by Gary Mintchell | Jul 31, 2017 | Internet of Things, Operations Management
We keep touting manufacturing jobs in America. An electronics assembly company has announced another plant in the US. When a process automation company lands a contract with a customer, it sends a press release touting the fact. But in process industries, the amount of the contract can be significant.
I seldom see one in discrete manufacturing.
On the heels of the Taiwanese manufacturer known as Foxconn announcing plans to perhaps build an assembly plant in Wisconsin, local automation supplier Rockwell Automation announces a partnership.
Main Point: This may be the most significant release I’ve ever seen from Rockwell. Not in terms of business value. Read this carefully and tell me where there is a product mentioned! This encompasses two things–one is workforce development and training. The second thing is a strategy. Sure, there will be products involved probably. But Connected Enterprise sounds more strategic, more consultative. This is decidedly not one of those things where we’ll cut you a deal if you buy 5,000 PLCs.
Maybe I’m reading too much into it, but I’m thinking this signals a direction shift under new CEO Blake Moret. Could be interesting times.
Downside: However, my research on Foxconn and America reveals a pattern of big announcements followed by little activity. For the people of rural Wisconsin, I hope this time they follow through.
News: Hon Hai Precision Industry Co. Ltd., also known as Foxconn, and Rockwell Automation announced July 28, 2017, that they are collaborating to implement Connected Enterprise and Industrial Internet of Things (IIoT) concepts for smart manufacturing in Foxconn’s new U.S. facilities.
The companies will also collaborate to develop and apply Smart Manufacturing solutions at Foxconn’s global electronics assembly operations and within the related industry ecosystem. Technologies and extensive domain expertise of both companies will be combined to deliver a state-of-the-art manufacturing system with unparalleled levels of operational efficiency.
Terry Guo, Foxconn chairman and CEO, said, “I am very excited about the opportunity for Foxconn and Rockwell Automation to work together. Foxconn is the global leader in electronics design manufacturing, and Rockwell Automation is the world’s largest company dedicated to industrial automation and information. I am confident that together we will increase operational efficiencies in electronics manufacturing to new levels, achieving the vision of Smart Manufacturing and Made in China 2025.”
The companies will also work together on workforce development and training. Specifically, as Foxconn increases its employee base in the United States, it has committed to participate in the previously announced program developed by Rockwell Automation and ManpowerGroup to upskill military veterans and create a pool of certified talent for in-demand advanced manufacturing roles across the United States.
Blake Moret, Rockwell Automation president and CEO added, “We are excited about the opportunity to work with a global technology and manufacturing leader to deliver advanced IIoT solutions to the electronics manufacturing industry. Our work with Foxconn will further demonstrate the power and broad applicability of The Connected Enterprise. We are also pleased that Foxconn shares our commitment to expanding and upskilling the U.S. workforce to ensure there is the necessary talent for advanced manufacturing roles.”
by Gary Mintchell | Jun 21, 2017 | Automation, Events, News
It’s all about connections. That’s the direction I went four years ago when I renamed my blog and set out on my own. Manufacturing Connection (as general a word as I could buy the domain for–not only factory but also process industries).
Honeywell User Group is this week. I had other meetings with paying clients, so I’m not there. However here is some news from the event, and I’ll throw in a bonus link to Control Global whose team is distributing a “show daily”.
Enabling industrial companies to employ Industrial Internet of Things (IIoT) today to address ongoing operational challenges will be the overriding topic for Honeywell Process Solutions’ (HPS) 42nd annual Honeywell Users Group (HUG) for the Americas.
More than 1300 delegates from across the oil and gas, chemical, pulp and paper, and metals and mining sectors are attending HUG, which runs today through Friday. The event features numerous displays of the newest technologies along with dozens of Honeywell- and customer-led sessions and technical discussions.
“Challenges facing manufacturers and plant operators today have not dramatically changed in the last 40 years. Safety, efficiency, reliability, productivity and security continue to drive innovation across industries,” said Vimal Kapur, president of HPS. “What has changed is our ability to better address these challenges. Today, we are able to leverage the power of the internet to employ a broader range of data to transform operations. At Honeywell, we call it the power of connected and specifically for HPS customers, it is Honeywell Connected Plant.”
Attendees at HUG will experience a range of new technologies and solutions that can help them enable the quick and effective adoption of the industrial internet of things (IIoT) at their plants. From technology displays in the demonstration room to a range of presentations from Honeywell experts as well as customer case studies, the Connected Plant will be front and center throughout the symposium.
“Manufacturers are looking to increase production from existing assets while managing their finite investment dollars. Connected Plant can help them do exactly that,” Kapur said.
In addition to the Connected Plant solutions, attendees will experience many of Honeywell’s newest industrial automation technologies including:
- Experion Elevate is real-time supervisory control and data acquisition (SCADA) delivered as a secure and scalable service, reducing the need for on-site hardware and support.
