I’ve recently returned from the ARC Forum, which took place Feb. 8 to 11 in Orlando, Fla., where about 500 industry pundits gathered to discuss the future of our industry and what trends are likely to have the biggest impact on the automation industry.This was my first time at the event, and though the information exchanged was interesting, I did not find the majority of the presentations to be forward looking — there were exceptions, and they made the trip worthwhile, but most of the material consisted of how today’s technology was being used to solve typical plant challenges such as energy management, cyber security, lifecycle management, wireless and DCS migration, coincidentally all areas in which ARC conducts industry research reports. One of the benefits of this coincidence is that each session as started by a summary of ARC’s research by their analysts on that particular topic. In some cases, with four tracks running in parallel, it would have been nice to be in two places at once.
The press announcements were on Monday afternoon (Feb. 8) and early Tuesday morning (Feb. 9) before the full conference and sessions started. The common theme at this year’s event for all the press releases was ‘Energy Management’ and ‘Open Standards as a basis for Enterprise Integration’ mindful of the associated oversight and responsibility.
• Bentley Systems announced a pair of acquisitions to enable them to move more into the enterprise integration space
• Yokogawa promoted their entry into the Service Solutions business (no surprise as all their competitors are here and it is the largest revenue growth area for integrated automation equipment suppliers)
• Invensys released version 2.0 of their Infusion Enterprise Control System, a very interesting flexible object based architecture where for all intents and purposes anything can connect to anything and the system manages the potential associated exponential growth in connections. One thing that may be driving the need for all this connectivity with the enterprise is a recent SEC ruling that companies will now need to report ‘energy opportunities’ as part of their annual filing.
The conference started with a couple interesting presentations from U.S. Homeland Security and Proctor & Gamble. Interesting titbit from the P&G talk: “There is an inverse relationship between cost per use (i.e. how many we make per day) and the complexity of the machine required to make the product,” and Pampers machines were used as the example. The opening session was followed by a disappointing panel discussion — a low-impact way to start an event like this since the most vocal participants on the panel used the venue as a means to promote their company. I was not alone in leaving early.
Mike Anderson of DOW, during his presentation, shared that managing unplanned events typically provides a two-time return on investment.
There were several interesting items pulled from the in plant mobility session with the presentations by Boeing and Chevron. Steve Venema shared his work on Boeing’s ‘Virtual Enclave’ and how they connect a number of pieces of equipment on the same Layer 2 network. The key components of what makes this work have been incorporated into IETF RFC’s 5201 through 5207 as well as the Open HIP organisation. Chevron, who has been using roving interfaces for five-plus years now, has identified that it’s saving $3- to $5 million per year from their investment, predominantly in pump vibration data analysis. The two key ‘take-aways’ from Chevron’s Raj Patel and Eric Rearwin was:
1) “greater than 50 percent of refinery assets are not instrumented,’ and
2) “any data collected must be actionable; if you are not going to analyse what you collect, do not collect it.’
The most exciting presentations of the conference were saved for the end of the day Wednesday (Feb 10). Chevron’s Kevyn Renner’s presentation on RAVE (Real Asset Virtualization Environment) was captivating as he shared how Web 2.0 technologies can and are being used to bring people together virtually to analyse and solve problems by using the best people in the company to meet in the virtual world to discuss and solve problems. This was followed by a Dennis Inverso of Dupont sharing the methods that they use to save millions of dollars per year with their ‘Value Accelerator’ program. There are great tools here that are likely applicable to projects of any size.
The ARC Forum also often invites other groups to co-host their meeting with them to encourage the cross-fertilization of ideas between different components of the automation industry. One such group resulted in Thursday morning’s (Feb. 11) Performance Based Outsourcing Program where University of Tennessee faculty member Kate Vitasek shared the results of their study on outsourcing (also the launch of her new book the week before) on a method to obtain win-win outcomes in outsourcing. The basic ‘rules’ for vested outsourcing can be found at www.vestedoutsourcing.com/consulting/tools — and with all the outsourcing being done today, the results of this research are worth investigating.
Ian Verhappen, P.Eng., is an ISA Fellow, ISA Certified Automation Professional and a recognized authority on Foundation Fieldbus and industrial communications technologies. Feedback is always welcome via e-mail at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
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Columnbus
February 24, 2010
Industrial PC market driven by technological possibilities
The market for Industrial PCs is driven by an increasing rate of technological advancements in hardware and software. This includes the Atom processor, increased computing power, increased ruggedness, and also failsafe industrial PCs. The market had enjoyed high growth rates until the economic crisis. The industrial PC market structure is fragmented, with no dominant player on a regional or global level. While industrial PC technology itself has matured, new applications and requirements will enable differentiation through hardware and software.“In 2009, the market dropped by 19 percent. Even though the recovery will start quickly, the level of the boom year 2008 will not be reached again until 2012. A major factor dampening the recovery is the constant drop in prices that is driven by user demand and a drop in intermediate good prices,” according to Analyst Florian Güldner, the principal author of ARC’s “Industrial PCs Worldwide Outlook”.
Industrial PC market will remain competitive and fragmented
The market for industrial PCs remains fragmented, the companies above two percent market share represent only 62 percent of the market. In addition to industrial PC product specialists such as Stahl HMI, the market includes focused automation suppliers like Phoenix Contact, full line automation suppliers like Siemens and Rockwell Automation, and PC-based automation suppliers like Beckhoff and B&R. Furthermore, PC specialists like Advantech and Kontron plus hundreds of Taiwanese companies supply industrial PC products either directly to the market or to other industrial PC suppliers.
One of the most important topics discussed in the market is the build vs. buy decision. Depth of production varies greatly between suppliers. Many companies use boards from Taiwan in their industrial PCs or brand label industrial PCs.
The Atom processer will boost business
Various trends within the industrial PC market will affect future growth but Intel’s Atom processor will have the most influence. The Atom processor provides up to 2 GHz with low thermal design power. This offers various possibilities to end users and machine builders. First, the low-cost, low-power Atom enables low-CPU power industrial PCs at a low price and with low energy consumption and low heat. Size-independent computing power also makes new form factors possible such as flatter panel PCs that are more easily integrated into machines and small wide screen panel PCs.
www.arcweb.com
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