Asia Manufacturing February 2017

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Asia Manufacturing News

February 2017

MANUFACTURING NEWS Success Through Innovation

February 2017

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Key ingredients for designing smart machines and equipment Least skilled workers lose in globalisation

The future according to Elon Musk The Interview: Quah Beng Chieh, FARO (pictured) Industrial IoT Goes Mainstream in 2017 asiamanufacturingnewstoday.com

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EDITORIAL

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New markets needed in challenging year

MANUFACTURING NEWS JEZ Media

Managing Editor Doug Green Art Direction Kim Alves Advertising Enquiries Please visit

Welcome to Asia Manufacturing News www.asiamanufacturingnewstoday.com Doug Green for 2017 and best wishes for a successful business year.

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2017 will be challenging. By the time you have read this Donald Trump will be the new US president and if you are anything like me, curious to know what he will bring to the world economy.

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Over here in Asia Pacific we are not immune to what he will do but need to concentrate on what we do well and get on with it. A changing of the world order is on the cards, but Asia needs to keep on marching to enhance our levels of productivity and creativity in manufacturing and find new markets.

Asia Manufacturing News is published bi-monthly and offers the reader the latest in business and manufacturing news across ASEAN region.

In this February issue Bob Gill and Greg Gorbach of ARC share their views on Industrial IoT (IIoT) going mainstream this year. The pieces have been falling into place for some time now, a trend that accelerated in the last half of 2016 and will certainly characterise 2017.

QUAH Beng Chieh, head of marketing Asia Pacific for FARO Technologies looks ahead and sees some exciting developments that can benefit manufacturers.

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Asia Manufacturing News welcomes articles and contributions and encourages readers to share their development stories and opinions with fellow readers.

Asia Manufacturing News uses information in good faith. We give no guarantee of the accuracy of information provided. No liability is accepted for the result of any actions taken or not taken on the basis of this information. Those acting on the information do so entirely at their own risk.

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Jeff Borland, Professor of Economics at University of Melbourne talks globalisation and the increase in inequality.

Is Elon Musk a dreamer? Maybe not. Currently he is looking for comprehensive solutions to climate issues and beyond.

And there is lots more to read in this issue…

You are welcome to contact me with your developments and success stories, analysis, opinions and forward thinking. Your questions and concerns about the market can be shared with fellow readers who can respond to you and share their ways for improving and growing their business.

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Smart Manufacturing SM✓ Information, Technology and Human Ingenuity

For Media Kit 2017 please e-mail from contact form on Asia Manufacturing News website (http://asiamanufacturingnewstoday. com/) QUAH Beng Chieh, Head of Marketing, Asia Pacific, FARO Technologies

CONTENTS 6 | THE INTERVIEW QUAH Beng Chieh, Head of Marketing Asia Pacific, FARO Technologies.

8 | ANALYSIS Least skilled workers are losers in globalisation.

10 – 18 | MANUFACTURING TECHNOLOGY The future according to Elon Musk.

Automation is not the end of the world.

Enabling employee productivity through technology.

IoT revolutionising electronics industry.

Robot revolution: Rise of the intelligent automated workforce.

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20 | DEVELOPMENTS Milk powder factory boosts Chinese infant formula supply.

22 | EVENTS Japan Smart Energy Week in March.

23 – 24 | FORWARD THINKING Industrial IoT Goes Mainstream in 2017

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26- 27 | BUSINESS NEWS Outlook Interview: Efacec.

28 – 30 | ANALYSIS When it comes to ‘saving globalisation’ world leaders still missing the point.

31-32 | PRODUCT NEWS Comfort leads to efficiency with new reach stacker.

Record-size gear unit in one-piece housing.

33-35 | DEVELOPMENTS

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The promise of greener power generation.

Key ingredients for designing smart machines and equipment.

Asia Manufacturing News

February 2017

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THE INTERVIEW

QUAH Beng Chieh, Head of Marketing, How does FARO see the current business climate?

How does FARO see the market changing?

The global business climate is expected to remain bearish in the months ahead, but we are optimistic about growth across Asia. In the past year, FARO has been expanding its capabilities and enhancing its product solutions through acquisitions of new companies and technologies – like BuildIT Software & Solutions Ltd. and Laser Projection Technologies. Inc. This growth strategy has worked for us and we will continue to explore relevant industries to expand into, such as Public Safety Forensics, Factory Automation, and more.

In the last decade, we have observed a shift in demand among our customers – from contact to non-contact measurement methods. Factors such as the popularity of additive manufacturing, the rise of automated in-line inspections, and the general change in preference for more ergonomic designs (as opposed to ‘boxy’ designs primarily formed with straight lines) played a part in this change.

We expect to see more advanced scanning solutions that cater to new measurement demands.

As the economy continues to grow in Asia, manufacturers are expected to expand their operations, optimise their businesses to reduce cost, and develop their capabilities to capture new markets. These business activities translate to a rise in demand for measurement and imaging solutions, and we expect a corresponding increase in manufacturers’ interest for our products.

The FARO team has been actively promoting its solutions to the Asia market, by educating the users on how our 3D measurement solutions can benefit their businesses. The company is committed to supporting manufacturers in all their measurement needs.

What have been the highlights of 2016 for FARO? Is business strong for the company?

2016 has been a good year for FARO all round. Earlier in March, FARO restructured its business into 5 vertically focused teams – namely, factory metrology, product design, construction BIM-CIM, public safety forensics, and 3D solutions and services applications.

This restructuring exercise was motivated by our desire to develop and deliver industry and application specific solutions to our customers.

In line with the restructure, the company launched a record number of new solutions for users from the 5 industry verticals, including the FARO BIM Scan Localizer, FARO Design ScanArm, FARO Laser Scanner Focus, FARO Cobalt Multi-Array Imager, FARO VectorR, FARO Tracer Laser Projector, and the FARO Laser Tracker Vantage.

With this new direction, our customers now have access to different solutions that cater to their specific needs, rather than generic ones. We have received very positive feedback from the market and the sales of our new products have been steadily growing since their launch.

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Where is the future of manufacturing?

As products become more complex in design, both in form and functionality, the demand for advanced measurement solutions that can handle such requirements become more commonplace.

Increasingly, non-contact measurement devices such as the FARO Edge ScanArm are fast becoming standard equipment for manufacturers. The Edge ScanArm not only obtains up to half a million points per second, but also scans dark, shiny objects, capturing every contour and

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February 2017

FARO: Outlook 2017

Asia Pacific, FARO Technologies crevice on an object in high precision. The spatial data can be easily presented in a 3-dimensional point cloud output for analysis, measurement, inspection, and reporting.

Furthermore, with the addition of the FARO Cobalt Robo-Imager, manufacturers can automate quality control processes that used to require an operator, which greatly enhances productivity, effectiveness, and efficiency. More importantly, automation improves accuracy as human error is taken out of the equation.

How important is R&D for the company?

FARO is attuned to the manufacturing industry’s trends and demands, and we make continued investment to develop new 3D measurement technology to cater to our customers’ needs.

We are committed to R&D and we recognise the importance of customers’ feedback in our R&D activities.

FARO enjoys strong and close relationships with our customers – we have an open channel for customers to provide their feedback to us. This allows us to identify areas in which we can improve upon and to affirm the direction of our earlier initiatives.

Our R&D team applies the latest advances in technology to improve and augment our portfolio of solutions – we strive not just to enhance the features of our products but also on the user experience. This way, we ensure that FARO meets market needs today and anticipate new ones tomorrow, securing the company’s leading position in the measurement industry.

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MANUFACTURING NEWS Manufacturing Technology Industry 4.0 The Future of Manufacturing (including converging technologies)

in April

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Disruptive and Future Technologies IIoT of Manufacturing

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3D and 4D Developments

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ANALYSIS

LEAST-SKILLED WORKERS ARE LOSERS IN GLOBALISATION Jeff Borland Jeff Borland is a Friend of The Conversation.

Professor of Economics, University of Melbourne Most experts say globalisation spreads wealth, bringing people out of poverty and nations closer together. But right now some politicians and their supporters are arguing it simply increases inequality.