- LEAP for Operations extends LEAP project efficiency principles to optimize, simplify, and run ongoing operations more efficiently.
- Honeywell Trace is documentation and change management software that reduces configuration errors, improves troubleshooting, reduces unplanned shutdowns and improves auditing and regulatory compliance.
- Secure Media Exchange (SMX) reduces cyber security risk and operational disruption by monitoring, protecting and logging use of removable media such as USBs.
- Experion Unit Operations Suite leverages a new ControlEdge Unit Operations Controller along with Experion Batch Manager to optimize pharmaceutical, specialty chemical, and food & beverage applications.
- Predict RT is a novel, intelligent data analytics framework transforming the refining industry from traditional, reactive degradation management, to real-time, proactive, corrosion management through online, real-time corrosion prediction and monitoring.
- Enterprise Risk Manager provides cross-plant cyber risk visibility across all site Risk Managers, providing a solution that measures and manages high priority industrial cyber risk.
- ControlEdge RTU provides improved management of field assets through simplified and efficient remote monitoring, diagnostics, and management. It reduces equipment monitoring and diagnostics from hours to minutes, and integration with Experion SCADA reduces configuration time by 80%.
- Open Virtual Engineering Platform (VEP) is a secure and reliable cloud engineering service for convenient and instant access to an off-process full functional Experion system at any release, accessible from anywhere at the lowest total cost of ownership.
by Gary Mintchell | Apr 4, 2017 | Automation, News
Wow, this one surprised me, although I’ve been pondering the automation landscape for a long time. There are two things. One is that you never know when the owners of a “mittlestand” type of company are ready to sell. The other is that ABB has been aggressively divesting rather than acquiring.
The telling comment in the press release, though, goes to the heart of what I’ve been saying about fellow European electrical and automation giant, Schneider Electric. Both have their sites set on Siemens.
Now the problem is the typical one–and a huge one. How do they integrate the companies? All three of the large European companies have had problems integrating acquisitions. We’ll look for things such as executive flight and sales growth. Will customers flock to rival Beckhoff Automation for a pure automation play. The larger pure automation play–Rockwell Automation–seems to have conceded Europe–at least for the time being.
I don’t like just republishing press releases, but in this case (since I woke up three hours after the live press conference was held), you have my analysis. Here is what ABB says:
ABB to acquire B&R
Shaping leadership in industrial automation
- Acquisition of B&R (Bernecker + Rainer Industrie-Elektronik GmbH) will close ABB’s historic gap in machine and factory automation
- Creating a uniquely comprehensive automation portfolio for customers globally
- B&R is a proven innovation leader in Programmable Logic Controllers (PLC), Industrial PCs (IPC) and servo motion-based machine and factory automation
- B&R delivered a revenue CAGR of 11% over last two decades and annual sales of >$600 million in the highly attractive $20 billion machine and factory automation market segment
- B&R’s software and Internet of Things (IoT) solutions further strengthen ABB’s digital offering, ABB Ability™
- Clear commitment to B&R’s growth strategy, mid-term sales ambition of >$1 billion
- Continuity of B&R’s management, founders support integration phase as advisors
- B&R’s headquarters in Eggelsberg, Austria, to become ABB’s global center for machine and factory automation
- Transaction funded in cash, operational EPS accretive in year one, closing expected in summer 2017
- Purchase price not disclosed, multiple in line with peer valuations
ABB announced on April 4, 2017 the acquisition of B&R, the largest independent provider focused on product- and software-based, open-architecture solutions for machine and factory automation worldwide. B&R, founded in 1979 by Erwin Bernecker and Josef Rainer is headquartered in Eggelsberg, Austria, employs more than 3,000 people, including about 1,000 R&D and application engineers. It operates across 70 countries, generating sales of more than $600 million (2015/16) in the $20 billion machine and factory automation market segment. The combination will result in an unmatched, comprehensive offering for customers of industrial automation, by pairing B&R’s innovative products, software and solutions for modern machine and factory automation with ABB’s world-leading offering in robotics, process automation, digitalization and electrification.
Through the acquisition, ABB expands its leadership in industrial automation and will be uniquely positioned to seize growth opportunities resulting from the Fourth Industrial Revolution. In addition, ABB takes a major step in expanding its digital offering by combining its industry-leading portfolio of digital solutions, ABB Ability, with B&R’s strong application and software platforms, its large installed base, customer access and tailored automation solutions.
