani.
Listen and enjoy. Questions and comments are always welcome. And–you can sign up for my email newsletter with special extra content by clicking the link on the right side of the page.
by Gary Mintchell | Oct 22, 2013 | Automation, News, Organizations
Greg Scheu
ABB,power and automation technology group, is realigning responsibilities in its Group Executive Committee (EC) to put a strong focus on acquisition integration and the significantly expanded North American business portfolio.
Under these changes, Greg Scheu, who is currently responsible for Marketing and Customer Solutions (MC) on the EC, will lead the Group’s acquisition integration efforts and take over responsibility for North America including the United States, ABB’s largest geographical market. Scheu will retain responsibility for ABB’s service business, while the remaining activities of MC will be further developed by other members of the EC. All changes will be effective November 1, 2013.
“Greg has proven to be a successful team-oriented leader in ABB’s power and automation businesses in multiple divisional operating roles over many years. He has delivered strong results as the Baldor and Thomas & Betts integration leader, as well as in his current EC role responsible for Marketing and Customer Solutions,” said Chief Executive Officer Ulrich Spiesshofer.
“Greg’s appointment to this realigned role on the EC signals our strong commitment to realizing the value of our acquisitions through best-in-class business integration, as well as to profitable growth in North America where ABB has made great progress in market presence and scale over the past years,” he added. “Marketing and Customer Solutions has been an important organizational setup to get ABB to the next level of maturity and performance in cross-business collaboration and customer focus. It is now time to drive Group-wide collaboration in a stronger business-led setup.”
Scheu joined ABB in 2001 and has 29 years of experience in the power and automation industry, with a strong focus on North America. He previously worked for Rockwell Automation and Westinghouse Electric.
“I am very excited about the opportunity to lead ABB’s North America business, global acquisition integration and service businesses,” said Scheu. “I look forward to taking these important areas to the next level of profitable growth.”
Enrique Santacana, currently Country Manager in the US and Regional Manager in both the North and South America regions, will focus on profitable growth in South America.