Concern over the employment consequences of globalisation is again driving political debate. Look no further than the United Kingdom’s exit from the European Union and the rise of protectionism in American and Australian politics to see the disenfranchisement of low-skill workers with the effects of international trade.

Judging by the dramatic change that has occurred in the global distribution of manufacturing output in the past 25 years it’s easy to see why these workers should be so concerned.

In the early 1990s the United States accounted for 30% of manufacturing output, retaining the position as the world’s leading industrial producer that it had held for almost a hundred years.

At that time China produced only 5% of global manufacturing output.

Today that position has completely reversed.

China produces 25% of manufacturing output and the US only 15%.

Differences in labour costs between the US and China explain much of this transition. Many types of manufactured goods mainly require relatively low-skill labour to produce (especially goods such as textiles and footwear, motor vehicles, electronic consumer goods).

Developing countries, where wages paid to low-skill labour are much lower than in developed countries, are able to produce these manufactured goods more cheaply. As developing countries such as China have increased their engagement with international trade this has caused a 8

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large-scale switch in the location of production of manufactured goods – from developed to developing countries.

Recent research has found that low-skill workers in the US have been made significantly worse off by the transfer of manufacturing activity to China.

The research estimates that, without the rise in Chinese imports, there would be 560,000 extra manufacturing jobs in the US today. As well, workers in industries most exposed to competition from Chinese imports are found to have experienced an average income decline of over $500 per annum against annual earnings of $40,000.

This negative effect on annual earnings has been largest for workers with the lowest earnings.

Another important finding is the role of location in explaining the impact on the US labour market of increased imports from China.

Manufacturing industries facing competition from China are concentrated in particular locations in the US (mid-west and south-east). It is in these regions that the impact on low-skill workers has been largest.

Since the 1990s a shift has occurred in manufacturing from developed to developing countries like China.

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The geographic concentration also explains why it is taking workers who have been adversely affected so long to get back into work. A larger number of job seekers chasing the available job vacancies in a region means longer average times spent out of employment.

Manufacturing workers in the US may have been made worse off by globalisation, but economic theory predicts that there should also have been winners in the US. With increased international trade, the US can produce and export to China more of the goods where it has a comparative advantage as a supplier – such as professional services that require high-skill labour to produce.

In other words, China uses the extra income it earns by selling manufactured goods to the US to buy other goods and services from the US. However, so far there is not much evidence that this has happened. Instead of using its extra income gained from selling manufactured goods to buy more imports from the US, throughout the 2000s China saved that income, maintaining a large trade surplus.

The benefits to US workers from globalisation, therefore, have been muted compared to the prediction of economic theory.

The experience of a rapid rise in imports of manufactured goods from China is, of course, not unique to the US. While much less is known about the impacts on those other countries, what is known is consistent with the US experience.

Other research finds that in the UK in the 2000s, workers in sectors most affected by growth in imports from China spent more time out of employment and experienced a drop in earnings.

Again, these effects were most pronounced for low-skill workers.

Australia has shared the experience of rising exposure to international trade with the US and UK. From 1960 to the mid-1970s in Australia the share of international trade (exports plus imports) in GDP was constant at about 25%.

Since then the role of international trade in economic activity has increased steadily, now being above 40%. While there has not been much

February 2017

research on the topic for Australia, it seems that the recent rise in China’s manufacturing output has had less impact than in the US or UK. There had already been substantial declines in the share of workers in the Australian manufacturing industry in the 1970s and 1980s, so there was less scope for a negative effect.

What Australia has shared with other developed countries is a commitment to being increasingly open to international trade. To a large degree this policy stance has been motivated by economic theory, which predicts that the gains to the winners from growth in international trade more than offset the costs to the losers.

A lack of evidence about the winners from international trade challenges this orthodoxy – or at least suggests that it cannot be taken as an article of faith.

-Feedback on this article is welcomed. publisher@ xtra.co.nz

Many types of manufactured goods mainly require relatively low-skill labour to produce.

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MANUFACTURING TECHNOLOGY

The future according to Elon Musk Anurag Harsh,SVP Ziff Davis, Author of Going Digital

Elon Musk is often labelled a dreamer, the closest we could get to a real-life Tony Stark. He is an innovative and motivational leader that uses his passion for technology to repeatedly deliver breathtaking results. Now, he is coalescing the various articulations of his business empire to create comprehensive solutions to climate issues and beyond.

The Frontline Against Climate Change Upon completing a $2.6 billion acquisition of SolarCity, Musk secured a future where he can sell electric cars and solar roofs to customers under the Tesla brand. Although a few skeptics deemed this a risky move, his ‘dream big or go home’ attitude quickly silenced critics by unveiling an entire island run by solar power.

The island of Ta’u in American Samoa is more than 4,000 miles from the United States. Power outages are a regular occurrence in this remote location that heavily relies on diesel generators. It’s the perfect example of technology stepping in to improve the old way of doing things.

“Would you like a roof that looks better than a normal roof, last twice as long, cost less and by the way generates electricity?” - Elon Musk Tesla’s microgrid of solar panels will supply nearly 100 percent of the Ta’u’s 600 residents’ energy requirements. The 5,300 solar panels along with 60 Tesla Powerpack batteries illustrate how the future is already here.

These technological advancements will particularly have a positive impact in the developing world. We have already seen this happen with nations skipping telephones and computers by going straight to smartphones. This is another huge reason that mobile browsing has officially overtaken desktop recently.

Renewable energy is an economical solution that could transform developing nations from no power to solar micro-grids within a few years.

Removing the dreaded expense that surrounds our current energy infrastructure seems to be where the 10

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biggest leap forward has been made.

Sure, Ta’u is an easy test case, with its perfect weather and relatively uncomplicated energy needs. But, it is undeniably a shining example of what is possible.

For those who reject the science of climate change, Elon Musk presents an alternative incentive: money. This is a cheaper option that concurrently benefits the planet and consequently its people. How can you argue with savings, high-quality products, and public interest?

Let’s Charge Forward Why are so many people still doubtful of Musk’s ideas? I don’t understand the pushback. Yes, he is radical, but he consistently proves naysayers wrong.

There is something objectively exciting about lowering the carbon footprint on an island where the residents have experienced global warming first hand.

And there is something admirable about tackling a problem that the future administration of one of the world’s most powerful nations deems a fiction.

He needs our support to continue his good work.

Those of you who believe in the urgency of climate change should support him as one of the few companies championing this cause.

The reality is that harkening to the past is good only for inspiration rather than re-creation. We cannot go back in time. We can build a brighter and better future by learning from our mistakes and continuing to evolve together with the public good in mind.

If history has taught us anything at all, it’s that those who dare to throw caution to the wind to change the world are usually the ones who do.

After proving that Tesla can power an island for three days without sunlight, it appears that Elon Musk has given us yet another reason to believe.

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MANUFACTURING TECHNOLOGY

AUTOMATION IS NOT THE END OF THE WORLD. HERE’S WHY

Robots probably will take our jobs. That doesn’t have to be bad news.

For many people worldwide, the answer is unemployment. Work is not just what allows us to sustain ourselves and our families: it expands our possibilities to be and do what we aspire to; it gives meaning and rhythm to our endeavours as part of a broader social contract.

This is why in times of “polycrisis” and broader economic transformations, we dread losing what we hold so dear to a presumed automation apocalypse.

It is true: if a routine task can be performed cheaper, faster and better by a robot, there is a chance it will be. What is also true – and even more certain – is that machines push us to specialize in our competitive advantages: more “human” work, creative and social intelligence, interpersonal and non-routine tasks are what makes us resilient and adaptive to change.

The future of work is about much more than automation. It is about equitable access to opportunities and accessibility. It is as much about finding employment as being entrepreneurial.

The future of work is about new ways to better preserve, share, spread and generate economic and social value. Advances in knowledge and 12

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technology have already empowered us with novel skills and solutions. They come down to three “Cs”: circular, collaborative and connective.

A look into the future of work In the 21st century, progress is about circling the economic and social square. As we reach planetary boundaries and unemployment tops our hierarchy of concerns, we can no longer afford to waste our capital – whether natural or human. A circular economy can help put an end to that.