“B&R is a gem in the world of machine and factory automation and this combination is a once-in-a-lifetime opportunity. This transaction marks a true milestone for ABB, as B&R will close the historic gap within ABB’s automation offering. This is a perfect fit and will make us the only industrial automation provider offering customers the entire spectrum of technology and software solutions around measurement, control, actuation, robotics, digitalization and electrification,” said ABB CEO Ulrich Spiesshofer. “This acquisition perfectly delivers on our Next Level strategy. With our unique digital offering and our installed base of more than 70 million connected devices, 70,000 control systems and now more than 3 million automated machines and 27,000 factory installations around the world, we enable our combined global customer base to seize the huge opportunities of the Fourth Industrial Revolution.”
“This combination offers fantastic opportunities for B&R, its customers and employees. We are convinced that ABB offers the best platform for the next chapter of our growth story. ABB’s global presence, digital offering and complementary portfolio will be key for us to further accelerate our pace of innovation and growth,” said Josef Rainer, co-founder of B&R.
“This is a strong signal for our employees as our operations in Eggelsberg will become ABB’s global center for machine and factory automation,” said Erwin Bernecker, co-founder of B&R. “The most important thing to me is that the companies and their people fit so well together and that our founding location will play such a key role.”
Complementary strengths
With the acquisition, ABB will expand its industrial automation offering by integrating B&R’s innovative products in PLC, Industrial PCs and servo motion as well as its software and solution suite. ABB will offer its customers a uniquely comprehensive, open-architecture automation portfolio.
B&R has grown successfully with a revenue CAGR of 11 % over the last two decades. Revenues more than quintupled since 2000 to more than $600 million (2015/16). The company has a rapidly growing global customer base of more than 4,000 machine manufacturers, a proven track record in automation software and solutions and unrivaled application expertise for customers in the machine and factory automation market segment.
Both companies have complementary portfolios. ABB is a leading provider of solutions serving customers in utilities, industry and transport & infrastructure. B&R is a leading solution provider in the automation of machines and factories for industries such as plastics, packaging, food and beverage. The joint commitment to open architecture increases customer choice and flexibility facilitating connectivity in increasingly digitalized industries.
Substantial investments in innovation
Innovation is at the heart of both companies. B&R invests more than 10 percent of its sales in R&D and employs more than 1,000 people in R&D and application engineering. ABB spends $1.5 billion annually on R&D and employs some 30,000 technologists and engineering specialists. Going forward, ABB and B&R will continue to invest considerably in R&D.
Automation of machines and factories is a key driver of the Fourth Industrial Revolution and the IoT. ABB will continue B&R’s strong solution-based business model and build on its deep domain expertise to develop new software-based services and solutions for end-to-end digitalization. ABB’s industry-leading digital offering, ABB Ability, will now capitalize on the large installed base, application and solution know-how, simulation software expertise and advanced engineering tools of B&R.
Proven integration approach
On closing of the transaction, B&R will become part of ABB’s Industrial Automation division as a new global business unit – Machine & Factory Automation – headed by the current Managing Director, Hans Wimmer. Both companies consider B&R’s management and employees as a key driver of future growth and the business integration together with their counterparts from ABB. The co-founders of B&R, Erwin Bernecker and Josef Rainer, will act as advisors during the integration phase to ensure continuity.
The integration will be growth-focused and live by the “best-of-both-worlds” principle, with ABB adding its own PLC and servo drive activities to the offering of the new business unit in a phased approach. ABB underlines its clear commitment to continuing the B&R growth story by articulating a mid-term sales ambition to exceed $1 billion.
ABB is committed to further investing in the expansion of B&R’s operations and to building on the company’s successful business model and brand. B&R’s headquarters in Eggelsberg will become ABB’s global center for machine and factory automation.
Austria benefits as technology and business hub
With this acquisition, ABB becomes the largest industrial automation player in Austria. ABB has operated in Austria for more than 100 years. With the strong future role, B&R and its headquarters in Austria will play as part of ABB, Austria, particularly Upper Austria, will benefit. The planned expansion of the R&D and production activities in Eggelsberg and Gilgenberg will strengthen Austria’s high-tech industrial landscape.
Transaction financials
The transaction multiple is in line with peer valuations. The parties agreed not to disclose the purchase price. ABB will finance the acquisition in cash. The transaction is expected to be operationally EPS accretive in the first year, and is expected to add significant synergies of about 8% of B&R’s stand-alone revenue in year four. The transaction is expected to close in summer 2017, subject to customary regulatory clearances.
by Gary Mintchell | Mar 8, 2017 | Automation, Internet of Things, Manufacturing IT, Operations Management, Technology
You’re a technology provider and wish to expand your presence in the Internet of Things (IoT) space? Build partnerships. I’ve written about several over the past year. There will be more. This is the age of partnership. Right now companies have figured out that they cannot be all things to all people.
Here is an interesting one. Opto 22 is not a large company, but because of that it is always pushing the envelope of OT and IT applications. On the other hand, we have IBM, a huge company, and its vaunted Watson super computer technology. A little like peanut butter and chocolate, looks like a winning combination.
