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December 2017
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December 2017
16 THE INTERVIEW
Willie Tan, FARO Technologies.
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26 THE INTERVIEW Eric Lai, Grundfos.
MANUFACTURING TECHNOLOGY AI is now an arms race. What if the bad guys win?
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EDITORIAL ASIA
MANUFACTURING NEWS
ENVIRONMENTAL TECHNOLOGY AND PRODUCTIVITY If there were two areas to focus strongly on in 2018, I choose Environmental Technology and Productivity.
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Managing Editor Doug Green Art Direction Kim Alves Advertising Enquiries Please visit
Doug Green
Hank These two areas are inter-related, entwined and totally dependent on each worldook Delca ’ m s Refined Productivity can benefit Environmental Technology and, of for CA biggesother. M use t rscourse, Climate Change.
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For your company to thrive in 2018 plan well. Look at the issues which are affecting our society and environment and you will realise that a better way of living means doing things in a more caring and thoughtful way.
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Electric cars, solar energy are very much to the fore. But there is the elephant in the room called coal which countries still depend on. It is cheap energy, dangerous energy and a real cause for concern at a time we are trying to tidy up the environment and tackle climate change.
latest in business and manufacturing
Because coal is an economic form of generating energy it does not make it right. For developing countries who use it for economies of scale there needs to be a huge rethink. Because if solar energy can be used on a wide scale why should it not be the energy of choice?
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With Climate Change causing real concern we need to be smarter. With temperatures becoming warmer what is not to like about solar energy?
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Productivity? Work smarter, not harder. Utilise the fantastic technologies we have at our disposal but not at the cost of workers. Do not place the dollar in front of the person. Mix them well, create harmony, enhance skills, make the job more fulfilling.
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Enjoy the read and may 2018 be a rewarding year for you, your company and staff.
Asia Manufacturing News is published bi-monthly and offers the reader the news across ASEAN region. Asia Manufacturing News welcomes articles and contributions and encourages stories and opinions with fellow readers. Asia Manufacturing News uses information in good faith. We give no provided. No liability is accepted for the the basis of this information. Those acting on the information do so entirely at their own risk.
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Smart Manufacturing SM✓ Information, Technology and Human Ingenuity
Cover picture - The Digital Capability Center (DCC) in Singapore, a cooperation between the world’s leading management consulting firm, McKinsey & Company, global technology provider, PTC.
CONTENTS 5 | THE INTERVIEW Willie Tan, FARO
6 | BUSINESS BOOKS 2017 Be inspired. Some great reading here.
8 | ANALYSIS Why freight rates may rise further. China’s ambition burns bright.
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12 | BUSINESS NEWS VFA conference speaker Reema Jagtiani answers some questions. 13 | FOOD Asia making strides in global organic food market.
14 | DEVELOPMENTS
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Toyota selects recipients for 2017 Environmental Activities Grant. FARO acquires Dustin Forensics.
16 | THE INTERVIEW Eric Lai, Grundfos.
18 | DEVELOPMENTS Continuing success for Konecranes in South Korea. China to build high-speed rail to Singapore, via Laos.
23 | MANUFACTURING TECHNOLOGY
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EcoStruxure Building to unlock new levels of value.
23 | NEW PRODUCTS Aqueous hot water innovation cost-efficient solution. Enerpac cylinders durable and safe.
24 | ENERGY The power plant of the future is in your home.
26 | MANUFACTURING TECHNOLOGY
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AI is now an arms race. Drones detect human vital signs from afar. Focus 70 | Laser scanner extends portfolio. Full- strength metal 3D printed parts go mainstream.
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30 | DEVELOPMENTS Technology innovations and India opportunity.
THE INTERVIEW
Asia Manufacturing News
December 2017
WILLIE TAN, FARO TECHNOLOGIES What does Industry 4.0 mean to FARO and how is the company going forward? Industry 4.0 is mainly the digitalisation and networking of production processes and environments, and possessing key tools such as production measuring technology and sensor technology will benefit companies on this journey toward the ‘Internet of Things’. Under this new paradigm, automation solutions can take over dangerous, monotonous, or strenuous tasks; operate in areas not fit for humans; as well as increase productivity and secure wage-intensive locations. On the path toward Industry 4.0, FARO offers manufacturers solid support in the form of measuring and imaging technology. The company deploys high-precision instruments for both tactile and non-contact recording of objects, whether by means of visual imaging procedures, tactile measuring arms, or laser scan technology. In addition, Industry 4.0 also entails big data processing and analytics to derive appropriate data for rapid decision making, which can lead to increased productivity. FARO is also focusing on this aspect of extraction and capture of such data in real-time in manufacturing to help deliver the SmartFactory vision of Industry 4.0. The FARO Robo Imager is an example of what optical measuring systems are capable of, when combined with a collaborative robot arm. Various measuring tasks can be successively integrated into production as a mobile measuring station along the production line. The Robo Imager reduces the need for laborious measurements in the measuring room. As a fixed installation, it serves for continual quality testing along the manufacturing line, and can thus support the automation process down the line. Intelligent interfaces ensure that the data gathered can quickly be made available for further use in all common software applications.
How has 2017 been for FARO? 2017 has been an exciting year of renewal, following the reorganisation of our solutions and a series of strategic acquisitions made by the company. Despite the current less-than-rosy global economic situation, FARO continues to see growth in Asia, across multiple industries — such as construction, infrastructure, and heavy machinery.
Disruptive technology…where does your company fit in? FARO has always been in the business of innovation, and the team always applies the latest advances in technology into the development of computer-aided measurement and imaging devices and software. Through this, we enable our users to complete their measurement tasks more easily, quickly, and accurately – whether in high-precision 3D measurement within production/ quality assurance processes, product design CAD analyses needs, 3D capture of as-built construction projects, or in the capture and analyses of real world data for public safety forensics applications. In the drive towards Industry 4.0, FARO has most recently released Visual Inspect, which is a true next generation solution that moves 3D CAD viewing away from the traditional desktop PC to an “in-hand, on demand” solution on a mobile device such as the iPad. 3D CAD data is stored locally in the iPad through an innovative, compressed mobile format. Together with the use of augmented reality (AR), users can gain real-time, actionable manufacturing insights and take decisive action. This can enable earlier stage error detection in production, construction, or design processes, such that factories can now incorporate manufacturing process management (MPM) anywhere across their business. Continued on Page 23
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BUSINESS BOOKS
BUSINESS BOOKS
2017
The One Device: The Secret History of the iPhone by Brian Merchant This examination of the iPhone includes analysis of both the enormous cultural impact of the device and a history of its manufacturing process. It was on the shortlist of finalists for the Financial Times and McKinsey Business Book of the Year. “’The One Device’ is a road map for design and engineering genius, an anthropology of the modern age and an unprecedented view into one of the most secretive companies in history. This is the untold account, ten years in the making, of the device that changed everything,” the Financial Times says.
The Captain Class: The Hidden Force That Creates the World’s Greatest Teams
Machine, Platform, Crowd: Harnessing Our Digital Future by Andrew McAfee and Erik Brynjolfsson
The authors from MIT’s Sloan School of Management explain how businesses can best use artificial intelligence and crowd wisdom and how leaders should manage amid these massive technological changes. “Beneath all the concrete problems it raises, an intriguing question lies at the heart of the book: Given the rise of algorithmic decision making, the ability to outsource tasks to the crowd, and such technologies as blockchain, will the corporation as we know it become obsolete?” writes Strategy + Business reviewer James Surowiecki.
by Sam Walker
The Spider Network by David Enrich
The deputy editor for enterprise at the Wall Street Journal and a former sports columnist, Walker identified the preeminent sports teams throughout history and determined they all had an influential captain at the time they reigned supreme. He then analyses the seven commonalities of those captains.
This is the story behind the Libor scandal, the deliberate manipulation of the key banking interest rates. It was one the of finalists for the Financial Times and McKinsey Business Book of the Year. Twitter Ads info and privacy The Spider Network is the almost-unbelievable and darkly entertaining inside account of the Libor scandal – one of history’s biggest, farthest-reaching scams to hit Wall Street since the global financial crisis, written by the only journalist with access to Tom Hayes before he was imprisoned for 14 years,” the Financial Times says of its top pick.
Reset by Ellen Pao This is Pao’s story of suing the esteemed venture capital firm Kleiner Perkins Caufield & Byers for discrimination. She lost the suit, but the litigation brought attention to the overwhelmingly white, male culture of Silicon Valley. It was a finalist for the Financial Times and McKinsey Business Book of the Year.
Principles: Life and Work by Ray Dalio Business and life coach Tony Robbins preaches the importance of constantly educating yourself. The book is Dalio’s explanation of the highly unique leadership strategy he employs at his wildly successful hedge fund, Bridgewater Associates.
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If You’re in a Dogfight, Become a Cat: Strategies for Long-Term Growth by Leonard Sherman
The Columbia Business School professor and consultant analyses the formidable growth of companies including JetBlue, Southwest Airlines, IKEA and Apple. It was selected as the best book in the “strategy” category on the 17th annual best business books of the year list by the book reviewers at the management publisher Strategy + Business. Twitter Ads info and privacy
The Great Leveller: Violence and the History of Inequality from the Stone Age to the Twenty-First Century by Walter Scheidel
The professor of history at Stanford University examines inequality across history. The book was on the list of finalists for the Financial Times and McKinsey Business Book of the
Asia Manufacturing News
Year, as well as being the best book in the “economics” category on the 17th annual best business books of the year list from Strategy + Business.
