Opto 22 celebrates 50 years!

I first met Opto 22 back in the early 90s when I searched for a solution to connect one of my Allen-Bradley devices to a Modicon PLC and discovered their solid state relays. I could at least send digital signals. (Note: I didn’t get the job.) Later I stopped by their booth at a trade show where they wore black arm bands in memoriam for the demise of the PLC. A few years later I joined Control Engineering magazine and had many interviews.

They have always had an edge and a sense of humor. And, they were always looking on the margins for competitive advantage. For years, Benson Hougland was the only technical marketing person with whom I could talk IT and OT.

Their new groov product along with partnerships with Inductive Automation (Ignition software) and Cirrus Link (MQTT) has offered a proven solution for many industrial (and other markets) automation challenges.

Well, Opto 22 is 50 years old! I’m reprinting some thoughts from CEO Mark Engman posted on Apr 3, 2024.

You can count on high-quality Opto products and continued support for all your automation and IIoT applications.

I have a hard time believing it’s been 50 years since my dad and mom started Opto 22. My dad, Bob Engman, was an engineer who helped develop a better way to manufacture solid state relays. 

SSRs had just been invented in the early 1970s, and the improvement was to pot SSRs with epoxy to protect the electronics from shock, vibration, and environmental contaminants. When Opto 22 began in 1974, our first products were, you guessed it, twenty-two SSR models manufactured by the new method.

It’s all about quality

Dad was always focused on quality. He made sure every single SSR we built was tested—twice—to make sure it would function to specs once you installed it in the field. That dedication to quality is still a hallmark of the company. That’s why we don’t do batch testing. We still double-test every single SSR and I/O module we manufacture.

That’s also one of the reasons our factory is not overseas, but attached to our company headquarters in California. It’s easy for our engineers and factory team to work closely together to design and build products that are high quality. That’s why we can afford to guarantee our SSRs and I/O modules for life. And you’ve told us how much you appreciate that.

50 years’ worth of change

Industrial automation is a complex field that’s changed over and over again during the last five decades. Just think: when we started, the personal computer had barely been invented and factories were just beginning to automate production lines. As a manufacturer of automation equipment, we’ve had to look forward and adjust again and again to new technologies, new bus standards, new protocols, new communication methods—and new competitors in our field.

So it’s pretty exciting to say we’re still here, 50 years later, still supporting your legacy products and building new products that meet your needs today—needs no one could have imagined when we began.

It’s our people who got us here

I believe the main reason the company has been successful for so long is our people. My dad worked in a corporate environment and didn’t like the results of all those layers: delays, lost ideas, employees who felt powerless and unappreciated. 

So when he started Opto 22, he cut the layers and created a flat organizational style. We hire good people, get them started, and then let them do their jobs. And unlike most tech companies, we don’t lay people off the minute there’s a downturn in the industry. We don’t overhire, and we keep our people because we know their value.

The result is a loyal, experienced staff who produce higher quality products and give better service to our customers in design, manufacturing, and support. They work together to build success for all of us, with very little of the internal politics you typically find in a corporation. The average tenure of our factory workers is 26 years, and of our engineering and support staff, 24 years. People are happy to work here, and it shows.  

Engineers in charge

In addition to our focus on quality and our people, I think it’s the business approach of the company that makes Opto 22 a long-term player in the industrial automation field. 

Opto 22 has always been run by engineers who get excited about new tech. We want to play with it, see where it takes us, build products that use it.

Because we’re engineers ourselves, we know what you deal with, day by day. We know budget restraints as well as technical ones, and everything from wiring to the frustration of systems that don’t talk with each other.

Our company’s flat structure encourages new ideas instead of squashing them in corporate layers. We can engineer new products quickly and bring them to you.

Open standards make the most sense when you’re trying to build systems and interconnect devices and software. So we’ve always helped establish open standards for the industry, like OPC and Ethernet. 

We design new products for the long term and continue to support the legacy products you’ve had for years, offering upgrade paths to newer solutions. 

So what does that mean in practice? It means you can count on Opto 22 to introduce new ideas that expand your options and make your job easier—ideas like programmable automation controllers (PACs), which are a hybrid of the earlier PLCs and PC-based control. We introduced the PAC concept way back in 1990 and then expanded on it in the mid-2000s with our SNAP PAC System, still sold, supported, and used worldwide.

