Aging infrastructure, maximized manufacturing capacity and new data opportunities could set the stage for some major investments in 2015, said Raj Batra, president of Digital Factory, Siemens USA, who spoke this morning at Siemensāannual state-of-the-industry presentation on trends and factors affecting the discrete and process manufacturing industries in 2015. As the worldās top automation supplier (http://www.controlglobal.com/assets/00_images/2014/12/CG1412-Top50AutoVendors.pdf), Siemens provides a unique perspective on whatās happening globally.
āThe overall U.S. economic environment is quite positive,ā said Batra. āAnalysts are almost uniformly projecting manufacturing expansion will continue in the United States.ā He noted that low energy costs, economic stability and a highly qualified workforce are big factors in the continued growth. āThe mood about U.S. manufacturing is very positive. Itās born out by market research from the National Association of Manufacturers and optimism from consumers,ā said Batra.
Because manufacturers find themselves strapped to add production, Batra sees 2015 as a possible breakout year for capital spending. āCompanies are bumping up against running at capacity,ā he explains. āCapital investments in industry are overdue, especially in the United States. It costs manufacturers billions annually in lost downtime and productivity.ā Batra also cited the Morgan Stanley study on aging manufacturing infrastructure that reported it hasnāt been this old since 1968.
āA lot of companies, especially in the automotive and food and beverage sectors, are bumping up against the edge of productivity,ā said Batra. āEighty percent of manufacturing costs are predetermined in the design phase. The automotive industry is a trendsetter for other industries, but aerospace is catching up quickly. It doesnāt matter what product youāre making, the pace of demand is incredible.ā
Digital Factory is one of nine Siemens divisions, part of the restructuring that was announced in 2014 by CEO Joe Kaeser. āWe opened fiscal year 2015 last October with a new organization setup called Vision 2020 (http://www.siemens.com/annual/14/en/download/pdf/Siemens_AR2014_Vision2020.pdf),ā said Batra.
Siemensā Digital Factory division comprises PLM and MES, as well as automation, motion and industry control. āOur division includes solutions for any industry that would use the full discrete line of products,ā explained Batra. āAutomation and design software have begun to merge. Weāre after creating a digital twin of what we do in the real worldāvirtual build, virtual test, virtual design. We feel very strongly this is a paradigm shift. Weāre very serious about the entire value chain, since 80% of production costs are predetermined in the design phase. Companies are modeling and simulating. This is a very important trend.ā
Siemens' Totally Integrated Automation (TIA) portal is one engineering framework that has an inherent capability to go up to the PLM enterprise, explained Batra. āIoT and big data are big drivers for industry today,ā he said. āThe manufacturing sector is an early and intensive user of data. In aerospace, the Boeing 737 generates as much data on a cross-country flight as what exists in the Library of Congress. IoT isnāt just for the Fortune 50. Modernizing and standardizing IoT strategies isnāt a question of if, but when.ā