Investing to make buildings more sustainable, for example, means more energy-efficient houses that curb pollution and help families save more on their energy bill. At the same time, making apartments smarter brings construction workers – who were hard hit by the 2008 financial crisis – back into the labour market, and equips them with new technical skills.

In the same way, projects like Last Mile Works turn inmates – who are generally considered economically passive members of society – into digital entrepreneurs, making them economically active while they are incarcerated and preparing them for reintegration when they are out.

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Trends in Routine and Non-Routine Tasks in Occupations, United States Image: OECD Skills Outlook 2013, OECD

Preserving and uncovering value is not enough.

It must be shared and accessible. This is ever more possible in an increasingly collaborative economy.

Communities in Brooklyn, New York are creating a shared economy for peer-to-peer energy exchange to be more resilient and take neighbours out of energy poverty. So if a house’s solar panels produce excess electricity that would generally go to waste, that surplus can be transferred to another, immediately and at a locally determined price.

Similarly, as cars are on average parked 92% of the time, why not share them with those who face obstacles to mobility and maximise everyone’s benefits?

Finally, circular and collaborative innovations would not run as efficiently – if at all – had we not entered the connective economy.

Thanks to connectivity, drones can be activated with one click to deliver medicines to rural areas, saving lives that an ambulance would have never reached. The most expensive part of that drone – which can be built in 15 minutes – was probably the result of a worldwide hackathon that made it openly accessible and brought its cost down to $8.

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Connectivity has extended our imagination, allowing us to engineer solutions to seemingly unsolvable problems, and invent new professions that not long ago only belonged to science fiction.

Connectivity also means that we can invite more talent – all talent – into the future workplace.

Initiatives like Stevens use virtual exchanges to build cross-cultural skills and facilitate the integration of today’s immigrant children into tomorrow’s ever more diverse workforce.

The elderly and people with disabilities can overcome physical limits and enter digital workplaces. Women can tear down the last barriers of gender discrimination.

When we look at the future of work with circular, collaborative and connective lenses, it stops looking like the automation apocalypse. These “three Cs” are not just attributes of an economy that may well yield minimum waste and maximum benefits for a larger number of people. They are qualities of a networked society in which we become individually stronger when we act collectively.

They are critical skills that allow us to turn specific problems into systemic possibilities, and shape the future of work we want. They are the demonstration that, in the 21st century, solidarity is not just an ethical quality, but it makes social and economic sense. A robot cannot see and seize that.

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high-precision 3D measurement and comparison of parts and MANUFACTURING compound structures within TECHNOLOGY production and quality assurance processes.

The devices are used for inspecting components and assemblies, production planning, inventory documentation, as well as for investigation and CharlieofCamphin, WorkForce Software Vice President of Sales, APJ reconstruction accident sites or crime scenes. They are also employed to generate digital productivity, or how effectively There are three key ways that manufacturing scans ofEmployee historic sites. employee time is managed, is key to ensuring a businesses can enable employee productivity With FARO, 3D measurement business can execute its overall strategy. In the through technology: and documentation needs can be competitive manufacturing industry, a sustained 1. Improving engagement and satisfaction fulfilled confidently.

As a pioneer increase in employee productivity can give the Boosting employee engagement has a direct and market leader in portable business a measurement, competitive advantage. impact on productivity. However, almost half computer-aided FARO consistently applies the Manufacturing businesses that implement (49.5 per cent) of employees are not engaged and latest advances in technology to workforce management technology can achieve a 16.5 per cent are actively disengaged. Workforce make significant its industry-leading product increase in employee productivity and management technology can give employees offerings more accurate, reliable, improvement in their bottom line. self-service tools for tracking time-off balances and easy to use.

Manufacturers are often at the forefront of and requesting leave. This means they have The focus is on simplifying automation technology. However, many still rely greater control and insight over their own shifts workflow with tools that on old-fashioned time sheets and scheduling and holiday time, helping to create an engaged, empower customers, thereby systemsreducing that require productive and loyal workforce. dramatically the manual on-site input from both the business employees. Automating workforce 2. Analyse performance measuring timeand anditslowering overallmanagement costs. systems can help to improve Information on employees’ activities and communication and save time and resources that performance is essential to how well a business Worldwide, approximately be better on strategic priorities. can harness its true value. The data provided by 15,000could customers arespent operating more than 30,000 installations of Automation technology lets companies workforce management systems can provide FARO’s systems.

The company’s minimise the costs of processes such as absence greater insight than traditional methods of worker globalmanagement. headquartersAutomated are locatedabsence tracking, for observation. Manufacturing businesses with in Lake Mary, Florida, with its example, can reduce the time HR managers spend robust workforce analytics and reporting can gain European head office in Stuttgart, on manual tasks. a deep understanding of employee productivity, Germany and its absence-related Asia-Pacific Top-performing organisations are increasingly market trends and customer preferences. This head office in Singapore.

FARO integrating automated absence management tools lets managers develop data-informed strategies has branch locations in Japan, China,toIndia, South Korea, relieve managers of the burdens of handling to improve productivity based on current and Thailand, Malaysia, Vietnam, short- and long-term employee absences. expected trends.

Canada, Mexico, United Kingdom, France, Spain, Italy, Poland, and The Netherlands. u Joseph Arezone, Senior Vice-President, Managing Director for FARO Asia Pacific

ENABLING EMPLOYEE PRODUCTIVITY THROUGH TECHNOLOGY

Community Planning, Sustainable Business and Waste Minimisation Strategies www.envision-nz.com

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Organisations with variable demand need robust scheduling capabilities that can incorporate and analyse customer traffic and point-of-sale data to produced optimised schedules. Demand-based scheduling can improve productivity by scheduling workers where they are needed most.

3. Track skills and certifications Automated tracking of employee skills and certification can help businesses fill open shifts by instantly contacting qualified, eligible workers via their preferred mode of communication. This means the business achieves the optimum balance

February 2017

between staff skills, productivity goals and labour costs.

Businesses with automated workforce management systems can identify roadblocks to employee productivity and develop data-informed employee management programs to help them execute their overall business strategy. With the insight necessary to change processes and attitudes that can hinder overall productivity levels, the technology can give the business a competitive advantage and support its growth.

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MANUFACTURING TECHNOLOGY

INTERNET OF THINGS REVOLUTIONISING THE ELECTRONICS INDUSTRY

In keeping with the motto “Connected Worlds— Safe and Secure,” electronica, the largest electronics trade fair in the world, took place in Munich at the end of last year.

A total of 2,913 companies from more than 50 countries presented their solutions for this sector.

They used the industry gathering to network with approximately 73,000 visitors and dialog with professionals from around the world.

According to Falk Senger, Managing Director at Messe München: “This year’s electronica did an impressive job of demonstrating how the various aspects of our lives will network with one another in the future and redefine our everyday lives.”

Kurt Sievers, Chairman of electronica’s Technical Advisory Board, European Vice President and General Manager Automotive, NXP Semiconductors, adds: “Smart technologies and applications make it vital for new security solutions to keep up with this development. Security by design is an important guiding principle for the industry.”

“It will play a key role in the future,” explains Christoph Stoppok, Managing Director of the Electronic Components and Systems Division and the PCB and Electronic Systems Division of the ZVEI (German Electrical and Electronic Manufacturers’ Association).

“The only way to instill trust in consumers is to make high-tech products and their components secure.” As the electronica Trend Index revealed,

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consumers around the world are aware that security in connected devices is essential.

Facts and figures about the fair Approximately 73,000 trade visitors from more than 80 countries attended the fair in Munich.

As a survey conducted by Gelszus Messe-Marktforschung revealed, satisfaction among visitors remained high. 99 percent gave the fair a rating of good to excellent.

Besides Germany, the countries with the largest number of visitors were Italy, Austria, Great Britain and Northern Ireland, France, Switzerland, USA, Israel, the Russian Federation, Poland and Slovenia, in that order. There was a significant increase in the number of visitors from France, China, Slovenia, Turkey and Israel.

A total of 2,913 exhibitors from than 50 countries presented their products and technologies at the fair. That corresponds to an increase of 7 percent over the 2014 exhibition, continuing a trend during the last few years.

