by Gary Mintchell | Apr 19, 2011 | Automation, Events, Operations Management, Process Control
Mark Taft, fulfilling his usual role of master of ceremonies for ABB’s Automation and Power World user conference in Orlando, started with his quote of the week. This one from Thomas Edison, “I shall make the electric light so cheap that only the rich can afford to burn candles,” to challenge the 4,000 plus attendees to focus on technological and economic changes we are all facing. He also announced his new position within ABB. He has left the automation group and is now regional manager, North America, for Power Generation business. He also announced that attendees have assembled from 45 countries with 45 customers sharing stories of their successes during the week.
Enrique Santacana, CEO and president of ABB Inc. and regional manager North America for ABB, talked about how the environment overall has improved from 2010 to 2011, but that the massive U.S. federal deficits are still a concern. He reported ABB has invested over $5 billion over the past year in growth in North America. The three basic themes for investment need to be productivity, reliability and efficiency–particularly energy.
Then he introduced the User Advisory Board for the conference.
ABB Group CEO, Joe Hogan, addressing his third user conference as CEO focused on technologies, investments and products–just what the audience wants to know. And he had his usual passion for the business. The company’s revenues are about $35 billion and it is composed of five divisions–power products (about $10 billion), power systems (6.8 billion), discrete automation and motion ($5.6 billion), low voltage products ($4.5 billion) and process automation ($7.4 billion). He noted how global the company is with the executive team holding 10 passports among them.
He touted the growing world economy, but that inflation could be a challenge with growing demand for commodities. Aluminum and copper are the two fastest growing commodity areas that affect manufacturing. “Efficiency and utilization of the world’s resources is an important driver,” he stated. Long term manufacturing trends include productivity, energy efficiency, less labor arbitrage among global companies, rising commodity prices, renewable energy needs and grid technologies to address the flexibility required by the new energy sources.
Even though economic growth in Asia is great, North American market growth is still significant. He touted the strength of Baldor and what it brings to ABB. Discussing energy savings from motors and drives, he said, “For all we know about energy and dollar savings for motors and drives, only about 20 percent of projects go through. This is because we just don’t follow up enough.”
Significant new product is a synchronous reluctance technology motor. It must be used with a drive. It yields up to 40 percent lower energy losses with a compact design that is up to two frame sizes smaller than a conventional motor. Perhaps the most intriguing feature is that it behaves much like a permanent magnet motor without magnets. Since permanent magnets are made from rare earth metals which are now controlled in China, this technological innovation potentially eliminates that problem.
Hogan stated that the integration of Elsag Bailey and its Symphony products was not handled well. Management has decided that it is time to reinvigorate it. First that group has been moved to the power group from process automation. Then ABB will invest in further development of the platform.
The next technology getting attention is direct current (dc). The predominant transmission technology is alternating current (ac). It turns out that there are many advantages for lossless power transmission over long distances using dc.
Finally, Hogan outlined ABB’s venture investment business. The company has made many investments over the past year including Industrial Defender in cyber security, Trilliant with smart grid radio mesh communications, PowerAssure for datacenter energy efficiency, Pendulum for wind turbine efficiency, aquamarine power with wave electricity generation, China Venture Fund for cleantech investing in China, Ecotality, fast charging for electric vehicles, and Novatec in the solar business.
by Gary Mintchell | Apr 18, 2011 | Automation, Operations Management
I thought I’d stir up a little controversy with my last post about where automation business is heading. Not so much, I guess. But a lot of companies are chasing utility business these days. Or other extensions of what is called the smart grid. Those that aren’t chasing smart grid opportunities at the utility / transmission / meter levels are chasing energy efficiency.
What has amazed me over the years is the increasing power and flexibility of control platforms. B&R and Beckhoff are integrating electric and hydraulics into a common automation system. These modern platforms can also handle a lot of process control. Talk about PLC vs. DCS is oh so 20th Century.
ABB has promised more attention to the automation side of the business in this year’s user group event–Automation and Power World. I’m in Florida at my son’s house today, but heading over to Orlando this evening for a couple of days of immension into the world of ABB. I plan to sit in some operator performance sessions.
If any of you are there, look me up.
by Gary Mintchell | Apr 13, 2011 | Automation, Operations Management
Adding to my April 11 post on Business Growth in Automation, more news from automation companies is coming in to Automation Central here in Sidney, Ohio.
Beckhoff Automation just announced revenues for 2010–and they had jumped 46% year over year. Surprisingly, that puts it only slightly behind B&R Automation. Each is around $500 million. Pretty substantial for automation companies. Both are showing strong growth in Asia as well as in North America.
Many of the larger automation companies have long had electrical power business units. Most of the recent acquisitions of ABB and GE, for example, have been mainly power and energy oriented. Likewise, parts of Schneider Electric’s portfolio of companies have long traditions in power and energy. News of the last week has surfaced that Schneider is pursuing Tyco for acquisition. That acquisition, if it comes to pass, would help it keep up with its European rivals ABB and Siemens.
The last ABB “Power and Automation World” user conference had little attention focused on automation. When I stopped at the Schneider Electric booth in Hannover, I asked about automation. “It’s over there in the corner,” I was told, “people are most interested in energy these days.”
So, I ask this open question soliciting ideas. Are the larger companies moving from automation to energy and leaving the automation segment open for smaller upstart companies? What do you see?
(Note: next week I’ll be in Orlando for the 2011 edition of Power and Automation World. Maybe part of an answer will be revealed there. Stay tuned.)
by Gary Mintchell | Apr 12, 2011 | Events
The call for papers for the conference part of ISA Automation Week has just closed. I’m waiting to see how the program lines up–more presentations from practitioners or more academic papers for instance. I know that leadership has suddenly realized that it takes a lot of hard work to get a good program together, sell the exhibit space, make up for the poor way the event was handled last year and, finally, convince people to come.
Here is a preview of the general session of the conference. Looks interesting.
Charlie Cutler, Béla Lipták, Greg McMillan, Russ Rhinehart and Terry Tolliver will lead a 90–minute General Session entitled, “The Present and Future of Automation Worldwide” on October 19, 2011.
The event will take place at the Arthur R. Outlaw Convention Center in Mobile, Alabama on October 17 – 20, 2011. The General Session expert participants will share their knowledge that is essential for advancing the use of process automation and optimization. The press release from ISA states, “Attendees will gain insights on the best existing practices and new possibilities for the use of process automation and optimization for improving individual unit operation performance and overall manufacturing efficiency and capacity.”
The following talks will be covered in the General Session:
- How advanced PID (Proportional, Integral, Derivative) features can improve process efficiency and profitability and increase flexibility, maintainability and operability for sustainable manufacturing.
- What knowledge is essential for advancing the use of process automation and optimization.
- Opportunities for the process control community to establish ties in Saudi Arabia and potentially position the US as a resource for help and guidance in Saudi Arabia’s control applications.
- How automation professionals will play a critical role in developing the technology of the future.
- Examples of how process design affects the achievable performance of reactor temperature control, pH control and distillation column control.
Let me know if you are thinking about attending. I have a very busy October, but I’ve set aside that week so far in preparation for a trip.