Janesville by Amy Goldstein The Pulitzer Prize-winning reporter studied Janesville, Wis., after General Motors shuttered its assembly plant there during the Great Recession. It won the award for the Financial Times and McKinseyBusiness Book of the Year and the accompanying £30,000 ($39,339) prize. Twitter Ads info and privacy “This is the story of what happens to an industrial town in the American heartland when its factory stills — but it’s not the familiar tale. Most observers record the immediate shock of vanished jobs, but few stay around long enough to notice what happens next when a community with a can-do spirit tries to pick itself up.
Stealing Fire: How Silicon Valley, the Navy SEALs, and Maverick Scientists Are Revolutionising the Way We Live and Work,by Steven Kotler and Jamie Wheal This is a study of how to achieve peak performance by getting to a flow state of being exceptionally present. It was selected as the best book in the “management” category on the 17th annual best business books of the year list by the book reviewers at the management publisher Strategy + Business. Twitter Ads info and privacy”Most books that focus on using neuroscience in order to work better concentrate on improving our
December 2017
understanding and control of our own brains. But ‘Stealing Fire’ shows us how to find peak performance through release rather than effort: “We get in the peak performance zone not by finding ourselves but by allowing our sense of self to vanish. The goal is to enter ‘an elongated present,’ which researchers also describe as ‘the deep now,’” writes the Strategy + Business reviewer Duff McDonald.
Adaptive Markets by Andrew Lo
This is an analysis on the effectiveness of economic markets. It was on the shortlist of finalists for the Financial Times and McKinsey Business Book of the Year.
Once Upon a Time in Shaolin: The Untold Story of Wu-Tang Clan’s Million-Dollar Secret Album, the Devaluation of Music, and America’s New Public Enemy No.1 by
Cyrus Bozorgmehr
This is the story of Wu-Tang Clan’s effort to create an album and sell it to only one buyer. The rap group sold their album to Martin Shkreli, the “pharma bro” business man turned convicted felon. At the time Wu-Tang sold the album to Shkreli, the rap group had no idea about his nefarious doings. Twitter Ads info and privacy
Superconsumers: A Simple, Speedy, and Sustainable Path to Superior Growth
by Eddie Yoon
This is a delve into what makes a consumer obsessed with a product. It was selected as the best book in the “marketing” category on the 17th annual best business books of the year list by the book reviewers at the management publisher Strategy + Business. strategy+business@stratandbiz Twitter Ads info and privacy
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Deadlines Editorial and advertising deadline is 26 January 2018. Banner advertising to be addressed to
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ANALYSIS
Asian businesses are facing a scarcity of shipping capacity rarely seen in the past.
WHY FREIGHT RATES MAY RISE FURTHER The cost of air freight and sea freight has risen sharply over the past year, and DHL believes freight charges will increase further as global trade recovers and capacity is reduced amid the continuation of mergers and acquisitions in the once-overcrowded container shipping industry. Don’t expect freight rates to fall anytime soon. Here’s why. The growing demand for space on board freight carriers is reflected by the sharp jump in exports from Europe and Asia since June 2016, following a torrid 2015 and 2016 when major countries like the United States and China reported a drop in the value of their imports and exports. Exporters are already experiencing long wait periods on certain maritime routes, and such constraints are likely to worsen in late-August and September, which is the peak season for shipments as retailers stock up ahead of the year-end holidays. According to Drewry’s, a maritime research and consulting firm, global freight rates were on average 37% higher in the first five months of 2017 compared to the corresponding period in 2016. The ascent was even more rapid on specific routes, with spot rates from North Europe to China climbing around 45% in the space of a week in March when ocean freight firms dropped a few scheduled services and increased blank shipping in industry parlance due to the Chinese New Year. Conditions in the air cargo industry are just as unfavourable, with carriers reducing capacity and strategically important airports such as Hong Kong cutting the number of slots for air freight transport. The situation in the aviation sector has been further
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complicated by tensions in the Middle East where Saudi Arabia, Egypt, the United Arab Emirates and Bahrain have banned most freight logistics movement with Qatar, contributing to a supply squeeze that has prompted carriers to hike rates. “Looking at the current situation in air freight, it is absolutely possible that carriers further increase freight rates and surcharges. This can sooner or later result in freight forwarding companies and logistics providers needing to adapt their rates too,” says Li Wenjun, Head of Air Freight at DHL Global Forwarding Asia Pacific. Ocean freight’s capacity crunch has also put upward pressure on air freight as a key alternative.
Consolidation in container shipping One factor behind the rise in freight shipping rates is the recovery in the global economy, which the International Monetary Fund predicts will expand by 3.5% this year from 3.2% in 2016, lifted by better performances in China, Japan and the Eurozone. The IMF expects next year’s growth to be even stronger at 3.6%. A bigger factor, however, is the consolidation in the container shipping after years of losses or sharply reduced profits, giving the survivors greater pricing power while reducing capacity across the industry. The current wave of mergers and acquisitions started in 2015 when France’s CMA CGM, currently the world’s number three, agreed to buy Singapore’s Neptune Orient Lines and China announced plans to merge its two shipping groups to form Cosco Shipping Holdings, now Asia’s biggest container line.
Asia Manufacturing News
In August last year, South Korea’s Hanjin Shipping, then the world’s seventh largest freight shipping company, filed for bankruptcy protection, leaving billions of dollars of cargo stranded at sea for months. Hanjin was wound up earlier this year. Other global names are in the process of combining their operations. For example, Nippon Yusen KK, Mitsui O.S.K. Lines and Kawasaki Kisen Kaisha, Japan’s biggest shipping companies, have agreed to combine their freight carrier operations and are targeting an April 2018 start. Most recently, Cosco said it will buy Orient Overseas International Ltd, or OOIL, in a deal that will allow it to leapfrog CMA CGN to become the world’s third largest shipping line. Ocean freight has become a “seller’s market”, says Karsten Michaelis, Head, Ocean Freight, DHL Global Forwarding Asia Pacific, as many carriers try to recoup losses incurred over the past six years by paring back less profitable sailings and routes wherever possible.
Changing trade patterns
December 2017
Asia has been growing faster than westbound shipments, with the disparity widest in the Mediterranean where shipments to Asia have soared even as imports decline. Further complicating matters are changing weather patterns that have resulted in lower water levels at key European ports such as Hamburg, which mean ships entering or leaving European ports cannot be loaded to the maximum capacity. Michaelis says staff have been helping customers avoid delays by leveraging longstanding relationship with shipping lines, offering flexible routings and relying more on rail shipments between Europe and Asia in both directions. “For certain customers we were able to offer dedicated block trains to and from Asia,” he adds. While more expensive than ocean shipping, trains can transport cargo from China to Europe in about 15 days compared to about 40 days by sea. The cost of rail transport is roughly a quarter to a third of air freight, which has become more expensive amid a shortage of capacity and higher jet fuel prices. Given the rising cost of freight which is likely to climb further in coming months, businesses should not rule out passing on increase to customers. “While many businesses are loath to do this spuriously – and rightly so – they should also remember that much of the upward pressure on ocean freight rates comes from growth in Asia’s consumer demand – and higher demand, more often than not, allows for greater latitude in pricing,” says Michaelis. This will enable companies to reduce the pressure on their own margins without compromising sales in any major way, he adds.
“While many businesses are loath to (raise prices) spuriously, they should also remember that much of the upward pressure on ocean freight rates comes from growth in Asia’s consumer demand.”
Up until recently, companies in Europe had no difficulty finding ships or planes to carry their goods to Asia. Rates were also attractive as China sold a lot more than it bought, meaning a ship laden with goods on its way from Shanghai to Hamburg would often return half empty. This is no longer the case. Rising consumer purchasing power across Asia has driven demand for European products like meat, milk powder and alcohol. For example, Chinese imports of beverages and tobacco alone grew more than 50% between 2013 and 2016. European companies are also selling more industrial goods to China and other Asian countries to support the region’s fast-growing economy. As a result, eastbound ocean freight between Europe and
asiamanufacturingnewstoday.com
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ANALYSIS
China’s ambition burns bright – with Xi Jinping firmly in charge
-Nick Bisley, Executive Director of La Trobe Asia and Professor of International Relations, La Trobe University The most important political event of 2017, the 19th Chinese Communist Party Congress, has concluded. And while there was much to digest, one image above all stands out: Xi Jinping’s political dominance and his burning ambition for China. The party congress is held every five years and has two main functions. The first is to lay out the policy program for the coming half-decade. The other is to confirm the people who will occupy the key leadership roles within the party. In short, it’s about policy and people. The tone was set at the Xi’s opening address. Formally presenting the work report of the 18th Central Committee, he outlined the huge steps China has taken over the past five years and his vision for China over not just the next five years, but out to 2049 – the centenary of the People’s Republic of China’s foundation. He affirmed that within a few decades, China would become a prosperous modern socialist society and the world’s most important country, both in terms of national power and international influence. Gone is the old dictum that China has to bide its time and hide its power. Humility and caution have been replaced by confident and assertive leadership. Xi also declared that China would remain economically open and provide leadership on climate change and other environmental concerns. The centrepiece of China’s international policy will be the Belt and Road Initiative that is now part of the party’s constitution. But Xi was equally stern about threats and challenges, whether from within or beyond – the country would use all means to defend its interests and sovereignty. This means China’s muscular approach to disputes in the East and South China Sea, with India and elsewhere, is certain to continue. Hard work, ongoing reform and leadership will be needed to bring all this about. The only force capable of doing this, made clear at the congress, is the Chinese Communist Party. While nods were made toward market forces playing a more important role in resource allocation, the congress’ message was unmistakable: the key player in the economy, indeed in all aspects of Chinese life, will be the party. This is Leninism for the 21st century. And the party will be unified around an austere vision laid out by Xi. The anti-corruption program that has been such a significant part of his first five years in office will become a permanent campaign. Xi had launched the anti-graft measures to root out the significant problem of corruption, but also to eliminate rival centres of power. That will be a core element of party business in the future. In his first five years, Xi focused on consolidating his power base, unifying the party and presenting a more confident face to the world. The congress made clear that the next five are about paramount leader Xi driving China to its position atop the international totem pole. At the very start of the congress, the opening address gave a clue as to what was coming the work program presented by Xi was “for a new era”.
