AMNYTT Nr 1 - 2013 | Page 34

ARC Rapport 34 / 106 AMNYTT #1 ARC Insights, Page 2 For 2013, the VDMA again expects growth of around 4 percent. The bad news for automation suppliers is the sharp decrease in capacity utilization. While suppliers profited in the past (except 2009) from automation investments by the machine builders due to high capacity utilization rates of over 85 percent, that trend is now down sharply. At the end of 2012, the rate is expected to drop below the critical limit of 80 percent, and the slow growth expected for 2013 will not be enough to push it back to the high levels of 2011 and early 2012. Industry 4.0: The Latest Steam Engine? “Industry 4.0” is a compelling, but not well-understood term that has been tossed around recently. As the fourth stage of industrial development after the invention of the steam engine, mass production, and industrial automation, Industry 4.0 describes the merger of physical and virtual worlds in which raw materials and related information permeate manufacturing Automation suppliers see Industry 4.0 as a roadmap for the development of future information-enabled products. Some are using it to explain to customers how their products and solutions can help create the manufacturing processes of the future. processes; accompanying products through each step of their respective lifecycles. Industry 4.0 relates to the equally compelling, but also not wellunderstood term, “Internet of Things.” Visionary automation suppliers see Industry 4.0 as a roadmap for developing future informationenabled products. Some use it to explain to customers how their products and solutions can help create the manufacturing processes of the future. The idea is that materials will carry information about how they want to be manufactured and inform each process along the way what is to be done (“Robot: please paint me red!”). Although RFID tags have been doing this for decades, future tags will handle much more information (think “big data”) and this information will be more tightly integrated into a product’s entire lifecycle rather than just a few processes. However, while these discussions suggest a revolution, only evolutionary steps are likely to move the industry in this direction. Hardware Returns to the Spotlight Software may be the driver of Industry 4.0, but industry needs fast and reliable hardware to support this lofty vision. This year, hardware returned to the forefront, thanks to Siemens’ announcement of the first major upgrade to its 16-year-old SIMATIC S7 platform. The S7-1500 is a whole new con- ©2012 • ARC • 3 Allied Drive • Dedham, MA 02026 USA • 781-471-1000 • ARCweb.com 2013