“More and more companies present components in the context of applications,” explains Senger.

Besides Germany, the countries with the largest contingents of exhibitors were China, Taiwan, the USA and Great Britain (in that order).

Automotive electronics continues to make headway “Today, 80 per cent of innovations are being driven by microelectronics and software,” says Falk Senger, the Managing Director at Messe München. From new assistance systems to sensors and LEDs—automotive electronics continues to increase its presence at electronica. One-third of all exhibitors presented solutions for this sector.

The day before the fair started, the electronica Automotive Conference, in which 228 visitors from more than 20 countries participated, was an important prelude to this topic. A total of 228 visitors from 20 countries participated in the conference, a considerable increase over 2014.

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Strong related events and conference program In keeping with the motto “Connected Worlds—Safe and Sound”, key figures from the semiconductor industry, OEMS and the scientific sector got warmed up at the CEO Roundtable on the first day of the fair.

This year’s discussion showed that security is important, but also highly complex. However, it can only be achieved in close collaboration with the IT industry.

The Internet of Things and cyber security were also key themes of the Embedded Platforms Conference, which also saw an increase in attendance with a total of 218 participants.

IT2Industry, the International Trade Fair and Open Conference for Intelligent, Digitally Networked Working Environments, was also a success. It allowed visitors to gather information about topics such as Industrial Software & Systems, Industrial IT Security, Big Data & Cloud, Smart Factory, M2M Communication and Embedded Systems.

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Successful start for electronica Fast Forward For the first time ever, electronica featured a new platform that revolves around aspiring founders and start-ups. For four days, 35 participants from around the world competed for the electronica Fast Forward Award in the categories “Idea,” “Prototype,“ and “Start-up.”

They demonstrated the enormous innovative strength and dynamics that lie in electronics and gave the industry important momentum with their ideas. And their efforts were rewarded with the electronica Fast Forward Award. Additional information about the finalists is available under “electronica Fast Forward” at the electronica website.

The next electronica takes place in Munich from November 13–16, 2018.

“The only way to instill trust in consumers is to make high-tech products and their components secure.”

ROBOT REVOLUTION: RISE OF THE INTELLIGENT AUTOMATED WORKFORCE Danushka Bollegala Senior Lecturer at the Department of Computer Science, University of Liverpool Losing jobs to technology is nothing new. Since the industrial revolution, roles that were once exclusively performed by humans have been slowly but steadily replaced by some form of automated machinery.

Even in cases where the human worker is not completely replaced by a machine, humans have learnt to rely on a battery of machinery to be more efficient and accurate.

A report from the Oxford Martin School’s Programme on the Impacts of Future Technology said that 47% of all jobs in the US are likely to be replaced by automated systems. Among the jobs soon to be replaced by machines are real estate

brokers, animal breeders, tax advisers, data entry workers, receptionists, and various personal assistants.

But you won’t need to pack up your desk and hand over to a computer just yet, and in fact jobs that require a certain level of social intelligence and creativity such as in education, healthcare, the arts and media are likely to remain in demand from humans, because such tasks remain difficult to be computerised.

Letting machines do the bulk of the work means that humans will be freed from routine tasks. asiamanufacturingnewstoday.com

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MANUFACTURING TECHNOLOGY Like it or not, we now live in an era dominated by artificial intelligence(AI). AI can be seen as a collection of technologies that can be used to imitate or even to outperform tasks performed by humans using machines.

We might not first see it but we cannot avoid running into one or more systems that use some form of an AI algorithm in our day-to-day activities – such as searching for some information using Google, purchasing a recommended product on Amazon, or recognising faces in an image uploaded to Facebook.

Deep learning Recent breakthroughs in AI are largely attributable to a technique called deep learning.

Often known as machine learning or neural networking, deep learning involves “training” a computer model so it can recognise objects from images. The power of deep learning-based AI systems lies in their ability to automatically detect noticeable features and use them to solve hard recognition problems.

Although humans could easily perform such recognition tasks almost unconsciously, it is often difficult for a human to explain the exact procedure at a sufficiently detailed level so that it could be programmed into a computer.

With deep learning all this has changed. Now, deep learning-based AI systems can figure out the important features for solving difficult problems that were once thought to be solvable exclusively by humans.

And as a result, humans will have to mentally prepare for the fact that some of our jobs will be lost to AI systems. We might even have to call AI systems our colleagues or bosses in the near future.

But despite the deeper level of knowledge that our computers will soon acquire, losing our jobs to machines doesn’t have to be a bad thing.

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Letting machines do the bulk of the work means that humans will be freed from routine tasks that computers are better at performing with higher accuracy rates, such as driving cars.

This should enable humans to think like humans instead of machines. It will also free up time and energy for humans to engage in more creative and intellectually stimulating activities, possibly assisted by AI. Emotional intelligence AI systems have already become far too complicated for the average person to understand, let alone repair, so there will be new roles created which will require people who can act as intermediaries between computers and humans.

Similar to professions such as medicine or law, where professionals with specialised skills are required to interpret technical details for everyday folk, we will need professionals who speak the language of AI. These professionals may vary in their skills and are likely to consist of software developers, computer scientists and data scientists.

But ethical issues arising from human and AI co-working environments is a real concern. It is one thing getting a face incorrectly recognised in an image uploaded to Facebook, but a totally different matter if cancer is misdiagnosed by an AI, which could very easily happen. After all, computers make mistakes, just as people do.

Although AI-based systems are becoming smarter than humans in many fields, these systems are far from perfect and are unlikely to ever be perfect considering the unpredictable learning mechanisms they use.

That said, it is likely to be the social and cultural changes that will be the real challenge, rather than the technical challenge of AI itself. So while robots taking over our jobs can be a good thing, only time will tell if we are ready to accept them as our co-workers.

Asia Manufacturing News

February 2017

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DEVELOPMENTS

MILK POWDER FACTORY BOOSTS CHINESE INFANT FORMULA SUPPLY Supply of infant and adult milk powder into Asia has received a boost following the opening of a Chinese-owned processing plant in South Australia.

The Blue Lake Dairy Group has officially opened its processing plant in the southeast of South Australia.

Stage one of the two-stage project will enable the production of 20,000 tonnes of infant and adult formula, using powdered milk.

Stage two is expected to involve a new $50 million factory to convert milk into powder.

Demand for high quality powdered milk from Australia, which is perceived as being clean and green

by Chinese consumers, has skyrocketed since 2008 when six babies died and 300,000 became ill after drinking contaminated Chinese formula.

The Chinese-owned Blue Lake Dairy Group was formed in 2015.

Blue Lake Dairy Group Managing Director Mr Wang Xin Xiang said assistance from the South Australian Government and Wattle Range Council had been valuable in helping the project come to fruition.

“The BLDG is looking forward to continuing their investment in South Australia and in their milk processing facility with the approval process for Stage 2 of the BLDG project, a new milk drying facility, expected to commence in coming months,” he said.

Investment Attraction South Australia (IASA) has helped Blue Lake Dairy Group through each stage of the $65 million project.

IASA helped the company navigate the relevant planning and development processes, access training subsidies, and worked closely with the Dairy Authority of South Australia to expedite licensing and accreditation for the production of infant formula.

South Australian Premier Jay Weatherill said the project would provide a significant boost for the local economy.

“The company’s investment demonstrates that South Australia’s regions have an abundance of unique, premium products and many opportunities for foreign investment, which creates local jobs,” he said.

“This is particularly the case in the South East which continues to play a big role in driving our state’s economy, contributing $3.6 billion in gross regional product in industries such as forestry, beef and dairy cattle, lucerne seed production and rock lobsters.”

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EVENTS

JAPAN WORLD SMART ENERGY WEEK 2017 IN MARCH World Smart Energy Week 2017, is organised by Reed Exhibitions Japan, bringing 1,570 exhibitors and nine renewable energy shows- Hydrogen & Fuel Cell Expo, Int’l Photovoltaic Power Generation Expo, Photovoltaic Power Generation Expo, Battery Japan- 8th Int’l Rechargeable Battery Expo, Smart Grid Expo, Wind Expo 2017- Wind Energy Expo & Conference, Energy Market Liberalisation Expo, Biomass Expo and Thermal Power Expo -1st Next-generation Thermal Power Generation Expo.