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Xi Jinping affirmed that, within a few decades, China would become a prosperous modern socialist society and the world’s most important country.
Xi made clear that the People’s Republic of China’s history can be divided into three eras. The first was the creation of the republic, led by Mao. The reform period, led by Deng Xiaoping was its second. Now the third era, in which the “Chinese dream of national rejuvenation” to be realised by Xi, has begun. With the Leninism of party centrality has also come a disturbing nascent cult of personality. To formalise this on the congress’ final day, delegates unanimously voted to incorporate “Xi Jinping thought on socialism with Chinese charactersitics” into the party constitution. His is now a core purpose of the party and marks him out as the most powerful figure within the party for so long as he remains alive. Prior to the congress there was much speculation about whether or not he would seek to break the party norm of two five-year terms as general secretary. By this move he has rendered such questions moot. Whether he remains in office for more than five years or whether he formally stands down has become almost immaterial: he will be the dominant figure in the country. To reinforce this, when the new seven-man standing committee of the politburo was announced the day after the congress’ conclusion there was no obvious successor as part of the grouping. All five of the new faces – Li Zhanshu, Wang Yang, Wang Huning, Zhao Leji and Han Zheng – will need to retire at the next congress. So while the leadership is new, it is entirely subordinate to the general secretary. Xi now clearly sits atop the party and the party commands China. Over the coming three decades China will seek to become the world’s dominant country. Notwithstanding Xi’s huge confidence there is a very considerable amount of work to be done to realise these ambitions. It is far from certain whether China’s economy be reformed in the ways necessary to drive the levels of growth needed to fuel this program. Equally, the party will face continual challenges of unity and legitimacy. Internationally, it is difficult to imagine the US acquiescing to China’s desire to supplant it at the centre of world affairs.
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BUSINESS NEWS
VFA conference speaker Reema Jagtiani, Research Analyst at Euromonitor International answers some questions Please give an overview of what your company does. Euromonitor International is the world’s leading independent provider of strategic market research. We create data and analysis on thousands of products and services around the world.
How far is your company’s reach and how far across ASEAN are you connected? We have 12 offices around the globe. Currently four out them are in Asia: Singapore, Tokyo, Shanghai, Bangalore.
What is the value of Vitafoods Asia 2017 to your company? To expose our research capabilities
What markets are you currently focusing on? Euromonitor International’s Asia Pacific (APAC) coverage for health and wellness research captures twelve regional markets: China, Japan, India, Thailand, Indonesia, Malaysia, Philippines, South Korea, Taiwan, Hong Kong, Vietnam and Singapore.
Do you see potential markets for health foods in APAC? And if so, why now? Globally, APAC is the largest regional market for health foods and drinks in terms of absolute retail value sales. The region is home to both emerging and developed markets with a mix of aging populations, large consumer bases with rising incomes as well as demographic segments with increasing incidences of health issues such as obesity. These are some of the diverse factors that shape demand and growth for health and wellness products in APAC. While all APAC markets demonstrate potential for health foods and drinks, the extent of the health and wellness footprint in each market differs according to the factors described above — among other growth and demand drivers.
Are there certain health and wellness foods that are favoured by consumers more than others? Please explain. Fortified/functional foods generated the largest retail value size in APAC to reach sales of US$ 63 billion in 2016. Euromonitor International classifies fortified/functional foods as products that contain added health ingredients such as omega-3, probiotics and calcium. These are products that have been actively enhanced or fortified to boost their nutritional value. They must also be positioned as a health product and accompanied by a health claim in order to be captured within this health and wellness
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category. Except for some slight regional variation, dairy products typically comprise the largest component of fortified/ functional foods in terms of retail value sales and are regularly fortified with probiotics to target digestive health for instance. More recently, new products in APAC have adopted the use of beta-glucan as a cardiovascular health ingredient in dairy products such as milk. In some ways, fortified/functional products stand in contrast to naturally healthy foods (another health and wellness type captured by Euromonitor), which naturally contain ingredients and substances that improve wellbeing. In 2016, naturally healthy foods were the second largest health and wellness category in APAC in retail value terms. In the long run, the line between both types of health and wellness products is likely to blur as consumers grow more discerning and demand more “naturally functional” foods.
Do you see this as an industry with growth potential? In 2016, retail value sales of health and wellness packaged food and beverages reached US$208 billion in APAC alone. The health and wellness industry is expected to continue to grow at a robust compounded annual growth rate (CAGR) of 4% from 2017 to 2021.
Where does majority of health food come from? Where are they normally produced? Within APAC, China is the largest health and wellness market for health foods and drinks, with a regional share of 55% of retail value sales, followed by Japan and India. All three markets are set to remain the top three largest health and wellness markets (in respective order) within APAC in 2021.
FOOD
Asia Manufacturing News
December 2017
ASIA MAKING STRIDES IN
GLOBAL ORGANIC FOOD MARKET Asia is showing some of the highest growth in the global organic food market. New research by Ecovia Intelligence (formerly Organic Monitor) shows that some Asian country markets are reporting double-digit growth rates, with regional sales poised to reach US $10 billion in the coming years. Two of the fastest growing markets for organic products are in China and India. Growing awareness of organic production methods and rising disposable incomes are fuelling demand for organic & sustainable foods. Concerns about food safety & quality appear to be the main motive for consumer purchases in Asia. The Chinese market has expanded significantly in the last decade partly because of the high incidence of food scares, such as rotten meat, sewage oil, and contaminated beef and pork. The melamine scandal - which involved dairy products and infant formula adulterated with the industrial chemical - has had most impact. China now has the largest market for organic infant formula products in the world, worth about US $200 million. The Indian market is also showing accelerated growth. Like China, a burgeoning middle-class is willing to pay a premium for organic foods perceived to be healthier and safer than conventional foods. The recent announcement by the Indian government of a common organic logo and domestic regulation is expected to boost consumer confidence in organic products. India already has the highest number of organic producers in the world, 585,000. In 2016, a major milestone was reached when Sikkim became the first 100% organic state in Asia. High growth in the Asian organic products market is attracting investment. Inner Mongolia Shengmu High-Tech Dairy Company, the largest organic dairy company in China, became publicly listed in 2014. The leading organic food enterprise in India, Sresta Natural Bioproducts, is partly owned by the investment firms Peepul Capital and Ventureast. It sells over 200 organic products under the Mantra Organic brand in its domestic market, as well as exports to international markets. Ecovia Intelligence expects more such investment in the coming years. North America, the region with the premier organic products market, has seen many dedicated organic & natural food companies ‘swallowed up’ by large enterprises. Whole Foods Market was bought by Amazon for US $13.7
billion earlier this year. Prior to that, the multinational Danone acquired Whitewave Foods for a similar fee. In a bid to become one of the most sustainable companies in the world, Unilever purchased Pukka Herbs (UK) and Mãe Terra (Brazil) a few weeks ago. With the regional organic products market poised to show high growth, Asian companies could be hot pickings for investors and large food companies.
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DEVELOPMENTS
TOYOTA SELECTS RECIPIENTS FOR 2017
ENVIRONMENTAL ACTIVITIES GRANT
Toyota Motor Corporation (Toyota) has selected 28 projects as grant recipients of the Toyota Environmental Activities Grant Program. In the 18 years since its introduction in 2000, a cumulative total of 360 projects in 53 countries and regions have received this grant. The program was introduced to commemorate Toyota winning the Global 500 Award1 in 1999. It is also part of Challenge 6: the Challenge of Establishing a Future Society in Harmony with Nature under the Toyota Environmental Challenge 2050, which was announced in 2015. Biodiversity conservation and climate change were chosen as themes for the grant program, which drew 104 applications in the three selection categories--international project grants, domestic project grants, and domestic small project grants. During the screening process, the first and final rounds focused on continuity and future development, harmony with
regional characteristics, among other points. Within the international project grant category, 10 projects were selected, including the “Save the forests in Madagascar and make children smile!” project. In Japan, ten projects were selected from the domestic project category, including the “Coral reef habitat restoration project around the Kerama Islands (Okinawa),” and eight projects, including the “Ex situ conservation project for the critically endangered pink sea milkwort of Noto Peninsula” were selected from the domestic small project grant category. A ceremony will be held this month in Tokyo, where representatives of this year’s selected projects will be presented with grant certificates. A meeting is scheduled to be held next spring to report on the selections. Toyota intends to continue its efforts toward establishing a future society in harmony with nature through various forms of support to NPOs and other organisations in the future.