Industrial automation manufacturer and Internet of Things application toolset provider Opto 22 announced it has been accepted into the IBM® Watson IoT™ Partner Ecosystem. This partnership provides developers with a full stack toolset for building applications that connect real-world signals and data from industrial “things” to the digital world of information technology, mobile, and cloud computing.
Tapping A $6 Trillion Opportunity
A Business Insider report forecasts there will be $4.8 trillion in aggregate IoT investment between 2016 and 2021. Billions of sensors, machines, and devices already exist in industrial infrastructure but are currently unable to connect to the Internet of things and cloud-based applications, like the IBM Watson IoT Platform.
This legacy equipment holds valuable untapped data that is needed to improve business processes and decisions in almost every enterprise and every industry. The partnership between IBM and Opto 22 enables developers to rapidly design, prototype, and deploy applications to connect existing industrial assets to the IBM Watson IoT platform and share their data, capabilities, and resources with other connected systems and assets, to build the Industrial Internet of Things (IIoT).
Building IIoT applications has historically been complex, requiring multiple layers of expensive middleware and significant developer manpower. IIoT applications built from the ground up can take months or even years, and require expertise in both the operations technology (OT) domain, where industrial assets live, and the information technology (IT) domain, where digital and cloud computing assets exist. These long development cycles increase cost, slow time to market, and increase risk of IIoT project failure for customers. Together these problems delay and reduce the return on investment for implementing IIoT applications.
Streamlining and Simplifying IIoT Application Development
Through this partnership, developers and systems integrators have a concise toolset for connecting the OT and IT domains. Combining open technologies like RESTful APIs and Node-RED with powerful and proven computing platforms like the IBM Watson IoT platform decreases development time, eliminates the need for expensive middleware, reduces risk for customers, and gets solutions to market faster.
According to Evans Data Corporation, 79% of Internet of Things app developers spend at least 25% of their time on developing analytics tools. The Watson IoT Platform reduces the need to focus on developing analytics systems and provides everything needed to harness the full potential of the Internet of Things. Rather than reinventing the wheel, developers can tap into the already built toolset provided by the IBM Watson IoT Platform.
Developers can connect, set up, and manage edge processing devices like programmable automation controllers from Opto 22 and apply real-time analytics, cognitive services, and blockchain technology to the data generated by these devices. Cognitive APIs deliver natural-language processing, machine-learning capabilities, text analytics, and image analytics to help developers realize the potential of the cognitive era with the IBM Watson IoT Platform.
“The industrial automation and control industry is in transition right now,” says Benson Hougland, Vice President of Marketing and Product Strategy. “A product development strategy based on proprietary and closed technologies is outdated. The future of industrial automation and process control lies in the rising API and data economies made possible through open standards-based technologies. Our objective in partnering with IBM is to enable IIoT developers to build their applications faster using well-known and proven Internet tools and technology like Node-RED, RESTful APIs, and the IBM Watson IoT Platform.”
Getting Started With Opto 22 and IBM Watson IoT
Opto 22 has provided a recipe for developers to get started in connecting industrial systems to the Watson IoT Platform, as well as a video walking developers through the steps. Developers can access a trial version of the Watson IoT Platform on the IBM website.
by Gary Mintchell | Mar 7, 2017 | Automation, Industrial Computers, Software
One under-the-radar trend in industrial automation and software is the development of a marketplace. Several companies have one type of marketplace or another. I think it’s going to prove to be a powerful concept. Here is a take on it from Advantech.
Advantech, a leader of the global industrial computing market, launches the WISE-PaaS Marketplace, an online software shopping website that features exclusive software services provided by Advantech and its partners. The WISE-PaaS Marketplace provides diverse WISE-PaaS IoT application software, including WebAccess/SCADA, WebAccess/HMI, WebAccess/IVS, WebAccess/IMM, WebAccess/NMS, online IoT cloud services, and IoT security services. The WISE-PaaS Marketplace is a sharing platform to integrate with IoT solutions developed by solution partners to provide the building blocks for customers to upgrade existing business systems to Industrial IoT and Industry 4.0 quickly and easily.
Share Success, Grow Business, and Innovate Services
The Wise-PaaS Marketplace is aimed at diverse solution offerings that provide cloud infrastructure services, security services, integrated WISE-PaaS IoT software services, and domain-focused applications for simple and rapid deployment. The WISE-PaaS Marketplace is a value-sharing platform/ecosystem that enables customers to market unique IoT applications and services, increase business opportunities and growth, and maximize returns under the profit-sharing system.
Ongoing Innovation for Future IoT Trends
Customers can subscribe software services via Wise-PaaS Marketplace with WISE-points included in the WISE-PaaS VIP membership packages to access numerous IoT solutions and create IoT innovations for future IoT trends.