And today the edge technologies in our groov products expand your options again. With groov EPIC (2018) for edge control and groov RIO (2020) for edge I/O, you can meet the new demands you’re seeing for data and connectivity. groov industrial construction, CPU power and memory, easier networking and cybersecurity, OT and IT protocols, built-in software, and web-based management are leading the way to effective new industrial automation architectures and digital transformation for better business decisions.

Helpful (real) people

One of the things new customers are surprised about is that when you call or chat with Opto 22, you talk to a real person. We think your projects and applications are fun to work on, so personal customer service from free Pre-Sales Engineering to free Product Support is a big part of what we do. All support comes from knowledgeable engineers here in California.

That extends worldwide, too. Our partners in the U.S. and other countries are capable distributors and integrators you can count on to handle sales, service, and training for all our products.  

Thank you

As we celebrate our 50th anniversary, I want to thank all of you, our customers, integrators, and distributors, for everything you do: using our products, telling us what works—and what doesn’t—and sharing your ideas for features you need. With your help we’ve taken this 50-year journey from highly reliable SSRs to state-of-the-art Edge Programmable Industrial Controllers. 

What will the next five decades bring? 

Siemens To Acquire Industrial Drive Technology Business of ebm-papst

This acquisition is a very interesting acquisition from several points-of-view. This shows Siemens commitment to factory automation. It hints at entry into the mobile automated robotic space (see the analysis by Vanessa Lopez, Research Analyst, Interact Analysis at the bottom of the story). Even though I don’t see as much in the US as I once did, Siemens is still one of the most active automation suppliers.

Key points from the news.

  • Planned acquisition to strengthen Siemens’ position as a leading technology company in the field of factory automation and digitalization
  • Strategic addition to the Siemens Xcelerator portfolio
  • A business of ebm-papst, a leading supplier of fans and compact and intelligent mechatronic systems, which employs around 650 people
  • Major growth opportunities in the field of intelligent, battery-powered drive solutions

Siemens AG has signed an agreement to acquire the industrial drive technology (IDT) business of ebm-papst. The business, which employs around 650 people, includes intelligent, integrated mechatronic systems in the protective extra-low voltage range and innovative motion control systems. These systems are used in free-range driverless transport systems. The planned acquisition will complement the Siemens Xcelerator portfolio and strengthen Siemens’ position as a leading solutions provider for flexible production automation.

Cedrik Neike, member of the Managing Board of Siemens AG and CEO of Digital Industries, said: “Ebm-papst’s innovative portfolio of mechatronic drive systems and its highly qualified people are an excellent fit for Siemens. The acquisition will enable us to tap new business and customer potential in the rapidly growing market for intelligent, battery-powered drive solutions in intralogistics as well as mobile robot solutions.”

IDT products are intelligent, integrated mechatronic systems, which support the automation and digitalization of production processes. This acquisition will be a strong addition to the Siemens Xcelerator portfolio. Through their use in mobile robots and driverless transport vehicles as well as in the automation of auxiliary processes, such as the retooling of modern production machines, they are an important lever for greater flexibility and productivity. For this reason, high market growth is expected in this market segment.

The transaction is to be completed by mid-2025, subject to the necessary foreign trade and merger control approvals. The IDT business of ebm-papst is located in St. Georgen and Lauf an der Pegnitz, Germany, and in Oradea, Romania. The parties have agreed not to disclose the purchase price.

“The acquisition by Siemens is a strategically significant step for us. What our industrial drive technology (IDT) business had lacked until now was a global sales organization for maximum growth. Siemens is a long-standing customer and a company with strong international market penetration and an extensive customer base. The integration that has now been agreed upon will give our IDT business global market access. It will open up new horizons for innovation and further growth,” added Dr. Klaus Geißdörfer, CEO of the ebm-papst Group. “We’ll use the proceeds from the sale of the IDT business to further expand our Air Technology and Heating Technology divisions, to further strengthen our three regions – Europe, Asia and the Americas – and to invest in future fields of our product portfolio, such as digitalization and sustainability.”