FARO ACQUIRES DUSTIN FORENSICS FARO, specialist for 3D measurement and imaging solutions for public safety forensics, has acquired Dustin Forensics, a digital forensic animation firm based in Adairsville, Georgia. The acquisition of a world-renowned forensics services firm represents the logical next step in actualising the FARO®vertical business growth strategy. Dustin Forensics has been led by David Dustin, an innovator in 3D crime and accident scene reconstruction and a pioneer in the legitimatisation and admissibility of 3D data as an accepted courtroom tool. David will be taking on the newly created role of Director of
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Public Safety – Forensics Services. “This acquisition, in concert with the recent introduction of FARO Zone 3D and SCENE 7.1 solutions, powerful software platforms specifically developed for forensics, makes a clear statement on our commitment to extending our lead in the global forensics market,” said Joseph Arezone, Chief Commercial Officer. “The combination of Dustin Forensics’ and FARO Technologies’ in-depth 3D expertise will enable a leading edge portfolio of new forensics services.”
Asia Manufacturing News
December 2017
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THE INTERVIEW
THE INTERVIEW: Eric Lai, Regional Business Director - Industry, Asia Pacific Region, Grundfos How does your company view the future of manufacturing in Asia? The manufacturing industry in Asia needs to embrace digitalisation or risk being overtaken. We are expecting more manufacturers across the various industries to incorporate new digital technology and innovations into operations that would improve cost efficiency, productivity and quality. Embracing technology pays off – a recent study by digital corporation Cognizant showed that Asian manufacturers who invested in digital strategies have already seen a 5.4 per cent improvement in revenue. Energy efficiency will also be one of the key drivers in the manufacturing industry to embrace digitalisation. With the onset of climate change and our natural resources dwindling, industries are increasingly implementing sustainable goals to reduce their carbon footprint. Companies also face pressure from government stakeholders. For example in Singapore, with higher electricity prices expected due to the upcoming carbon taxes on power plants in 2019, reducing energy consumption definitely makes business sense.
How do your products specifically have a role to play in this future? Pumps contribute up to 10 per cent of electricity used globally, and are prevalent in the operations across all sectors in the manufacturing industry, whether it is transporting water and wastewater within plants, to the heating and cooling of facilities. Hence, to meet demands for greater productivity and sustainability, the pump industry needs to look towards Industry 4.0 to better collect and leverage big data, connect
different devices, and react in real-time to changes in conditions. For Grundfos, our smart pumps tap into technology that is able to adjust output intuitively to users’ ever-changing demands through receiving feedback from sensors, keeping energy consumption to a bare minimum while productivity high. Being energy efficient also translates to lower operation costs. One example is how a temperature control system uses smart pumps, where they automatically analyse a cooling system, find its optimum setting, before continuously adjusting its operation to changes in demand. This ensures optimum productivity with minimum energy consumption. The pumps are able to intuitively regulate water flow thanks to feedback from temperature sensors to meet the exact requirements of different building zones, intelligently controlling energy consumption by keeping the use of the pump to a bare minimum. When connected to our cloud based monitoring and control, the entire system is a true representation of industry internet of things (IIOT). Our Grundfos Remote Management is able to intelligently manage water flows through the interconnectivity of pumps, sensors and meters on an internet-based system, where changes in a pump’s performance and energy consumption can be monitored and tracked.
How has the technology changed in the manufacture of your products? Over the years, Grundfos innovation prides itself on quality and customisation. Grundfos was the first pump manufacturer that was able to produce complicated shapes in composite, such as special pump housings for OEM customers. Grundfos is now able to produce custom-made pumps in a much more efficient and accurate way. We were also the first pump manufacturer to introduce electronics in pumps in the 1980s. Today, Grundfos is looking at how to better integrate digital, connectivity and cloud-based solutions to create intelligent products and solutions that better meet the needs of customers. Pilot projects include fully online booster sets supported by digitally enabled services.
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Where are growing areas for Grundfos? We see continued demand for water treatment pump solutions in the manufacturing industry. These range from treatment water of facilities such as heating and cooling units, to ultrapure water that goes directly into product manufacturing in the semiconductor, biotechology and pharmaceutical industries. We also see a steady demand coming from the food and beverage industry, brought about by a growing middle class and rapid urbanisation.
How are your pumps adapting to new infrastructure and its pressure on the environment, staying relevant to current energy and environmental concerns? Energy-intensive industries like manufacturing is noted for its impact on the environment and our natural resources, and so businesses are increasingly considering components like pumps that would help reduce their carbon footprint, keeping their operations as sustainable as possible. 90 percent of all pumps today work inefficiently, which means resources are wasted in day-to-day operations. To address this, Grundfos pumps utilise state-of-the-art intelligent components that adapt to the surrounding system, driving energy consumption down considerably. Based on the same concept, we have also developed one of the world’s most efficient motors, the new MGE with IE5 motors, which offers 10 per cent energy savings and up to 25 per cent reduction in payback time of controlled E-pumps compared to standard IE3 solution. These pumps are commonly applied into modular design for water boosting systems, to supply production water at the right pressure and flow rate in manufacturing plants. It has also been used for pumping heated water – in Singapore, one customer saw considerable energy savings once they replaced their existing hot water pumps with our CRE IE5 pumps, reducing the energy needed from 45kW to 37kW. Resources wasted also come in the form of water leakages in pipes, which has been a prevailing issue in cities and modern industries, which we tackle with our Demand Driven Distribution solution. An intelligent water management pumping solution, it automatically adjusts to water flow through the use of remote sensors, and reduces excessive pressure in the water pipes.
This in turn limits water leakages and losses, minimising cost and energy.
How does Grundfos find current business conditions? Business conditions have been positive - we have been gaining global market share, as shown by our recent strong financial results for the first half-year of 2017. We are seeing positive performance in several markets including China and Russia, and the global service business also contributes well to our overall growth performance. For the manufacturing industry, we are seeing growth thanks to demand for E-pumps – our sales has recently crossed the historical milestone of a 30 per cent increase compared to last year.
Does Grundfos invest heavily in R & D? We are continuously looking at setting new standards in the market by finding ways to use new technologies to move and treat water and wastewater. In last year alone, Grundfos invested 4.7 per cent of its turnover into the development of new solutions and launched more than 30 new products and solutions to the market globally.
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DEVELOPMENTS
CONTINUING SUCCESS FOR KONECRANES MOBILE HARBOR CRANES IN SOUTH KOREA South Korean Terminal Operator Pyeongtaek Dangjin Central Terminal Co. Ltd. (PDCT) has put a Konecranes Gottwald Model 4 Mobile Harbor Crane into operation. The new diesel-electric crane handles bulk and general cargo in the terminal, situated around 80km south of Seoul on the west coast of South Korea. For particularly eco-efficient operation, it is equipped with an external power supply to hook up to the terminal’s mains. With this machine, PDCT, a joint venture of the two leading South Korean logistic groups KCTC Co., Ltd (KCTC) and Sebang Co., Ltd. (Sebang), has taken the next step in its long-term business relationship with Konecranes. J. H. Park, Executive Director, PDCT said: “PDCT ordered its first Konecranes Gottwald Mobile Harbor Crane in 1989, and a second one in 1996. KCTC now operates three cranes, and Sebang operates two. “The cranes have significantly contributed to the sustainable growth of the companies’ handling rates. It was logical to also rely on technology from Konecranes in our terminal in Pyeongtaek, where the new machine replaced the first crane that was almost thirty years old.” Giuseppe Di Lisa, Sales & Marketing Director, Mobile Harbor Cranes, Konecranes, is pleased with the positive market development for Konecranes Gottwald Mobile Harbor Cranes in South Korea: “Since summer 2016, three Konecranes Gottwald
Quaymate M50 Mobile Harbor Cranes were delivered to South Korea, and we are now proud to continue our recent success with a Model 4 machine. “With this crane, we further strengthen our market leading position in the country. This success is also due to the excellent relationship between PDCT and our local organisation. The service that we have provided has satisfied the customer and, as a consequence, the recent order will also include a tailor-made service package.” The new crane is a Model 4 Konecranes Gottwald Mobile Harbor Crane. It is a G HMK 4406 variant offering a maximum lifting capacity of 100t and an outreach up to 46m.
CHINA TO BUILD HIGH-SPEED RAIL TO SINGAPORE, VIA LAOS China is giving a steely infrastructural hug to its southeast Asian neighbours, with plans to roll out a massive high-speed rail system to crisscross Laos, Thailand, and Malaysia en route to Singapore. Laos, which currently boasts a humble two miles of functioning railway track, is in for a bit of a shock. The Lao government, the cuddly Lao People’s Revolutionary Party, met with Li Keqiang last year and welcomed the plan with open arms. The Telegraph reports, Laos could be potentially transformed or crippled by the deal: Constructing it will be a mammoth engineering task. It will require 154 bridges and 76 tunnels, as well as 31 train stations, just to get the line the 260 miles from Boten on the Laos-China border to Laos’ capital Vientiane. An estimated 20,000 Chinese workers will be needed to build it, with the completion date set for 2019. Using untapped minerals as collateral, Laos plans to borrow £4.5 billion from Beijing to pay for its section of the railway.