Japan World Smart Energy Week 2017 - invites all green, clean technology professionals and companies.

Japan has been notable for its avant-gardism, its leadership, and its competitiveness in green technology and clean energy, in terms of its investment in research and development for Smart and Renewable Energy efficiency technologies.

In addition, Japan also tends to be the world’s second-largest investor in renewable energy, reaching a threshold of 23 GW of installed renewable energy sources (including 9 GW of hydro power and 5.6 GW of solar power).

70,000 professionals from the sector are expected to visit, with simultaneous BtoB conferences and seminars are being held on major themes comprising expert panellists.

World Smart Energy Week 2017 is welcoming

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internationally renowned green energy specialists, and influential figures from the business milieu to engage with the business opportunities.

There are plenty of business opportunities to be seized for Non-Japanese companies in Japan under the clean and green energy sector Banner.

Professionals and companies having products in the following domains are welcome TO participate and visit the expo: electricity, energy efficiency; natural gas, petroleum, petrochemicals, solar energy (cells, modules, panels), wind energy, biomass, hydrogen, nanotechnologies, processing technology products Storage technology and products, analytical technology and products, hydrogen and fuel cell technology.

Photovoltaic system integration/installation technology, Technology relating to smart grid systems Japan is a country with high purchasing power, and explores avenues to partner with global companies on many dimensions. As such, quality and relevance are equally important along with pricing factors, which, for example, allows global companies to explore business and trading options with Japanese counterpart companies.

World Smart Energy Week 2017, is held during March 1st to 3rd 2017 at Tokyo Big Sight

Asia Manufacturing News

February 2017

INDUSTRIAL IOT GOES MAINSTREAM IN 2017

By Greg Gorbach and Bob Gill

Welcome to 2017, the year when Industrial IoT (IIoT) goes mainstream. The pieces have been falling into place for some time now, a trend that accelerated in the last half of 2016 and will certainly characterise 2017.

We saw a lot of progress in 2016, notably, a much improved understanding of IIoT architectures, security requirements, platforms, sensors and devices, analytics, and open systems. It was also a year when automation suppliers, service providers, and software companies laid the groundwork for success by building IIoT products and services for the industrial market.

Now that many of them have reached critical mass, and can not only talk about, but actually deliver real solutions, we expect to see even more activity as IIoT goes mainstream.

So let’s take a closer look at some of the factors that have brought us to this point and will be strong drivers for 2017 Industrial Analytics & Machine Learning One of the big factors driving the market is the maturation of advanced industrial analytics solutions. There is a growing recognition throughout the industrial space that machine learning or artificial intelligence has reached the point where it can deliver real operational improvements in production.

The same underlying technologies also can enable new business models and services based on smart, connected products.

Still, there is still a fair amount of confusion here, because while new means for solving problems are being offered, often by new market entrants and entrepreneurs, end users are still trying to understand how they work.

Solutions are being dubbed predictive and prescriptive, offered as applications and platforms, and marketed with a mix of confusing terms such as adaptive algorithms, cognitive analysis, data models, machine learning, and many more.

Meanwhile, solution providers are grappling with pricing, sales cycles, service levels, deployment models, and roadmaps. And investors, such as venture capital firms, are pushing solution providers to maximize a return on investment, which can lead to pursuing markets and use cases for which they are not completely prepared.

All of these dynamics are clearly evident in the advanced analytics market. Despite the confusion, users are making significant strides in absorbing the complexity and will put the technology to use in 2017.

From Cloud to Industrial Edge In the first wave of IIoT solutions, a somewhat simplistic idea of the IIoT architecture prevailed, which focused on connectivity of devices and analytics in the cloud. But by the end of 2016, a more robust view in which computing and analytics is deployed at the edge and in the cloud.

ARC’s Chantal Polsonetti has been doing some great research on the industrial edge and will continue to do so in 2017.

An emphasis on bringing higher-level, typically cloud-based functionality to the edge, as well as support of device-to-cloud integration, are primary differentiators between edge computing and today’s control and HMI environment.

Edge or fog computing strategies rely on microprocessor-based devices with standard operating systems capable of hosting applications that can be executed at the edge. How much edge processing to move to network edge devices is still under discussion and varies by customer profile.

Cloud Application Platforms and Ecosystems Cloud application platforms provide a modern approach for developing and deploying software applications. The approach is gradually displacing the older client/server model, in which large complex, monolithic applications were created and run. In industrial companies, the client/server asiamanufacturingnewstoday.com

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FORWARD THINKING model came to dominate both the IT and the OT software spaces in recent decades.

The pace of this changeover is accelerating, however, as more and more companies embrace the modern platform approach. This has also sparked a platform v. platform competition in the marketplace, with large suppliers seeking to have the dominant platform ecosystem and the broadest library of third-party applications, and with smaller suppliers trying to figure out just how they should compete in the emerging environment.

Asset Performance Management Improving asset performance can lead to greater efficiencies in two main areas: improving production performance and offering new business models and services based on smart, connected products.

One of the most promising areas for substantial change is asset performance management (APM), and it’s no surprise to find a lot of solutions focused on predictive maintenance, asset analytics, and asset management. There are opportunities to better utilize assets, coordinate with operating and business needs, improve the availability of replacement parts, and improve the efficiency of field service groups. Equipment manufacturers are rapidly adopting IIoT to offer asset health monitoring and predictive maintenance subscriptions for new sources of aftermarket revenue.

IIoT in the Oil & Gas Industry At ARC we’re always asked about use cases for IIoT, and we’ve been collecting many examples across many industry segments and publishing these on our Industrial IoT/Industrie 4.0 Viewpoints blog.

ARC analysts Tim Shea and Peter Reynolds have written many posts that feature specific examples in the oil and gas sector, and we expect that this activity will only increase in 2017, as companies gain experience in using IIoT to transform various aspects of their business.

For instance, recent ARC Advisory Group research indicates that investment in oilfield operations management systems (OOMS) can 24

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provide significant operational value and ROI. We forecast more robust demand from applications that can leverage the power of IIoT-enabled solutions such as advanced analytics and simulation tools to help lower costs and boost production.

IIoT-enabled OOMS solutions that can help automate workflows and improve productivity are also expected to be in greater demand as companies struggle to increase production with fewer employees, especially those who are more experienced and possess deep domain expertise.

Network Communications As telcos look towards to the Internet of Things as the next driver of data traffic growth, network equipment suppliers such as Ericsson, Huawei and others are developing technologies to meet emerging standards, notably NB-IoT and LTE-M, for efficiently connecting things rather than people on cellular networks.

Furthermore, the ramp-up in speed and performance that goes with the next evolution (commercial roll-out anticipated in the 2020 timeframe) of the cellular story, 5G, brings with it increased relevance for IIoT. The extremely low latency of one millisecond (versus about 25 ms for 4G) makes 5G viable for critical industrial applications – such as cloud robotics – involving control rather than just monitoring.

Meanwhile, in the unlicensed spectrum, the two major LPWAN (Power Wide Area Network proponents, LoRa Alliance and Sigfox, offer technology for connecting low-cost, battery-operated sensors over long distances. Singapore is set to see the first Sigfox deployment in Asia this year, and the network is expected to play a useful role in the context of the country’s Smart Nation initiative.

Just the Beginning Expect to see a lot of IIoT/I4.0 projects get kicked off this year, but keep in mind that it’s only the beginning! *Greg Gorbach is Vice President, Information-Driven Manufacturing, and Bob Gill is General, Manager, Southeast Asia, are from ARC Advisory Group (www.arcweb.com).

www.10thousandtrees.com

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BUSINESS NEWS

EFACEC: OUTLOOK INTERVIEW -Jorge Couto, Managing Director, Efacec Singapore What are some common logistics problems that

may meet with challenges concerning warehouse

manufacturers in Asia face?

distribution, especially due to a growing popularity of

In Asia, some common problems that manufacturers face include warehouse visibility, traceability, and the

e-commerce.