Interact Analysis take

Siemens’ recent acquisition takes advantage of surging market

VANESSA LOPEZ, Research Analyst, Interact Analysis

If you’ve been following manufacturing news, Siemens has been making big waves in its divestitures and acquisitions over the last few years. Most recently, it divested several business units worth nearly €3 billion into the newly formed Innomotics, which is currently up for sale.

On March 21st, Siemens announced yet another acquisition. In a press release, the company unveiled its plans to acquire ebm-papst’s industrial drive technology (IDT) business. What makes this move most interesting is the acquisition of ebm-papst’s ultra-low voltage motor offering. In a report published by Interact Analysis in late 2023, we found the market for these products is growing strongly, particularly in applications relating to conveying and mobile robotics.

From a product perspective, ebm-papst’s portfolio is a valuable addition to Siemens’ portfolio. While Siemens has been active in the ultra-low voltage drive market, it previously lacked a complimentary motor offering. ebm-papst, with over $50 million in sales, ranks 13th in the global market. The majority of its revenue comes from the EMEA region, where it holds 10th position in the regional market. Siemens’ acquisition of ebm-papst’s IDT division opens up wider global market access for these products, leveraging Siemens’ extensive global sales channels.

While this could include many pieces of equipment, we believe the primary target is mobile robot applications.

Mobile robots are experiencing early-stage growth. As predominantly battery-powered solutions, these robots typically utilize either 24v or 48v DC motors (what we term ultra-low voltage motors). The demand for ultra-low voltage drives and motors is therefore reflecting this upward trajectory. According to Interact Analysis’ ultra-low voltage drives report, revenues are projected to grow at a CAGR of 25.9%, reaching $3.1 billion by 2027. Similarly, ultra-low voltage motors, extensively utilized in mobile robots, are expected to witness substantial revenue growth, reaching $6.5 billion by 2027, as indicated in Interact Analysis’ ultra-low voltage motors report. This surge in demand can be attributed primarily to the burgeoning adoption of mobile robots, particularly in warehouse automation applications.

Also notable is the rapid growth seen by roller conveyors in both segments of the ultra-low voltage markets under discussion. These products are highly compact and often operate at either 12V or 24V, making them an ideal application for ultra-low voltage motors. Moreover, most conveyor manufacturers purchase motors rather than manufacturing them in-house. Our conversations with ultra-low voltage motor vendors consistently highlighted roller conveyors as a significant area of interest for future growth. Interact Analysis estimates this market will nearly double by 2030.

The accelerated surge in warehouse automation, including the adoption of mobile robots and roller conveyors, presents substantial avenues for Siemens to expand its footprint and secure market share. By strategically aligning itself to meet the escalating demand for ultra-low voltage drives and integrated motor solutions, Siemens is poised to benefit from this surging market. Therefore, we consider Siemens’ acquisition of ebm-papst’s industrial drive technology business as a pivotal and forward-looking investment.

Survey—Work Is Harder and Less Meaningful

I’ve been working some with a software company called Quickbase (disclaimer: they sometimes pay me for posts without dictating content and also for appearing on webinars and podcasts). They produce a number of products and software solutions in a no-code/low-code environment for customers. I picked up a phrase from them called “Gray Work”—the time lost when searching for data and information. This news announces the release of their second edition of the Gray Work research report – the “Gray Work Index” released April 16.

In brief: 

  • Work is Harder and Less Meaningful than Ever, and Everybody Knows It
  • More than half – 54% – of workers surveyed feel it’s harder than ever to be productive in their day-to-day work and 58% spend less than half a typical work week on meaningful work that drive results
  • AI could be a solution, but only if key steps are taken to ensure the right foundation

According to a recent survey by Quickbase, the software application platform for dynamic work management, over half (54%) of 1923 workers in the US and UK feel it is harder than ever to be productive in their day-to-work – even as their organizations ramp up investments in technology tools and software to enhance productivity, work management and collaboration.

Looking across a dozen complex, operationally and process-driven industries (including Construction, Manufacturing, Healthcare, and others), the survey sought to uncover the ways in which disconnected data and information, outmoded and ineffective processes and workflows, and too many technology tools lead employees to feel overwhelmed, ineffective, and frustrated.