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Equivalent to almost 90 per cent of Laos’s annual GDP of £5.2 billion, the loan will instantly make Laos the world’s fourth most-indebted nation after Japan, Zimbabwe and Greece. Many international financial bodies regard the loan as a disaster waiting to happen. The Asian Development Bank has described it simply as “unaffordable”. Just servicing the yearly interest on the loan will amount to almost 20% of Laos’s annual government spending. In short, the Chinese government will essentially own Laos after the check clears, but with a national product of about 8.5 billion USD, there are several individual Chinese billionaires who could purchase the country in full. The main railways are aimed for completion by 2019, with expansions planned into Burma/Myanmar, Thailand, and Cambodia in the years to come.
MANUFACTURING TECHNOLOGY
Asia Manufacturing News
December 2017
ECOSTRUXURE BUILDING TO
UNLOCK NEW LEVELS OF VALUE Schneider Electric has introduced EcoStruxure Building, an open, collaborative Internet of Things (IoT) platform for smart buildings that delivers significantly enhanced value across the building ecosystem. By utilising the latest in digital technology and solutions, EcoStruxure Building is specifically designed to meet the requirements of building owners, real estate developers, system integrators, facility managers and building occupants. EcoStruxure Building is the latest addition to Schneider Electric’s EcoStruxure, its IoT-enabled, plug-and-play, open architecture, which delivers end-to-end solutions in six domains of expertise – Power, IT, Building, Machine, Plant and Grid – for four end markets, Building, Data Center, Industry and Infrastructure. EcoStruxure is driving digital transformation for Schneider Electric clients globally, enabling them to be competitive in today’s digital economy. With an open architecture, developers, partners and customers can securely interact with and share data via SDK and API. By 2020, nearly 30 percent of devices within buildings will be connected to the internet, providing significant opportunities for efficiency gains. An innovative, agile solution that combines proven building management software with hardware, EcoStruxure Building enables users to gain valuable insights from building data to make building environments smarter, more secure and comfortable and up to 30 percent more efficient. By connecting everything from sensors to services, this comprehensive solution integrates key building systems such as energy, HVAC, lighting, fire safety, security and workplace management to make the most of new opportunities presented by the IoT. EcoStruxure Building is designed to meet the unique needs of today’s businesses with options to deploy on the cloud and/ or on premise and the ability to readily scale from medium to large, multi-site building enterprises. Additionally, EcoStruxure Building is backed by advanced cybersecurity and supports industry standard and IP-based open protocols to facilitate the secure exchange of data and analytics between critical buildings systems from both Schneider Electric and third-party providers. As the world’s population continues to grow at an accelerated rate, global building stock will increase by 13 percent by 2024. This next generation of buildings will continue to be more electric and need to operate smarter and more efficiently to handle increased demand from an ever-expanding occupant base. EcoStruxure Building improves overall cost of ownership with easy access to analytics and reporting through a comprehensive smart building portfolio of offers that includes: • EcoStruxure Building Operation: building management software that integrates system and application data to make building operations easier to monitor, manage and optimize • EcoStruxure Building Operation – Energy Expert: building
management energy module that tracks power consumption, allocates billing costs and conserves energy • EcoStruxure Security Expert: security solution that drives efficiencies by creating secure business environments that unify access control and intrusion detection • EcoStruxure Fire Expert: fire solution that saves time by providing immediate access to fire system data in the cloud • EcoStruxure Building Advisor: continuously monitors building performance, proactively diagnoses issues and provides actionable intelligence that helps improve occupant comfort while lowering energy and maintenance costs up to 30 percent • EcoStruxure Workplace Advisor: optimizes facility usage by better understanding space utilization and making data-driven decisions that maximise real estate value and improve the employee experience • EcoStruxure Apps Studio: application development platform for the creation of sleek, secure mobile applications that ensure comfort by providing occupants with easy access and control of room temperature, lighting, blind controls and other user-related conveniences Boston Scientific, a global developer and manufacturer of medical devices, uses EcoStruxure Building Advisor to quickly pinpoint and troubleshoot operational issues and effectively implement energy efficiency and sustainability measures. Facilities staff leverage critical data from more than 1,000 pieces of equipment to identify and prioritise energy cost saving actions and maintenance. By taking a more informed decision-making approach, Boston Scientific has reduced avoidable costs related to faults by 40 percent, including a 51 percent reduction in energy-related faults as well as a 49 percent reduction in faults causing improper zone conditions. Additional customers that have benefitted from the power of EcoStruxure Building include The Edge – the world’s most sustainable office building – as well as London’s Moorfields Eye Hospital.
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SUBHEADING
www.10thousandtrees.com
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December 2017
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NEW PRODUCTS
AQUEOUS HOT WATER INNOVATION COST-EFFICIENT SOLUTION Australian hot water products innovator AusJ imports is introducing its latest 10L Aqueous MK2 hot water system, designed to domestic, commercial and industrial users with near-instant hot water while saving time, energy, water and frustration. The Australian-design 10L Aqueous Mk 2 – which was a Finalist in Australia’s 2017 Sustainability Awards - reduces wastage of both water and energy by having the heater located under the sink, close to the point of use where it is required for hand and small equipment washing to maintain hygienic production and OH&S practices in businesses including food and beverage, manufacturing and industrial processing. Costing a fraction of some alternative instant hot water solutions - having a RRP of just $350.00 www.ausj.com.au - the Aqueous MK2 comes with Australian WaterMark accreditation, which means that it passed extensive tests and requirements regarding its suitability for safely supplying water for human consumption. It was also chosen from among more than 130 entries to be a Finalist in the recent Sustainability Awards, in the Innovation and Application Category. “Domestic, industrial and commercial building owners throughout Australia, the Asia-Pacific and globally typically waste a lot of time, water and energy when turning on the hot tap and waiting for hot water to arrive from remotely located big tanks, which can be five or more metres away. “This is wasteful of energy and water – not to mention frustrating when users must wait ages to serve up water needed for regular daily tasks such as washing and cooking, said AusJ Managing Director Mr Jay King. Even if turned off for a while the new heaters take only a few minutes to have hot water on tap when people return, says Mr King, whose company has more than 30,000 hot water heaters of different types in use worldwide, including 12v/240-volt types for business and private use, as well as recreational vehicles, boats and holiday homes. The Aqueous Mk 2 can also be used in several mobile and recreational and work vehicle applications.
Simple under-counter mounting of the Aqueous Mk 2, left, and showing mounting brackets, right
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AusJ’s 10L Aqueous MK2 hot water system, which is the latest product in an innovative series proven worldwide for more than a decade. The product has Watermark approval. Innovative features of the Aqueous Mk 2 water heater include: • Durable outer case with service and inspection points • SPCC (high commercial quality) steel and enamel tanks • Single weld line for extended life. Single line welding offers optimum protection for pressure vessels • Inlet/outlet tubes welding inside and out for durability, as well as both being enameled • Polyeurethane insulation for high-efficiency heat retention • Thermal cutout and run-dry protection for safety • Combination pressure relief valve and non-return valve • Incoloy 840 heating element for rapid heating and energy efficiency • Floor or wall-mounted operation • Suitable for under-sink use, as well as caravan, recreational vehicle, horse float, food vans and similar “The Aqueous MK2 can act as a supplementary heater, which ensures that the water that comes out is instantly hot so that there’s no lag time while the main heater kicks in. “Our aim was always to make instantly available hot water at the kitchen sink. Kitchens are an area where hot water is often used, but regularly it’s in small quantities. This means that the lag-time is experienced over and over again, and lots of energy and water becomes wasted. “In addition to householders, It would make a lot of sense for the building, construction and facility management industry to use this sort of technology, which is an inexpensive way to save water and energy. “Other types of instant hot water solutions can cost 10 and 20 times the cost of the Aqueous”. The new Aqueous MK2 builds on the success of the previous model, and now comes with floor or wall mounting for added installation convenience.