As online shopping continues to give physical malls

ability to deal with larger volumes of small-quantity

a run for their money, effective logistics and order

orders. Increasingly, it is becoming a top priority for

fulfilment solutions such as the WMS, RFID, and

companies to gain visibility over movements in the

automatic storage and retrieval systems (ASRS) will be

warehouse.

essential to cater to this rising demand.

Companies who do not yet have warehouse visibility

Additionally, with significant increases in e-commerce,

tools may lose out in retrieving real-time updates on

production across most of the consumer segments

inventory, orders, and shipments. By gaining visibility

will naturally grow. This will create new demands for

in the warehouse, manufacturers are also able to better

automated warehousing solutions, and may bring about

recognize bottlenecks, and implement corrective actions

a completely new dimension in the storage and handling

to achieve higher warehouse productivity.

of retail goods.

Traceability is another challenge that manufacturers

Despite the current challenging economic climate,

face, as companies are coming under pressure to

we still see a market for Efacec’s technologies due to a

conduct thorough warehouse audits. In this regard,

global shift towards automation. Regardless, Efacec will

automated warehousing technologies can facilitate fast

continue to be here in Asia to support our customers

product recall in times of crisis. The process requires

with our logistics expertise and range of innovative

information such as delivery and shipping activities.

warehousing technologies.

With appropriate warehouse technologies, such as the Warehouse Management System (WMS) and the

In a nutshell, how was 2016 for Efacec?

The year was a particularly interesting one for Efacec.

Radio-Frequency Identification (RFID), companies can

We had opportunities that have enabled us to grow

maintain high standards of quality control and accelerate

sustainably in this rough economy. We are working

responsiveness in times of product recall.

with various companies across different manufacturing

Currently where customers are constantly turning

industries and distribution channels globally, and we

to the internet to purchase anything – from groceries

have also secured several new orders with domestic

to garments, and even electronic goods – companies

businesses in the region.

have to be adept at picking, sorting, and delivering large volumes of small-quantity orders quickly.

This can be challenging for companies that do not possess warehouse management systems that are flexible and robust enough to handle the demand.

Are there potential challenges you foresee within Asia that may impact Efacec’s business in the future?

For the past 20 years, Efacec has fully committed to providing first-class automated solutions to its customers in Asia. We have had numerous opportunities to work with customers from a wide variety of industries.

From what we have observed, Asian manufacturers 26

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Warehousing solutions continue to play an integral part in businesses – whichever industry they are from – so we are in a privileged position to help our customers, enabling them to focus on their business activities to

Asia Manufacturing News

stay ahead of their competition.

Efacec believes in providing its customers with additional value. At times, our customers may integrate

February 2017

Area Logistics Systems of the Körber Group, and we are confident of bringing new perspectives to the Business Area.

warehousing solutions from different providers, yet our

With Körber’s support, Efacec will be able to better

engineers are still able to provide maintenance services

meet the needs of its target audience, and we will focus

for complete systems, whether or not they are designed

on our research and development activities to design

by Efacec.

new warehousing technologies.

In particular, our team in Singapore excels at

At the same time, we will continue to participate in

retrofitting older ASRS systems, including models sold

industry events and platforms like before, to create

by other third-party suppliers. This has worked well for

brand awareness and to share the benefits of automated

us this year as we took on several retrofitting projects,

warehousing solutions across this region.

and we will continue to find other ways to support our

We believe that this strategy will support our plans to

customers.

enter new ASEAN markets such as Thailand, Indonesia,

What are some new sectors that you’d like to see

Myanmar, Philippines, and Vietnam. Automated

automated warehousing solutions being used in?

warehousing solutions will slowly influence the way that

Market needs have evolved rapidly over the years. A

manufacturers operate in this region, and we want to

decade ago, manual operations were the norm. From

support them in their transition towards adopting new

processing to storage and retrievals, and even to packing

technologies.

orders, companies conducted all their warehouse

What growth opportunities do you see for Efacec in

procedures manually.

2017?

Now, automated warehousing solutions are slowly

Efacec has extremely aggressive expansion plans

becoming the new norm in manufacturing industries, as

for Asia, particularly in Southeast Asia. We expect that

companies recognise the competitive advantages that

manufacturers will continue to exhibit a growing interest

these technologies offer to their businesses.

in automated systems, by integrating them across

At present, the industries in which automated warehousing solutions are commonly found include the food and beverage (F&B), paper, pharmaceutical,

production shop floors, warehouses, and transportation networks for better business productivity.

With our years of experience in the Asian market, we

tobacco, as well as the supply chain and logistics

are confident of being the ideal automated warehouse

segments. Many of these businesses have managed to

solutions providers to support our customers in

integrate automated warehousing solutions with great

optimizing their logistics processes for highest

success.

performance.

With regard to new sectors, we look forward to seeing

Plans for new automated logistics solutions are also

more automated logistics technologies being integrated

currently in the pipeline, and Efacec will soon launch

in the e-commerce industry, distribution centers, and

new proven products and warehousing technologies,

cold rooms. As these segments continue to grow,

designed to fully address future logistics challenges.

automated technologies like Efacec’s conveyor systems,

Efacec is also gearing up to expand into new sectors

WMS, and RFID solutions can provide these businesses

like the banking industry, and we are prioritizing research

with an extra boost to their existing operations.

and development activities to continue developing more

With automated logistics solutions, business owners will no longer be restrained by considerations such

effective and targeted solutions for our customers.

In 2017, we also look forward to growing Efacec’s staff

as workplace safety and employees’ working hours,

strength in Asia. At the same time, we aim to increase

allowing operations to continue 24/7 even in high-risk

the overall efficiency of the company, enhancing our

storage environments.

performance levels across different departments,

Efacec has been acquired by the Körber Group, what

including after-sales, project management, sales and

does this mean for Efacec?

marketing, and programming. We are wholly committed

Efacec Handling Solutions is now part of the Business

to supporting our customers every step of the way.

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ANALYSIS

WHEN IT COMES TO ‘SAVING GLOBALISATION’ WORLD LEADERS ARE STILL MISSING THE POINT -Shuaihua Cheng Managing Director for China, International Centre for Trade and Sustainable Development (ICTSD) As trade liberalisation and globalisation more broadly are called into question, G20 leaders could do with both interpreting the situation and changing it.

It is not an easy task for the G20, which is a diverse group of developed and emerging economies, accounting for around 80% of GDP. In spite of their great success in launching a trade and investment working group and agreeing on guiding principles of investment policy-making, G20 leaders failed to address the emergence of anti-globalisation voices.

Here are four things they got wrong – and three ways they can turn the situation around in 2017.

When protectionism makes sense Here’s the first thing they got wrong when they met in China: their statement reaffirming their “opposition to protectionism on trade and investment in all its forms”. In fact, this is not only

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legally inaccurate, but it’s beyond their political mandate.

In the World Trade Organisation’s current rule book, certain defensive trade measures are totally legitimate. That includes anti-dumping and countervailing duties, safeguard measures, and other restrictive policy instruments to protect public interest.

The only caveat is these measures must be applied in a way that is consistent with the conditions and methodologies agreed by all members.

Opposing all forms of protection unnecessarily raises public fears and is politically hazardous.

Some protectionist measures are designed to function as indispensable safety valves, to ensure that nations have the right to restrict trade and investment in certain, clearly defined conditions, while still benefiting from progressively liberalised

Asia Manufacturing News

trade and investment. Far from being condemned, this type of protective trade measure should be guaranteed.

In 2017, G20 leaders may wish to take a more legally sensible and politically nuanced approach. They could instead, for example, call on all members to refrain from using any illegal measures that seek to restrict trade and investment. They could also reiterate that any legal protective measures that are put in place should be strictly applied according to international economic laws and regulations.

Stop harping on about the benefits of globalisation The second thing G20 leaders spoken about in their China meeting was the importance of communicating “the benefits of trade and open markets to the wider public more effectively”.

Is this what the situation calls for right now: more preaching from trade evangelists? On the contrary, I would argue that so far, the benefits of trade have been oversold. People aren’t idiots: they’re well aware of the benefits of globalisation, trade and open markets.

They see the evidence in their latest smartphone, their kitchen appliances and the clothes in their wardrobe.