  • Overwhelmed by technology – 94% of respondents reported feeling overwhelmed by the number of software solutions they need to use every day to get their work done (up from 87% in 2023).
  • Too much manual work – 74% of those surveyed say the amount of manual work has either stayed the same or increased compared to one year ago.
  • Less time for impactful work – 58% say they spend less than half a typical work week on meaningful work that drives results.
  • Hard to get what they need – 45% of respondents say they spend 11+ hours every week chasing information across their organization.

66% of respondents reported that organizations increased investments in tools/software to enhance productivity, work management and collaboration.

Top three challenges per the survey:

  • miscommunication (44%)
  • duplication of work (43%)
  • project delays (42%)

Project management:

  • Almost 70% of respondents say the use of multiple project management software solutions makes it harder to share project-related information with others.
  • 10% of respondents say they are “extremely confident” in the accuracy of the key project information in their current software solutions
  • the remaining 90% express some level of doubt

Quickbase’s “The Gray Work Index” surveyed 1,923 workers in the United States and the United Kingdom & Ireland in February 2024. Respondents included employees from more than a dozen operationally complex industries, including construction, manufacturing, professional services, healthcare, and state & local government.

Software Streamlines Pharmaceutical Development

Emerson continues on the software development path. In brief: DeltaV Workflow Management delivers scalable recipe authoring and execution technologies for life sciences companies.

Global automation technology and software leader Emerson on April 16, 2024 introduced DeltaV Workflow Management, a next-generation software designed for life sciences companies in early-stage development. The new software continues Emerson’s expansion of capabilities of the evolving DeltaV automation platform to offer more scalable options to suit the needs of smaller life sciences innovators. For companies with limited IT infrastructure, DeltaV Workflow Management provides a cloud-based, software-as-a-service solution for simple recipe authoring, execution and electronic data capture.

DeltaV Workflow Management transitions recipe workflow data from manual records to digital “paper on glass,” providing a simple and scalable solution that helps accelerate the drug development process with no coding experience required. The software also generates searchable digital records that are easily organized and exported and data that can be more easily analyzed and reported. In addition, this digital shift minimizes the contamination risks associated with paper records in sterile clean rooms.

Within DeltaV Workflow Management, users employ simple drag-and-drop elements to create steps for a recipe and automate workflows that meet Good Manufacturing Practice standards. Within those steps, they can add new parameters and e-signature requirements for quality control and regulatory compliance, run product recipes, authorize users for specific tasks and create digital batch records.

Hexagon and Dragos Partner to Strengthen Industrial Cybersecurity 

More and more companies are developing partnerships to serve customers rather than trying to reinvent the wheel. Hexagon had acquired PAS and its Cyber Integrity solution some years ago. This partnership announced with cybersecurity solution provider Dragos aims to do no less than “revolutionize OT cybersecurity at industrial facilities.”

The technical partnership focuses on integrating the complementary OT cybersecurity capabilities of the Dragos Platform and Hexagon’s PAS Cyber Integrity to provide customers with enhanced inventory data, comprehensive configuration management and superior intrusion detection and threat management to protect businesses operating in multiple critical infrastructure sectors. The collaboration is expected to harness the respective strengths, industry insights and innovative spirit of both Dragos and Hexagon.

“This relationship represents a significant step in forging the future of OT cybersecurity,” said Nick Cappi, vice president of OT Cybersecurity at Hexagon. “Through the integration of technologies, industrial facilities that use Hexagon and Dragos will be in a better position to achieve their security goals. We are excited to work together and collectively solve bigger security challenges for customers.”

The companies will integrate their specialized expertise and capabilities to tackle the unique challenges encountered by owner operators. Together, they aspire to enhance safety, efficiency and productivity, with a goal of revolutionizing how the cybersecurity industry protects industrial infrastructure and valuable assets.

“Hexagon is known for providing forward leaning technology that also prioritizes safety and security, and the partnership with Dragos brings additional value to industrial and critical infrastructure organizations using our technologies,” said Matt Cowell, Global VP of Business Development at Dragos. “The integration between Dragos and Hexagon will leverage our complementary capabilities and respective strengths to provide an integrated approach to managing security across the different layers of the operational environment.”

Follow this blog

Get a weekly email of all new posts.