Asia Manufacturing News
December 2017
ENERPAC HEAVY TONNAGE CYLINDERS OFFER RUGGED DURABILITY AND SAFETY A new generation of Enerpac high-tonnage cylinders is being introduced to Australia, New Zealand and Paua New Guinea to meet increasing demand for heavier lifts in harsher environments. Enerpac’s new Summit Edition HTC models – in standard capacities from 50-1000 tons - offer outstanding durability, longer service life, and greater side-load resistance for increased heavy lift capability in demanding industries requiring maximum durability, uptime, cost-efficiency and safety. Applications to which Summit Edition cylinders are particularly suited include mining and energy, onshore and offshore oil and gas, construction and infrastructure, bridges and pipeline plant, heavy manufacturing, materials handling, process engineering and maintenance across diverse industries. New HTC engineering incorporated into the cylinders includes advanced bearing and sealing technology to extend the boundaries for eccentric loads, while reducing cylinder maintenance intervals, says Enerpac National Sales Manager Mr Darryl Lange. “The effects of corrosion and scoring are no longer a concern with the Summit ranges because of the cylinders’ black nitrocarburization surface treatment for improved load and wear resistance, plus corrosion protection.” As with the broader range of Enerpac hydraulic and professional bolting technologies, the new cylinders’ rugged durability is complemented by their backing in the field by the national Enerpac sales, service and technical engineering network, which helps avoid downtime, provides optimum use guidance and on-site safety training where required. “Safety has long been a major feature of Enerpac cylinder designs, and these cylinders lift our outstanding safety record further to a new level,” says Mr Lange. Industry-leading safety and durability features of the new cylinders include: • Unique surface treatment results in excellent corrosion
protection and wear resistance • Side-load absorption. Advanced bearing and sealing technology provides side load resistance up to 10 per cent • Robust cylinder design results in long service life • Mechanical securing of the load • Certified lifting eyes for safe handling • An overflow port and safety valve • And a collar thread and base mounting holes for securely attaching the load Summit Edition cylinders are also highly compatible with Enerpac’s PLC-controlled synchronous lifting systems, which simultaneously control multiple cylinders used to precisely lift, shift, balance and position structures sometimes weighting many thousands of tons. In addition to the standard range of lifting capacities, individual HTC cylinders can be custom-manufactured to capacities exceeding 1000 tons. With longer service life, reduced maintenance, and greater side-load resistance, users can confidently take on the most demanding heavy lift applications. Summit Edition HTC cylinders are complemented by Enerpac pumping solutions proven throughout Australasia for applications prioritising speed, control, intermittent or heavy duty. Pumping solutions include P series Hand Pumps, XC series Cordless Pumps, XA series Air Driven pumps, ZU4 series portable electric pumps, ZE series Electric Pumps and SFP series Split Flow pumps. Performance of Summit Edition cylinders can be further enhanced by the use of the latest Venturi Valve Technology with ZE and ZU pumps. Return Assisted Electric Pumps with Venturi Valve Technology provide faster retraction speed and improve the productivity of single-acting cylinders,
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WILLIE TAN, FARO TECHNOLOGIES
Are your recent released products finding favor with the market? And why? Two of FARO’s most recently launched products — FARO QuantumS FaroArm and FARO FocusS 70 — have found favor in the various markets they serve, and this is largely due to how our solutions are designed with users in mind. In fact, our research and development (R&D) efforts are directed by the customer feedback that we receive, so that our products meet real, felt needs – as experienced by our customers. This way, customers help to shape the improvements that we make on our products, and R&D continues to take place regardless of how the economy is doing. The QuantumS extends FARO leadership in value and performance in the manufacturing inspection process, through offering best-in-class performance and durability, enhanced ergonomics, and extreme portability in a FaroArm. On the other hand, the FocusS 70 delivers industrial grade performance with an exceptional price/performance ratio, providing users with features and benefits they need the most
in a laser scanner. These include Ingress Protection (IP) Rating of 54 for use in high particulate and wet weather conditions, HDR imaging, extended temperature range, and unrestricted freedom of choice in the accompanying processing software solutions.
Within ASEAN, where are the new markets for FARO? E.g. Are Vietnam and Bangladesh responsive to your products? Generally, the ASEAN countries are still in development stage, so they are experiencing good growth. The various markets are responsive, and they are all part of FARO’s strategy for Asia. The only thing is that the different countries have varying levels of technology adoption, and that dictates the actual speed of market penetration.
In your opinion what are the growth industries to watch in the future?
As various countries continue to improve and modernize their infrastructure, we believe the construction-related and heavy machinery industries would be the ones to watch in the near term.
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ENERGY
Most homes already have half of a miniaturised power plant.
THE POWER PLANT OF THE FUTURE
IS IN YOUR HOME
The price of solar power has fallen dramatically in the past four decades. This wonderful development has empowered individuals to install solar panels in their homes and produce their own energy. Individuals with home solar have become more independent and can avoid potential increases in electricity bills from utilities. Moreover, it allows homeowners to better control and reduce their greenhouse gas footprint. The cost of batteries is also falling, driven by economies of scale and technology improvements for rechargeable lithium-ion batteries. These are now used in everything, including our laptops and smartphones. With a large bank of batteries, homeowners can also store excess electricity generated by their solar panels during the day and draw from the batteries during the night. In the future, wide deployment of electric cars can also add battery capacity to our homes. All this enables individuals to use more of their own solar electricity and less from the grid.
Independence from the electricity grid is hard to achieve There are, however, seasonal variations in the supply of wind and solar energy. For example, in winter months, there’s very little sunlight even in the daytime. The sky can be blocked by clouds and solar panels covered by snow. These subpar conditions can last for months. There is no battery technology today that can economically store enough electricity for weeks of blackouts, let alone months. Most homeowners with solar panels still need to tap into the electricity grid, since the sun’s light is not available 24/7 and batteries have finite capacities. Full independence from the grid is still very hard to achieve. Utilities are pushing back too. Many utilities advocate that everyone must share financial responsibility for the maintenance and upgrade of the centralised power and electrical grid infrastructure, even for homes who have self-production capacity. Some are implementing an access charge for users who have on-site generation if they still need to tap into the grid. But are there new technologies that can disrupt this picture?
Scaling down power plants Over the past century, more than 80% of electricity on Earth has been generated in central power plants and this is still true today. These power plants are huge with some providing power for around a million homes. But a single power plant can cost billions of dollars. They burn coal, natural gas, oil or nuclear fuel to generate heat which runs a mechanical turbine and alternator to induce electricity. That electrical power needs to be distributed across hundreds of miles to the end user, requiring expensive transmission infrastructure and causing losses to efficiency.
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In addition, power plants which use fossil fuels contribute to climate change. These traditional power plants do have one critical advantage though. Unlike new renewables, they can produce power at all times and this ability to produce on-demand electricity can complement solar-powered plants. Individuals who wish to be independent from the grid will need a complement to their home solar panels too. So, is it possible to scale down a power plant to the size of a home?
Efficient small generators are coming As it turns out, most homes already have half of a miniaturised power plant. Electricity is just a part of our daily energy consumption - we also need heat to keep us warm. We need thermal energy to heat our homes, hot water and food. There are 100 million gas boilers installed in European homes. Now, technologies are becoming available to complete the rest of the miniaturised power plant. This is called micro-combined heat and power (CHP). Micro-CHP generates both electricity and heat simultaneously at the size of a home. The heat meets the demand for space heating and hot water, while the electricity provides power for home appliances. How does it work? Let’s first look at the current status quo. Right now, your boiler burns natural gas at incredibly high temperatures approaching 2,000°C. However, you only need hot water and space heating at ~50°C. At the moment, a gas boiler just lets the heat degrade and cool down, throwing away most of the useful energy content. In comparison, in micro-CHP, that huge temperature difference is used to generate electricity in addition to heat. Micro-CHP can attain overall efficiencies of 90% by generating both electricity and heat on demand and at the location where both are needed and valuable. This contrasts with central power plants, which produce electricity at 35% efficiency. At these plants, the waste heat is usually thrown away, since the heat can’t be transported hundreds of miles to where it is needed. The higher efficiency of micro-CHP can help cut
December 2017
homeowners’ energy bills by 30% and reduces their carbon footprint. Some micro-CHP technologies use mechanical engines, such as internal combustion engines or Stirling engines. They reach good efficiencies only at larger sizes, so are more suitable for large apartment complexes or commercial buildings. Today, newer technologies such as fuel cells and thermionic energy converters can reach high efficiencies even at the scale of a single home. This allows micro-CHP to be available to individual consumers and homeowners. Furthermore, these new technologies have no moving parts and thus have far lower maintenance requirements and no sound pollution making them more amenable to a residence. Finally, this set-up gives individuals the option of producing power on demand, thus complementing home solar power and storage.
A future of distributed generation The benefits of a system of solar, batteries and efficient small generators go beyond being greener and saving energy bills. One recent sad example remains unresolved. A month after Hurricane Maria hit Puerto Rico, with 3.4 million people, 80% of the island still has no electricity. This tragedy shows the fragility of traditional centralised power generation and transmission. The future can be different. By keeping power sources close to the end user, power is less likely to disappear when a tree falls on a power line. Solar, batteries and small generators can form a microgrid that improves the resilience of our energy systems. Being able to go small matters. Together, these technologies enable distributed generation, even at the level of individual homes. This can be critical for the developing world, where billions of people still don’t have access to reliable power. With these technologies, society can leapfrog the need to spend trillions of dollars on infrastructure for central power generation and transmission. This can help us to deliver power to all people faster.
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MANUFACTURING TECHNOLOGY
ARTIFICIAL INTELLIGENCE IS NOW AN ARMS RACE. WHAT IF THE BAD GUYS WIN? Unless you’ve had your head in the sand over the past few years, you’ll have heard about the unprecedented — and largely unexpected — advancement in Artificial Intelligence (AI). Perhaps the most public example of this was when Google’s company DeepMind used an AI called AlphaGo to beat one of the world’s top Go players in 2016. But that’s far from the only instance of AI breaking new ground. Today, it plays a role in voice recognition software — Siri, Alexa, Cortana and Google Assistant. It’s helping retailers predict what we want to buy. It’s even organising our email accounts by sorting the messages we want to see from those we don’t. Meanwhile, in the world of business, machine learning – an element of AI that focuses on algorithms that can learn from, and make predictions based on data – is pushing the boundaries of what computers can do. As a result, we’re seeing solutions such as Robotic Process Automation (RPA) and big data, driving efficiencies and boosting profits. Overall, AI is doing a fantastic job at transforming the world for the better.