What leaders and policy-makers haven’t done is communicate the inevitable side-effects. As a result, those who lose out are taken by surprise when these negative consequences start to affect them. When they complain, they’re dismissed rather than shown the understanding and empathy they deserve.

In 2017, I hope G20 leaders will speak out about these negative consequences and make it clear that those people left behind by globalization have not been abandoned by their leaders.

Sharing the costs and benefits G20 leaders spoke in China about the need for “appropriate domestic policies to ensure that benefits are widely distributed.”

In fact, it’s not just that the benefits are unevenly

February 2017

distributed – it’s that the negative consequences are as well. Any policies we put in place will fail unless they recognise this subtle but important distinction.

At the domestic level, that calls for policies of vertical redistribution. Public authorities should use tax revenues from globalisation’s winners to empower the less competitive portion of the population who fail or gain much less in more open markets, with targeted skills training and social safety nets.

A similar approach could be used for creating new job opportunities: for example, authorities could use tax revenue to increase public investment in infrastructure, improving the quality of affordable education, and lowering administrative and logistic costs for micro and small businesses.

Change is also needed at an international level.

This has been very difficult to achieve so far, largely because there is an enormous amount of polarization between rich and poor countries.

When workers in developed countries hear trade liberalisation, they think offshoring and job losses to places like China, Mexico or Vietnam.

When those in developing countries hear the term, they think of the multinationals that seem to benefit more from their cheap labour than they themselves do. Both complaints need to be addressed.

2017: a time for change?

In 2017, Germany will take over the G20 presidency. In her video outlining her vision, Chancellor Angela Merkel spoke of the need to “shape an interconnected world”, make globalisation work for all, intensify international cooperation, and oppose isolationism and any return to nationalism. Interestingly, she stayed away from the ambiguous term “protectionism”.

In attempting to do so, G20 leaders should consider three important points.

Make trade, not war First, while leaders must stop focusing so much

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on the benefits of globalisation – which, as we’ve discussed, the public already know – they should still remember the strategic value of open trade regimes for international peace and prosperity.

“If we could increase commercial exchanges among nations through lowered trade and tariff barriers and remove international obstacles to trade, we would go a long way towards eliminating war itself”, former US Secretary of State Cordell Hull wrote in his memoirs following two devastating world wars.

The GATT, the predecessor of the World Trade Organisation, was a brain child of many of those war-time statesmen. Their goal was to ensure an open, non-discriminatory and predictable trading environment. They knew all too well that when goods don’t cross borders, soldiers will.

The power of listening Secondly, trade liberalisation alone is not sufficient for guaranteeing international peace and economic wellbeing. Other international and domestic policies should be put in place if we are to reap all the benefits of trade and tackle some of its disrupting side effects.

Before developing hard policies, political leaders and opinion leaders should take a softer approach. They could start by attempting to gain a better understanding of one another’s domestic difficulties and supporting policies that could alleviate these problems and therefore help safeguard open trade.

Us against the robots Finally, G20 leaders need to prepare for a new world

where jobs are replaced by computers and automation.

This has already altered the trade landscape. According to a new study, about 88% of job losses in the US manufacturing sectors were because of automation and other domestic factors, rather than international trade.

If academics at the Oxford Martin School are to be believed, this trend will continue over the next two decades, with 47% of all jobs falling victim to automation.

No nation will escape this future, so it is up to us all to work together. We can do that by sharing best practices on how to ensure our citizens are equipped with skills that even robots can’t do, or how to strengthen laws and legislations to protect worker bargaining power. We should also look to increase level of policy harmonisation between nations on taxation and employment policies.

The time for action The economic case for trade leaves no room for uncertainty, and yet trade and globalisation are coming under increasing attack. Whether the sum total of benefits and downsides of trade is positive depends not just on trade.

Sustainable development also requires upgrading education, infrastructure and in-country innovation, as well as mutual understandings and policy harmonisation on employment, taxation and other factors unrelated to trade.

To trade or not to trade, that is not a question. But if we want to make sure we reap the benefits it has to offer, in 2017 G20 leaders must not just talk a good talk; they must start acting to protect an open trading system in which nobody is left behind.

Goodyear Eagle-360 concept tyre one of “Best Inventions of the Year 2016” Each year, Time magazine’s technology editors list the year’s “best inventions that are making the world better, smarter and—in some cases—a little more fun.”

This year’s list includes 25 inventions, which in addition to Goodyear’s Eagle-360 concept, includes a virtual reality headset, shoes that lace themselves, a solar roof collaboration between Tesla and SolarCity, and the Chevy Bolt electric vehicle.

“By steadily reducing the driver interaction and intervention in self-driving vehicles, tires will play an even more important role as the primary link to the road,” said 30

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Goodyear’s Chief Technical Officer Joe Zekoski.

“Goodyear’s concept tires play a dual role in that future both as creative platforms to push the boundaries of conventional thinking and testbeds for next-generation technologies.”

The Goodyear Eagle-360 is a spherical-shaped design concept tire that would provide self-driving cars ultimate maneuverability, connectivity and biomimicry to increase safety. An in-depth description of the concept’s technology can be viewed online at https://www.youtube.com/ watch?v=oSFYwDDVgac.

PRODUCT NEWS

Asia Manufacturing News

February 2017

COMFORT LEADS TO EFFICIENCY WITH NEW REACH STACKER The Port of Södertälje’s brand-new Konecranes reach stacker is having an impact on operator efficiency.

The new reach stacker (model SMV 4531 TC5), which is widely available throughout Australasia, benefits from a unique cab design, making for greater operator comfort leading to more efficient cargo handling.

Bertil Jansson, supervisor at Port of Södertälje, Sweden, says, “We discussed in-depth what we wanted and what was important. We realised that the ergonomics of the cabin, the workspace itself, was a very important aspect. We test drove a number different brands but the experience of driving the Konecranes reach stacker was the best.

‘When sitting in the cab, and operating the machine for a full day, the Konecranes reach stacker came out on top because of the greater visibility, the design of the joystick and so on. It’s very popular with us.”

In order to lift the variety of building project cargo that comes through the port – everything from concrete and walls to complete housing modules - the reach stacker is equipped with extra lifting loops on the spreader, and a power pile slope that allows the yoke to tilt and compensates for an oblique load. The new machine is also equipped with a hydraulic sliding cabin that improves visibility even more.

The Port of Södertälje has also chosen to have the remote monitoring system TRUCONNECT® Premium installed together with the newly released Konecranes Weighing System.

The Port of Södertälje already has a number of Konecranes lift trucks.

24-25 MAY 2017 Horncastle Arena, Christchurch

THE HEARTLAND OF NZ MANUFACTURING The South Island’s largest technology trade show for the Engineering, Manufacturing and Electronics industries.

INTERESTED IN EXHIBITING? CONTACT US NOW

Aad van der Poel Exhibition Manager Aad@xpo.co.nz +64 (9) 976 8350 or +64 (21) 314 199

www.southmach.co.nz Organised By

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PRODUCT NEWS

RECORD-SIZE INDUSTRIAL GEAR UNIT IN ONE-PIECE HOUSING Nord Drivesystems, a leader in drive technology, has engineered an industrial gear unit with 240,000 Nm rated torque load and various application-specific features for a Moroccan mine. It is to date the largest system with a one-piece gear case.

This gear unit is mounted on a drive unit comprising a base, medium-voltage electric motor, hydraulic coupling, electro-hydraulic brake and, of course, the bevel gear unit. It is one of 26 drive units designed by Nord as part of a project for a semi-portable hopper used in a phosphate mine in Morocco.

The company designed each of these units according to an extremely stringent set of specifications and taking into account the harsh environmental and operating conditions.

These units drive a conveyor that is over two kilometers long and which carries phosphate ore with loads exceeding several hundred tonnes.

The high-performance gear unit meets the client’s stringent requirements, in particular maximum uptime and high tolerance to peak loads and impacts.

Tailored to specific applications, the conveyor drive with industrial gear unit in a one-piece housing ensures high load-bearing capacity and ultra-reliable performance.