The dangers inherent in AI But what about the other side of the coin? What negative impact could AI have? It’s clear that AI – like any technology – could be used for corrupt means. Adversarial AI (where inputs can be carefully crafted to trick AI systems into misclassifying data) has already been demonstrated. It could, for example, make an AI vision system that recognises a red traffic light, perceive a green one instead – which could have disastrous ramifications for an autonomous vehicle. The Adversarial AI scenario is an example of AI getting hacked. But let’s take it further; what if we have AI itself doing the hacking? That’s not a worst-case scenario – it’s a likelihood. Cyber criminals are all but sure to get their hands on AI tools, thanks to the fact that they’re widely available as open software already. OpenAI and Onyx, are two that immediately come to mind. This highlights the need to ensure that AI systems – particularly those used in mission-critical settings – are resilient to such attacks.
A digital arms race We’re left with a situation where the security industry and the cyber criminals (be they organised, state-sponsored or simply lone hackers) are engaged in an escalating arms race. So-called black hats are developing AI to break into systems and cause havoc. While the white hats are researching ways in which an AI can defend networks against its own kind. Here’s where we get to the moral question: should we be using AI for these means? As a technology, we’re only beginning to understand its potential. Theoretically, AI could grow so intelligent that it becomes something completely beyond our control. That thought makes the idea of an AI arms race sound particularly dangerous. Thankfully, intelligent people — Elon Musk and Stephen Hawking included — are thinking carefully
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Robot wars ... no one is safe in a world where AI can hack itself about this topic, and I’m confident that they’ll come up with the necessary safeguards. Plus, companies such as Google and Microsoft have already stated that they feel the opportunities outweigh the risks. Those opportunities are worth noting. There’s already an abundance of positive developments associated with AI and cybersecurity. AI, for example, can be used to augment (rather than replace) humans in the security space — improving predictive threat monitoring, dynamic response to cyber attacks, secure software development and security training. All tools and processes that will help the white hats get a step ahead.
Asia Manufacturing News
December 2017
DRONES DETECT HUMAN VITAL SIGNS FROM AFAR
Drone technology is being developed to detect vital signs of life in humans stranded in war zones or isolated and injured by natural disasters. Researchers from the University of South Australia have successfully trialled the use of drones to remotely measure heart and breathing rates using advanced image-processing systems. The algorithm created by UniSA PhD students, Ali Al-Naji (pictured), and Asanka Perera, enables the drones to detect vital signs in several people at once, even while they are moving. Other possible applications include monitoring the vital signs of residents in nursing homes or in areas prone to human infection such as neonatal wards.
The technology is yet to be exposed to possible investors, but peripheral conversations with interested parties have shown immense potential. “Digital technology like this – one good conversation with an industry partner who has an idea and we could be seeing this come to life in months. The barriers are very low,” Professor Chahl said.
University of South Australia PhD student Ali Al-Naji with his drone technology. Project supervisor Sensory Systems Professor Javaan Chahl said the breakthrough drone system detected movements in human faces and necks in order to accurately source heart and breathing rates. He said while the drones took measurements from a distance of three metres in recent trials, the technology could be advanced to take the readings from much further away. “The drone actually has a stabilised commercial go-pro attached to it. Using image processing on the video footage, Ali [the PhD student researcher] was able to extract the heart rate and breathing rate of the person without any difficulty,” he said. “The drone will single each person out automatically and provide a trace for each individual as to where their heart rate and breathing rate is. “We’ve also used telephoto optics to look out over 50 metres and we will expand this to 500 metres in the near future using a telescope.” Professor Chahl said using drones was necessary in environments that were unsafe or inaccessible to humans such as war zones and areas devastated by natural disaster. “There are scenarios when maybe a drone is the only thing that can get there,” he said. “A lot of environments are hostile so a drone is the safest option – places like the ocean require drones in order to gain access to people in trouble quickly and safely. “There’s also situations in clinical settings where you wouldn’t really think it’s worth having electrodes and instruments to monitor patients, but if you can just have a camera do it, you may be able to put instrumentation where you wouldn’t normally put it.” Professor Chahl said the research began as a response to increased infection rates in countries where electrodes were being used to detect vital signs in neonatal babies. The research, published in the latest issue of Biomedical Engineering Online, was been conducted over three years using 15 healthy humans aged between two and 40.
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MANUFACTURING TECHNOLOGY
FOCUSS 70 LASER SCANNER EXTENDS PORTFOLIO The FARO FocusS 70 is a high accuracy, short range scanner specifically designed for architecture, engineering, construction, product design and public safety-forensics professionals. Similar to the FARO FocusM 70 introduced into the award winning FARO Focus Laser Scanner portfolio in January 2017, the FocusS70 delivers industrial grade performance with an exceptional price/performance ratio. This includes an Ingress Protection (IP) Rating of 54 for use in high particulate and wet weather conditions, HDR imaging and extended temperature range. Additionally, users will continue to have unrestricted freedom of choice to leverage the software tools most beneficial to their own workflow, including FARO SCENE and 3rd party software solutions such as Autodesk ReCap. The FARO FocusS 70 also delivers a set of incremental, value-added functionality that makes it a perfect fit for those applications that require the short range scanning power of the FocusM 70, the next level accuracy of the FocusS 150 or FocusS 350 and the unique power of real time, on-site registration.
Short Range with Best in Class Accuracy: • Designed for both indoor and outdoor applications that require scanning up to 70 meters and with accuracy of +/1mm More Data Captured Faster: • Delivers acquisition speed of almost 1,000,000 points per second Improved Productivity and Confidence: • Supports the real time, on-site registration functionality recently announced by FARO with the introduction the SCENE 7.0 software suite This high value functionality enables the 3D scan data, whether it be from a single scan or multiple scans in process simultaneously, to be wirelessly transmitted (i.e., no SD cards needed) directly to an onsite computer workstation/PC in real time.
FULL-STRENGTH METAL 3D PRINTED PARTS GO MAINSTREAM Tauranga-based Rapid Advanced Manufacturing (RAM3D) is a hi-tech manufacturing company producing full-strength metal 3D printed products. RAM3D is recognised globally as a world-class 3D metals printing facility where production parts and prototypes are easily, efficiently and cost effectively produced. Warwick Downing, the CEO of RAM3D has been involved since 2008 with the decision by BoP Dental company, Triodent to invest in the technology. . “We have always been a pioneer in the 3D printing industry. We had one of the first 3D metal printing machines in the southern hemisphere. In those days, the software and laser tools were basic, but technology has advanced very quickly since 2013 which is when RAM3D was set up”, said Downing. “3D printing is now a recognized mainstream method to produce end-use parts as well as prototypes, and with the right design can be very cost competitive”, he said. “In a recent project where replacement parts for a manufacturing process were required, RAM3D not only delivered the parts in a shorter period but the parts worked out cheaper to 3D print than having them machined”. RAM3D have broad capabilities. They print in Titanium 6-4 (Ti 6AI 4V), the most common titanium alloy used for medical and aerospace applications. They can also print in a high strength food grade 15-5Ph Stainless Steel For the defence sector RAM3D prints in Inconel 718, which is a nickel super alloy used for high temperature applications such as firearm suppressors. In the last month RAM3D has added Stainless Steel 316 to their material list as requested by numerous clients in the food sector, marine and dairy industries. RAM3D supply production parts to a very broad and diverse industry base, ranging from aboriculture, aerospace, medical, defence, general industrial, marine and many more. They supplied high-strength light-weight titanium boat parts for Emirates Team NZ in the 2017 America’s Cup race, and also make the titanium connection lugs for high-end Australian custom bikemaker Bastion Cycles.
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Suppressors for Oceania Defence
Titanium lug for RAM3D bike designed and built by Bastion Cycles
Asia Manufacturing News
December 2017
MICROCHIP MPLAB ICD 4 WITH FASTER PROCESSOR AND INCREASED RAM RS Components (RS), the trading brand of Electrocomponents plc, the global distributor for engineers, has announced the new MPLAB ICD 4 in-circuit debugger from Microchip. The MPLAB ICD 4 is an In-Circuit programming and Debugging (ICD) development tool for PIC microcontrollers, including the latest PIC32C MCUs, and Microchip’s portfolio of dsPIC digital signal controllers, via the MPLAB X Integrated Development Environment (IDE). This latest version of the MPLAB ICD includes not only all the features of the ICD 3 debugger, including support for all the headers of the ICD 3, but also delivers enhanced capabilities such as higher speed via a faster processor and increased RAM. The MPLAB ICD 4’s significant improvement in speed is accomplished through a 32-bit MCU running at 300 MHz. Faster processing, together with an increased buffer memory of 2 MB, results in a product that is up to twice as fast as its predecessor. The MPLAB ICD 4 is housed in a durable black case that is shaped like an ice-hockey-puck. The case has a brushed
aluminium top that also includes an LED light strip to show the device’s debugging status. Major features of the new ICD 4 include: a wide target voltage range, from 1.2 to 5.5V; an optional 1A external power supply; a selectable pull up/pull down option to the target interface; data-integrity check; programmable adjustment of debugging speed for optimised programming; and JTAG debugging capability. In addition to the MPLAB ICD 4 in-circuit debugger module, the kit includes a USB cable, a 6-inch RJ-11 modular cable and an interface test module. The MPLAB ICD is connected to a PC via a high-speed USB 3.0-compatible interface and to the target via the RJ-11 connector, which is also compatible with the MPLAB ICD 3 and the MPLAB REAL ICE systems. Supporting Windows, OSX and Linux operating systems, the MPLAB X IDE has a powerful and easy-to-use graphical user interface, simplifying designs for customers when they migrate from one PIC microcontroller to another. The Microchip MPLAB ICD 4 in-circuit debugger is shipping now from RS in the EMEA and Asia Pacific regions.