NORD´s office Casablanca office engineered the drive with the assistance of the engineering offices in France and Germany. An SK 15407 industrial bevel gear unit and a motor with a 450 kW performance rating are mounted on a swing base.

The UNICASE gear design prevents leaks and delivers excellent radial and axial load capacities with a small footprint. The gear unit can be mounted on all six sides as well as by means of a flange. A bevel gear unit configuration was used for this mining application. The drive comprises an electric drum brake.

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February 2017

THE PROMISE OF GREENER POWER GENERATION The characterisation of compounds produced in combustion could lead to cleaner, more efficient power stations.

Modeling the combustion of fossil fuels by Saudi Arabia’s King Abdullah University of Science and Technology (KAUST) researchers has helped to characterise some of the components of methane, laying the foundations for greener power generation.

In energy production, incomplete combustion of fossil fuels, like natural gas, causes the release of air pollutants, such as soot, carbon monoxide, and nitrogen oxides, which are harmful to our health and the environment.

Applying an external electrical field to control the combustion process is known to reduce the formation of these pollutants, but the mechanism for this is not fully understood.

This spurred Aamir Farooq and colleagues at the Clean Combustion Research Center at KAUST to develop a catalog of the compounds formed during the combustion of methane, the primary component of natural gas, which may lead to the design of more efficient gas turbines and less polluting power plants.

“Controlling the charged particles allows a leaner, higher air-to-fuel mix, flame to be burned at lower temperatures, providing a more complete and efficient combustion of the fuel and a reduction in the formation of pollutants,” explains Farooq.

Positively charged particles, called cations, are formed when electrons are stripped from their atoms during combustion. These are less abundant, often by many orders of magnitude, than the neutral molecules also formed which makes observing the formation and behaviour of these ions a significant technical challenge.

To overcome this, the researchers used a McKenna burner to produce a stable, low-pressure methane-oxygen-argon flame. They employed

a specially-designed molecular beam mass spectrometer to measure the ions formed in the flame, allowing them to be distinguished from the more abundant neutral (uncharged) compounds.

“We were able to measure a wide range of ions, allowing us to understand how they form and decay, and lead to the formation of other ions,” explains Farooq. “A surprising and significant observation was the relatively large concentrations of ions other than hydronium.”

The presence of hydronium indicates the acidity of the flame—the more acidic the flame the more favourable are the conditions for forming soot particles; and so measuring its relative concentration is crucial to reducing soot pollution.

Identifying significant deficiencies in current ion models, the work proposes improvements for simulating ion formation and behaviour—new work is considering the ions produced from heavier compounds in natural gas, such as ethane and propane “Our work is the first attempt to identify the cations formed in the combustion of low-pressure methane, and represents a major step towards the use of external electric fields for generating cleaner power,” says Farooq.

A low-pressure flame used at KAUST to study ion chemistry.

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SMART MANUFACTURING

KEY INGREDIENTS FOR DESIGNING SMART MACHINES AND EQUIPMENT By: Dan Seger, Principal Application Engineer, Rockwell Automation OEMs have always been expected to innovate Enterprise generally follows four stages (see and keep pace with end users’ requirements. Yet, sidebar). Still, every journey will be distinct. today in the era of smart manufacturing, end users Factors, such as operational needs, available want to optimise their production and supply chain resources and workforce availability, will be unique by bringing together islands of information – and to each organisation and influence their Connected they want OEMs to help. Delivering on the promise Enterprise roadmap. of smart manufacturing is paramount.

OEMs will encounter end users at different points At the heart of a smart operation is The in their journey. Some will be in the early planning Connected Enterprise. It consists of converged stages. Others may be in the midst of IT/OT information technology (IT) and operations convergence. And others may be ready to integrate technology (OT) systems into a single network smart machines or equipment. architecture. It also uses smart machines and It’s important that OEMs communicate with Internet of Things (IoT) technologies for seamless end users to understand their needs and stage in connectivity and information sharing across the journey. Those conversations also can help people, plants and supply chains.

OEMs identify opportunities to innovate with their As a result, end users need smart machines customers, such as using remote monitoring to and equipment that are designed to thrive in The monitor assets and maximise uptime.

Connected Enterprise and provide nearly endless Ultimately, OEMs must always be ready to equip opportunities to improve their operations. It also end users with smart machines or equipment, can help them address their most pressing needs, regardless of where they are in their journey. such as: • Remaining globally competitive by keeping Technology: Deliver Systems That Match business models relevant and moving from mass Needs production to mass customization.

OEMs that want to enable or support smart • Addressing workforce issues, including retaining manufacturing and industrial operations should the skills of retiring workers, and ensuring IT and rethink traditional, machinery-design approaches.

OT workers are prepared for the influx of new As they consider different design aspects to smart technologies. change and update, five key technology areas are • Addressing risks, including security threats and paramount: increasingly complex regulations.

1. Integrated Safety: Combining standard and • Making the most of Internet- and Ethernet-ensafety control into a single platform enables abled technologies. the use of intelligent, machine-safety-system This all may be daunting for industrial OEMs. designs. This can improve productivity while However, they can meet customers’ needs and still achieving compliance. Safety-system simplify the design of smart systems by focusing data also can be collected to alert operators on three key elements: processes, technology and where safety-related issues are occurring for people. faster downtime resolutions and long-term Processes: Meet End Users on Their Journey improvements.

2. Accessible and Secure Information: End An end user’s journey to The Connected users develop goals for securely accessing and 34

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capitalizing on their operational, business and transactional data. OEMs can support and fulfill those goals by connecting control systems and using performance dashboards that make information available and actionable.

3. Simplified Integration: Replacing a multitiered networking strategy with a single, open EtherNet/IP™ network can simplify the network infrastructure and reduce integration risks.

Likewise, a single, Logix-based control and information platform can ease the collection, transfer and analysis of real-time operations data.

4. Real-Time Diagnostics and Analysis: Embedded-intelligence devices can deliver real-time data for predictive maintenance to help end users more quickly troubleshoot and repair problems. Remote monitoring also can be used to monitor critical parameters and address issues before they reach a point of failure.

5. Operational Efficiency: Design tools and scalable automation technology help OEMs deliver equipment that is flexible for multiple purposes to improve operating efficiency. For example, modular programming and re-usable code can help reduce system complexity and support faster design, commissioning and installation times. Motion-sizing tools also can help make mechatronic designs faster and easier to analyze, as well as help optimize, simulate and select motion-control systems.

People: Secure the Right Skills Today, engineers and programmers must understand the blend of IT/OT technologies used in connected plants and enterprises. They also must know how to configure, operate and sustain their customers’ networked industrial control systems.

Providing training for existing workers can be critical to achieving this, especially because skilled workers are increasingly hard to find. OEMs should strongly consider using training and certification courses that have been specifically developed to help bridge the IT/OT gap in smart operations.

At the same time, OEMs don’t need to go it alone.

They should look to use vendors’ consultative,

February 2017

design, integration and support services to help fill areas of need.

This could include using a vendor’s network and security services to help design a more secure control system in a connected operation.

Safety services also can help smart machines and equipment comply with the latest standards, while virtual support engineers can analyse trends and recommend actions to help prevent downtime.

Keeping Up With Expectations End users still expect machines and equipment to help them optimize processes, achieve compliance, maximize quality and protect workers. But they also now expect those same systems to easily integrate into their operations, offer production intelligence and improve their responsiveness to changing market demands.

With the right mix of processes, technology and people, OEMs can develop smart machines and equipment that meet these higher expectations.

Four Stages of the Connected Enterprise While every end user’s journey to The Connected Enterprise is different, they generally can be expected to follow these four primary stages: 1. Assess and Plan: Conduct assessments to understand the culture and to evaluate the IT/OT infrastructure in place, including controls, networks, information and policies 2. Secure and Upgrade Network Controls: Securely upgrade the network and controls to prepare for future configurations and technologies, such as mobility, big-data analytics and cloud computing 3. Leverage Data and Analytics: Define data, identify how to turn it into actionable information to support better business decisions, and use it to drive continuous improvements 4. Optimize and Collaborate: Optimise operations, and engage with internal teams, suppliers and customers to better respond to internal and external events

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