IMAGR SECURES INVESTMENT TO ROLL OUT SHOPPER EXPERIENCES Shoppers around the world are one step closer to experiencing artificial intelligence in action when they fill up their supermarket carts following a private investor’s buy-in to a leading AI start-up in the Southern Hemisphere. IMAGR, an AI company from New Zealand, has secured Sage Technologies Ltd as a cornerstone investor. The investment is a significant commitment to accelerate the development of IMAGR’s retail product, SMARTCART. SMARTCART is an image recognition retrofit solution designed to eliminate the queues at checkouts and is set to revolutionise the shopping experience for consumers and retailers. IMAGR founder, William Chomley (28), who founded the company in Sydney, Australia in 2015, before returning to his home country to set up the business in Auckland 12 months ago, says the new partnership will fast-track the company’s product developments. “We’re passionate about delivering the world’s best consumer experiences through image processing and artificial intelligence. Our goal is to give retailers innovative solutions for efficiency, and with the support of Sage Technologies, we are now able to progress much more quickly towards rolling out our product range on an international scale,” says Chomley. Working in real-time using computer vision technology, SMARTCART recognises products as they enter a supermarket cart – removing the need for traditional barcode scanning and the checkout process. To activate, a customer downloads the app for the store they visit and sets up their payment method. While in store, shoppers pair their smartphone with the shopping cart and as they add items to the cart the items appear on their phone’s virtual basket. IMAGR came to the attention of Sage Technologies Ltd, the technology venture of private investment company Quantres
founder Harald McPike, just four months ago. IMAGR welcomes fellow New Zealander Michael Boocher, Head of Investment Strategy at Sage Technologies, based out of Dubai, to its board as a director. “IMAGR’s SMARTCART promises to provide a truly friction-less retail experience, and while our connection to technology is often cited as being responsible for increased isolationism, there are some interactions we can live without,” says Boocher. “We’re excited to work with William and his team in IMAGR’s next phase of growth, offering product innovation and enhanced in-store user-experiences with the development of the SMARTCART.” IMAGR is already in talks with top FMCG retailers in New Zealand, Australia, the United Kingdom, Europe and America about using SMARTCART to enhance everyday experiences and will move into the testing phase (beta) in April 2018. The goal; to achieve a 100 percent user-adoption at three of the world’s leading retailers by 2022. For retailers, SMARTCART will help with inventory management, cost reduction, analytics and opportunities for direct customer advertising through the app. “For those looking for inspiration for what to make for dinner, the SMARTCART experience doesn’t just stop there. We’re also developing a helpful app which will recommend recipes in line with what products are being put in the cart and guide shoppers to specific products around the store. It will also identify personalised promotions to in-store customers,” adds Chomley. “We are excited to lead the way using computer vision technology and artificial intelligence to create new shopper experiences which will become more and more integrated with our everyday lives.
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DEVELOPMENTS
TECHNOLOGY INNOVATIONS AND INDIA OPPORTUNITY The Turing Test, a measure of determining whether a machine could demonstrate human intelligence, formed the premise of Alex Garland’s spooky thriller Ex Machina. In the real world perhaps we are not too far away from an Ex Machina style future. We may argue whether humanity is ready for it or not, but progress in AI and other technologies of the future is unstoppable. One proof of this unstoppable progress is the capital deployed by investors and big corporations. Google, for example, has invested more than $540 Million in AR firm Magic Leap. Then there is Facebook which paid a whopping $2 Billion to acquire VR company Oculus at a fairly early stage. In fact, start-ups are racing to leverage these technologies and investors are racing to find and fund such start-ups. Globally over 550 start-ups, with AI as core, have raised more than $5B in 2016 alone. The number of deals increased from 160 in 2012 to 658 in 2016. Between 2012 and 2016 the total investments in AI based start-ups stood at approximately $12.5B. India ranked 4th with just 3.5% of that total investment
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Vani Kola Influencer behind US (61.7%), UK (6.5%) and Israel (4.3%). For 2017, global financing for AI start-ups is projected to surpass $10.8 billion — nearly double the $5.6 billion spent in 2016.
Asia Manufacturing News
Similarly, globally AR/VR start-ups raised more than $2.6B in 2016 alone. The number of deals increased from 23 in 2012 to an estimated 152 in 2016. Total investments in AR/VR start-ups stood at approximately $4.5B. Industrial IoT saw an investment of $2.2B in just 2016 across 321 deals. $6.7B invested in this sector between 2012 and 2016. Smarter Enterprises Artificial Intelligence is finding applications in many sectors such as Healthcare, LegalTech, Cyber Security, FinTech etc. Healthcare is one of the first and more popular areas of both AI and AR/VR applications. AI in healthcare dominates all other industrial applications of AI. Start-ups are using Machine Learning to reduce drug discovery time, improve diagnosis, and provide virtual assistance to patients. No wonder then AI in healthcare attracted $1.8B in funding since 2012 globally. Similarly, IoT is transforming traditional sectors such as logistics and manufacturing. IoT is also solving problems in Healthcare by improving patient monitoring and in-Home Automation by allowing people to communicate with smart appliances.
Challenges In hindsight the power of internet seems very obvious now but in mid 1990s one would be hard pressed to consider internet a core technology, let alone as something that could contribute more than $1 trillion in GDP in the US alone. In the same way I believe AI, IoT and other emerging technologies such as blockchain have the power to revolutionise the way we lead our lives. But, just as Internet found some not so favourable applications such as proliferation of pornography and making classified and confidential information vulnerable to cyber-attacks, we will discover that these emerging technologies will also pose challenges. From Bill Gates to Elon Musk to Stephen Hawking; many have called foul of AI. Elon Musk called AI an “Existential Threat” which will lead to WW3 and even went as far as saying that
December 2017
in homes of unsuspecting viewers got triggered and ended up placing orders for the doll houses as well.
Way Forward It is difficult to envision what the challenges will be. But, we can begin to understand the other side of these technological advancements by enabling more inter-disciplinary exchange of ideas. In fact, this is nothing new; at the time of Industrial Revolution the constant exchange of ideas between the sociologists, the politicians, the economists, and the industrialists made it possible for millions of people to acquire new skills and gain higher paying jobs as opposed them becoming obsolete. We are undergoing a technological revolution and we need to look to the broader group of people in guiding humanity to use these technologies for the greater good.
India Opportunity As our ecosystem matures we need to move from a ‘knowledge economy to innovation economy’. For instance, according to a recent PwC report, AI alone is expected to contribute an additional $15.7 trillion to the global GDP by 2030. Take Blockchain start-ups and cryptocurrencies for example, the total value of cryptocurrencies reached a whopping $179 Billion. According to Coindesk, global VCs poured almost $1.9B into blockchain start-ups with countries such as Israel, Russia, and the US leading the way. So, where are we in all of this? As I see it, India stands at a crossroads. It can either choose to build iterative start-ups — an Indian version of a global company — or it can build innovative companies and make itself relevant in global innovation economy. Time and again, Indian entrepreneurs have stepped up to the challenge and delivered. We are undoubtedly seeing the next generation entrepreneurs solving quintessentially Indian problems but with cutting edge technology. Few of our own companies such as Vernacular. ai, Active.ai, and Embibe are doing so. So are Niki.ai, Sigtuple, and Mad Street Den. The continued success of Indian ecosystem depends on many efforts coming together. It needs a constant pipeline of great founders with great ideas. It requires grants and support from the governments and the universities. It also requires that corporations invest in research houses and encourage intrapreneurship. We need all these to come together for India to leapfrog. I am very optimistic about the future of our ecosystem. When I look forward, our country is poised to becoming the 3rd largest economy in the world in less than a decade. This can only mean one thing — that our start-up ecosystem must gear up to fully tap this massive opportunity.
“AI is more dangerous than North Korea”. Stephen Hawking warned
“in the future AI could develop a will of its own that is in conflict with ours” and cautioned against making unchecked advances in AI. These technologies are still nascent and are in their infancy. For example, we’ve all heard the unfortunate story of Microsoft’s Twitter chatbot unwittingly spewing anti-feminist rhetoric. My personal favourite is when a news reader reported a six year old girl ordering a doll house using Alexa Alexa devices
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ASIA MANUFACTURING NEWS • FEBRUARY 2014
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